Book Travel Insurance

What Is Travel Insurance?

While going on a trip can be exciting, there are always some risks that come along with the fun.

By taking out travel insurance, you can have the peace of mind of knowing that you’ll be reimbursed financially if you need to cancel your trip, if you become ill while you’re away, or if your belongings are lost or stolen while traveling.

We explain the main types of policies and the factors you should consider as you compare the best travel insurance policies.

What Are the Main Types of Travel Insurance?

Trip cancellation, interruption, or delay insurance

This type of policy is designed to protect you if you’re unable to go on a prepaid non-refundable holiday, need to return home early, or experience a delay.

If you do need to cut your trip short, your insurer will normally compensate you for the portion of your holiday that you were unable to use.

Be aware that most insurers will only pay out if they believe you have a reasonable excuse for canceling or interrupting your holiday, such as:

• Your own illness

• The passing/death of an immediate family member

• Extreme weather

The trip delay component of your insurance should reimburse you for expenses such as meals or accommodation if your trip is delayed by factors beyond your control.

Baggage and personal effects insurance

These types of policies will cover you if any of your belongings are stolen, lost, or damaged while you’re away.

Note, however, you may need to first explore other ways of seeking compensation before your insurer pays out. For example, your provider may require you to attempt to claim compensation from your credit card company or homeowners insurance.

In addition, you may need to file a claim against your airline if your luggage is lost or damaged in transit. If, however, the value of your items exceed the airline’s maximum payout limits, your travel insurance may cover the difference.

Medical insurance

If you’re unwell or get injured during your trip, travel medical insurance will cover any expenses associated with seeking and receiving treatment.

Before you buy a policy, it’s essential that you consult the fine print to see whether your insurance will cover any pre-existing conditions you may have.

Also, note that medical insurance does not extend to any concerns you have about a potential risk. For instance, the fear that you may contract a contagious disease is not typically a valid reason to cancel or postpone a trip.

Emergency medical evacuation and repatriation coverage

If you are traveling in a remote location and need medical attention, emergency medical evacuation coverage will pay for your transportation to the nearest appropriate medical facility.

The repatriation component of your insurance will cover the cost of returning you to your own country, if needed.

Accidental death or flight accident coverage

If you or one of your traveling companions suffers an accident that causes death or serious disability, this type of coverage may provide a payout to any beneficiaries. The disability portion of the insurance typically covers the loss of a limb or a person’s sight.

Under the flight insurance portion of your policy, your provider will pay compensation for deaths or injuries that take place while traveling on, boarding, or leaving an aircraft operated by a properly licensed airline.