Best Travel Insurance Protection

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Post Last Modified – May 30, 2021

Choosing The Best Travel Insurance Protection

Table of Contents

Don’t Forget To Pack Protection

Oh my! For a senior citizen, you’ve got a rather dirty mind. Good for you! But that’s not what I meant at all. In fact, let’s talk seriously about selecting the Best Travel Insurance Protection for you and fellow travelers.

What I actually intended to say is that, as we face a host of new global travel circumstances in the wake of the coronavirus crisis, it may be time to consider slipping a travel insurance policy in your suitcase when you take your next trip abroad.

Best Travel Insurance Protection And Covid -19

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Now more than ever, global travel comes with uncertainties that can be far more troublesome than flight delays, lost luggage, and other travel hiccups we’re accustomed to dealing with.

Travel insurance, which was once considered a “nice to have” by experienced globetrotters, is now considered an imperative by many travel experts.

Let’s take a look at why. Along the way, I’ll share some tips on how to choose the best travel insurance for your budget, your destination, and your peace of mind.

The Anatomy Of A Travel Insurance Policy

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Travel insurance companies often bundle several kinds of protection into one policy. That can sometimes be a cost-effective way to purchase insurance, but it’s not the only way.

It makes sense to review the various types of coverage available to you before purchasing a policy.

You should also check the details of other insurance policies you already carry and find out whether your general-purpose or travel credit card offers any kind of coverage for travel-related losses.

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✔ Trip Cancellation (including Cancel for Any Reason);
✔ Trip Interruption;
✔ Travel Medical;
✔ Baggage Insurance;
✔ Auto Insurance.

Trip Cancellation Coverage With COVID-19 Protection

Trip Cancellation Coverage

We pay a lot for travel before we ever embark on a trip. Airfare, hotel deposits, sporting event and theater tickets, and golf course reservations can add up to a substantial sum of money.

Trip cancellation coverage will reimburse you for many non-refundable purchases you make while planning your perfect adventure, should you have to cancel your trip for a covered reason under the terms of your policy.

Best Travel Insurance Protection -Covid-19

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But “covered reason” can mean different things depending on the policy you choose. Before purchasing any policy, you should fully understand what constitutes a valid reason to cancel under its specific terms.

Across the industry, serious illness or injury you may suffer before you depart, family illnesses or those that affect your travel companion, and the death of a family member are usually considered eligible reasons to cancel.

But the coronavirus crisis put a deep wrinkle in trip cancellation insurance.

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Travel insurance companies were overwhelmed by the number of claims their customers filed when border closures and other travel restrictions were at their peak.

A number of companies excluded many coronavirus-related situations from their lists of eligible reasons for cancellation.

Travelers lost countless dollars and, understandably, felt like the rug had been pulled out from under them. Since that time, some insurers have amended their policy terms to include some COVID-19 claims.

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For example, if you, a travel companion, or a dependent family member contract the disease, some companies will cover the non-refundable costs of your trip. But you can’t cancel your trip out of fear of becoming infected.

If you decide to stay home because a wedding or business conference you planned on attending during your trip is cancelled due to COVID-19, trip cancellation coverage will likely be denied.

Nor can you expect reimbursement if you choose to cancel your trip because health officials are recommending against travel to your chosen destination. That makes purchasing a policy right now a little bit dicey. But there is a way around all that.

It’s called Cancel For Any Reason (CFAR) coverage.

Cancel For Any Reason (CFAR)

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CFAR is pretty much exactly what it sounds like. You can cancel your trip because you had a fight with your spouse. Or because you got a really bad haircut. You would still be able to recover a portion of your non-refundable expenses under a CFAR policy. And you can absolutely cancel based on COVID-19 concerns.

That flexibility comes at a cost, of course. CFAR is the most expensive trip cancellation coverage you can buy and typically adds about 40% to the cost of coverage.

Still, it’s an expense worth considering. The virus may seem like it’s receding in our rearview mirrors due to the availability of vaccines and declining infection rates. But hotspots and surges in COVID-19 cases are still common and are affecting many parts of the world.

