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06 February 2021

What Does Travel Insurance Cover?

The average traveller spends around $2,500 per trip, according to Forbes. As travellers plan their vacation for the holiday season, the travel fees and primary vacation costs increase as well. With travel insurance, one can compensate against accidents, medical treatment costs, covid-19 related expenses and trip curtailments.

Having travel insurance allows travellers to reimburse a specific amount for certain losses, after booking and during the trip. Indeed, availing of insurance coverage adds to the travel cost, but the benefits outweigh the additional expenses.

Especially so with luxury travel – where accommodation and transit are expensive.

This article provides an A to Z for travel insurance. It presents the intricacies of travel insurance plans in an easy-to-digest manner.

Level of Coverage

The coverage depends on the type of insurance one avails. Particularly, it can cover a wide array of possible losses and damages.

Sickness or injury

 Travel insurance can cover medical expenses abroad due to accidents or sudden sickness. Conventional health plans don’t cover bills from medical facilities overseas. Some insurance plans don’t cover health bills at all.

 Lost Luggage

 This pertains to stolen or lost luggage. This can be useful when an airline loses baggage. In the US, the Department of Transportation (DOT) tasks airline companies to compensate passengers up to $3,000 for loss of bags and items during handling.

 Last-minute cancellations

Sometimes, flights are suddenly cancelled. Trip cancellations can cost money and unnecessary expenses. Without travel insurance, fliers can’t get a full refund on last-minute cancellations.

Credit card coverage

 There are credit cards that have limited access. Credit cards can’t cover the most important risks, including emergency evacuations and medical expenses.

What travel insurance can’t cover

 Travel insurance can’t cover losses for some illnesses:

  • AIDS
  • Depression
  • Anxiety
  • Pregnancy complications
  • Psychosis
  • Neurosis
  • Other mental health disorders
  • Radioactive contamination

Those planning to visit an area with political unrest should choose an insurance plan that provides a conditional waiver. With this, travellers can use a coverage policy for cancellation if there’s political unrest in the travel destination.

Before booking a trip, one must also check the “tour operator defaults due to financial issues.” section. Certain exclusion clauses may be “snuck” into your coverage policy — do read them carefully!

How much does travel insurance cost?

 The cost depends on the major fees and primary prices of insurance products. The age of the traveller is also a determining factor. A 34-year-old may have to add 3% to the insurance premium because of set policies; a senior may however, pay an additional 10% of the premium.

What plan should I get?

Before the availing of travel insurance, one must consider the reasons for cancellation. Can an upcoming weather disturbance delay the trip? Will a work-related reason affect the plan? Is there political unrest in the destination? These are valid reasons for getting a travel insurance.

Your plan will therefore revolve around such circumstances. Of course the more intense your coverage, the pricier your plan gets!

How to cancel my travel insurance?

When you purchase travel insurance, you may cancel it for valid reasons. As long as the process is executed at least 36 to 72 hours before departure, cancellation is possible. It’s also possible to trade for a lower reimbursement level. The traveller can get approximately 70% of the total amount paid in most circumstances.

What’s a Comprehensive Travel Insurance?

This is the conventional travel insurance policy. It covers delays, lost luggage, emergency medical costs, and cancellation due to death or sickness. Every travel insurance plan is different from another, so it is advised to always read the fine print. Travel insurance protects people against risks and loss of funds while out of town or flying abroad. The risks range from minor inconveniences, like delayed luggage to missed flights. Injuries and Major illnesses fall under major impediments, including weather disturbances and getting lost.

Need help with your travel insurance? Drop us an Email! We are a luxury tour and travels company with nearly a decade of experience under our belt!

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