If you are a frequent traveler, and especially if you travel in luxury, then travel insurance may be well suited for you. If on the other hand, you are more like me, you travel a good bit, but not in so much luxury, then it’s an iffy situation. Right off the bat, I’ll just tell you that I am never willing to pay more than about 8% of the total cost of my trip for traveler’s coverage. And that is ONLY if the policy is just what I am after in terms of specific coverage.
You need to match yourself with a policy that is customized to accommodate the type of traveling you’re doing. There are categories of benefits in all these policies, and you need to make sure that the right benefits are in place to meet your likely demands. Here are the basic categories and what they actually offer you:
Many people (myself included) already have health insurance in effect that covers them when they are traveling abraod. In most cases, this coverage is limited to a certain network of health care facilities in each part of the world you may be traveling in. Now, in my case, I don’t care anything about health care coverage in foreign countries – because I don’t travel internationally; not yet anyways. So you see, I am not be willing to pay for this benefit. It would be a poor bet on my part.
Accidental Death & Dismemberment Coverage
Now here’s a benefit that I am concerned with. I am a healthy guy. I am very active and I engage in adventurous activities wherever I go. Like I said, I don’t worry about the health coverage aspect of a traveler’s insurance policy. But what if I get hit by a bus? What if I contract a mysterious disease and die? You see, it is those types of things that worry me. If I died accidentally, then what would become of my loved ones? So I buy traveler’s insurance with this benefit as a primary motivator. You can visit HBF to compare travel insurance policies on their insurance portal if you have an overseas trip coming up.
Emergency Evacuation Coverage
If you are in a foreign land and need to be evacuated home, for any reason, then this benefit could save you upwards of $30, 000. It’s relatively cheap and I could rationalize paying for it. But, again, I personally do not travel abroad and so this is another reason I am not willing to spend much on traveler’s coverage.
Reservation Protection Coverage
I’ve got a buddy who paid more than $700 last year in rescheduling fees because he had to cancel his scheduled flights four different times. I asked him why he didn’t get traveler’s coverage that had reservation protection/reimbursement. He told me that he had figured it up several different times and always found that he would have paid more for the traveler’s reimbursement coverage than the $700 he lost. His solution was to simply avoid any unplanned, last-minute cancellations.
There are other benefit categories to consider as well, but they are negligible for most people. Sure, if you are traveling with a load of diamonds in your luggage, then that could justify some blanket coverage. Speaking of that, there are also some specialized insurance policies available that do provide comprehensive blanket travel coverage with no exceptions. This coverage is expensive, about 20% of the cost of the trip you’re taking. So, of course, for me, that’s not going to happen!