Apart from trip cancellation and trip interruption, some other types of travel insurance include emergency evacuation, accidental death and loss of damage to baggage or personal effects. Wasting millions of dollars each year on unnecessary travel insurance or travel assistance policies is a harrowing experience for travelers. It is advised to check the terms and exclusions of any travel insurance or travel assistance policies carefully before purchasing them even if these products are valuable to some travelers in limited circumstances.
Buy only the insurance you need. Bundling several insurance together to form comprehensive travel insurance is a frequent practice. Make sure you purchase what you need only after reviewing this chapter and doing comparison shopping among several travel insurance policies
It is best to decide on the type of travel insurance when you already know the coverage present with you. Take into consideration the following facts in particular. While you are traveling, provision of liability and personal property protection can be provided by home owner’s or rental’s insurance policy.
Though your health insurance does not guarantee you with all the coverage but it surely provides you with all the information about specific limitations and exclusions of the policy. Using a car on rent poses no problem for you to avail automobile insurance coverage. Your credit card may offer some protection, including loss damage waiver when you rent a car or coverage if you want to cancel or change a flight.
As of today, there are many travel insurance policies which boasts of providing you with excess or secondary coverage. This means that if any other coverage can be applied to the loss first, such as homeowner’s insurance if your personal property is stolen, then the travel insurance will provide coverage only for amounts not paid by the primary insurance, such as deductibles. Whether your own coverage is insufficient or you have a very high deductible, travel insurance policies can offer primary coverage in these cases. Primary coverage has a higher premium than excess coverage in most of the cases.
The biggest drawback of travel insurance is that most policies contain a number of exclusions and travelers often don’t learn about the exclusions until they try to use the coverage. Determining the protection being offered by your travel insurance policy can be done only while reviewing the policy and checking the exclusions and definitions carefully. Trip cancellation and trip interruption insurance can be considered as the most important types of travel insurance since they are capable of covering losses which are usually not covered by any other insurance which you might already have.
Trip cancellation and trip interruption insurance give different kinds of protection, despite being closely related. Reimbursement of any prepaid and non refundable expenses such as an airline ticket or a cruise cabin that you could not use due to trip cancellation, can be claimed by insuring yourself with the trip cancellation insurance. Not only does the trip interruption insurance provides you with cover during your trip but it also reimburses certain expenses if you cut short or change your trip. The validity of trip cancellation insurance lies in three things irrespective of the variation in the terms of the policy which is expected to reimburse you for nonrefundable and prepaid trip expenses. Any effect which indirectly causes the trip that had been prearranged to be cancelled because the accident may have had an effect on either you or those travelling with you. The validity of your trip cancellation insurance holds only before you departure.
Make it a point to assure yourself that any trip cancellation insurance you purchase covers you while you are en route from your home to your departure point. In the same fashion, some trip cancellation policies expire 48 or 72 hours before the departure time durin which many last time crises may occur. If you purchase cancellation insurance, make sure you are covered during the entire period of time before your departure.