Travel Insurance 101: The Complete Guide to Travel Insurance - TravelInsuranceReview.net
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Travel Insurance 101:
The Complete Guide to
Travel Insurance
What this guide will do for you...
1. Define travel insurance, the different coverages, and key terminology
2. Help you understand the main things to look for in a travel insurance policy
3. Provide links so you can read additional reviews/articles, and links to travel
insurance companies so you can get a quote and purchase online
Guide Outline
1) Introduction- General definitions, FAQʼs, Traveler Profiles
2) Trip Cancellation Coverage- What is it? Do I need it?
3) Travel Medical/Evacuation Coverage- What is it? Do I need it?
4) Additional Coverages- What else does travel insurance cover?
5) Buying travel insurance- Where and how do I buy travel insurance?
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Introduction
Buying travel insurance isn't hard...but finding the right plan for you and your
trip can be very confusing. In fact, the actual buying part is so simple you can
get a quote, enroll, pay with a credit card, and get an email confirmation of coverage in
less than 5 minutes. The challenge is understanding the coverage and finding the right
plan for your needs.
This section will cover:
•
General Definitions
•
Frequently Asked Questions
•
Common Traveler Profiles
What is travel insurance?
Travel insurance is purchased to cover travel-related risks. Before your trip, this might
include last-minute cancellations due to sickness, severe weather, or even terrorist at-
tacks. During your trip, it provides coverage for emergency/accident care, medical
evacuations, travel delays and missed connections, lost/stolen baggage, and more.
Travel insurance can be purchased for both domestic trips and travel abroad. It can be
purchased top cover a two-day weekend trip, or a longer 12-month stay abroad.
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Travel insurance is available in two basic plan types
1) The Package Plan is used by most travelers because it provides a variety of cover-
ages in one simple plan, including: trip cancellation, medical emergencies, medical
evacuation, lost baggage, missed connections, and several other coverages. Package
policies vary from Basic plans with less coverage and lower coverage levels, to Pre-
mium plans with top-of-the-line benefits and high limits.
" Package plans are used by:
•
Vacation travelers (general travel)
•
Families
•
Business travelers
•
Cruise takers
•
Senior travelers
2) A Travel Medical Plan is purchased by travelers leaving their home country for a few
days or up to a year, and provides emergency medical treatment, medical evacuation
coverage, and emergency assistance.
" Travel Medical plans are used by:
•
US citizenʼs traveling abroad (business assignments, expatriates, etc.)
•
Foreign citizens visiting the US (i.e. parents from India visiting family in US)
•
Any traveler leaving their home country
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In general, most travelers insurance needs falls into one of the above types of plan. A
third category might include Evacuation Only Plans, Annual Plans, Flight Accident
Plans, and Accidental Death Plans. These are specialty plans, and provide very specific
coverage.
Why do people buy travel insurance?
The reasons for purchasing travel insurance is different for every traveler and every trip.
Some people simply want to know they have medical coverage while traveling abroad
(as we'll discuss, most home-country healthcare does not cover you abroad). Other
travelers are concerned about losing their trip investment if they need to cancel. Many
travelers have concerns about losing their luggage or travel documents. Some have
concerns about the extreme costs of emergency medical evacuations.
Later in this section, use our Traveler Profile list to get an idea of the types of coverage
you might want to consider.
Which company should I buy travel insurance from?
There are over 15 companies in the travel insurance business, and each one sells a va-
riety of plans. Some companies specialize in simple, easy-to-use policies for the every-
day traveler. Others specialize in niche travel insurance plans, designed for specific
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groups like golfers, students, or people taking a cruise. Some focus on travel medical
plans and evacuation plans, providing insurance plans for travelers around the world.
Each company has pros and cons, but most importantly you need a reputable, experi-
enced company with the right plan for your trip. At the end of this guide, you will also
find ratings for each company and links to their websites.
How much does travel insurance cost?
This will depend on the type of plan you have, the coverage, the amount of coverage,
and other factors.
In general, a Package Plan will cost between 5-7% of the total trip cost. So, if your total
insured trip cost is $5,000, a package plan would be around $250-350 (5-7% of $5,000).
