Travel Insurance – is it important?

February 27, 2013

Before planning your summer vacation, think at great length if you need to buy travel insurance. There are situations that can make you cancel your travel, require you to return to your house ahead of time or force you to look for medical attention while travelling.

Travel insurance can give you extra protection that you need.  Before buying the coverage, review the policy of your medical insurance or homeowners policy, to avoid any confusion. For example, expensive articles like a camcorder, your personal computer or jewelry items can be settled by the insurance of your home, if you were robbed while traveling. In case the airline loses your checked in luggage, they have the obligation to reimburse your suitcases ( based on a certain fee structure or formula). Or if you become ill or suffer some injury while traveling, your personal medical insurance can cover the amount of your medical expenses.

Travel insurance policies may or may not include several types of protection. Be sure to read what it is written in the fine print and make that you have the protection that you need. Travel insurance policies vary in their coverage, so make sure to ask or read. Some of the different types of travel insurance available include:

Cancelación/Interrupción of Travel (TCI) – If your plans are altered suddenly and you must cancel or finish your travel earlier than planned, TCI will cover you for this situation. But only it will reimburse you in case that you have a reason included in the list of the insurance policy,  for example, injury, disease, death or of a member of the family, of a partner or fellow traveler. Some travel insurance policies will include medical type reasons and others will not cover medical situations. It is important to read what it is written in the policy.

Transfer by medical emergency – If taking a risky or venture type of vacation, or if medical facilities are far away, it is a good idea to buy this type of coverage. If the suitable treatment is not available in a local hospital, you will be transferred to the appropriate medical facility that is as close as possible.

Loss of luggage – This coverage reimburses you for the loss of or damage to your luggage. Make sure to make a list of everything, because if you lose your suitcases, they will reimburse you for part of the contents. The Better Business Bureau (BBB) and Consumer Affairs magazine advises the following things to do:

Read what it is written in the policy. Know exactly what type of coverage is being provided. Consider obtaining travel insurance from a separate company, instead of buying it from your travel operator or cruise line.  Purchase the insurance using your credit card for more security.  The protection of the loss of luggage is necessary. Review your home owners insurance policy for travel related coverage that may be included in the policy.

Post author Loren Pleet