Travel insurance is a common way to protect an investment in an expensive trip or vacation. It’s also commonly purchased when people will be travelling overseas but their current medical insurance policy won’t cover them abroad or will only provide limited coverage.
There are many different types of travel insurance with various types of coverage:
- Trip delay, interruption, or cancellation
- Lost or stolen baggage
- Medical expenses and evacuation
Comparing prices and coverage at a number of different providers can help you save money on your policy. Below are a few of the most popular travel insurance providers:
When Travel Insurance May be Most Appropriate
- You purchase a trip well in advance
- One incident or delay could ruin your entire trip.
- The trip is expensive and non-refundable
- You cannot afford to replace the trip yourself should something happen
- You are travelling overseas
- Your medical insurance won’t cover you or provides only limited coverage
- Having peace of mind is important to you.
How to Purchase Travel Insurance
If travel insurance is appropriate for you, here are a few suggestions for how to purchase it:
- Prices and coverage vary widely by insurance provider. In order to find the best possible deal, obtain multiple quotes.
- Purchase travel insurance using a credit card. This may help you if there are disputes later on.
- Purchase travel insurance from an independent company that’s not affiliated in any way with your vacation (i.e. not the airline, cruise line, etc).
- Policies must be purchased before something is declared a foreseeable event if you want the event to be covered (i.e. you can’t wait until you become ill or a major storm is announced and then purchase the insurance, etc). For this reason, it might be best to purchase insurance shortly after booking your trip.
For additional travel insurance information, see our Travel Insurance articles in the Personal Finance section of the site.