This varies based on several factors, so keep in mind the 5-7% figure is only a ballpark
estimate.
The 5-7% number also assumes you are purchasing Trip Cancellation coverage. You
can purchase a Package Policy for the other coverages it provides, and omit the trip
cancellation component. This will reduce the amount of premium significantly.
With Travel Medical plans there is no trip cancellation coverage, but the plan cost de-
pends on trip length, traveler age, and several other factors. These plans can be as low
as dollars per day.
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What types of travelers buy travel insurance?
Travelers of all types buy insurance for their trip. Wealthy retirees taking a cruise, fami-
lies going to Disneyland, couples taking a vacation, and college students backpacking
around Europe all have a need for travel insurance.
To get an idea of the coverage you might need, take a look at the following Traveler
Profiles and find the best match for you. Read the description to get an idea of the dif-
ferent types of coverage you should consider.
Common Traveler Profiles
General Traveler/Vacationer (Leisure Travel, Family Vacation, etc.)
I'm traveling with a spouse, friends, or family, and taking a "vacation" trip (abroad or
domestically), and want a general travel insurance plan. I want to insure the cost of my
trip, so I don't lose money if I need to cancel. I'm also interested in coverage for medical
emergencies and medical evacuations, lost baggage, and even travel delays. I would
also be interested in any additional coverages, such as identity theft, or rental car dam-
age. Recommended plan: Package Plan (Basic to Premium, depending on preference)
Cruise Traveler
I'm taking a cruise and need a travel insurance plan for several reasons. Since I've pre-
paid for an expensive cruise package, I definitely want to insure the cost of the trip, so I
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don't lose this considerable investment if I need to cancel. Since I'll be on a cruise ship
far from hospitals, it's important I have coverage for medical emergencies, and espe-
cially emergency evacuation. I also want coverage for lost or damaged baggage, de-
layed trips, missed connections, and other standard coverages. Recommended plan:
Package Plan (Moderate to Premium depending on needs)
Parents traveling with kids
I'm taking a trip with my children, and want a travel insurance plan that takes family
needs into account. Since kids can increase the chances of last-minute illnesses, I defi-
nitely want to insure the cost of my trip against cancellation, so I don't lose money if a
family member becomes ill and cannot travel. It is also essential to protect my family
against medical emergencies, lost or damaged baggage, and delayed trips. I would also
be interested in "family specific" coverages, such as "free coverage for kids", or family-
concierge service. Recommended plan: Package Plan with "family specific" benefits
Budget-Minded Traveler
I'm taking a trip and want the basic travel insurance coverage, but I also want to keep
my budget in mind. I might want to cover against a canceled trip, but I definitely need
some medical coverage, baggage coverage, and 24/7 assistance support. I'm looking
for the best value plan that provides basic coverage. Recommended plan: Basic Pack-
age Plan
Students
I'm a student traveling overseas; either on a semester abroad or an extended summer
break. Since I'll be traveling in foreign lands, I definitely need coverage for emergency
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medical treatment and medical evacuation. It is also important to insure my baggage
and possessions, and I want to have good 24/7 assistance services as well. I might
need a plan for several months of coverage. Recommended plan: Student Plan
Frequent Traveler
I travel several times throughout the year, both overseas and domestically, and want a
single plan to provide coverage for medical emergencies, medical evacuations, bag-
gage, and even trip cancellation/interruption. Some of my trips last up to a month, while
others are very short, but I might take up to 10 trips a year. Recommended plan: Annual
or Multi-Trip Plan
Senior Traveler
I'm a Baby Boomer enjoying my later years traveling and seeing the world. I'm fairly fit,
but I have concerns about traveling abroad without medical coverage. I know that Medi-
care does not cover my overseas, so medical coverage and evacuation is very impor-
tant to me. I would also like trip cancellation coverage and some of the other basic trip
insurance coverages like lost baggage and travel delay. I need a plan that does not re-
strict my age group. Recommended plan: Premium Package Plan with senior-specific
benefits and adequate age accommodations
Extended Trip, Expatriates, or Living Abroad
I'm planning on living abroad for an extended period of time, and I want to have US-
style health insurance coverage while I'm overseas. It is important to have comprehen-
sive medical coverage, accident and emergency coverage, and emergency medical
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evacuation and transportation. I do not need trip cancellation coverage, baggage cover-
age, or other "package plan" benefits. Recommended plan: Travel Medical Plan
Foreign Citizen Visiting the US
I'm planning on visiting the US for an extended period of time, and I want to have US-
style health insurance coverage while I'm there. It is important to have comprehensive
medical coverage, accident and emergency coverage, and emergency medical evacua-
tion and transportation. I do not need trip cancellation coverage, baggage coverage, or
other "package plan" benefits. Recommended plan: Travel Medical Plan
This only represents an outline of the general traveler types. Every trip and traveler is
unique, and therefore has different travel insurance needs. Hopefully this gives you a
general idea of the types of coverage you might need, and as you read through this
guide you can pinpoint the right plan for your trip.
