Do You Really Need Travel Insurance?

This is a question many people ask themselves while planning a trip. However, there is no universal answer to it. Individual circumstances determine whether or not this type of coverage is needed. This article will give you the information you need to know to make an educated decision.

What Travel Insurance Is
This type of insurance encompasses a broad spectrum of specifics. No two policies are identical. Although some companies offer limited coverage, others offer extensive plans. Most policies include trip cancellation, coverage for medical expenses and lost luggage reimbursement. They often allot emergency funding or refunding provisions for unlikely events. In addition to many other inclusions, these events may include man-made catastrophes, terrorism and natural disasters.

Companies that offer more extensive coverage sometimes offer policies that include a more generous cap or reimbursement amounts than those found in an average policy. They usually also have additional optional inclusions. Some examples include temporary auto insurance for a rental car, flight change allowance and legal coverage. There are countless other options. However, these three need to be considered.

Temporary auto insurance for rental cars is important to have if you don’t have auto insurance or a car. Every state requires liability coverage, and each state has their own laws about minimum coverage amounts. You’ll need to research the state you’ll be driving in to ensure your travel auto insurance is sufficient to meet state requirements. Flight change allowances are beneficial if you absolutely need to get to your destination on time. Sometimes airlines bump passengers or cancel flights with little or no notice. If this happens, a change allowance will ensure you can buy another flight on another airline, avoiding extra expenses to switch. Legal coverage will help you if you travel out of the country and are wrongly jailed, arrested or face charges for laws you were unaware of.

Travel Insurance You May Already Have
If you have one or more credit cards, you may have several types of insurance you don’t even know about. Be sure to find out all of your card’s travel provisions before you buy insurance. Travel reward credit cards often have complementary provisions for various things. Even your everyday credit card you use for regular purchases might have some perks you’ll like. Some examples include:

•Travel auto insurance may be included if you rent a car from an affiliated company, assuming you use the supporting credit card to reserve and pay for the rental.
•Free replacement of travelers checks is a common complementary provision.
•Automatic flight insurance is sometimes offered.
•Several companies offer a form of baggage protection or lost luggage reimbursement.
•Many card companies allow cardholders insurance for emergency medical expenses on vacation.
•Trip delay or cancellation insurance is frequently offered with some travel rewards credit cards.

When You Don’t Need Travel Insurance
As we just discussed, if you already have several forms of insurance through your credit cards, you may not need travel insurance. There are several other types of insurance you may also already have that probably offer provisions for traveling. Here are a few examples:

•Many health insurance companies have a provision for treatment away from home. There may also be provisions for using out-of-network providers on vacation for emergencies.
•Some health insurance companies offer coverage for overseas treatment.
•Auto insurance companies usually have a coverage clause for insured drivers using a rental car while traveling.

If you have several credit cards with good travel insurance benefits, a personal auto policy with rental car coverage and a good health insurance policy, you probably don’t need travel insurance for domestic travel. If you’re going overseas, you may want to purchase a policy you can customize, including foreign medical coverage, driving coverage or any other provisions you lack. Having sufficient coverage will keep you from possibly facing financial difficulties from unexpected expenses during your trip.

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