Do You NEED Travel Insurance?

For the crazy and unprecedented events of 2020, travel insurance might be more important now more than ever for future trips! Make sure you’re protected for delays, illness, lost luggage, and even natural disasters—the best travel insurance can soften the impact of unforeseen events.

How do you get travel insurance? How does travel insurance work? How much does travel insurance cost? ALL great questions that can be answered in this ultimate Travel Insurance Guide from Consumer’s Advocate.

PRO TIP: We typically book travel on our credit cards that offer travel insurance, just make sure you read the fine print!

You never know who’s watching you. Look out for pickpockets! ;-)

5 Interesting Facts About Travel Insurance

1. Buzzkills - Standard in most travel insurance policies is a drug and alcohol exclusion that won’t payout if you’re intoxicated. So… don’t get hurt after that mai tai in the fun tiki glass with the tiny umbrella.

2. How much does travel insurance cost? It depends on what type of coverage you end up getting. Typically costs range about 4-10% of the trip price. However, premium coverage or Cancel For Any Reason (CFAR) policies can be a bit more expensive. But if you can cancel a $3000 trip for $100, isn’t that worth it?

3. Event Cancellations - Allows for the cancellation of the trip if the specific reason for the trip--an event such as a concert or festival--is canceled.

4. Medical Coverage - If you are injured on your trip, some policies will fly a relative to take care of you or even emergency transport to your hospital of choice around the world. However, if you are being adventurous, check out extreme sports (bull riding, cave diving, and mixed martial arts) in the Explorer Plan vs Standard Plan activities (kite surfing, ice hockey) coverage here.

5. Loopholes--as they’re commonly understood--do not exist in insurance policies. While coverage can be denied for a number of reasons (drug or excessive alcohol use, for instance), those reasons are clearly laid out in the policy contract. 

Zip-lining in Maui, Hawaii

5 Different Types of Travel Insurance Coverage

1. Basic cancellation coverage: Covers you for pre-paid, non-refundable expenses under a fixed set of circumstances outlined in your policy. ​​​​​​ You can make a claim when have to cancel a trip due to:

   • A health emergency or illness, for example. Depending on the policy you choose, you may also be able to make a claim

   • If you’re laid off from work or you’re called for jury duty (depending on the policy chosen).

   • If your travel provider has to cancel your trip due to a natural disaster in the destination city.

2. Trip delay insurance: You’ll be reimbursed for any expenses you incur as a result of your trip being delayed

   • Usually included with cancellation coverage.

   • Meals, hotel charges, and taxi fees are among the expenses covered.

   • Short departure delays are not covered; policies set a minimum number of hours for covered delays.

3. Trip interruption coverage: protects you in the event you have to return home due to an emergency once you’ve already started your trip.

   • It will likely pay for the cost of getting you home and getting you back to your destination once you’re able to travel again. 

4. Cancel For Any Reason (CFAR): Offers the fullest coverage but may only make sense for you if your calendar is subject to change at a moment’s notice. 

5. Specialized Event Coverage: covers special events for most cancellations (i.e. outdoor game gets rained out)
   
   Have high-value items (phone, laptop, camera, etc.)? Make sure your items are within the limits of your policy; and if not, consider increasing your policy coverage! 

So do you NEED travel insurance? Probably a good idea if you’re planning in 2020!

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Please note this is not a sponsored post and based on my own personal experience, all thoughts are my own.

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Do You NEED Travel Insurance?

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