Savvy travelers will often purchase travel insurance when they book their trips. This may seem like an unnecessary expense, but it can be a great way to ensure peace of mind during and before your vacation. Whether you are traveling to a remote and dangerous locale, have medical conditions to consider, or are a first-time cruiser worried you’ll have to cancel for weather, the right insurance can keep your trip from being a complete disaster. Not all insurance is the same, however. To help you decide what policy is best for you, we’ve got a breakdown of the most common types of travel insurance and what they can cover.
What is Travel Insurance
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Travel insurance comes in many different forms, but it is always a way to protect your finances in the unfortunate event that your trip is impeded in some way. It can reimburse you, partially if not entirely, in the event that you incur unexpected expenses, delays, or medical emergencies. This typically only applies to expenses that are non-refundable on their own, so it shouldn’t be used for things like refundable flights. It can also cover some expenses if your trip, your flight, or your baggage is delayed. Be sure to read the fine print of any insurance you want to purchase, as it will tell you how much can be covered and for what reasons you can make a claim.
Refundable Flights
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When you book a flight, it is usually possible to get a refundable ticket. This will usually cost more than a non-refundable ticket, but will allow you peace of mind without having to get travel insurance. Travel insurance typically only covers non-refundable flights, so it is best to get a refundable one if you are worried you may have to cancel. If you don’t get a refundable flight, you can often apply that money to another flight if your plans change, but that isn’t always helpful if you are canceling your trip altogether or if you want to transfer the flight to a different person.
Trip Cancellation/Delay Insurance
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Trip cancellation insurance and trip delay insurance cover non-refundable expenses that you can incur in cases such as illness, injury, family emergencies, jury duty, and other unexpected delays. What reasons qualify for a claim will differ from policy to policy, but usually will not include bad weather, with the exception of extreme cases like hurricanes. Be sure to read your policy thoroughly to ensure your most likely interruptions will be covered. The more causes are covered, the higher the cost will usually be, so be selective about what you choose to get covered.
Medical Emergencies
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Your standard health insurance often won’t work outside of the country, so you may want to get travel insurance that covers medical expenses. This can help you pay for unforeseen illness or injury that might occur while you are traveling. Whether or not you want to get this insurance will likely depend on where you are going, what you are doing, and your current state of health. If you are over the age of 65, you will probably want to get covered for falls, accidents, cardiovascular problems, and pulmonary issues. If you are traveling to a remote location, you will want insurance that will cover medical evacuation, which can cost hundreds of thousands of dollars without insurance. If you are doing activities like skiing, horseback riding, or contact sports, then you will want to be covered for trauma or broken bones. In addition to helping you pay for such expenses, your insurance company can help guide you in finding where to go to get care, which can be daunting when you are dealing with an unfamiliar healthcare system.
CFAR/IFAR Insurance
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CFAR (Cancel For Any Reason) and IFAR (Interruption For Any Reason) are the most broad types of coverage, as they are not limited by all the strings and stipulations that come with other forms of travel insurance. This is a good option if you are worried that you might have to cancel for weather, for instance if you are taking a cruise during the wet season to take advantage of shoulder season prices. CFAR covers you if you cancel your trip in advance of departure, whereas IFAR covers part of your trip if you have to cut it short. These types of insurance will usually cost more, but offer the most security. Still, make sure to read the fine print to make sure you know exactly what is covered, how much is covered, and when your time limit to make a claim is. Typically, you can only claim CFAR up until a certain amount of time before your trip begins. Speak with an insurance representative to make sure you get all the details!
