Travel Insurance

Overview

James Batterson was a pioneer in travel insurance. He opened the first travel insurance agency in 1864 to help insure people against accidents and theft while traveling. The travel insurance industry has grown highly complex today, but it has made traveling globally quite an easy affair.

How It Works

People purchase travel insurance before they undertake a trip to cover themselves until the end of the trip. After deciding on how much insurance you require and what should be insured, you pay the decided price to ensure that you are properly covered during your travel. Travel agents, or other agents who offer travel and tour arrangements, typically have a wide range of travel insurance options and will offer it along with your travel package.

Travel insurance can cover everything from theft, lost baggage and cancellations to medical emergencies that might arise while you are on the move. Almost everything that could befall you while traveling can be covered, even down to funeral expenses if you die while you are away from home.

Benefits

The benefits of travel insurance make it a valuable thing to have when traveling. If you are traveling overseas or going on a trip where you are likely to face injury, like a ski trip for instance, it is a great thing to have.

You might have excellent health insurance, but if you fall ill in a foreign country, your HMO will not help you. These emergencies are covered under travel insurance. The medical expenses you may incur as a result of an accident or injury, rescue services and even terrorist attacks that can detain you, are covered under different policies.

You can also buy special travel insurance to cover very specific things. If you suffer from a pre-existing condition like diabetes or asthma, for instance, travel insurance might exclude that condition. But you can buy a special policy that will cover any expenses that arise because of that condition.

Cost/Pricing

The cost can vary from $30 to hundreds of dollars. Depending on your purchase, this fee includes one-time travel insurance and a policy that covers you for a longer period of time. You can expect to spend anywhere from 5% to 8% of the cost of your trip on travel insurance.

Timing

Look into travel insurance as you are planning your trip. If you plan to travel extensively over a long period of time, you can also purchase long-term insurance.

Companies/Industries

Many travel agencies and tour companies that take care of your travel arrangements also offer travel insurance at the time of booking. Some very popular names in the insurance industry, like Prudential for instance, offer travel insurance policies as well.