Travel insurance aims to help you cover unforeseen losses when travelling domestically or internationally. However, this is a complex insurance policy since it covers a broad spectrum of damages.

Nobody wants to experience any loss while travelling, but in most cases, these losses are unforeseeable. Several companies offer travel packages and travel insurance, but it isn’t the case in all of them.

Overall, travel insurance can cover some of the following:

• Rented equipment
• Ransom requests
• Damage to personal property
• Emergency services, such as replacing lost passports or rebooking flights

The following page will outline everything you need to know about travel insurance and what you can do to choose one that best suits your needs. On the other hand, if you’re looking for affordable travel insurance packages that fit your budget and requirements, look at the wide selection that MoneySmart offers!

What Does Travel Insurance Cover Specifically?

Here’s a broader overview of what it can help you with:

• Trip Interruption or Cancellation: Some insurances can cover non-refundable travel expenses, as long as the conditions apply. These policies are perfect when you pay a lot of money upfront before a trip or when the refund options are much lower than the entire package cost. However, it’s vital to note that this insurance may not offer coverage in cases of severe weather events.
• Medical Coverage: Injuries are unpredictable, even worse when you sustain them while travelling. Typically, you have two options: short-term coverage and major coverage. Short-term coverage may offer up to a year, whereas major medical coverage would cover you for longer. Overall, this coverage type can help you find doctors and medical facilities and obtain services in foreign languages.
• Flight Accident/Death: This part of the insurance covers any flight accident that results in a person’s serious injury, disability, or even death. In cases of death, the policy offers compensation for any family members accompanying the person. If you already have life insurance, you may not need to have accidental death coverage.
• Property Damage: The following insurance factor covers lost, stolen, or damaged items during a trip. It may also protect you during the trip. Keep in mind that the amount of reimbursement may depend on the policy. Baggage tends to get lost on flights, so you need to count on one of these policies.
• Emergency Medical Assistance: In the event that you get sick or injured during the trip, your policy could cover everything needed to transport you to the nearest hospital or get medical repatriation in severe cases.
• 24-hour Assistance: Overall, some policies come with a 24-hour service, which allows you to contact the company at any moment you consider appropriate for missed connections, locating a doctor, or even finding your baggage.
• Rental Cars: Some insurance policies offer coverage for repairs of your rental car if the accident wasn’t your fault.

 What Can Affect the Cost of Your Travel Insurance?

Some of the things that can affect your overall premium cost include the following:

• Cost of local medical services
• Length or cost of the trip
• Coverage for particular medical conditions
• Additional policy features
• Your age

How to Choose the Best Insurance Based on Your Needs

While each person may have different needs, there are some factors that everyone should consider when getting travel insurance.

First, you must ensure you get insurance that offers a high coverage limit on medical expenses since this is one of the areas where you can’t predict accidents. It’s also recommended to get coverage for emergency care and evacuations.

Once you get your medical needs covered, it’s time to move down the ladder. Next, you should seek coverage for your luggage, including losses, damages, and theft. Finally, if you feel you need extra protection, seek insurance that covers hotel or flight cancellations if an unforeseeable event happens.

Some insurance policies offer protection for political emergencies and natural disasters, so that’s also a good option to consider. However, remember that this insurance doesn’t cover carelessness when handling your luggage, alcohol-or drug-related accidents, lost cash, or others.

Choosing the right travel insurance with MoneySmart Financial

A money-saving website such as MoneySmart Financial makes it easy to find a variety of travel insurance providers that match your needs. Its website also offers a user-friendly interface where you can check all the boxes you need and get recommendations based on your choices.