Travel protection insurance provides travelers with coverage against risks related to traveling. Most travel insurance policies include coverage of three types: trip cancellation and interruption; health and medical evacuation; and baggage protection. Additional coverage such as car or accidental death insurance may be added to a policy or included in a comprehensive travel protection package. Travel insurance can be purchased for a single trip or on an annual basis. Policies may provide coverage for an individual traveler or for a traveler and his immediate family members.
Trip Cancellation and Interruption
Trip cancellation coverage reimburses a traveler for nonrefundable expenditures and deposits associated with a scheduled trip if the trip is canceled for a reason acknowledged by the policy. A traveler would be reimbursed if the cancellation of a trip results from sickness, death or a carrier’s bankruptcy.
Trip interruption insurance absorbs the costs incurred if a trip must be suspended after a traveler has embarked on an adventure. Trip interruption insurance reimburses a traveler for the nonrefundable costs associated with the unused portion of the trip as well as for expenditures that arise as a result of the trip’s unexpected, early end. Such expenditures might include food, lodging, local transportation and long-distance calls.
Health and Medical Evacuation
Most domestic health insurers, including Medicare, do not provide coverage outside of the United States. Travel protection insurance provides coverage for medical emergencies that occur during a trip abroad but not routine exams such as annual physicals. Travel health insurance will not cover the cost of replacing eyeglasses or contact lenses.
Travel protection insurance provides medical evacuation transportation if a traveler becomes sick or injured in an area lacking sufficient health care. Depending on the terms of the policy and the traveler’s condition, transportation may be provided to a hospital in the insured’s home state.
Travel insurance provides baggage protection to reimburse a traveler for luggage that becomes lost, damaged or stolen during a trip. Some policies include coverage for bags that are delayed for more than 12 hours while a traveler remains in transit. A traveler may have baggage insurance through his homeowners or renters insurance as well. If a person who travels with high-priced items such as jewelry may consider buying an endorsement to his homeowner's or renter's insurance policy to provide additional coverage.
Travel protection insurance may also include coverage for car rentals, emergency dental procedures, accidental death and dismemberment, accidental death during a flight and repatriation of a deceased traveler.
Annual Travel Insurance
Travel insurance may be purchased to cover multiple trips throughout a given year provides coverage for medical emergencies, medical evacuations and baggage. Unlike policies that cover a single trip, annual travel insurance usually does not provide coverage for trip cancellation.