Demystifying Travel Insurance: Coverage Essentials Unveiled

Becky Holiday | Dec 6, 2023 | minute read

Travel InsuranceNo matter where you plan to travel, purchasing a travel insurance policy is usually a good idea, but do you know what you’re getting or what to expect if you need to file a claim? Unexpected issues can crop up on a trip, and travel insurance can help you deal with them.

We’ll demystify travel insurance by explaining what it is and what it covers, who needs it, and how to file a claim on your travel insurance policy.


What Is Travel Insurance?

In simple terms, travel insurance is designed to cover financial losses you could encounter while traveling. However, it’s not designed to cover all situations. For example, it won’t pay for you to purchase another swimsuit if you leave yours at home. Travel insurance is designed to protect against financial losses over things you can’t control.

What types of things could happen?

  • Your luggage gets lost
  • You missed your flight
  • Your trip has been delayed
  • You must cancel your trip
  • A natural disaster prevents travel
  • You must evacuate from your destination

While you can’t prevent these or other things from happening, it’s critical to have a backup plan. That’s where travel insurance comes in.

If your luggage gets lost or stolen, you’ll need to purchase clothing and toiletries. A missed or delayed flight might mean you need to pay for a hotel for the night. You may also need transportation to get some dinner and travel to a hotel.

In the best-case scenario, you’d have extra funds to take care of all the extra expenses and someone who can help you turn things around so you can enjoy your trip. When your travel plans go awry, travel insurance can make things go a lot smoother.


What Does a Travel Insurance Policy Cover?

Every travel insurance policy is a bit different. For that reason, it’s best to ask questions upfront to learn about the types of circumstances that are and aren’t covered.

Some common situations travel insurance policies cover are:

  • Injuries or illnesses: Travel insurance may cover emergency medical services or other medical services your policy doesn’t cover if you get hurt or become sick during your trip.
  • Lost luggage: A travel policy covers losses where luggage is stolen or lost. This coverage pays for the cost of your baggage and their contents. While the Department of Transportation may compensate some travelers for baggage that is truly lost, there is a limit on how much they pay and it may take several weeks before you get reimbursed.
  • Trip cancellation: Pays for trips such as resorts and cruises that will only refund a portion of your trip fee if you have to cancel your trip at the last minute due to unforeseen circumstances.
  • Emergency evacuation: If there is political unrest in a country or you need to evacuate immediately because of a health emergency, your travel insurance policy may cover the cost of temporary emergency accommodations or last-minute transportation.

Most travel insurance policies are named peril policies which means they only cover the specific causes of loss stated in your policy. Travel insurance policies also carry conditions and exclusions, and it’s important to understand them. For example, some policies don’t cover pre-existing conditions that develop within a certain timeframe before your trip. As with any type of insurance policy, it’s crucial to read your policy carefully and make sure you understand it.

travel insurance


Who Needs Travel Insurance

Generally, people spend a lot of time planning to get the best deals and make the most out of their trip. Time planning can seem like a waste of time if they can’t enjoy it because of an unexpected problem.

Most every traveler benefits by purchasing travel insurance. It gives you peace of mind in knowing that if a problem comes up with your travel plans, you’ll have resources for dealing with it. Since every trip is different, look for travel insurance coverage that fits your travel plans and budget.

It’s best to purchase travel insurance as soon as possible after making your travel plans.


What Happens If You Need to File a Claim on a Travel Insurance Policy?

The first step in filing a claim on travel insurance is to pull out your policy, read it, and make sure you have coverage for the particular loss. The next step is to report the loss to your insurance company. Gather appropriate documentation such as receipts, police reports, photos, medical bills, or other information. The insurance company will assign an adjuster who will review the loss and provide payment if the loss is covered.

Credit card companies may cover part of a loss when you use their card to pay for your trip. In this case, your travel insurance policy will pay as a secondary provider.


Getting Answers About Travel Insurance

There’s no need to be kept in the dark about travel insurance. The agents at the Leap Carpenter Kemps Insurance Agency have the answers to all your questions. Call them today to find the best travel insurance policy to protect your next trip. Visit the Leap Carpenter Kemps website or call 209-384-0727.

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