What Should You Know About Travel Insurance?

By Author: Pranav V Sharma
Total Articles: 141
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Overseas travel can be an enriching and unforgettable experience. However, without proper travel insurance, a dream holiday could lead to financial ruin or even worse. Luckily, arranging travel insurance doesn’t have to break the bank or take a lot of your valuable time, getting a cheap travel insurance quote online takes less than a minute. Some go overseas without ever having considered obtaining travel insurance, it is, however, inadvisable to do so. Purchasing travel insurance before going overseas protects you from unforeseen expenditure and provides assistance in case of emergencies. The most basic requirement is comprehensive medical insurance. Most travel insurance policies will cover you to a good value but pay attention to the exclusions. Your insurer requires notice if you have a pre-existing medical condition.

If you plan to engage in extreme sports, make sure you are covered under you travel insurance policy. Your insurer will probably ask for receipts if you make a claim for lost baggage and discount lost items if you cannot establish proof of purchase. Laptops are not automatically covered, even though ...
... you might have baggage cover. If you want cover for a laptop or cameras, most travel insurance policies will charge an additional fee to insure these items. Make sure you read the fine print carefully.

Travel insurance coverage varies from insurer to insurer, but there are two major types -

Medical and Evacuation Insurance and Trip Cancellation or Interruption Insurance. Medical and evacuation travel insurance covers the medical emergency expenses while you are on your trip. Trip cancellation or interruption insurance is probably the most common type of travel insurance policy sold. It covers non refundable trip costs if you cannot travel due to unforeseen circumstances such as illness or financial default of the travel carrier. It also covers you if you become sick during your trip and have to return home.

Flight insurance covers accidental death and dismemberment while you are traveling on the commercial aircraft. Trip delay travel insurance provides a nominal reimbursement for travel delays such as plane departure being postponed. Baggage insurance provides reimbursement for lost or stolen coverage that is usually part of a vacation insurance plan. Most travel insurance companies provide a 24 hour helpline for help with medical care, transportation and accommodation needs, notification of family and friends in case of emergency. The cost of annual travel insurance policies depends on your age, trip length, trip cost, the plan you want and coverage limits. Trip cancellation and interruption plans on a per trip basis are typically based on the cost of your trip, your age and amount of coverage you want. Most travel insurance plans are between 4% and 8% of total trip price. Travel medical and evacuation plans are quite inexpensive, especially if you are young.
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Pranav Sharma is an insurance agent based in Mumbai; Pranav assists individuals and corporates in purchasing the right travel insurance & often shares his insights about the general insurance industry on internet.