By Emily Miller
Travel insurance can minimize the considerable financial risks of traveling – including missed flights, lost baggage, illness, emergency evacuation, theft, canceled tours and numerous other scenarios.
Each traveler’s potential lose varies, depending on the cost of the trip, the refundability of travel expenses, traveler’s health status, value of luggage, and numerous other circumstances.
For some travelers, insurance may be a good deal as they have a lot to lose if something were to happen. For others, the cost of insurance compared to the cost of the trip isn’t worth it.
Ask yourself the following questions before purchasing travel insurance to better assess your needs:
· Does your travel cost out-weight the cost of insurance?
· What do you want to protect?
· What are the chances you’ll need to use it?
· How open are you to taking risks?
· Is it worth your peace-of-mind?
Once you have answered the above questions and you still feel the need to acquire insurance, do your research and make sure you know the ins and outs of travel insurance.
For starters, travel insurance encompasses five main categories:
· Medical emergencies
· Evacuations
· Lost or damaged baggage
· Trip Cancellation and interruption
· Flight insurance
Rather than selecting each option you would like, policies are generally sold as a package deal that includes most or all of the options. However, policy additions can be purchased to include other necessities – such as identity theft.
Comprehensive coverage – much like auto insurance – covers all of the above plus expenses that you may incur if your trip has been delayed, if you missed your flight, or a tour has been cancelled.
It is also recommended to first check what is already covered by your homeowners insurance policy before purchasing a travel insurance policy. Home policies often include insurance for personal possessions when away from home, so you can opt out of having baggage cover and save money. Your credit card company may also offer some sort of travel insurance, but make sure to check what it exactly covered before leaving for your trip.
