The countless snags you could encounter with your travel plans can be expensive. Fortunately, there are numerous travel insurance options for every budget and every method of travel that can ease the worry those expenses bring.
DarrasLaw founding partner Frank appeared on Health, Wealth and Happiness to discuss how to protect against common travel woes during a holiday trip.
“There is a very modest premium for real peace of mind, and it can cover everything from reimbursing your nonrefundable expenses to plane tickets, train, bus, tour packages, hotel rooms … pretty much for everything.”
What Travel Insurance Can Cover
According to the U.S. Travel Insurance Association, one in six Americans has had their travel plans impacted by medical conditions, natural disasters, or mechanical or carrier-related problems. Of those affected, only one in five had travel insurance.
Travel insurance is often purchased to protect against the following circumstances:
Trip Cancellation
Trip cancellation is among the biggest financial concerns for travelers and a common reason for purchasing travel insurance.
In many cases, insurance reimburses you for pre-paid, nonrefundable expenses if you need to cancel your trip in advance. This is especially helpful for those who book cheaper, nonrefundable flights or transportation to save money.
Trip cancellation coverage typically includes:
- Plane tickets
- Train and bus tickets
- Tour packages
- Cruise fare
- Hotel rooms
However, not every reason for cancellation is covered. Common covered reasons include:
- Getting laid off from work or being required to work
- A terrorist incident at your destination
- Bankruptcy of your travel supplier
- Being summoned for jury duty
- Your travel destination being damaged by a natural disaster
It’s important to review the list of covered reasons carefully before purchasing a policy. Each insurance company provides its own list of covered scenarios for trip cancellation.
Trip Interruption
Trip interruption coverage is similar to trip cancellation coverage but applies when your trip is already underway.
If you must return home early for certain covered reasons, the insurance reimburses you for the unused portion of your trip and helps cover any additional expenses, such as a last-minute flight home.
Medical Cancellation, Interruption, or Evacuation
This coverage applies to medical emergencies that cause you to cancel or cut your trip short due to sickness, injury, or death — whether it involves you, a family member, or a traveling companion.
Emergency medical evacuation insurance covers transportation costs if a qualified physician determines you must be evacuated to the nearest medical facility — or, if necessary, back to the United States.
Many travelers assume their regular health insurance covers them abroad, but that’s often not the case. Before buying additional coverage, review your current health plan to understand what’s included, and choose a travel insurance policy that fills any gaps.
Other Travel Tips
- Consider baggage coverage: About 2% of all lost baggage remains lost permanently. Travel insurance can help compensate for lost items.
- Document your belongings: Take a photo of what’s in your bag before you board — it can help you create an itemized list if your luggage isn’t recovered.
- Keep valuables with you: Don’t pack cash, jewelry, cameras, or other expensive items in your checked luggage. These are often excluded under airline reimbursement policies.
- Record key details: Write down your ticket number, passport number, and insurance policy information in case you need them quickly during your trip.