Understanding Travel Insurance
Insurance companies in the US offer different kinds of travel insurance policies to people who are planning a tour. You need to understand how travel insurance works in order to select the right plan that suits your travel requirements. Inquire about all the clauses and conditions that form a part of your travel insurance policy and understand those clearly before you buy the plan.
Travel Insurance comes in three major forms:
- Cancellation coverage, where your prepaid expenses are reimbursed in case of cancellation due to illness.
- Delay coverage, which covers prepaid hotel expenses in case your transportation gets delayed.
- Trip interruption protection, which takes care of your trip expenses in case you have to cut the trip short due to illness, bad weather or even an airline strike.
Protection for Luggage and Rental Cars, which provides coverage in case your luggage is stolen, damaged or lost. In addition, if you take a rental car on your trip, these policies take care of expenses if there is an accident involving the car.
Medical Coverage which may include:
- Medical evacuation costs if you need to be transported to a hospital.
- Medical and dental expenses incurred due to illness or injury.
- Accidental death or dismemberment, where your beneficiary will get paid in the event of death during travel.
Tips on Buying Travel Insurance
- Verify whether the package includes risks associated with the type of travel you are interested in. For instance, if you have plans to travel to a location where crime-rates are high, you need to opt for a policy that provides cover against cases of theft, robbery and similar incidents.
- Be careful about policies that come as an add-on to a trip offered by your travel agent – these could actually be more expensive than regular policies.
- Check to see whether your expenses are reimbursed after your trip, or are covered up-front.
- Check whether expensive items (including electronics goods and jewelry) are covered by your policy.
- Look for policies that offer travel assistance in addition to financial coverage.