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Section Summary
•
Once you know what you're looking for in a travel insurance plan, online enrollment
and purchase is very simple
•
Package policies are very popular because they provide comprehensive, all-inclusive
coverage
•
Travel Medical policies are used for medical coverage while traveling abroad
•
Buy from a reputable company that has a good rating (more on this later)
•
Package plans usually cost 5-7% of the total insured trip cost, travel medical plans as
little as dollars per day.
Coming up next....trip cancellation coverage
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What is trip cancellation coverage, and
do I need it?
This section will cover:
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Definition- What is trip cancellation insurance?
•
What does trip cancellation cover?
•
Do I need trip cancellation coverage?
•
Examples of when you should (and shouldnʼt) get trip cancellation coverage
Definition: Trip cancellation coverage provides reimbursement for lost travel expenses
if you need to cancel your trip.
Example: You or a traveling companion becomes ill right before your cruise. You need
to cancel, but you will lose the $8,000 you already spent for the trip.
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Trip cancellation coverage is one of the most important aspects to consider when shop-
ping for travel insurance. In fact, it is a primary reason for many travelers to purchase
insurance. When travelers think of travel insurance, they usually think “cancelled trips”.
What does trip cancellation cover?
Trip cancellation insurance protects you against losing money when an unexpected
event causes you to cancel your trip. Each company, and each policy, will have a
slightly different set of “covered reasons” for trip cancellation. Here are the most com-
mon.
Common “covered reasons” for trip cancellation:
•
You, a traveling companion, an immediate family member, or even a business part-
ner becomes sick or injured and you are required to cancel your trip. This is a very
common reason for trip cancellation. The trip departure date is approaching, and you
or your travel companion become ill and cannot travel. It is too late to cancel or
make changes, so any non-refundable pre-paid expenses are lost.
•
The death of you, a traveling companion, or immediate family member
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Inclement weather causes the delay or cancellation of a trip. This is another popular
reason for cancellation. Just make sure you buy your plan early; once a hurricane
becomes official (i.e. a named storm), you cannot buy insurance.
•
A strike causing the complete cessation of travel
services. It must be, like all of these reasons, un-
foreseeable.
•
Your home, or destination, is made uninhabitable by
fire, flood, natural disaster, vandalism, or burglary. If
you suffer the unfortunate situation of having your
home damaged, and you need to handle the various
aspects of it, you won't lose your trip costs.
•
You or your traveling companion are called to jury
duty. Plans made far in advance can be ruined by
jury duty. If you or your traveling companion are called and you cannot reschedule,
the trip could be canceled.
•
A terrorist incident occurs in a city listed on your itinerary. In the current world cli-
mate, terrorism is a realistic concern. Many plans will cover a cancellation if an inci-
dent occurs in a city on your travel itinerary.
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Note: It is extremely important to
read your actual policy to fully
understand what is covered and
what is not.
Every insurance policy provides
a specific list of "covered rea-
sons" for trip cancellation. It is
your responsibility as the insured
to read and understand this
•
You or a traveling companion are called into active military service- This provides
coverage if your leave of absence is revoked, or you are reassigned. A perfect cov-
erage for military members.
