Travel insurance is extremely important when you are going to travel abroad.
No one can predict the events that may cause you problems even before you leave. Once you have booked flights, accommodation and car rentals, you and your money are at risk as you have entered into a contract with one or possibly more companies for these things.
Circumstances can and do change, which can seriously affect the total cost of your vacation.
Nearly everyone has had their luggage lost at some point, and this could cause serious problems. I was in Japan a few years ago, maybe my bag got lost at Charles de Gaulle airport in Paris. I had to buy shirts and other clothes as I had a number of appointments and appointments.
I didn’t expect such a cost… I also had a big problem finding the right clothes, as Japanese sizes were usually much smaller!
What about injury or illness while traveling? The cost of even the most basic care can be very high, and more serious problems may require you to sell a home to pay for it, as the costs can be astronomical! A lot of people seem to think they are immune to this kind of problem … it always happens to someone else!
But… and this is a very big “but”, if this happened to you… can you cover the costs? If not, what is the alternative?
For these reasons, travel insurance is always a good idea. The risks are too great to be ignored. Travel insurance is very similar to fire insurance. It always seems too expensive … until your house burns down!
Then it will save you from financial disaster. Travel insurance works the same way. If you’re lucky and everything went wrong, then travel insurance seems like an unnecessary expense, but you can’t predict what will happen.
There are many types of travel insurance policies and companies that provide them. Visit this site to find out about the best companies, and here to find out which type of insurance is right for your vacation.
Some insurances will provide good coverage, but be careful: many insurances do not cover the little things you don’t even think about until you need them!
For example, many insurance policies “tied” to premium bank accounts do not cover the cost of an ambulance that will take you to the hospital if needed.
Why Do You Need Travel Insurance?
You should at least consider the following questions:
There are some circumstances under which you can cancel your flight. You cannot cancel your flight for legal reasons. In most cases, you are insured against illness, injury, in the event of your death or any of your immediate family members. For example, if you fall ill just before boarding a flight or someone in your family dies, you can cancel your flight at no additional cost.
- Medical expenses
Most travel insurance policies cover basic medical expenses incurred during your trip, but may not include specialized medical treatment or ambulance costs.
- Lost or Damaged Baggage
Many travel insurance policies cover stolen, lost or damaged baggage in transit, at the airport or at the hotel.
Typically, each insurance policy offers a different level of baggage protection. You need to be sure that in the event your luggage, for example, gets lost while traveling abroad during a week’s vacation. By the time your luggage arrives, your vacation is over and you will most likely have to incur some costs for basic clothing, etc. What does your insurance policy cover?
You may find that the insurance company will not cover these additional costs for “temporary” clothing because you have not lost your belongings permanently! You just suffered a delay, so there is no “loss” to be recovered!
Again, many travel insurance policies will cover your personal belongings from theft or damage, but to what extent? Is there a limit? And if so, what is it? Does it cover individual high value items such as cameras, laptops or golf clubs, and if so, what are the “limits” and what are the overshoots?
- Loss of traveler’s cheque and documents
Some travel insurance policies cover the loss of a traveler’s cheque or personal travel documents. The insurer will pay all additional costs for obtaining new documents, but you need to check things like “will they forward documents to you wherever you are”?
This is an often-overlooked issue. You should make sure that your travel insurance will cover the repatriation costs for you and your family in the event of any problems.
For example, will this cover the cost of repatriating your car if you are unable to drive? How big is this cover?
Repatriation costs can be very high if you are involved in an accident or injury while traveling. It is important that you have travel insurance that covers significant repatriation costs.
- Legal protection
Travel insurance that covers legal assistance can be helpful if you have an accident while traveling. Such an accident may not necessarily be your fault, and legal assistance can help you protect your rights. The costs of a lawyer abroad can be very high.
- Flight Cancellation or Delay
Your travel insurance may cover costs incurred if you need to book a hotel room prior to departure in the event of a delay or cancellation of your flight, please be aware that this could be at either end of your trip.
- Risks in the country of destination
You must be very confident about this element of your travel insurance policy. In the event of a natural disaster that occurred before your travel that prevents you from traveling or when you are at your destination and a problem arises; where are you standing? You may also need to consider terrorism or conflict issues, depending on your intended destination.
The travel insurance supplement may seem like a waste, but it can save you a lot of money or perhaps even your life in extreme circumstances! Do you REALLY want to risk it for a relatively small amount of money up front? It is currently proposed that travel insurance be included in the budget at 9% of the total travel costs!
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