Travel insurance is an interesting type of insurance as people are often divided as to whether it’s worth the money or not. These things to know about travel insurance are not designed to add to the debate or help you with sneaky little ways to find cheap travel insurance, but they are designed to help you better understand the subject in general. So take a look at these 7 Things You Should Know About Travel Insurance and become more enlightened!
1. Rental Car Null and Void
When people decide to take out a rental car, they will also take out some form of rental car insurance. Good travel insurance covers exactly the same things as rental car insurance so why do you really need both? The answer is that you don’t.
If you cancel your trip then you are certainly going to get at least some portion of your expenses back, but you won’t get the full amount back unless it’s for a very specific reason such as a natural disaster or you have been warned against travelling due to a terrorist attack. You can purchase trip insurance that offers cover for any reason of cancellation but of course it is going to cost a lot more.
3. Travel and Life
One of the most important aspects of travel insurance is the medical cover it provides. The last thing you want to think about when planning a trip is anything going wrong but it is best to be prepared. One of the things to watch out for is policies that allow you to choose your medical care provider. Sometimes in developing companies, the nearest hospital may not be the best option. If anything serious happens, the cost of air ambulances from abroad is astronomically expensive and in the worst cases, even good insurance falls short of covering all the costs. In the worst case scenario, should death occur, travel insurance at least provides some financial compensation for loved ones.
4. Comparison Sites
Comparison sites are a great way of finding travel insurance. Every tour operator will offer you’re their own cover but it is best to shop around – you are under no obligation to purchase the operator insurance although some companies will insist on it. If you travel more than once a year, annual travel insurance is usually the most cost-effective option.
If you are the type of person who can’t live without an endless number of expensive electronic gadgets you will need to consider personal property insurance. Generally, travel insurance limits cover of personal belongings to $500.
6. Travel before Deposit
It is best to obtain travel insurance as far in advance as possible. Even though you can buy trip insurance up to the day before you travel, benefits for cancellation and delays may be severely reduced. It is not worth the risk of the trip being cancelled before you have purchased insurance. It is generally advised that travel insurance should be purchased within two weeks of paying your trip deposit.
As with all other insurance types, there may be a deductible to take into account with travel insurance and again as with other types, deductibles affect price.
These are just some of the things you should know about travel insurance. As with any financial product there’s a basic set of rules – shop around, make sure you have the right product and read the small print.
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