•
A termination or layoff that affects you or a traveling companion. In our current eco-
nomic climate, unforeseen layoffs are an unfortunate reality. You can protect your
vacation investment against a termination or layoff with trip cancellation insurance.
•
You or a traveling companion are the victim of a felonious assault. There is usually a
time frame for this coverage; for instance within 10 days of you scheduled departure
date. But, if you are the victim if such a crime it would help to not concern yourself
with lost vacation expenses.
•
Being involved in or delayed by a traffic accident on the way to your departure. This
is a very common part of any auto travel; the traffic accident. If it happens to you
while heading to the airport, trip cancellation might cover it.
•
The theft of travel documents such as a passport or visa. This is very nice coverage
to have in your policy, but the theft must be documented (by police) to qualify.
•
The insured's family or friends living abroad with whom the insured was planning to
stay are unable to provide accommodation due to a life threatening illness, injury, or
death. A very specialized coverage, but it happens.
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Some policies include additional, and more specialized, covered reasons:
•
You become pregnant or need to attend the birth of an immediate family member's
child.
•
Financial default of a tour operator, cruise line, airline, or other travel supplier. This
coverage can vary depending on the plan and when you purchase the plan, but can
provide great coverage in case a company youʼre traveling with goes bankrupt.
•
Legal separation or divorce. This is a unique coverage, which provides coverage if
you are separated or divorced after your policy effective date and before your depar-
ture date.
•
You are required to work and need to cancel the trip. Some premium plans include
this type of coverage. Others offer it as an optional upgrade, i.e. "cancel for work
reasons" coverage. This type of benefit often covers other work-related reasons
such as: your place of work becoming uninhabitable and you are in charge, or your
company is involved in an acquisition.
•
The school of the insured's children hold classes beyond the normal school-year.
This is an interesting coverage not provided by all companies, but is great for travel-
ing parents.
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As you can see, there is a long list of “covered reasons” for trip cancellation. With an
exception for the last group, these are fairly common and standard with most plans.
However, it is still crucial that you read and understand the policy you purchase.
So, do you need it?
As much as we'd like to give you a one-word answer,
this is one of the trickiest questions in travel insurance.
So, we'll provide a short answer and a longer answer.
The short answer
Yes. If you want to have "full coverage" for your trip, it is
smart to purchase a plan with trip cancellation coverage.
Even a last-minute trip has a chance of getting derailed
by an accident, sickness or other unexpected reason.
A common rule of thumb says, "If the cost of the trip is
more than you're willing to lose, buy insurance".
The longer answer
It depends on the travel plans, the people traveling, and
the amount of money at risk.
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Quick Tips
•
Trip cancellation coverage is
typically 5-7% of the total trip
cost
•
Buy your policy right after
booking your trip to maximize
the benefits
•
Always read your policy, espe-
cially the list of covered rea-
sons for cancellation and pol-
icy exclusions
•
Consider “cancel for any rea-
son” coverage for maximum
flexibility
For example, if your travel plans have you departing several months from now, there is
a long period of time for something to go wrong. If you are planning a complicated trip
with several stops and connections, you have a higher risk of something going wrong.
Or, consider the people traveling. Parents with young children, regardless of whether
they are traveling with you or not, have a risk because children can get sick and/or re-
quire your care. Travelers with elderly parents also have concerns about an illness re-
quiring their care, or the unfortunate passing of a parent.
Furthermore, take into account the amount of money at risk. Travelers planning a once-
in-a-lifetime vacation have made a big investment in their trip, and losing it would be
devastating. Even a couple thousand dollars lost due to a last-minute cancellation can
be difficult to deal with.
Trip cancellation coverage is a smart buy for...
Expensive trips- Since cancellation insurance is all about protecting your investment, it
is always a good buy when you are spending a good amount of money on your trip.
Some travelers buy trip cancellation to cover a couple hundred dollars, while others only
buy it when they're risking thousands.
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According to statistics released on www.InsuranceNewsNet.com, the average trip cost
for travelers buying travel insurance is between $2,300-$3,000. This is an average, so
some travelers might have insured a $1,000 trip while others insured a $7,000 trip.
