Travel insurance is essential when you travel out of the country because your insurance company in the U.S. likely doesn’t provide coverage overseas. This is also true of nearby countries, such as Canada and Mexico. You should discuss everything that you need with the company from which you wish to purchase the travel insurance policy. However, you can also consider the following six criteria when it comes to travel insurance companies.
Table of Contents
1. How Much Does It Cost?
Travel insurance typically costs between 5% and 6% of the cost of your nonrefundable trip expenses, depending on where you’re going and what you need to be covered. The cost will include the base policy you select and any riders you need.
2. Does the Length of My Trip Affect the Cost?
Yes, it does. Coverage for a weekend getaway will be less than that of a lengthy cruise. Travel insurance for an around-the-world trip will surely be quite expensive. There is no hard-and-fast rule about what’s “usual,” so with anything that you want to know about the policy you plan to buy, ask the applicable company.
3. What’s Covered?
Almost all travel insurance is for various kinds of healthcare. For example, if you need treatment at a hospital in Germany, then part or all of the necessary treatment will be covered. There are exceptions, however. Most basic policies won’t cover conditions that you have at the time you buy the insurance without you selecting expensive riders. Various companies offer solutions to that, so you’ll have to ask the company you choose.
One of the most popular riders to buy is to cover you and your traveling companions for lost or damaged luggage. Generally, this will cover a set amount to replace both the luggage itself and your belongings that were inside. You can usually pick different levels of coverage. The higher the replacement amount is, the higher the cost of the policy will be.
Other riders include things like cancellation insurance regarding nonrefundable tickets if you wind up not being able to go, rebooking in the case of an airline canceling a flight without an option, or even legal coverage against arrest or civil action in the other country.
4. Does the Company Have a Good Reputation?
Unfortunately, scammers are common in the 21st century. Research your chosen company. See if there are reviews and ratings on the website of the Better Business Bureau, Trustpilot, Consumer Reports, or other similar organizations. Check on Google if there have been any actions taken against the company.
5. How Complicated Is the Claims Process?
You don’t want to have to jump through hoop after hoop to file a claim or to receive your coverage. Companies are allowed to have their policies and procedures, of course, but they should be reasonable and not designed to be difficult.
6. Does the Insurance Company Pay Right Away, or Do You Have to Pay and Get Reimbursed?
Obviously, the first way is far better than the second way. Something that costs a lot of money off the top could totally derail your vacation. Select a company that covers you right away when you need treatment, new luggage, or legal representation.