How Much Is Travel Insurance?

Photo Courtesy: Suhyeon Choi/Unsplash

Going on a dream vacation sounds like paradise, but sometimes, life happens and your plans just don’t work out. Purchasing travel insurance can give you some peace of mind and guard against the unexpected. Travel insurance plans work differently than other forms of insurance. They also have distinct, and often confusing, pricing models. Let’s clear the air about travel insurance policies before you take to the air.

What Does Travel Insurance Really Cover?

Travel insurance coverage varies from one carrier to the next. The most popular type of insurance that travelers purchase in North America is Cancellation & Interruption protection. This covers the non-refundable costs of your trip if you can’t travel due to unforeseen circumstances such as an illness or financial issues of your travel carrier. This plan also covers you if you (and your family, if applicable) would happen to fall ill during your trip and have to return home. You can purchase insurance to cover other aspects of your trip as well, such as protecting against potential flight issues and lost or damaged baggage.

What is the Average Cost for Travel Insurance?

The peace of mind afforded to travelers does come at a cost. The price is dependent on which insurance provider you choose for coverage and how much coverage you desire. If you choose a comprehensive policy, you will generally spend between four and eight percent of the total trip price. This means if your dream getaway costs $8,000, you can expect to pay between $320 and $640 to insure it.

Is Travel Insurance Worth Getting?

Many consumers are unaware that they may already have some hidden insurance benefits. Many credit cards offer coverage for lost luggage. Some even have insurance benefits for trip cancellation (up to a pre-determined limit). Check with your credit card issuer to see what benefits they have for travelers. Also, be sure to know what your health insurance already covers. If it provides you with benefits when traveling out of the country, there would be no need to double up and spend the money on additional coverage through a travel insurance policy.

Why Should You Purchase Travel Insurance?

Having peace of mind while traveling is worth the price for many commuters. Protecting your financial investment in your trip and that warding against unforeseen events are just a couple of the reasons why travelers choose to insure their trips. When the unexpected occurs, it’s better to be prepared with trip insurance.

How Can You Get Travel Insurance?

The best way to get the insurance you desire is to shop around. You may be offered insurance automatically when you book your flight online, but this may not be the most cost-effective option for you. Stop by or call a travel agent and see what he or she is able to offer you. There are also plenty of websites that offer free price quotes from several different insurers, all based on your customized needs.

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