Updated: Dec 3, 2021
Unexpected things can happen when you are away from home. If you find yourself dealing with an automobile accident, theft, or some other issue, then travel insurance can provide you with monetary security if your plans must change.
There are several different types of travel insurance available today, so it is up to you to determine which policy makes the most sense for your needs.
List of the Best Types of Travel Insurance
There are four common types of insurance that provide different levels of protection for your traveling needs. Each one has specific pros and cons worth considering.
You can purchase insurance for trip cancellations.
This policy option can refund part or all of your non-refundable travel costs if you or your family experiences a medical emergency. It is usually offered as part of your ticket or rental package.
There is coverage against theft or baggage loss.
If your belongings go missing when you travel, incur damage because of handling mistakes, or are stolen, then you can use this option to replace the item or recoup the cost. Make sure that you agree with the policy’s valuation formula before deciding to pay the premium.
You can have emergency medical travel insurance.
If your current health insurance doesn’t cover out-of-network costs, then this policy might be worth having. It is practical, works internationally, and may include your relaxation activities like diving or horseback riding. If you become sick away from home, this policy can save your finances.
There is also expat insurance to consider.
If you travel full-time or you are thinking about a long-term trip, then this policy might be the best option to consider. It is a global comprehensive medical insurance policy that can be tailored to meet your specific needs.
Why Are There Different Types of Travel Insurance?
Most travel insurance options provide an extra layer of financial security in case something unexpected happens. It is up to you to decide if a policy is necessary for your next trip.
If you do not travel with expensive items, for example, then purchasing a policy to cover baggage loss might not make sense.
There can be some confusion between emergency medical travel insurance and expat policies. You will only need the latter option if you plan to be away from home for more than 12 months.
Some international policies may not cover pre-existing conditions or family planning activities. You may need to work with your agent to create a custom policy that can meet your exact needs in these situations.
It may be helpful to discuss riders that include vision, dental, or specific health needs you have. Each change will come with an added cost. You should also expect the premiums to rise up to 15% each year you carry the coverage.
As a final thought, you might also wish to include repatriation if your plans include long-term travel. This coverage will help to send your body back home if something happens to you in a foreign country.
Travel insurance may not always be necessary, but it can also provide your finances with a helpful security blanket. Each trip presents unique challenges, so be sure to periodically review your coverage to ensure it continues to meet your needs.