Travel insurance wasn’t all that top of mind, until this past year. For many travelers, all they knew about travel insurance was that it was an annoying pop-up that appeared just before confirming payment on a hotel or flight booking.
What You Need to Know About Travel Insurance
Flash forward to travel post-pandemic and insurance is now a priority for many. In fact, it’s a requirement for certain types of travel. So is that “add-on insurance” enough? Or should travelers purchase a separate policy? Does one policy cover the whole family? We set out to find some answers to your travel insurance questions.
Is insurance needed on all trips, including domestic ones?
The experts agree, the answer is yes. Especially right now.
Think about it like this: have you made non-refundable plans? Can you afford to lose the money if you have to cancel? Cancelled trips can become costly, very quickly.
“When traveling abroad travel insurance becomes much more valuable. If your trip is canceled or interrupted, travel insurance will partially or fully refund travel costs, as well as your expenses to get back home. Lost luggage, expenses due to flight delays, as well as emergency medical and evacuation costs are also covered by most policies,” says Ruben Ramos who writes about insurance for money.com.
Does insurance offered through an airline or booking website, like Expedia, provide sufficient coverage?
It depends. You’ll want enough insurance to cover all of your non-refundable trip deposits.
Ramos puts it this way, “It’s really important to read the fine print and to know exactly what is covered. Insurance offered when booking tickets and hotels may only cover that specific purchase or provide reimbursement up to a limited dollar amount of coverage. In most cases, you’ll probably be better off buying a separate comprehensive travel insurance policy.”
A travel insurance policy may cover other things, too, like replacing lost luggage or hotel expenses for flight delays.
Will your medical insurance cover you abroad?
Typically, no. That insurance card you carry in your wallet is pretty much meaningless when you’re traveling internationally. “Travel insurance is especially important for overseas trips as domestic health insurance policies are typically not accepted by foreign medical providers,” says Richard Aquino, Vice President of Allianz Partners USA. Allianz is a travel insurance provider.
Some countries are now requiring foreign travelers to provide proof of medical coverage upon arrival. “Countries with strict COVID restrictions and/or spare or inefficient medical care may require higher levels of coverage,” according to Brian O’Connell, an Analyst at InsuranceQuotes.com.
Even outside of a pandemic, international medical coverage is valuable. I purchased a travel insurance policy for a summer-long trip a few years ago. I ran out of an important prescription while traveling. In order to get a refill in Singapore, I had to first see a local doctor. I made an appointment, showed my travel insurance card and the entire visit was covered by my policy. I left with my prescription refilled and they even took care of some routine bloodwork while I was in the office.
KidTripster Tip: It’s a good idea to travel with copies of your written prescriptions just in case you run out of, or lose, your medications.
What’s a “must have” in a travel insurance policy?
Our experts say that a couple of things are critical.
Medical insurance is crucial. “Medical insurance, including emergency medical care and EMT transport, are must have’s when traveling in 2021,” says O’Connell.
Allianz updated its policies to add pandemic coverage. Many plans now cover travelers if they become seriously ill with a pandemic disease before or during their trip. Some policies also cover mandatory quarantines and denied boarded due to suspicion of illness.
Trip cancellation is also important. O’Connell stresses, “In the current chaotic scenario, insurance that covers trip cancellation, trip delays, and trip medical coverage is almost mandatory for travelers.”
Another important factor in insurance coverage is customer service. Around the clock assistance is essential. Aquino says, “Look for a travel insurance company that offers 24/7 customer service and 24/7 travel assistance. If you have a problem on your trip, you want to make sure that your travel insurance provider will be available when you need them.”
Does a travel insurance policy cover just a single trip?
Once again, it depends. You can purchase a policy to cover a single trip. Or if you travel often, you can purchase an annual policy.
O’Connell says “Travel insurance usually comes in the form of a trip-by-trip occurrence. Annual travel insurance is common, but with travel so unpredictable in 2021, consumers should take that ‘trip by trip’ insurance mindset. Plus, if you don’t travel much in 2021, annual insurance could be a waste of money.”
Are all family members covered by travel insurance policies?
Not necessarily. According to Aquino, single trip plans generally only cover the named insureds. He recommends making sure that everyone going on your trip is included on your policy.
Aquino tells us that some annual policies can also cover everyone in your household. To do so you’ll need to add everyone’s names to your policy. You can always call your insurance provider if you have questions.
When should you purchase travel insurance?
The answer is, when you book your trip. Aquino says, “It’s important to buy your travel insurance at the same time you book your trip. This will give you the longest period of coverage possible for no extra cost.”
Where can you purchase travel insurance policies?
There are many ways to purchase a travel insurance policy. You can purchase it through travel agents, through websites when you book your travel, as well as online, directly from providers.
You can go to an insurance provider, like Allianz or World Nomads, and get quote for your trip. Or you can do price comparison through a website like TravelInsurance.com or InsureMyTrip.com. It compares quotes and options from multiple insurance providers all in one place.
Keep in mind that a good travel insurance policy can cost between 5% and 10% of the total cost of the trip. Be sure to budget for that added cost. It might seem like a lot, but it’s worth it should your plans need to be altered or cancelled.
