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Thursday, Apr 24th

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You are here: Money Insurance Travel insurance: Should you insure or not?

Travel insurance: Should you insure or not?

Travel insurance : Should you insure or not?

As a business woman, you have to travel to attend the business meetings. Travel insurance reduces the financial risks of travelling. These risks include illness, accidents, missed flights, terrorism, lost baggage, cancelled tours, emergency evacuation, and travel-company bankruptcies. Each potential risks and traveller’s risk varies, depending on the kind of air ticket purchased, where you're travelling, your luggage's value, your state of health, the financial health of the tour airline or company, and the coverage you already have.

The travel insurance menu includes five main courses: baggage, trip cancellation and interruption, evacuation, flight, and medical insurance. Some supplemental policies such as political evacuation or identity theft can be added to the travel insurance.

Various types of travel insurance are sold in a combination of all five courses, rather than buying medical, cancellation or baggage insurance, you can usually buy a package that includes all of these insurance. If you want only one type of coverage such as flight, ask for a policy that totally focuses on that particular coverage. The complete version of the travel insurance is called as “comprehensive insurance”.

Travel insurance costs vary dramatically, but most of the packages are between 5 and 12 percent of your total trip expenses. Two factors that can increase the rate are: age at the time of purchase and trip cost. Travel agents can help you to get travel insurance, and provide information when asked to.

Trip Cancellation or Interruption Insurance: It covers the losses you incur or non-refundable financial penalties when you cancel a flight or prepaid tour for a valid reason. These reasons might include if:You or your travel partner cannot travel due to sickness.

  1. Your tour company goes out of business.
  2. Your family member gets sick and causes you to cancel the trip.
  3. A car accident, strike or severe weather, or missed a flight.

Trip cancellation is when you have to cancel your trip due to some reason and is fully covered. Trip interruption is that you begin but have to cut it short. In trip interruption, you are paid back for the portion of the trip you didn’t complete.

The Baggage insurance is included in the comprehensive policies and is rare to buy it separately. The insurance puts a strict cap on compensation for items such as eyewear, jewellery, photographic and electronic equipment.