Things To Consider When Purchasing Travel Insurance.
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.
When it comes to purchasing travel insurance during this unprecedented time, choosing a plan can feel daunting. The best travel insurance policy for you will be the one that offers the specific coverage you need at a price you can readily afford. Confused by the options? Don’t fret. Here are four tips to consider when purchasing travel insurance.
● Cancellation coverage as its name implies covers you for pre-paid, non-refundable expenses under a fixed set of circumstances outlined in your policy. You can make a claim when you have to cancel a trip due to a health emergency or illness, for example. Depending on the policy you choose, you may also be able to make a claim if you’re laid off from work or you’re called for jury duty.
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.
● 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.
● 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.
● Purchase travel insurance early to get the most protection out of your plan. It’s a good idea to purchase travel insurance at the time of your initial trip deposit to receive the longest possible window of protection. This is particularly important when your plan offers a pre-existing condition exclusion waiver. You’ll want to be sure you purchase your plan within the specified timeframe to meet the criteria for this added benefit.
Whether you choose travel insurance for your international or domestic trip, make sure you understand exactly what’s covered. There are different categories for basic and special coverage.
Be sure to check out this recent Forbes article and make sure you understand the fine print before booking your next trip.