What is Travel insurance?
Basically, travel insurance is designed to limit potential worst-case-scenario risks and financial losses that could happen while traveling. These risks could include minor inconveniences such as missed connections and delayed luggage all the way to more pressing issues including injuries or major illness. Although what’s covered varies, the policies typically come in two modes — cancellation insurance and medical insurance.
What you need to know: What’s covered
There are mainly three things covered by travel Insurance. Unexpected trip cancelations, potential health crisis and believe it or not, it can cover problems that occur on the way to the airport or the cost of a replacement ticket if your airline fails.
Cancellation insurance policies typically cover problems that may occur immediately before or during your travels, which can include the need to cancel a trip due to illness, missing a flight because of an unforeseen circumstance or having to shorten your trip. If you have to cancel a trip, most policies will cover pre-paid, non-refundable purchases ranging from airline tickets to package tours.
Cancellation insurance may also include travel delays as well as luggage problems, such as lost or stolen bags, or delayed arrival. In most cases you’ll have to pay the expenses up front and get reimbursed later.
One thing you should know immediately — U.S. health insurance doesn’t cover international illness. Your insurance may cover you if you’re traveling and need treatment in the U.S., but if you get sick overseas without travel insurance, you’ll likely have to pay for treatment out of pocket.
Medical insurance typically covers costs up to a certain amount for emergency treatment including accidents and major health problems.
What’s covered in medical travel insurance can be confusing. If you have a pre-existing condition, for example, you must declare it at the time you buy the insurance, even if the illness isn’t covered. If you fail to do so, your entire policy can be invalid.
Many companies offer comprehensive plans that combine aspects of trip cancellation and emergency medical insurance. The policies include travel assistance, too.
We hope this helps with any future decisions you might make regarding travel insurance.
Definitions and coverages provided by Nationwide Insurance
Please contact one of our agents for any further information on travel insurance. The FIG