Recommendation: If you want that "fully covered" feeling, buy trip cancellation coverage
regardless of the amount at risk. Some travelers insure trip costs as low as a couple
hundred dollars.
Cruises- Cruises are especially difficult when it comes to cancellations and getting a
refund. Many companies have different levels of refunds, depending on how much time
in advance you cancel the trip. For example: you might get a full refund if canceled 70
days prior to departure, but only a 50% refund if within a month of departure.
Cruises are one of the most common insurance-buying situations. They are typically
expensive, they involve complicated travel plans with departure flights and port-of-calls,
and from a medical standpoint you're floating in out in the ocean with no hospital close
by. Recommendation: All travelers taking a cruise should buy travel insurance, but
never from the cruise company itself. The coverage they sell is never as comprehensive
as a third party provider. Always buy travel insurance from an independent company.
Travel plans made far in advance- The concept of trip cancellation insurance is to pro-
tect you from mishaps between the time you book the trip until you leave. If there is a lot
of time between booking and takeoff, you have a higher chance of something going
wrong.
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Here again, every traveler is different. Some people buy trip cancellation when they're
departing in a week; others only buy it when they're planning a trip in several months.
According to statistics, the average time between purchase and departure is about 2
months. Recommendation: If you want full, comprehensive coverage for your trip, pur-
chase trip cancellation for anything other than "last minute" trips.
International flights that are expensive and non-refundable- There are 2 potential
problems with international airfare; the tickets cost a lot of money, and they are almost
always non-refundable. If you need to cancel your trip, there is a good amount of money
at risk. Recommendation: Insure the cost of pricey international airfare.
Domestic airfare "specials" that are non-refundable and non-changeable- Many
domestic tickets are changeable, subject to a $50-$100 penalty. But many airline tickets
purchased as a "special" fare are especially un-flexible, and insuring the cost of these
tickets is a good idea. Recommendation: Insure the cost of airfare when it is non-
changeable.
Cases where you might not need trip cancellation coverage:
•
Last minute trips- Since trip cancellation coverage is for unexpected emergencies be-
tween the time of purchase and departure, you probably don't need it for last-minute
trips. If you're booking a flight in 2 days, you'll probably make it.
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•
Cheap trips- If the cost at risk is not high enough to worry about, there is no need to
insure against it's loss. If your only pre-paid, non-refundable trip cost is a $219 flight,
the overall potential loss is not very high. If you lose it for some reason, it's not a dev-
astating loss.
•
Some domestic trips- When traveling domestically, the risks are lower as well because
most plans can be changed if necessary. Hotel reservations can (typically) be
changed up to 24 hours prior to arrival without penalty; as with most rental car reser-
vations. Furthermore, domestic airline tickets can usually be changed for a small fee,
so the overall risk of loss is not high enough to insure. Of course, this depends on your
specific plans, so please consider your individual situation to make sure you're not
risking your trip expenses.
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Section Summary
•
Trip cancellation coverage provides reimbursement for lost travel expenses if you
need to cancel your trip.
•
Every insurance policy provides a specific list of "covered reasons" for trip cancellation
•
Buy trip cancellation insurance if you have concerns about losing money: “If the cost
of the trip is more than you're willing to lose, buy insurance"
•
Buy trip cancellation as early as possible to take full advantage of the coverage
•
There are a few situations when trip cancellation might not be necessary
Coming up next..travel medical/evacuation
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What is medical/evacuation coverage,
and do I need it?
This section will cover:
•
Definition- What is travel medical/evacuation?
•
What does travel medical insurance cover?
•
What does emergency evacuation cover?
•
Do you need travel medical/evacuation coverage?
Another important benefit provided by travel insurance is coverage for medical emer-
gencies while on your trip. This can include emergency transportation to the hospital,
care at the hospital, a medical evacuation back home, and more.
Even though all travelers could benefit from the medical coverage travel insurance pro-
vides, it is primarily for travelers leaving their home country.
