10 Things You Should Know about Travel Insurance
When it comes to life, car or health insurances, people don’t hesitate to spend a lot of money. But have you really thought of purchasing or planning your trip? A responsible traveler should always have his back covered, because you never know what can happen while on foreign lands. Actually, travel insurance has been a touchy subject for years, and many travel agents would avoid this subject for fear of losing the overall deal. There are three major reasons why people buy this type of insurance: peace of mind, protection against uncontrollable factors and concern for their financial investment. Here are 10 reasons why you should consider making a travel insurance plan.
For these kinds of situations there is the Interruption Insurance. Of course, it is not worth the trouble if your flight is not over a few hundred dollars. Interruption Insurance is expensive, but it can be a true life-saver if you travel a lot, and to far-away places. We advise you to buy this insurance if you get sick easily, or if you had previous unhappy experiences.
We are not talking about health regular health care insurance. Most people don’t know that health insurance doesn’t work out outside your own borders, because the laws work differently in every country. Additionally, there are many cases of emergencies over seas, and there are big chances for you to get repatriated. This is where „Medical Evacuation and Repatriation” Insurance becomes useful. Moreover, although some hospitals might accept you if you get sick, they will expect enormous amounts of money before they let you go.
Most people in the US have Medicare coverage, which won’t cover you if you are out of the United States. You won’t be insured even if you go to a neighboring country such as Canada or Mexico.
You are planning to live in another country for a short period
Life doesn’t usually work out the way we expect it to. For example you might find yourself moving to another country for studies or work. This means that you will need additional insurance. If you didn’t take the risk of living without insurance in your own country, you should definitely not risk it on foreign soil.
Other Valid Reasons
There are also calamities that you should think about. There are chances that you can be caught in a hurricane, earthquake or tsunami. God forbid this ever happens, but if it does, you have to be prepared. No to trips are alike, and you have to be ready for anything. Staying safe is your number one priority when abroad.
What happens if your wallet or passport gets stolen, or if you are involved in an accident and require medical treatment. Who will arrange for your well-being and recuperation? If you have a travel insurance the system will be able to help you no matter the circumstances.
We have the tendency to pack a lot of things we probably don’t need during our vacations. Luckily, many trip cancellation or interruption policies provide coverage for lost or stolen goods. The Warsaw Convention limits liability to approximately 9.07 dollars per pound checked and 400 dollars per passengers for unchecked baggage.
Things you might not know
There are some little known insurance provisions which you definitely haven’t heard of before, and airline companies are not eager to talk about. This „excess valuation” as it is called, is a right that every passenger should have, but most companies chose to omit it. You should do your research, and ask the agents at the counter about it. It provides 5000 dollars of additional coverage.
Credit card coverage
By using a credit card, you are immediately covered. However, a basic credit card will only ensure coverage for flight insurance, rental cal insurance or baggage insurance. Read about the terms and conditions of your credit card beforehand.
Terrorism attacks have become quite a fashion in the last few years, and this is why you should have insurance. If war breaks out, or if you are part of a terrorist attack, there are certain clauses which apply for these exact situations. These clauses are called „force majeure”. The best way to deal with them is by calling your agency personally and discussing the specifics. Insurance companies have taken things seriously after the 09/11 attacks.