Although insurance has been in existence, in one form or another, for the past two – three millennia, starting with the Babylonians in circa 1750 BC, Travel Insurance is a relatively new insurance, with respect to other insurances like Life Insurance, Property Insurance, Car Insurance, etc. In the past two centuries, travelling for business and leisure has been growing exponentially and providing a multitude of services for travellers has become a huge business. Due to the ever increasing number of travellers and the many problems encountered by travellers within their own country and abroad, insurance companies came out with comprehensive Travel Insurance Packages for intrepid travellers, businessmen who travel regularly, and for families and groups. Besides these comprehensive Travel Insurance Packages, insurance companies also came out with Cheap Travel Insurance Packages for budget travellers, backpackers, and those travelling alone or in a group, but on a shoe-string budget.
A comprehensive Travel Insurance Package covers almost all risks and includes all facilities and many services and assistance like medical assistance in case of accidents and injury, including air lifting to hospitals if required through an Air Ambulance, hospital expenses, compensation and assistance for lost or stolen baggage, lost documents, booking cancellations, etc. All these services and assistance come at a cost, which is the premium charged for the insurance package. But this does not mean that the Cheap Travel Insurance Packages are useless or should not even be considered. Cheap Travel Insurance means that the package covers the essential and most common risks like medical assistance required, accidents, etc, but some cheap packages may not include some risks covered in the comprehensive packages, and which may not be required or essential for the policy purchaser.
Many insurance companies may also charge a lower premium for comprehensive Travel Insurance packages, based on their assessment of the risks and calculations. This does not mean that these Cheap Travel Insurance packages are not as good as the ones that charge a higher premium for the same package. Offering cheaper travel insurance by an insurance company may be due to its own internal assessment of travel trends, risk factors, calculations, and experiences with previous policyholders and policies issued. Offering of Cheap Travel Insurance and charging a lower premium may also be due to the competition in the insurance industry to entice customers to purchase their Travel Insurance packages.
Whether you opt for comprehensive Travel Insurance or Cheap Travel Insurance, one should always enquire about the risks covered, services provided like online help and call facilities, and assistance provided in case of emergencies and problems. If you are travelling overseas to another country, you should also inquire about the assistance that is provided overseas in case of medical emergencies, cancelled flight and hotel bookings, etc.
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Choose The Travel Insurance That is Right For You
It is something that we all need if we are planning to take a trip overseas. Travel insurance will cover most costs in the event of a delayed or canceled trip, death or illness and lost baggage.
The situations that are commonly covered by travel insurance are emergency medical assistance, death, a canceled trip and damaged baggage. You can generally take out travel insurance for any or all of these options, although it may not always be necessary. Make sure you understand exactly what your policy does and does not cover.
If you are traveling overseas, always check your existing medical insurance to see whether it covers you away from home – you may not need to take out extra travel insurance. And you may not need to take out as much travel insurance if you have a major credit card – most credit cards include some kind of basic travel or trip cancellation insurance.
So if you do need travel insurance, where do you get it from? Most cruise lines, travel agents, airlines and tour companies will provide adequate and comprehensive travel insurance. If you are taking a cruise, it may be easier to let the cruise line handle it – they may also be able to offer you a lower rate as they can buy group rate coverage.
Some insurance won’t cover pre-existing medical conditions or participation in dangerous activities such as skiing or mountaineering. Decide whether you need this type of insurance before you travel – most insurance companies won’t allow you to add so-called dangerous sports coverage to your policy once you are actually there.
The cost of travel insurance can be a lot higher if you are traveling to certain countries that are considered to be risky or unsafe. These “travel advisories” are maintained on a list by the US Department of State. American citizens are still forbidden to travel to Cuba and obtaining travel insurance to go there is almost impossible.
Some insurance policies will cover acts of terrorism while other policies won’t – always check the small print or contact your insurance company if the policy isn’t clear. Check whether your policy covers you in the event of natural disasters such as floods or earthquakes – especially if you are traveling to certain parts of the world.
If you are traveling to a country where riots, civil disturbances, strikes or other outbreaks are likely to affect your travel plans, look for travel insurance that specifically covers those possibilities – many policies exclude them.
And airlines reserves the right to cancel your flight and offer you a full refund in the event of civil war, hostilities, riots or other things determined to be “acts of God”. As far as lost luggage is concerned, airlines insure your luggage against loss or damage to some degree – you can take out extra insurance if you want to.
If you are traveling as part of a group – often defined in the travel industry as 10 people or more – it is almost certainly easier and cheaper to take out group travel insurance. As long as your group is traveling together, it should qualify.
And so-called “family plans” are often less expensive when it comes to travel insurance for families traveling together – family may include extended family such as cousins, grandparents and various in-laws.
Like most insurance products – travel insurance can be confusing. It’s certainly worth taking out the right insurance – at the right price – so you can actually enjoy that long awaited trip.