You may just need the flexibility that CFAR coverage affords.

Trip Interruption Coverage

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Trip interruption coverage works similarly to trip cancellation coverage. The difference is that it kicks in if you have to cancel your travel plans once they’re already underway.

Let’s say you have to cut short your surfing adventure in Fiji because you took a bone-breaking tumble off your board or you’re called home for a medical emergency. Trip interruption coverage will reimburse you, again, for your non-refundable expenses at that point in your trip.

Typically, it will pay any additional costs you incur to fly home. Some policies will also cover the cost of returning to your destination to continue your trip.

Claims are still subject to many of the same COVID-19 restrictions governing trip cancellation insurance so be sure to study all policy terms before signing on the dotted line.

Travel Medical Insurance

Travel Insurance Banner

This is the big one. Travel medical insurance is the one type of coverage every traveler should have, but it’s especially critical for baby boomers and older folks.

Let’s face it. No matter how well we take care of ourselves, as we age, we’re more susceptible to health problems. Even small accidents can have serious consequences—one more reason to take those calcium and Vitamin D supplements every day.

Few countries are so generous as to offer free healthcare to foreign visitors. Some countries, including the twenty-plus in the Schengen zone in Europe, require travelers from other regions to provide proof of international health insurance before they will issue a visa.

So, if you’re planning a trip to France, Germany, Greece, or any number of popular destinations in Europe, a travel medical policy is a must.

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Your US-based health insurance policy won’t cover you when you cross the American border. That’s true whether you have a commercial policy or rely on Medicare. (Now there’s an issue for AARP to take up if there ever was one!)

Given that the cost of a single night hospital stay can set you back several thousand dollars, purchasing travel medical insurance can turn out to be the most budget-friendly travel decision you make.

Policies typically cover the cost of emergency room visits, medical transport, diagnostic procedures, surgery, and hospitalization.

How strongly do I advise you to buy travel medical insurance?

To borrow a phrase many of you will remember – Don’t leave home without it! 🙂

Travel Auto Insurance

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If you plan on driving a car while you are abroad, travel auto insurance is another imperative. The US policy you carry on your car at home does not extend to cars you rent abroad.

The collision damage waiver they try to sell you at the rental car counter only protects the car you’re renting—it doesn’t include liability coverage.

Sadly, property damage is often the least costly result of an auto accident. Personal injuries can be devastatingly expensive!

Baggage Insurance

Lost Travel Luggage

Luggage mishaps are commonplace and when they happen, we normally just roll with the punches. Statistically speaking, actual baggage losses are quite rare. More often we experience delays, which are annoying but not terribly costly.

Baggage Insurance can help you in re-imbursement for your losses and/or include an option to purchase replacement articles after a short waiting period.

Final Thoughts Banner

So, what’s all this coverage going to cost you?

Surprisingly little, as it turns out. A comprehensive travel insurance policy (without CFAR coverage) typically costs between 7% and 10% of your upfront trip expenses. That’s a smaller percentage still of your total trip costs.

Like pretty much every other kind of insurance you buy,  paying for travel coverage is a hassle, until you need it.  Then, the comfort it can bring is priceless!

And knowing you’re covered will give you the peace of mind you need to get the most enjoyment out of your next adventure. 🙂

Guest Author at Gr8 Travel Tips

Author Bio:

Susan Doktor is a journalist, business strategist and principal at Branddoktor. Born at the tail end of the baby boom, she has traveled extensively to Europe, South America, Asia and the Mideast. Susan writes on a wide variety of topics including finance, technology, travel, and food and wine. Follow her on Twitter @branddoktor.

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This article was written on behalf of Money.com. Below, I’ve included a link to their Official Website directing to their feature article on their picks for the 6 Best Travel Insurance Companies of 2021.

📖   Money.com {Best Travel Insurance}

I am happy to present this collaborative guest post in the hopes of offering travel inspiration and helpful information to you as well.

 

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