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A few examples of those needing travel medical/evacuation coverage:
•
A US citizen traveling to Asia on vacation
•
An English citizen visiting the US on a vacation
•
A business person working abroad for 6 months
•
Parents from India visiting their children in the US for a year
•
Missionaries working overseas
Travel medical coverage can provide coverage for medical expenses such as:
•
Transportation to the hospital
•
The services of a physician
•
Charges for hospital stays and operating rooms
•
Charges for treatments, exams and tests
•
Charges for drugs, medicines and other services and supplies
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Travel medical coverage also provides impor-
tant benefits for...
Emergency Medical Evacuation
An important aspect of a medical emergency benefit is evacuation coverage. Travel
insurance policies with emergency medical coverage generally include evacuation cov-
erage.
This is often overlooked, but have you ever wondered how you get to the hospital in the
event of an accident? Or how you get home after treatment?
Oftentimes, special medical flights, or “evacuations”, are required to get an injured or
sick traveler back to their home country. These medical evacuations can easily cost
ten's of thousands of dollars, and in some cases upwards of $100,000.
This is an extremely important coverage to look for when buying travel insurance.
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24/7 Emergency Assistance
When you are in a foreign country, there are several potential problems in the event of a
medical emergency. You might not speak the language. You wonʼt know where the hos-
pital is. You can't communicate with the doctor. You don't know if the hospital can pro-
vide adequate care. You're in a foreign land with a problem that needs immediate care.
You need some sort of assistance, and good travel medical plans (or package plans)
provide 24/7 emergency assistance hotlines for you to call. These call centers, often
staffed with multi-lingual operators, are available to arrange medical care, transporta-
tion, and payment procedures. They can help you find a hospital, help you get there,
and communicate with them so you don't have to worry about the language barrier.
Do I need medical/evacuation coverage?
Hereʼs a simple rule of thumb: "If you are traveling outside your home country, you need
emergency medical coverage".
For example: If you are a US resident traveling within the US, your health insurance that
covers you on a day-to-day basis covers you. You can go into a hospital and receive the
same coverage that you have at home.
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When you travel abroad, however, your health insurance from home probably doesn't
cover you. Most health insurance plans in the US only cover you while in the US, so
when you leave the country you have no medical or accident coverage.
This is also true for Medicare, which does not cover you outside the US.
Many mishaps can derail your vacation. Getting sick while abroad, a slip and fall, food
poisoning, heart attacks...the list goes on and on. Protect yourself with travel medical
coverage while voyaging abroad.
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Section Summary
•
Travel medical insurance covers you while traveling outside your home country
•
Evacuation coverage provides benefits for costly transportation costs
•
24/7 emergency assistance provides care and peace-of-mind while abroad
•
If youʼre leaving your home country, you should get emergency medical and evacua-
tion coverage to protect you.
Coming up...other travel insurance benefits
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What are the other benefits of travel
insurance?
This section will cover:
•
What other coverage does travel insurance provide?
•
Baggage, trip delays, missed connections, etc
Travel insurance "package" plans provide a variety of coverages. As opposed to a travel
medical only policy or flight only policy, package plans give comprehensive coverage to
travelers for a variety of needs.
This is why “package policies” are the most popular type of plan purchased by everyday
travelers. Package plans provide coverage for Trip Cancellation, Medical Emergencies,
and Medical Evacuation (as already discussed), but also provide a variety of other
benefits.
Travel insurance package plans typically include coverage for:
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Lost, stolen, or damaged baggage- For most travelers, this ends up being a very im-
portant coverage to have. It provides coverage for your personal property while on your
trip, and protects against damage to property, theft, or even loss. This benefit usually
covers luggage, clothing cameras, travel documents, and even passports.
Baggage delay- If you arrive on time but your baggage is late, you might need some
basic supplies to hold you over until they arrive. Baggage delay coverage provides re-
imbursement for essential items like toiletries, basic clothing, or a bathing suit for that
first day on the beach.
Travel Delay- If your trip is delayed, you might spend additional money on accommoda-
tions and meals. Travel insurance package plans often include coverage for these extra
expenses through travel delay coverage.
Missed connection- This coverage provides reimbursement for additional expenses if
you miss your flight or cruise due to a travel accident or severe weather.
