Travel insurance is a form of insurance that protects against the expenses and losses associated with traveling. It is a tremendous precaution to take when vacationing in the United States.
Numerous organizations that sell tickets or vacation packages also offer travelers insurance. Some travel insurance policies include coverage for damage to personal goods, rental vehicles, and ransom payments.
What does insurance for travel cover?
Depending on your coverage, travel insurance can pay for a wide range of damages and losses. Here are some of the most common things included in travel insurance.
Getting hurt or sick
Travel insurance can help protect you from medical costs that your regular health insurance won’t cover while traveling. Most health insurance plans don’t cover you fully in foreign countries, and some plans, like Medicare, don’t cover you at all. Travel insurance works on top of your regular health insurance. Getting sick or hurt before or during your trip can help cover some of the costs.
Travel insurance can help pay for costs that come up because your luggage was lost or stolen. This is especially helpful if your bags get lost by an airline since it can be hard to get them to pay for lost luggage. In the U.S., the Department of Transportation (DOT) says that airlines must pay up to $3,300 to people who lose their bags.
In other countries, the most you can spend is $1,750. But to get the maximum amounts, people must show receipts showing how much their lost bags and contents were worth. And some airlines say you have to file the claim within 21 days.
Travel insurance can help pay for costs that come up if you have to cancel your trip. Most resorts and cruise lines won’t give you your money back in full if you have to cancel. If you cancel your trip more than two weeks before it starts, most resorts will charge you a cancellation fee. Many cruise lines will only give you a 25% refund or credit toward another cruise.
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Most companies won’t give you any money back if you cancel a trip less than two weeks before it starts. Unexpected things happen, so you want to be ready for anything.
Coverage beyond your credit card
Some credit cards only cover a certain number of cancellations and interruptions per year and have other limits if they cover cancellations and interruptions at all. But few credit cards cover the most expensive travel risks, like medical bills or emergency evacuations, which can be paid for by travel insurance.
How much does insurance cost for a trip?
Travel insurance prices are mainly based on how much the trip costs and how old the traveler is. Jonathan Harty, the owner of a travel agency in Massachusetts, says that a policy might add 3% to 5% to the cost of a trip for someone 35 years old but around 10% for someone 60 years old. It might not cost much to protect your investment in a honeymoon or “trip of a lifetime.”