How to Decide If Travel Insurance Is Right for You
Suffice to say that the travel industry has been facing steep obstacles trying to adapt to the world’s current state, making travel during this year quite a challenge for all of us. With that in mind, it is essential now more than ever to have the necessary coverage for your trip if any delays or cancellations occur.
Here are four tips to consider when purchasing travel insurance.
1. Cancellation Coverage
When you purchase cancellation coverage, as its name implies, you are covered for pre-paid, non-refundable expenses under a fixed set of circumstances outlined in your policy. For example, if you have to cancel your trip due to a death in the family, cancellation coverage would reimburse you for the cost of your trip. However, if you change your mind about going on the trip, cancellation coverage would not reimburse you.
Additionally, most policies have a waiting period before they go into effect, so be sure to check your policy carefully. If the list of covered cancellation reasons under basic cancellation coverage seems too limited to you, you might want to opt for CFAR or “Cancel For Any Reason.” It offers a partial refund—usually 50% or 75% of the value of your prepaid and non-refundable expenses, such as airline tickets and hotel accommodations.
Some credit cards may even cover your expenses sometimes if you were to cancel last minute. Be sure to read the fine print. Some credit cards have age limits for medical coverage, or they may offer trip interruption but not trip cancellation prior to departure.
2. Interruption coverage
Trip interruption coverage is essential for those travel emergencies you just can’t predict. This protects you in the event you have to return home due to an emergency once you’ve already started your trip. It will pay for the cost of getting you home and getting you back to your destination once you’re able to travel again.
3. Lost, stolen, damaged, and delayed luggage
This is one of the most common and annoying travel-related mishaps. Pay attention to coverage limits and increase yours as necessary. Even mundane items like laptops and cell phones have replacement costs beyond the limits set by basic policies, so be careful to closely read your policy to ensure your most expensive possessions are fully protected.
4. Purchase travel insurance early to get the most protection out of your plan.
It's best to purchase travel insurance at the time of your initial trip deposit. This is particularly important when your plan gives a pre-existing condition waiver benefit. Be sure to purchase your plan within the specified timeframe in order to be eligible for the benefit.
Buying a travel insurance policy when you book your trip is one of the best ways to be prepared. A travel insurance plan can provide coverage in the event something does force you to cancel your trip.