To take that next big trip you've been dreaming of, you might want to consider buying travel insurance.
If you're not sure how to buy travel insurance or which policy will work best for your situation, here are some helpful tips and information on how to purchase the right policy for your needs.
Why do I need insurance?
Protecting yourself from emergencies isn't something most people think about as they're planning a trip. While medical care in your destination country may be better than at home, it could still cost you thousands—or even hundreds of thousands—of dollars.
And many insurance companies don't cover travel-related injuries or illnesses that occur outside of your home country.
What kind of plan should I get?
You can't buy just any travel insurance policy and expect it to cover your trip. There are three major types of travel insurance plans, each with its benefits and exclusions:basic plans, which provide limited medical coverage;
comprehensive plans, which protect you against all potential calamities—including lost luggage or cancelled flights; and specialty policies, which are geared toward specific types of travelers—like students or adventure-seekers. It's important to know exactly what you want in a plan before buying it. Do you want to be protected if your flight is delayed?
If your bag gets lost? How much medical coverage do you need? Also, make sure that
any purchases don't conflict with existing insurance policies. Some services
may not cover pre-existing conditions, for example.
How much does travel insurance cost?
The cost of travel insurance varies depending on where you live and when you're travelling. Generally, travelers from North America will pay less than $15 a day for comprehensive coverage, but travelers from other parts of the world might spend up to $35 a day.
This also depends on your age, how old your passport is, how much you've already covered your trip with pre-paid travel vouchers or flight insurance and if you have an existing
medical condition.
Should I get travel health or an annual multi-trip instead?
Travel insurance comes in two forms: travel health and annual multi-trip. Annual multi-trip provides coverage for a specific time—say, one year—while travel health is more like traditional medical insurance and includes costs like doctor's visits or prescription drugs.
What are the standard travel policy exclusions, and what can
I do about them?
Standard common travel policy exclusions include pre-existing medical conditions, pregnancy, and activities not mentioned in your policy.
If you have a pre-existing medical condition, you may be denied if you don't mention it or they find out after you purchase. Some policies even stipulate that complications from existing conditions aren't covered either.
You should check what your policy covers and how much of your expenses are covered before any medical treatment or emergency evacuation. With pregnancy, some policies will cover complications during or just after birth, while others won't cover them at all.
Check with your provider to understand what they consider an expected delivery versus an emergency cesarean section.
Do I need trip cancellation coverage too?
Most travel insurance policies won't cover flight cancellation, so you'll want to buy a separate policy. Some trip cancellation policies will also cover weather cancellations, but read your policy carefully if you're travelling far from home (more than four time zones).
Your provider may require that you have purchased a certain number of days of coverage before offering it for an additional fee.
When should I get travel insurance, and when can I wait
until later?
As with most purchases, there's a right time and a wrong time to get travel insurance. Generally speaking, if you have an existing medical condition or anticipate having health-related issues while abroad, securing coverage before departing makes sense.
If you want protection in case of delays due to weather or missed connections or plan to enjoy several alcoholic beverages while on vacation, you can wait until later. Just be sure your travel dates don't extend past when your current insurance ends.
It's also essential that you don't buy too soon because many policies require that pre-existing
conditions are stable for at least two weeks before departure; however, some insurers are willing to work with travelers who need a shorter timeframe.
Is there a better alternative than buying from an insurer
directly?
If you have time, you might be able to save money by shopping around—you can often save 10% or more when you buy from an agent that represents several insurance companies. The other option is a peer-to-peer travel insurance provider:
These outfits are just like buying from an insurer directly, but they don't deal with agents—and sometimes they offer lower prices. Just shop around online, and you'll find that—most major insurers now sell policies through such services.
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