Most of us are already aware of some types of insurances like health, automobile, or home insurance. But a lot of people are not very familiar with travel insurance. If you are reading this post, then perhaps you have never had travel insurance! Are you wondering how travel insurance works? How to choose a plan? and how to claim it?
This article describes the basics of travel insurance and focuses mainly on the points mentioned below:
- How does travel insurance work?
- What travel insurance covers?
- How to choose a travel insurance plan?
- How to claim travel insurance?
Travel insurance is a safety plan to protect you from financial loss and unwanted events (in certain conditions) before or during the travel. Those unwanted events include loss of money or luggage, medical issues, trips canceled at the last moment, lost passports, and many more situations. Therefore, I have also suggested for travel insurance in my 30 best travel tips.
How Travel Insurance Works
Travel insurance works somewhat similar to the other general insurances. To recover your losses or to overcome an unwanted event during the trip, you will need to file a claim. The insurance company reimburses your loss, if your claim is valid (under the insurance plan policies) and gets approved by the insurance provider.
Travel insurance only helps for situations that are included in your insurance plan. Generally, the more coverage an insurance plan provides, the more expensive it is. A good insurance plan cost around 4-6% of the cost of your tour.
A travel insurance plan is a package that includes different coverage. Some travel insurance companies provide an option to customize the coverage. So, you can add or remove any coverage according to your requirements. Below we have listed some points covered generally in travel insurance.
Tips For Buying A Travel Insurance
There are lots of travel insurance providers, which means more plans and even more types of coverage and prices. Choosing a travel insurance plan is very difficult without wasting money. So, here we have listed some tips and information about travel insurance. These tips and info can help you choose the right travel insurance for you while saving some money.
Check For Already Covered Aspects
You would be happy to know that some aspects of your travel are already covered. If you have booked your transport, accommodation through a travel company then also you might get some complimentary coverage. Receiving some complimentary coverage is okay, but do not buy travel insurance plans from travel agents. That will probably cost you dearly. Likely, lots of banks also provide certain coverage if you pay for your trip through their credit cards.
Always check for the aspects already covered from the above-mentioned ways and remove them while creating your custom travel insurance plan.
Watch Out The “Excess”
Excess is an important term in insurance. This is the amount you (policyholder) will have to bear as a part of the claim.
For example, If you claim for around 1000 bucks, and the excess was decided to 200 bucks, then the insurance providers will pay the remaining amount which is 800 bucks. If the excess is set high, the plan would be cheaper, but a policy with high “excess” probably would not be worthy. Some insurance plans charge “excess” on a per coverage basis, while some plans charge the “excess” one time for one claim.
Always Read The Policy Documents Carefully And In Full
Yeah! This could sound like very common or outdated advice. But this is the point where most people make mistakes, even after being aware of the consequences. Reading terms and conditions is the work that we have a habit to skip nowadays. Reading policy documents will give you the insight of what is covered and in what conditions. Like, most of the plans do not cover risky and adventurous activities. So read, does your policy cover them or not?
Travel Insurance Plan Basically Cover
- Trip Cancellation
- Medical Emergencies
- Emergency Evacuation
- Phone Assistance
- Flight delays and cancellations
- Loss of Property
- Lost, damaged, or delayed luggage
Travel Insurance Plan Basically Does Not Cover
- Accidents in risky sports and activities
- Events that involve alcohol or drugs
- Pre-health conditions
- Events that lacks documentation
- Events not mentioned in the coverage policy
Things to Know Before Filing a Claim
Filing a claim means presenting evidence of your loss or inconvenience to the insurance company. A hustle free claim needs proper paperwork and proof of unwanted events or loss. So, to make your experience good with a travel insurance claim, below we have listed some pointers for you to follow.
- Pay attention to documentation
1.1. Proof of payments
1.2. Police reports for stolen belongings or any unwanted event
1.3. Physician’s Statement for medical conditions
1.4. Record of expenses
- Photograph your expensive belongings and luggage
- File the claim as soon as possible