As many travelers stranded for days after the eruption of the volcano in Iceland discovered, having adequate travel insurance can be crucial when unexpected situations arise. Whether you are planning a business trip, a family vacation or a group event, selecting the right travel insurance requires careful consideration. There are a few simple steps to determine what kind of travel insurance will best cover your needs.
Review your home, health, life, auto, dental, personal and umbrella policies to see what coverage they provide when you travel. Many policies will cover expenses that relate to property, personal injury or liability regardless of your location.
During your review, check to see if the following items are covered by any existing policies :
- Trip Cancellations
- Lost Luggage
- Rental Car Damage
- Dental Care
- Accidents
- Diseases
- Evacuation Expenses
There are two types of insurance coverage for travelers, Package Plans and travel Medical Plans. If your current insurance coverage does not include a majority of the items listed above, purchasing a Package Plan makes the most sense because it provides blanket coverage for most unanticipated travel related expenses.
There are a range of Package Plans for travelers, from Basic coverage to Premium policies that have higher limits and above average benefits. However, if your current insurance policies cover most of your property and standard health treatments, a simple Medical Plan for travelers will be adequate to insure you have access to emergency medical treatment and assistance as well as coverage for medical evacuations any where in the world - which can run up to $10,000 a day, according to the U.S. State Department.
As a rule of thumb, a comprehensive Premium Package plan averages around 5 to 7 percent of the cost of the total trip and typically includes Trip Cancellation coverage. By bundling the policies, you can expect the insurance on a $2,000 trip to average $80 to $200, depending upon the length of the trip, the age of the traveler and region(s) of travel. To reduce the average price, you can opt out of the Trip Cancellation feature which is traditionally the most expensive item in the policy.
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