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Travel planning is complicated.
When Insurance Falls Short…
Unfortunately, insurance doesnt covereverything.These resourcescan help you manage those unexpected expenses.
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What Is Travel Insurance and How Does It Work?
Travel insurance is a bang out of policy that protects you against certain financial risks while traveling.
This can include anything from lost luggage to a last-minute trip cancellation or a medical emergency.
you could purchase policies from several different travel insurance companies.
Youll need to file a claim with the company to receive compensation.
This usually involves submitting documentation so the insurer can verify what happened and reimburse you for your covered losses.
Most companies let you file a claim online or over the phone.
Trip insurance doesnt cover everything, though.
Types of Travel Insurance
Travel insurance covers a number of risks.
Some you may have thought of, such as canceled flights and lost bags.
But it can also cover less-obvious scenarios, such as medical bills and evacuation expenses.
Before we dive into cost, lets take a look at the most common travel insurance policy types.
Some policies also cover circumstances that cause you to have to cancel your trip.
Emergency medical insurance provides a safety net to help you pay for unplanned medical expenses.
Some emergency medical insurance policies include coverage for pre-existing medical conditions but the benefit is generally time-sensitive.
Some policies can also provide this coverage as long as the policy is purchased before your final trip payment.
Does Travel Insurance Cover COVID-19?
Prior to 2020, youd be hard pressed to find a travel insurance company that provided pandemic coverage.
Benefits can include coverage for canceling your trip after contracting coronavirus or needing medical care while on your trip.
In other words: At-home tests may not suffice, Moncrief said.
How Much Does Travel Insurance Cost?
TravelInsurance.comestimates basic policies average $103 and comprehensive policies average $162.
A comprehensive policy would include financial protection for cancellations, medical emergencies, travel delays and luggage.
A basic policy isnt likely to include cancellation coverage.
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Is Travel Insurance Worth It?
On the one hand, its difficult to put a price tag on peace of mind.
On the other hand, travel insurance does come with anactualprice tag and an expensive one at that.
So is travel insurance a must-have or is it worth the risk to pass up?
Heres how to tell whether its worth the additional cost to buy travel insurance for your next trip.
In a worst-case scenario, you may need a non-medical emergency evacuation to take you to safety.
3 Times It Makes Sense to Skip Travel Insurance
Buying travel insurance isnt always necessary.
Here are three times you dont need it.
Call your credit card company to see if travel insurance is available to you.
And check out our list of the four best credit cards with travel protection perks below.
Not all travel insurance plans are created equal.
For instance, a policy that only covers lost luggage isnt worth it if you only travel withcarry-on bags.
Consider your trip costs.
Just confirm your policy covers natural disasters.
Some companies specialize in independent travel insurance.
Theres also several mainstream insurance companies that offer travel insurance policies.
Well, its not the only way to protect against travel mishaps and headaches.
Under new rules set by theU.S.
Department of Transportation, those refunds will become automatic.
Under the previous rules, airlines could choose how long was considered a significant delay.
Travel Reward Credit Cards
Several travel reward credit cards now offer attractive travel insurance perks.
Credit cards with the best coverage often come with high annual fees.
But the yearly cost may be worth it if the perks are valuable.
And you no longer need to purchase a separate travel insurance policy for each trip.
Here are a few credit cards with notable travel protection benefits.
It also covers trip interruptions due to severe weather, terrorist action and jury duty.
Trip delay reimbursement is also included.
There is a $40,000 maximum benefit amount per 12-month period.
It also provides theft and collision damage insurance for most rental cars.
Lost luggage reimbursement: Covers you if the airline damages or loses your bags.
Up to $2,000 for trip cancellation and interruption.
Up to $500 for trip delay reimbursement.
Up to $3,000 for lost luggage.
Annual Fee:$450
Whats Covered:This card offers trip cancellation and interruption insurance.
Up to $3,000 for lost, damaged or stolen luggage.
Up to $500 per trip for trip delay insurance.
Up to $100 per day (up to five days) when your bags are delayed.
Up to $500 for reasonable expenses if a covered trip is delayed for more than 12 hours.
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Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
Lisa McGreevy is a former staff writer at The Penny Hoarder.
