What is travel insurance and what does it cover?

Sep 21, 2019

If you had any travel plans, be sure to buy travel insurance. It protects you from various unpredictable situations.

Basically, travel insurance is a plan that protects you from financial losses that may occur during travel.

In this article, we will express all you need to know about travel insurance. Also, we will mention the steps in which you can book it.

What does travel insurance cover?

It should be noted here that it protects you from unforeseen circumstances, not from situations that can be easily predicted. For example, travel insurance does not protect you if you are traveling to where the hurricane is expected.

Here are the situations in which you are protected …

♦ Trip Cancellation

if you have to cancel your trip, travel insurance allows you financial protection in the event of …

cancellation due to injuries, illness or death (travelling companion, your friend with whom you planned the trip, or your family member)

bad weather that prevents you from reaching your desired destination

Refund in these cases is possible in the amount of 100% of your travel expenses if you cancel your trip before departure.

Most trip cancellation policies come with another extension called trip interruption that protects you. If you need to shorten your trip and cover the cost of the ticket.

However, it should be noted that Trip Cancellation does not cover every situation.

If the insurance benefits of this coverage are not enough for your needs, you can always cancel for any reason. This option usually partially covers your trip cost i.e., up to 75%

♦ Medical emergency

In case of illness or injury on your trip, it is good that you have international travel health insurance. It covers you when traveling across the sea and in many countries, unlike domestic health insurance plans.

International travel insurance includes reimbursement of your expenses for medical treatments and for transport to and from the hospital.

♦ Travel Delay

Travel insurance can also help you in case your flight was delayed or if you miss your connecting flight.

If the flight is delayed due to technical failure or bad weather then only you can get this benefit. In these situations, trip insurance refunds money for meals and accommodation.

Also, travel insurance allows you to get a refund in cases when you miss your connecting flight due to situations covered under your policy.

♦ Lost or Delayed Luggage

Travel insurance can cover your delayed, lost or damaged luggage. The coverage is typically between 250 and 500 USD.

In case of carrying expensive items, it is usually recommended to insure them.

Of course, it should be emphasized that travel insurance policies have limitations and cannot protect you in every situation.

The above items can be found on the standard policies of travel insurance.

If you want to carry some expensive items or if you want to participate in some risky sports on your trip, you need to buy additional coverage that may be listed in your insurance policy.

International travel insurance vs. International health insurance

The main difference between these two types of insurance is in the level of coverage. International travel insurance, when it comes to medical coverage, can protect you during your trip.

International health insurance is for people who live abroad, often visit overseas or have decided to move from their homeland. International health insurance provides coverage for routine and emergency health care. For Example treatment for diseases as well as for staying in a hospital.

Types of travel insurance

Given that there are different types of travelers, and trips, travel insurance companies offer different types of travel insurance.

Here are some of the types of travel insurance that are offered …

  • Package plans
  • This type of travel insurance is the most popular. It covers travel cancellation, lost, stolen or delayed luggage, medical emergencies. It is ideal for vacations, business trips, family trips, cruising, etc.

  • Travel medical plans
  • This type of international travel insurance is focused on emergency medical treatment, accidents, and emergency evacuation. This insurance policy is ideal for people traveling overseas for work, study, or living in a foreign country.

  • Medevac plans
  • That is, medical evacuation plans – provide cover in cases when you are visiting remote or dangerous locations. This type of travel insurance is great for vacation or business trips in foreign countries.

  • Travel accident plans
  • This travel insurance is focused on AD & D (accidental death and dismemberment) and provide international protection against accidents. If you travel frequently for a vacation or a business, a travel accident plan is a great choice for you.

  • Annual plans
  • This type of travel insurance is great if you often travel and provide coverage throughout the whole year. A great choice for business, academic and frequent travelers.

  • Specialty plans
  • This type of travel insurance is designed for journeys that carry rare or unique risks.

How does travel insurance work?

If you are looking to buy travel insurance, there are many plans offered by different companies. When making a decision about a specific offer check that if your credit card also offers insurance and well assess your needs.

You can find a link on the insurance company’s website. It allows you to compare different travel insurance policies by price and coverage.

Read the policies carefully and decide on the one that best suits your needs.

It would be ideal to buy your policy before going on a trip. You can still buy a policy while travelling, but keep in mind that your coverage starts when the policy becomes active.

After purchasing a policy, you will receive full documentation. This documentation includes, among other things, your medical ID card containing:

  • your name and surname
  • a period of coverage
  • the name and telephone number of the insurance company.

The functioning of your policy can be explained in a simple case.

If you are on the trip and need medical help, you must contact a health facility. Health institutions can directly send the bill to your insurance company. This is called direct billing.

However, it often happens that the healthcare institution will require you to first pay for their services. In this case, it is necessary to keep all the documentation, and the bills you received from the healthcare institution.

It is necessary that you provide the insurance company with this documentation so you can get the reimbursement.

If your flight delays for more than 3 hours, or was cancelled, you may be eligible for compensation up to €600 based on EU 261 rule.

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