Assistance services- This is a very important coverage. All travel insurance companies
provide some sort of 24/7 emergency services, the better ones even multilingual. This
gives you peace of mind while traveling, knowing that you have someone to call in the
case of an emergency.
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Optional coverages available with many package plans:
Rental car damage protection- Many package plans either provide the option for, or
automatically include coverage for rental car damage. Even though you are typically of-
fered insurance coverage from your rental company, the coverage is very expensive.
Opt for this and you can skip the rental counter policy.
Identity theft- Some companies provide coverage for identity theft resolution costs in
the event your suffer ID theft on your trip.
"Cancel for any reason" coverage- This is a newer coverage available as an add-on
option, and it does exactly what it says. If you purchase this option, you can "cancel for
any reason" and receive reimbursement for pre-paid trip expenses. The reimbursement
varies by company, but usually varies from 75%-100%.
"Cancel for work reasons"- Similar to "cancel for any reason", this benefit adds a list
of work-related reasons to your coverage. Mergers, moves, or other job-related cancel-
lations can be covered under this optional add-on.
Adventure travel coverage- This add-on work in two ways. First, it covers medical
treatment for accidents as a result of adventure activities. Since all package plans have
coverage exclusions that usually eliminate injuries resulting from certain "adventure" ac-
tivities, this coverage is necessary to cover them. Second, it can provide coverage for
sports equipment under the baggage coverage, which usually excludes sports gear.
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There are many other benefits offered under package plans, but this covers the major
ones. Travel insurance companies are constantly innovating and making their plans
more inclusive, so it is always smart to read up on the latest coverages available.
Do I need these additional coverages?
These extra trip coverages are usually secondary to Trip Cancellation and Travel Medi-
cal coverage, but they are still important. Most travelers like the peace-of-mind knowing
they have extensive coverage for every aspect of their trip.
Unless you only want a Travel Medical or Evacuation plan, you might as well enjoy the
benefits of these extra trip benefits. Itʼs a wide variety of coverage for a very reasonable
price, and can help ensure you long awaited vacation doesnʼt become a nightmare.
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Section Summary
•
Package policies are popular because they provide a comprehensive benefits
•
In addition to Trip Cancellation and Medical coverage, package plans include many
other benefits
•
Some plans offer special “add on” coverage for an additional cost
•
Unless you only need Travel Medical/Evacuation, it is smart to get the extra package
policy benefits
Coming up...how to quote and buy insurance
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Buying travel insurance
This section will cover:
•
Where to buy travel insurance
•
The best time to purchase your policy
•
Next steps
•
Helpful inks to travel insurance websites
As stated in the beginning of this guide, once you know what type of policy you need,
and what benefits to look for, the actual purchase of travel insurance is very simple.
Travel insurance is primarily sold online. Since it is a short-term insurance policy that
covers very specific risks, companies are able to quote, enroll, and issue almost imme-
diately (as opposed to a lengthy underwriting process as with life insurance).
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5
All you need is the basic trip information, traveler details, and a credit card, and you can
have a travel insurance policy within 10 minutes.
Where to buy travel insurance
The 2 best places to buy travel insurance:
The best option is to buy a policy direct from the insurance company website. This is
a good choice if you already have a good idea of the type of policy you need, a specific
plan, or a specific company based on their rating.
Buying direct from the company ensures you are choosing from their full selection of
products, and you will have full customer support for those products.
All travel insurance companies sell their products online, and most have developed very
user-friendly websites. You can get an instant price quote, buy with a credit card, and
get immediate email confirmation of coverage.
The second option is to use a comparison website to compare quotes from several
companies at the same time. This is similar to using Expedia.com for buying an airline
ticket, as opposed to visiting each individual airlines website. You simply enter some trip
& travel information, and get instant comparative quotes from many companies and for
many products.
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The main benefit in using a comparison website is getting to analyze different plans,
side-by-side, and seeing how the different coverages and prices compare to each other.
However, this can also be overwhelming, since you're comparing up to 100 plans from
20 different companies.
Only buy from reputable companies
Purchase your travel insurance plan from a reputable company with a good rating. A.M.
