Traveling is an exciting activity. It however comes with a level of risk and uncertainty. Travel insurance allows travelers to feel a sense of security. It gives travelers an assurance that if anything unexpected happens, they are covered. Selecting a travel insurance company is often a difficult task, however, The Travel Virgin is here to guide you.
Table of contents
- Types of Travel Insurance Coverages
- Factors That Affect The Cost of Travel Insurance
- Travel Insurance Calculator
- Which Company Provides The Best Travel Insurance?
- The Top 8 Travel Insurance for 2021
- Related Articles
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Travel insurance is big business. In 2019, the global travel insurance industry was valued at $19.2 billion. It is projected to reach almost $40 billion by 2027. Travelers are becoming more aware of the importance of acquiring travel insurance. In determining the type of insurance that you will require, it is important to know the various types of insurance coverage.
Types of Travel Insurance Coverages
What are the different types of travel Insurance coverage?
There are 8 common types of travel insurance coverage namely:
1. Travel Medical-This covers expenses if you get injured or sick.
2. Emergency Evacuation and Repatriation– Provides special flight services if you need to fly to the nearest hospital or home due to injury or sickness.
3. 24-Hour Assistance Services-Provides assistance in locating legal services abroad, a doctor, booking flights, locating lost luggage, etc. This assistance is usually provided through a 24-hour hotline.
4. Trip Interruption, Delay, or Cancellation– Provides reimbursement in the event of sickness resulting in a nonrefundable reservation or cancellation of a trip or ending a trip early than expected. Coverage may also include extra costs that may be incurred such as an increase in hotel and booking fees due to a delay in arrival caused by your airline carrier.
5. Baggage and Personal Belongings-Payment for damaged, lost, or stolen luggage.
6.Car Rental Collison Services-Payment that covers rental car damage.
7. Cancel for Any Reason-Reimburses for any reason that causes cancellation of a trip that results in a nonrefundable reservation clause to take effect.
8. Accidental Death or Dismemberment– Provides your beneficiary with a lump sum payment in case you die or lose a body part from an accident whilst traveling.
The Travel Virgin Tip: Familiarize yourself with the various types of coverages available to determine the coverage that suits your needs.
1. Travel Medical
This type of coverage provides health insurance whilst you are travelling. It usually has a condition which states that it cannot be used to cover the cost associated with treating pre-existing conditions or for routine medical check-ups. Simple recreational activities, like skiing, are usually covered. It usually does not cover riskier activities that fall under adventure sports (skydiving etc). If you intend to participate in adventure or competitive sports, it is important to seek a plan that covers these activities.
Persons are often surprised that their regular medical insurance does not provide medical coverage during travel. Purchasing a travel insurance plan that includes travel medical is a very wise decision.
2. Emergency Evacuation and Repatriation
There are many stories of persons who have traveled to countries with less than adequate medical facilities. In such cases, there is often limited medical treatment and specialized medical staff to perform emergency surgery. Having an emergency evacuation and repatriation coverage is useful if this occurs. This coverage pays for transportation to the nearest hospital by plane or to be repatriated to your home country.
3. 24-Hour Assistance Services
Travel Insurance plans usually include 24- hour assistance services through a special telephone hotline. The help services range from finding legal services, a doctor, booking flights, locating lost luggage abroad, etc. This assistance is usually provided through a 24-hour hotline. Some 24-hour assistance services have optional higher-end assistance services at a higher cost. Examples of these services include: making reservations at sought-after restaurants in your destination, concierge services, and other specialty services. It is very important to read the details of the plan that you purchase, as you might be pleasantly surprised that the help you need whilst on vacation is just a phone call away.
4.Trip Interruption, Delay or Cancellation
This type of coverage provides reimbursement for costs incurred because of trip interruption, delay, or cancellation. A number of factors can cause these delays such as flight changes by air carriers etc.
In the event of trip interruption coverage, insurance plans usually pay for costs associated with the portion of the trip that was unused.
In circumstances where your trip is delayed, insurance plans would pay for meals and accommodation costs incurred due to the delay.
5. Baggage and Personal Belongings
This type of coverage gives reimbursement for stolen, damaged, or lost personal belongings and baggage. In the case of baggage delay, some plans provide reimbursement if baggage delay exceeds a certain amount of hours.
It should be noted that some Home Owners Insurance may have personal belonging coverage for travel. This should be verified in deciding on your travel insurance plan so that you don’t pay additional amounts unnecessarily.
6. Car Rental Collison Services
No matter how excellent of a driver you are, accidents do happen whether in driving or by natural disasters. There are incidents of accidents simply being caused by driving in a new environment and limited awareness. Car rental collision services coverage is a “must-have” if you are renting a car in your travel destination.
The details of this insurance type vary from country to country so it’s important that you inquire.
7. Cancel for Any Reason
There are so many unforeseen events that can result in the cancellation of a trip. This type of coverage covers exactly that, “any reason”.
8. Accidental Death or Dismemberment
This coverage provides your beneficiary with payment in the form of a lump sum in case you die.
Additionally, It also covers the loss of a body part or functionality ( speech, eyesight, hearing, limb, foot, hand, etc.) from an accident.
The Travel Virgin Tip: Check your life insurance coverage as accidental death and dismemberment may be covered. Paying for it under a travel insurance package may result in unnecessary spending.
What does travel insurance cost?
Typically, a comprehensive travel insurance costs up to 8% of the cost of your trip.
Factors That Affect The Cost of Travel Insurance
- Length of Trip– The longer the trip, the higher the cost.
- Cost of Trip– The more expensive the trip, the higher the cost.
- Cost of Health Care in Travel Destination– The more expensive the health care in your destination, the higher the cost.
- Amount of Monetary Compensation in Coverage– The higher the monetary compensation under the coverage, the higher the cost.
- The Type of Coverage– This affects the cost of insurance. An example is that accidental death coverage is higher than trip cancellation coverage.
- Age of Traveler– The older the traveler, the higher the cost of insurance.
Travel Insurance Calculator
Which Company Provides The Best Travel Insurance?
There are so many companies that provide travel insurance. It is sometimes difficult to make a decision on which company to select. The Travel Virgin has done most of the work for you by providing a list of the top 8 travel insurance companies.
The Top 8 Travel Insurance for 2021
Top 8 Travel Insurance Company for 2021
1. World Nomads – Highly Rated, A Very Comprehensive Coverage Get A Quote Today
2. InsureMyTrip: Best Value Get A Quote Today
3. Aardy: Excellent Plans for Seniors Get A Quote Today
4. Travelex – Very Comprehensive Get A Quote Today
5. Allianz Travel Insurance: A Global Leader Get A Quote Today
6. HTH Travel Insurance: Great for Seniors Get A Quote Today
7: Nationwide: The Best for Cruises Get A Quote Today
8. GeoBlue: Good Medical Coverage Get A Quote Today
Having read all about insurance coverage, it’s time for you to select travel insurance. Happy Travel Insurance Hunting!!