Why Buy Travel Insurance?
Read carefully to find out exactly what your travel insurance covers before you sign.
When you prepare for a vacation or business trip, you make sure that your home is secured and that someone will take care of your pets while you are gone.
But you may never think about buying travel insurance — something the Better Business Bureau says provides protection from the myriad of circumstances that can cause you to lose money due to unforeseen travel problems.
When you travel, especially if you go out of the country, there may be limitations on what your health insurance covers, according to Ray Martin, writing on the CBS Moneywatch website.
Your health coverage may be limited in certain parts of the world, or may not cover some diseases or injuries.
Check your insurance coverage; if you plan on hiking, mountain climbing, skiing or engaging in any other adventure travel, or you’re headed to an area far from modern medical facilities, the medical coverage offered in most travel insurance policies could make financial sense.
There may be nothing more disappointing than planning an exotic trip only to fall ill and be unable to go. But that disappointment might be overshadowed by financial loss if your prepaid transportation, tour and hotel costs are gone.
Travel insurance can help you recover the majority of the money you paid for the trip, and some policies help you recover all of the money you paid in advance. It will assist you in recovering your money if you cancel your vacation for a reason such as illness or a death in the family, according to Peter Greenberg, writing on the MSNBC website.
The insurance company sets the criteria for acceptable cancellation reasons, so be sure you understand the terms before signing the agreement. Trip cancellation insurance also can help you recover your money if the travel agency, transportation company or hotel goes out of business, or a natural disaster such as a hurricane forces you to evacuate your resort, hotel or cruise.
Travel insurance can compensate you for the contents of your lost luggage, according to the MSNBC website.
Discuss the trip cancellation or interruption clause in your travel insurance contract with your travel agent to make sure a provision covers lost or damaged luggage if you need it. To help make claims easier, inventory of the contents of each of luggage and submit a copy to your insurance agent.
The Better Business Bureau says baggage-loss protection is necessary only if your bags contain more than $2,500 worth of items.
Credit Card Backup
If you charge your trip costs on a credit card, the card company might offer some protection if you or the travel provider cancels the trip.
But be certain the coverage is complete enough for your situation. You might find that your credit card company only reimburses a small portion of your travel charges.
In this instance, travel insurance is a good investment as a backup to your credit card protection.