Travel Insurance

Posted on July 21, 2009 in Business/Law, Consumer Goods

You, like many others, may be asking yourself if it is really necessary to buy yet another kind of insurance. We already have health insurance, car insurance, renter’s or house insurance, and life insurance; and most of those are becoming regarded as luxuries.

Travel insurance, for those who can afford to travel, is only a small investment added to the cost of your trip that could save you a lot in the end. It usually insures the price of your ticket as well as your lodging arrangements, so you can be certain that you don’t lose money if the resort or airline makes a mistake (such as overbooking). Travel insurance also generally covers any medical expenses that you incur on your trip. Your regular health insurance may not cover you while you’re on vacation, particularly if you are traveling overseas.

Travel insurance can either be temporary, bought at the time of booking to cover a particular trip, or long term coverage which is continuous. Generally, travel insurance bought from insurance companies is more inclusive than insurance bought from travel agencies or private tour companies. So you will probably get a better deal buying a plan from a travel insurance firm rather than a cruise line or resort.

There are several types of travel insurance, as it pertains to business trips, student travel, pleasure travel, and many more. Probably the riskiest form of travel is international, at which time it would be wise to have a safety net that covers emergency evacuation/repatriation, cancellation, date changes, loss, theft, damage to travel documents, personal liability, legal assistance, and overseas funeral expenses. Travels to high-risk nations (such as possible conflict zones) are particularly keen to be insured.

That’s a lot of reasons not to leave your peace of mind up to chance. And at a scant 5-7% of the total cost of the trip, the question may not be whether you can afford to buy travel insurance, but whether you can afford not to.