Travel
Insurance is a necessary evil, especially as you get older, or have less
people in your life who can help you in the event of an emergency. If you plan
a long trip with a complicated itinerary or travel on an organized tour, there
is plenty that can go wrong that could cost you money. So the question is not
really whether or not you should purchase the insurance. It is how to best
maximize that purchase so you will get a return on your money. If you travel
often enough, and if you are smart in the way you make your purchase, travel
insurance can actually pay for itself.
Purchase only a percentage of the full amount
All insurance is a bet against
whether or not you will use it. So when you purchase travel insurance, you are
betting you will need it. The fact is, the chance that you will need a
percentage of the trip covered is pretty high. The chance you will need the
entire trip covered is very, very low. Unless you experience a complete wipe
out, where nothing will be retrievable in the event of illness or cancellation,
only that potion you feel comfortable paying for is the amount you should
insure for. If you are going on a tour that costs $5,000 and you pay an
additional $2000 in air that means you want to be covered for $7,000 right? Not
necessarily. Most tour companies will be happy to keep your business by moving
your trip to another date if necessary, and almost all airfare is changeable
for a small price. In the event of a family death, the airlines will typically
refund your money in full as long as the flight has not yet departed. The same
is true for frequent flier miles in the event of death. So you may be best
served by insuring yourself so you can fly home if an emergency occurs, as well
as for medical expenses and emergency evacuation if you are travelling to a
remote area. The cost will likely be half of what it would be if you purchased
insurance for the full amount.
Do not purchase from a tour company
The most expensive way to go is
through the tour company that offers the tour. It not only covers you for
expenses you will likely not need, it will not cover you at all if you are
doing solo travel before or after the tour. Bear in mind, the tour company will
likely change your tour dates without charge if necessary, and regardless of
insurance coverage. This is not true however, if they offer deals like
"Cancel up to the day of departure, " in which case purchasing their
insurance is required. This is frequently offered in countries where there are
problems and they are trying to induce tourism, like Africa and Russia. You can
also purchase full trip insurance on your own with a cancel for any reason
clause as long as you purchase it within two week so of having made your
initial deposit. One place to look for top rated travel insurance companies
is Insuremytrip.com.The
cost is typically lower than going through a tour company, the wide variety of
coverage that is offered is through well known insurers, and they pay in a
timely manner on claims with great customer service.
Save all proof of payment and receipts
If you need to file a claim, you
need all the receipts plus the proof that you have paid those bills if you put
the purchases on a credit card. So make sure to save all documentation or it
will be like not having the insurance at all.
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