Best is a company that rates insurance companies based on many factors. They assign
a grade rating (A+, B-, etc.) for each company, and provide other details like financial
stability and size.
The following link goes to a chart with all A.M. Best ratings for the different travel
insurance companies. They are all reputable; earning scores of A- and higher.
View A.M.Best ratings in this chart
Buying direct vs. through a comparison site
As far as price, there is no difference between buying direct or using a comparison site.
The price of your policy is the same whether you purchase direct from the company, or if
you use a comparison site. A comparison site is simply an agent, and they earn a com-
mission from the policies they sell, just like your regular insurance agent. It doesn't cost
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you extra; it simply means the insurance company pays a portion of the premium to the
agent for selling the plan.
Do not buy from travel agents or cruise lines
Buy from the insurance company or an insurance agent, but do not buy from a travel
agent or cruise line. Over the years, travel agencies have seen the potential profit in
selling insurance to their clients and it has become very popular.
Travel agents are not insurance agents, and they will not know the products thoroughly
enough to make a good recommendation. They might make more commission on cer-
tain products, and direct you towards them. Oftentimes, the insurance coverage offered
by a cruise line is very limited, it doesn't provide adequate protection, and it is priced too
high. Always buy travel insurance from a third party such as an agent or the company
itself.
Do not shop based on price alone
It is surprisingly common for travelers to seek out "cheap" travel insurance, even though
they are attempting to protect their health, well-being, and finances. If you are looking to
save some money on your trip, look for ways to save without risking your health and fi-
nances.
Instead of shopping based on price alone, decide what coverage is important to you and
your trip, then compare policies that provide this coverage. Adter you have narrowed the
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selection down to a few, then consider price. Make sure you are comparing apples to
apples; donʼt pick the cheapest policy only to find out it lacks an important coverage.
The best time to purchase your policy
It is best to purchase travel insurance as early as possible, meaning as close to the time
of booking as possible. There are several benefits to purchasing your plan right away.
First, you take advantage of insurance coverage for the longest possible amount of
time. If you book your trip and buy the travel insurance at the same time, you are cov-
ered for trip cancellation immediately.
So, for a trip in 10 months, you would enjoy 10 months of coverage. On the other hand,
if you booked a trip now and decided to wait to buy insurance, something could happen
between now and then.
Furthermore, many policies include extra benefits if the plan is purchased within a cer-
tain numbers of day of booking. For example, some policies provide supplier default/
bankruptcy coverage under this condition.
Also, most policies have a grace period for purchasing where you can still take advan-
tage of these additional coverages. For example: a company might cover financial de-
fault if you purchased your plan within 14 days of the initial trip deposit.
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Company links (and A.M.Best ratings)
Company (listed
alphabetically)
A.M. Best
Rating
Read the full
review
Website Link
Access America
A
Read full review
www.accessamerica.com
CSA Travel Protec-
tion
A
Read full review
www.csatravelprotection.com
Mondial Assistance
A-
Read full review
www.mondial-assistance.us
Global Alert
A-
Read full review
www.etravelinsurancecentral.com
Global Underwriters
A
Read full review
www.globalunderwriters.com
HTH Worldwide
A-
Read full review
www.hthtravelinsurance.com
MEDEX
Read full review
www.medexassist.com
MH Ross Travel
Insurance Services
A+
Read full review
www.tripinsurance.com
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Company (listed
alphabetically)
A.M. Best
Rating
Read the full
review
Website Link
Seven Corners
A+
Read full review
www.sevencorners.com
Travel Guard
A
Read full review
www.travelguard.com
Travel Insurance
Services
A
Read full review
www.travelinsure.com
Travel Insured In-
ternational
A
Read full review
www.travelinsured.com
Travelex
A+
Read full review
www/travelex-insurance.com
Travelsafe
A-
Read full review
www.travelsafe.com
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Next steps
•
Read articles and company reviews at www.TravelInsuranceReview.net
•
Get a quote from a comparison website now
•
Visit the individual companies using this chart
•
Email me with questions or suggestions: damian@travelinsurancereview.net
The End
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