The Benefits of Travel Insurance


The Benefits of Travel Insurance

You should always use reliable airlines when booking airline reservations, especially for work travel. By reliable, I mean airlines that do their best to take care of you if your flight is delayed or canceled. While relying on reputable companies helps protect you when the inevitable happens, I also recommend getting travel insurance.

You may see travel insurance as an unnecessary expense, but with so many flights being canceled today by even the best airlines, spending that money could be well worth it. For example, if the last flight out to your next destination gets canceled, you scramble to either get a hotel room for the night or find alternative transportation like a rental car. Both are unplanned business expenses.

If you become ill or trip and sprain an ankle and must cancel your trip at the last minute, you will probably lose the flight cost. If you are not at home when something like this happens, you have medical, hotel, and meal expenses while you recover and regroup.

What is Travel Insurance?

Travel insurance protects you financially against unexpected events like flight cancellations and medical emergencies. There are three types, single trip, annual, and group.

Single Trip Travel Insurance

A single trip travel insurance policy covers you for an individual trip. Coverage generally starts when you leave home and ends when you return. If you travel with family or coworkers, a policy can cover up to ten people through group coverage which is discussed below.

This kind of policy can include or exclude trip cancellation coverage which reimburses the traveler for trip expenses when they cancel a trip for a covered reason like illness or accident. A typical comprehensive cancellation-type policy covers trip expenses, medical emergencies, travel delay costs, and lost or damaged luggage costs.

The cost of a single trip policy with trip cancellation coverage varies with the traveler's age, the trip duration, and the total trip cost. Prices typically run between 4% and 10% of the entire trip cost.

You can also get a single trip policy that doesn’t cover cancellation. It would only cover things like medical expenses, travel delay costs, and luggage loss or damage. These policies cost a little less.

Annual Insurance

Frequent travelers might consider annual travel insurance that covers travelers who take multiple short trips throughout a year. You choose a specific start date, usually the departure date for the first trip. You’re covered for a year from that date. However, there are limits on how long each trip can be and how many trips are covered.

The main thing to understand about annual insurance is it does not cover cancellation costs. Instead, it covers emergency medical expenses and medical evacuation to get you home if something happens.

Group Coverage

Just like with a single trip policy for an individual, people traveling together, whether for business or pleasure, can purchase a group policy for up to ten travelers. Group policies cover cancellations, medical emergencies, travel delays, and luggage.

Group policies might save you money because the cost doesn't consider the ages of the individual travelers. For example, a group policy might be a good option if several company employees travel together for a conference.

Securing my travels is something I have done for years. I highly recommend travel insurance, especially with today's uncertain flight situation. Insuring your flight, hotel reservations, car rental, and luggage can make or break a trip. With travel insurance in play, your vacation or business trip is protected. If something unexpected happens, you can put 100% of the trip money back in your pocket by simply filing a claim.

Give yourself peace of mind by adding insurance to your trips. In today’s crazy, unpredictable state, peace of mind is priceless.

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