Travel insurance is an insurance policy that covers loss and damage during travel. Travel insurance provides protection for domestic and international travel. In the past, people avoided travel insurance, but this number is expected to increase during the COVID-19 period.
What is travel insurance?
Tour and travel companies offer travel insurance as an option when selling travel packages to customers. It’s not mandatory, but many people like to travel. The reason behind this is simple. This saves you from some of the hassles you may encounter while traveling. Travel insurance covers medical expenses if you cancel your trip, lose your luggage, get into an accident or become ill while traveling. It provides 24/7 service during your journey. So, buying travel insurance will help you when you are traveling.
Let’s discuss what type of travel insurance you need when you travel.
What type of travel insurance do you need?
1. Trip Cancellation Coverage
Flight cancellation insurance is essential when you book flights in advance. You don’t know the future. Things can change quickly. Anything can happen before the trip. You’ve booked a tour package months in advance and either you fall ill or a family member dies shortly before your trip. Then we can’t go on tour.
There may be weather related issues. A tornado warning has been issued for the area through which you will travel by mistake. So you have to delay your flight. Something may happen in your work. There may be some conflicts in your work before the trip. This will cancel the trip. In case of any unexpected situation, it is better to buy travel insurance. Most travel packages are non-refundable, so you get your money back.
For example, you paid $4,500 for a travel package. The tour operator will refund the $2,500. Balances are non-refundable. So, if you have travel insurance, it covers a non-refundable $1,500. Travel insurance only covers the non-refundable amount, so you don’t need to cover the entire package.
2. Luggage and personal belongings cover
This type of travel insurance protects you if your luggage is lost, stolen or damaged. The insurance policy will cover your belongings during your trip. However, most airlines and shipping companies offer compensation if your luggage is lost or damaged. But you pay up to a certain amount. So if you buy this insurance, your property will get extra protection. It’s common for luggage to get damaged, so it’s a good idea to keep your belongings and personal belongings to yourself.
3. Medical coverage
There are two types of medical coverage in travel insurance. One is temporary medical coverage and the other is basic medical coverage. If you plan to travel for more than five days in a year, you can apply for temporary medical cover. But if it is more than one year, you need to buy long term health insurance. Medical insurance will help you cover all your expenses during your trip. This insurance policy covers you for doctors and healthcare facilities when you are away from home.
If you already have health insurance, the US government will ask your company if it has extended your coverage abroad. If you are traveling internationally, you should check with your insurance provider to see if you have extended coverage while out of the country.
4. Emergency Coverage
This type of travel insurance is applicable when a passenger or a member of his family is injured or killed in an accident during the trip. Provides insurance coverage for consumers. If you already have a life insurance policy, you may not need this type of insurance. But accident insurance provides coverage even if you have life insurance. So customers earn more money. So it is better to buy this insurance policy when you are traveling.
In the event of an aircraft accident, passengers are covered by aircraft accident insurance. If travel is allowed, it will be given to the user.
Types of travel insurance
There are three types of travel insurance coverage available in the market. This includes pre-trip, multi-trip and annual coverage. Pre-trip insurance covers the passenger’s personal travel. Multiple Trips Travelers reserve more than one trip per year. However, the duration of each visit is less than 30 days. Annual travel insurance covers travel for the entire year. So, when shopping for a travel insurance plan, make sure that you buy the plan that is right for you. If you travel frequently, you should opt for annual coverage.
Cost of travel insurance
The cost of travel insurance depends on the type of cover chosen by the traveler, age of the traveler, destination and cost of travel. Travel insurance is usually 5% to 7% of the cost of the trip. There are special driver policies for commuters, athletes and business travelers.
The last word
These are the types of travel insurance that can be used in travel insurance plans. If you are planning to travel after COVID, you must have travel insurance. Medical emergencies cover any problem you may face. A travel insurance plan is essential for trip cancellation, loss of luggage and accidents. So it is better to protect yourself. Because prevention is better than cure.
Clear your doubts with your insurance provider. Read the insurance plan carefully before applying. If you liked the article, share it. Comment in below comment box for more details.