or a trip and must have wondered if it is necessary. In today’s world natural calamities, disasters, thefts, robberies and terrorist attacks can happen anywhere and anytime. While travelling, an accident can also happen. A medical emergency abroad can be extremely expensive. Without insurance, you’d be completely responsible for the costs incurred. Therefore, I would not challenge the importance of getting yourself and your belongings insured during a trip. Although, instead of paying for it every time you book a ticket, you could opt for an annual or a multi-trip insurance cover. Special packages for backpackers, students studying abroad and sports enthusiasts might also be available.
So what is travel insurance and what does it cover? It basically covers cancellations and lost baggage and ensures that all medical costs incurred during the trip are covered. It is specifically important to get yourself insured while holidaying in a foreign country. Innumerable insurance packages are available in today’s market. You can chose what suits your travel requirement the best. For example, if you are booking an expensive trip a year in advance, you might want to get insured against cancellation of the trip in case of a natural disaster, bereavement, jury service, sickness or injury. If you are travelling to a country where your medical costs are already covered, you might want to skip on the medical component of the cover. You might want to get your personal belongings and baggage (such as jewellery, watches, photographic and electronic equipment) insured while travelling to a robbery or theft prone area. If you are going on a business trip, you might also have an option of getting your important business assets covered. There is a package for every need. These packages usually cost 4%-12% of the total cost of the trip.
How to choose a travel insurance plan? It is important that you review all your existing insurance policies to avoid an unnecessary investment. If your medical insurance plan already covers you in the country you are visiting then may think of excluding the medical component from your plan. Also, confirm what benefits your credit card provides you. If you use a premium credit card, chances are that it may entail coverage of goods and baggage, emergency medical evacuation, death, etc. While applying for a policy, it is essential that you read the fine print properly and understand clearly what is covered and to what limits. Make sure the insurance company has a good reputation. Compare between various policies and find out the best for you. A little homework in this direction can make your trip for you a happy journey indeed.