The Many Faces of Travel Insurance

The Many Faces of Travel Insurance

Thursday, May 27th, 2010

Are you weighing your options to purchase travel insurance? May you do not think such insurance is unnecessary. Well, that is certainly your prerogative but to take such an attitude comes with a rather significant risk. When you are venturing on a lengthy vacation (or even a short term one for that matter) to take out a travel insurance policy can certainly improve your experiences. With travel insurance, you can maintain a peace of mind that would be elusive without it.

One reason people do not take out travel insurance is because they do not have a clear understanding of what such insurance is for. Travel insurance is no different than any other insurance policy you would take out. Specifically, the purpose of travel insurance is to provide financial asset protection in lieu of unexpected costs. For example, a home that takes out flood insurance will do so to avoid having to lose personal assets and funds to repair the damage a flood could cause. No one expects a flood to occur but depending upon where the home is located, such a risk is present. As such, the need for asset protection is enacted. Travel insurance serves the same purpose.

So, what type of travel insurance policy could you take out? There are several different forms travel insurance may take. Here are some of the most common policies available:

Trip Cancellation Insurance: Can you imagine the massive losses that could occur if a trip was cancelled due to bad weather? Rather than suffer such financial losses, having a cancellation insurance policy in place could prove significantly helpful.

Trip Delay Insurance: Although not as significant or impactful as an outright cancellation, there may be losses involves with a delayed trip. Delays can occur for a number of reasons. Even something as benign as the pilot calling out sick at the last minute could lead to a multi-hour delay. Having a policy designed to aid in recouping any financial losses that such delays could yield.

Lost Baggage Insurance: Oh my, is not arriving at your destination and learning your baggage is lost and gone forever the worst possible scenario to find yourself? Can you imagine the costs associated with having to purchase all the clothing that was in the bags? Or imagine going on a scuba vacation and discovering $1000 worth of equipment is lost. Rather than having to pay for the replacement of the items, you could contact the issuer of the policy and seek a settlement amount on the losses. Needless to say, this will cut down on the losses significantly.

Medical and Accident Insurance: As much as we are loathed to think of it, medical emergencies, injuries, and other such problems may occur. Having an insurance policy that covers such medical emergencies would certainly be a major benefit.

The amount of coverage you acquire will be based on the type of policy that you purchase. Some may look towards a blanket policy while others may have their sights set on a smaller policy. Ultimately, you will want to seek a number of quotes and then accept the proper policy for your own individual needs and situation.

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  1. Natalie says:

    I have met a few people who have had a nightmare because they did not take out medical insurance. While you may want to skip on the other forms of insurance, never do so on medical. Bills in foreign countries can amount to thousands of dollars if you do not have insurance.

  2. Natalie says:

    I have met a few people who have had a nightmare because they did not take out medical insurance. While you may want to skip on the other forms of insurance, never do so on medical. Bills in foreign countries can amount to thousands of dollars if you do not have insurance.

  3. RonLeyba says:

    I like the trip delay insurance the most. Why? it eliminates wasted hours in terms of travel. Your travel company will be obligated and really work their way to catch up with the given time.

  4. RonLeyba says:

    I like the trip delay insurance the most. Why? it eliminates wasted hours in terms of travel. Your travel company will be obligated and really work their way to catch up with the given time.