Travel insurance differs by company and specific policy, but there are a few things that are fairly standard across the board. In this post, we will discuss a few things you can expect from most policies. Keep in mind that your policy — for better or for worse — may not be exactly like the sample represented here.
To start with, travel insurance is similar to any other kind of insurance in that there is a premium and a deductible. The premium is the amount you pay to maintain the policy. On short trips, this amount may be paid one time. On slightly longer trips, it may be paid weekly. Finally, on much longer trips, it may be paid monthly or yearly.
The amount of the premium depends on what you need in your policy. For example, if you are planning on doing adventure sports and you need insurance for both your health, your property and things like trip cancellation, you can plan on paying a much higher premium.
The deductible is the amount that you have to pay before the insurance policy kicks in. Some people are under the impression that if they have insurance, everything they do is automatically covered. This is not exactly true. For example, say you visit the doctor’s office on your trip for something minor. And let’s say the visit costs you less than $100.
In that case, you will probably have to pay the amount out of pocket. Most policies have a deductible of at least $100, sometimes higher depending on what you need coverage for. The bottom line is that you can expect to pay something at a minimum.
Another common and unfortunate feature of many policies are things for which you cannot receive coverage. For example, you probably won’t be able to get coverage for something relating to a preexisting condition, unless you have a special policy that specifically addresses it. Other things to consider are what kinds of activities you will be doing and what countries you will be traveling in.
In many cases, you will not receive coverage if you are traveling in a country that is under any kind of travel warning or advisory. All this means is that it is extremely important to read the fine print before you commit to anything. As tedious as it may be, doing so can save you a lot of frustration later on.
Don’t expect to find cheap travel insurance that is automatically going to go to work for you. Finding the best travel insurance company with just right policy takes time and you are going to want to make sure you look at it from all angles.