Are you planning a vacation travel trip but can’t decide whether to get travel insurance or not? Don’t worry because we have you covered! Read on to find out whether travel insurance is necessary for all kinds of travel trips.
What Is Travel Insurance?
Just like any other insurance plan, travel insurance protects you from significant financial losses caused due to unexpected or unpleasant events before, during, or after a travel trip. They reimburse non-refundable travel expenses and cover any incidental delay-related expenses and common trip cancellation claims.
Deciding whether or not you will need travel insurance depends on the following key considerations:
- Financial Risks – How much have you invested in the trip and how much of it can you afford to lose?
- Medical Risks – Where are you going and can you afford to pay for any medical emergencies that may occur there?
- Insurance Coverage – How far are you going and whether your health insurance network covers that area?
When Do You Need Travel Insurance?
It is ideal to opt for travel insurance if you want to minimize all travel-related risks and maintain a peace of mind. You can also customize your insurance plan according to your own needs. Here are a few things your travel insurance plan might cover:
- Cancellation of the trip due to medical reasons, terrorist activities, etc.
- Unexpected flight delays or cancellation because of weather changes or natural disasters
- Theft of the passport and/or wallet
- Any medical emergencies
- Loss or damage to luggage
- Unexpected work situations
You will need to purchase a travel insurance plan if you are:
- Planning a trip to a country that has high medical treatment costs
- Going on a trip to play extreme sports that have a high medical emergency risk
- A credit card holder whose non-refundable expenses exceed the credit card limit or benefits
- In need of more flexible reimbursement policies
When Don’t You Need Travel Insurance?
Despite its usefulness, travel insurance may not always be necessary. This type of insurance may be completely useless in the following instances.
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Last-Minute Domestic Travel Trips
When you book a domestic trip at the last minute, you are hardly concerned about interruption coverage or trip cancellation. You are also less likely to worry about expensive non-refundable trip costs if you purchased a cheap ticket at a last-minute discounted rate. In addition to this, traveling within the country would mean any medical emergencies or unexpected losses will be covered by your health insurance.
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Trips with Affordable Pre-Paid Trip Expenses
Travel insurance is best for times when your pre-paid non-refundable costs are more than you are willing to risk. It is best to ‘self-insure’ in low-risk circumstances such as when you have a cheap non-connecting domestic flight or a last-minute flight that has a reduced chance of cancellation or delay. Self-insuring refers to taking the risk of financial loss yourself.
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Business Trips Abroad
It is smart not to buy travel insurance in low-risk situations. These include instances like business trips to places where your company’s health coverage is available which would mean that you have medical emergencies taken care of.
Conclusion
Still not sure whether to opt for a travel insurance or not? Here’s a tip: when in doubt, purchase travel insurance because it is better to be safe than risking a problem! For more travel-related info, check out Vacation Resorts “R” Us.
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