Travel insurance provides an easy way to insure against trip
cancellations, trip interruptions, emergency evacuation, accidental death and
loss or damage to baggage or personal effects. Millions of dollars are wasted
each year by travellers who purchase unnecessary travel insurance or travel
assistance policies. Taking care in purchasing any travel insurance or travel
assistance policies is a prerequisite although these products may be valuable
to some travellers only in limited circumstances.
Buy only the insurance you need. Frequently, several types
of insurance are bundled together and sold as comprehensive travel insurance.
Make sure you purchase what you need only after reviewing this chapter and
doing comparison shopping among several travel insurance policies
Decide on the type of travel
insurance after analyzing the type of coverage you already possess.
Specific consideration of following facts is required. While you are travelling,
provision of liability and personal property protection can be provided by home
owner's or rental's insurance policy.
Do check the specific limitations and exclusions of the
policy even if there is a probability of your health insurance providing you
with some coverage. Your automobile insurance policy can also provide cover for
a car on rent which is being used by you. In some cases your credit card can
offer some protection when you rent a car or if you want to cancel or change
your flight.
You can opt for excess or secondary coverage through many
travel insurance policies. If any other coverage can be applied to the loss
first, such as homeowner's insurance in case of theft of your personal
property, then it means that the travel insurance will provide coverage only
for amounts which are not paid by the primary insurance like deductibles. Few
of the travel insurance policies offer primary coverage, which is most useful when
your own coverage is insufficient or has a very high deductible. Premium for
excess coverage is generally low as compared to premium for primary coverage.
A major problem with travel insurance is that most policies
contain a number of exclusions and travellers often don't learn about the
exclusions until they try to use the coverage. At the time of reviewing a
travel insurance policy you should check the exclusions and definitions
carefully to determine how much protection your policy is really offering. Since
there are losses which are not covered by any other insurance which you may
already have, therefore trip cancellation and trip interruption insurance are
probably considered the most important types of travel insurance.
In terms of protection, trip cancellation and trip
interruption insurance are different although you cannot deny the fact that
they are closely related. Now you can be insured and be sure of getting your
money back in case you plan to cancel your trip, by opting for the trip
cancellation insurance before you travel. Trip interruption insurance helps you
by providing cover during your trip and reimbursing certain expenses if you cut
short or change your trip. Since the exact terms of the policy may vary but the
answer to validity of trip cancellation insurance for reimbursing you for non-refundable
and prepaid trip expenses lies in following three things. Your travel companion
or you may have to give immediate attention to a situation or if you are in a
spot which forces you to abandon your trip though arrangements have been
booked. Trip cancellation insurance is applicable before your departure.
After you purchase your trip cancellation insurance, you
should make sure that you are covered by the insurance policy when you move
from your home to your departure point. In the same manner, trip cancellation
policies expire when there is possibility of occurrence of last time crisis. If
you purchase cancellation insurance, make sure you are covered during the
entire period of time before your departure.
[Source: http://ezinearticles.com/?Is-Travel-Insurance-Necessary-When-Travelling-Abroad?&id=5980005]
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