Travel Insurance: 5 Questions You Need to Consider

If you plan to travel in the next few weeks or months, you may want to purchase travel insurance. In fact, with travel insurance at your disposal, you can protect yourself against unfortunate incidents that may impact your travel plans.

To better understand travel insurance, how it works and its benefits, let's take a look at five questions about travel insurance.

1. What is travel insurance?

Travel insurance generally offers four types of coverage:

  • Cancellation: If you suddenly need to cancel your trip, travel insurance ensures that you are covered for the costs of your plane ticket, hotel room and related travel expenses.
  • Medical Emergency: If you travel overseas and suffer a medical emergency, travel insurance guarantees that you're covered for any medical costs.
  • Emergency Evacuation: If you require an airlift or a medically equipped flight home from your trip, your emergency evacuation expenses will be covered by travel insurance.
  • Lost or Delayed Bags or Delayed Flights: If your baggage gets lost in transit or your flight is delayed, travel insurance guarantees that you're covered for any associated costs.

Travel insurance also may provide coverage for life insurance, rental car collision and identity theft. As such, travel insurance may prove to be exceedingly valuable to protect you against any losses associated with travel-related incidents.

2. Does my medical insurance company cover any travel insurance costs?

Your medical insurance company is unlikely to help you cover any travel insurance costs. This means you probably will need to cover the costs of travel insurance out of your own pocket.

Additionally, it is important to note that your medical insurance provider will offer coverage against any medical emergencies that happen within the United States. But if you are forced to deal with a medical emergency during your trip abroad, you might not be covered under a "standard" medical insurance policy.

3. Which insurance companies offer travel insurance?

You won't have to search far and wide to find travel insurance, as dozens of companies offer this coverage globally. Some of the top providers of travel insurance include:

  • Allianz
  • IMG
  • John Hancock
  • Travelex

4. What are the cheapest travel insurance options?

Ultimately, when it comes to travel insurance, it pays to shop around. If you consult with several travel insurance providers, you are sure to find a company that delivers the right coverage at the right price.

5. Should I buy travel insurance?

Let's face it – no one wants to encounter travel problems, but these issues sometimes are inevitable. Fortunately, travel insurance offers protection against assorted travel pitfalls.

An unforgettable trip is priceless, and much in the same vein, travel problems may put a major dent in your budget. However, if you purchase travel insurance, you are guaranteed to receive financial compensation if unfortunate incidents take place during your trip.

Review all of your travel insurance options – you'll be glad you did. With an informed approach to travel insurance, you can determine whether this insurance is right for you.