Some may have heard the adage, “If you can’t afford travel insurance, you can’t afford to travel,” or possibly the dismissals of travel insurance saying, salespeople will tell you horror stories to get you to buy it.
Both are true.
Your insurance company SHOULD tell you horror stories because although it is likely you will enjoy your time away and nothing terrible will happen, your insurance company has probably seen the opposite. You do not want to be in a position where you are uninsured, far from home, and needing medical care, evacuation, or the replacement of necessities.
There are five main categories of policies, and here is a list of the most common types, and precisely what makes them essential.
- Trip cancellation. This type of insurance is primarily for instances when your trip goes wrong before it has even started. Tickets and accommodations can be a significant expense, and in order to cover unforeseen occurrences like illness and inclement weather, this is a good idea. The problem with this type of insurance is that it must be purchased at the time reservations are being made, and not every policy covers every expense. Read the wording carefully and know what is covered and what is not.
- Baggage and personal belongings. Although the loss of personal items is the most common reason people buy travelers insurance, it's certainly not the most important. If you are traveling with expensive items like high-end cameras or laptops, make sure they are specifically named in any policy you purchase.
- Medical Emergencies and Evacuation. Emergency treatment can commonly run $10,000 per day, and emergency evacuation can exceed $100,000. Take the time to carefully go over this part of any policy, so you are certain of the areas of evacuation where you are covered, whether there are limits on medical spending, and if you are covered for dental emergencies. Pay close attention to exclusions.
- Personal liability. This insurance covers you if you are involved in an accident or cause damage to someone else’s property. The coverage goes toward the replacement of damaged property and any possible legal costs. This is not the same as liability insurance for your car, so make sure you fully understand what is, and is not, covered by your policy.
- Coming home early and resuming your trip. This type of insurance allows you to continue coverage if your trip is interrupted. If, while traveling, you become ill or experience an evacuation, this insurance will stop when you arrive home and resume again once you return to your travels. There are restrictions, so stay vigilant and be certain that your policy is appropriate for the length of time you plan to travel, and your circumstances.
Most travelers enjoy problem-free trips and thankfully never have to make a claim, but the peace of mind of knowing that you are prepared in the case of any adversity, is worth the investment.
For any questions on how to make your time away from home as safe and secure as it possibly can be, call us or visit our website at https://www.manhattanridge.com/.
The views expressed are not necessarily the opinion of First Allied Securities, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed.