Travel insurance is any type of insurance policy taken out to help cover unforeseen losses associated with travelling; whether domestically or internationally. Expenses covered may be medical (there might be an emergency whilst on holiday), financial (for example, non-refundable prepayments of tickets or other investments), or from theft. This type of policy is generally short term whether you need student travel insurance or single trip travel insurance.
There are usually two forms of travel insurance. The most common is regular travel health insurance, which is taken out at the time of booking a holiday or trip. This will specifically cover the length of the holiday. If you book a 2 week break in the Bahamas, then the policy will run for two weeks. Only a few common basic risks are covered. The policy will costs between 5 to 7% of the trip’s cost. The second type of travel insurance is more extensive and can be purchased independently of the holiday. This can be taken out at any time, is continuous beyond you actual travel dates and covers a lot more risks. This type of holiday insurance is usually taken out by frequent travelers, who need constant cover or are at high risk of certain events. This can be purchased from insurance brokers, specific travel insurance companies, and some travel agents. If you are a regular with a certain holiday company or cruise line, they might offer similar services.
Some of the more common risks covered in travel insurance policies include:
Emergency medical expenses, travel medical insurance, emergency evacuation costs (in case of natural disasters, war or terrorism), foreign funeral costs, serious injury of death, holiday cancellation at the last minute, costs associated with delays, theft or damage of personal belongings, costs associated with delayed luggage, legal aid, and various other more specific variations. The best way to find cheap travel insurance is to get travel insurance quotes online.
International travel insurance is a way of hedging the risk of unforeseen problems. Some may not be able to afford travel insurance and therefore hope nothing goes wrong, whereas some might be able to afford paying for unforeseen problems (should they occur), and purchase insurance just in case (even though there might be any problems and they’ll be out of pocket).