There’s no way around it: when you’re traveling, you absolutely need travel insurance. Sure, it’s optional in theory, but not in practicality. Like anything else you’d invest in — a car, a house, your health — insurance is crucial. And when it comes to traveling, travel insurance is the lifeline you never want to be caught abroad without. Many travelers aren’t totally sure about what travel insurance entails. For those that don’t know what it really consists of, here’s what you need to know:
Flight Complications
If anything goes wrong with your flight, you’ll likely be in a tight bind. For total peace of mind, travel insurance covers any issues that may arise, including flight delays, cancellations, or emergency situations that involve coming home early.
And that’s not all. Flight issues cause serious ripple effects, and with travel insurance, you can seek compensation for travel plans that were interrupted on behalf of the airline. For example, if your delay caused you miss out on a night in your hotel, a comprehensive insurance package would be able to cover that night.
Medical Coverage
Travel medical insurance will cover any medical issues that arise outside of your home country. This is a crucial part of your insurance plan, because anything can go wrong while traveling, and it’s better to be safe than sorry. This is especially true for countries where outbreaks have occurred or where the food safety varies from your home country.
The last thing you need is to have your dream vacation interrupted by a medical crisis. Too many horror stories have occurred because of a lack of medical insurance. But the truth is, even the most budget-friendly insurance options have power. Case in point: an Australian family visiting America found themselves with a $700,000 medical bill after their four-year-old daughter had to be evacuated by a helicopter when her lung collapsed. The family had taken out a $180 insurance policy — and it covered every penny.
Lost Belongings
Some travel insurance plans will cover you for lost, damaged, or stolen goods. This includes getting caught in a lost luggage situation, which can definitely happen. In 2013, 1.8 million pieces of luggage disappeared. That’s a lot of baggage. And though airlines have made major investments into cutting back on lost-luggage scenarios, it’s always a possibility.
Depending on your package, travel insurance can also cover stolen goods, which is critical when traveling abroad — especially in countries like Brazil where pickpocketing is not only common, but very likely. If you’re a photographer and lost a thousand-dollar camera, you’d want the ability the have it replaced right away.
Finding The Right Plan
There are dozens of travel insurance providers to choose from, which can make your decision difficult. One of the first things you should look at is the coverage limit for medical. A standard is $100,000, which will cover the majority of any health complications you’ll face overseas. Families should opt for a higher coverage limit.
Your plan should also cover unforeseen events that are of no fault of your own. For example, in the event of a natural disaster or terrorism attack, you should be fully insured through a separate limit that’s much higher than your medical coverage limit. This includes evacuation from your destination to your home country in the event of an emergency.
And of course, you need great flight protection that covers and airline mishaps and unfortunate circumstances. Furthermore, you should only work with an insurance provider that offers 24/7 customer service. The last thing you want is to be stuck in another country, and waiting for business hours to start in another part of the world.
