Planning what should be a carefree holiday often amounts to a process that is anything but carefree.

Before leaving on holiday near or far, millions of world travelers first check to confirm that they have adequate insurance coverage. Because of the potentially disastrous financial and personal implications that could result from a injury, illness, or even death while traveling, in Australia, the prevailing school of thought is that “if you can’t afford travel insurance, you can’t afford to travel.”

What is Travel Insurance?

Although no sound or reputable travel insurance policy will cover any willfully dangerous activity like parachuting above a mountain range, should you require hospitalization, travel insurance will allow such arrangements to be made without financially crippling your finances or those of your loved ones.

While (thankfully!) death or serious injury remain unlikely events for the overwhelming majority of travelers, a more practical aspect of traveler’s insurance is its’ coverage of incidents that may transpire before or during travel: theft, trip cancellation, baggage damage, etc.

These sorts of incidents, while minor relative to death, can still prove an enormous inconvenience and a pesky financial burden. For this reason, whether you travel frequently or once a decade, travel insurance is generally a vital component of sensible travel.

Although there is no shortage of reasons why travel insurance is important, when choosing both a provider and a policy for your coverage:

• Be sure to thoroughly read your policy to understand everything that your coverage includes or excludes. The expenses associated with travel insurance commonly depend upon the type of coverage you require, your age and physical well being, and, naturally, where you are traveling and for how long.

• Because your medical insurance may be valid in other countries, always ask for clarification on policy issues or questions directly with the insurer.

• Obtain sufficient medical coverage to offset any expenses or liabilities that could be incurred in the foreign country you are visiting.

• Always discuss and note with your insurance provider the pre-existing medical conditions you have (if any).

• Know the potential dollar limit or cap on insurable items you may consider bringing and stowing in your luggage.

• Don’t confuse legitimate travel insurance with the considerably more dubious policies of “flight insurance” sold in the vending machines of many international airports.

• Research and understand cancellation waivers. While the waivers provide some protection against financial loss in the event of a trip cancellation, many policies come with fine print and severe restrictions.

As with any form of insurance (life, health, etc.) being informed is ultimately the best course of action to protect yourself and your loved ones should an unfortunate threat to life and limb manifest itself.

Before obtaining a policy, familiarize yourself with the options appropriate and financially suited for your individual needs. As with other types of insurance coverage, it is essential to comparison shop in order to not only find the best deal and rates, but also to ensure that your business is given to a reputable firm that will come through for you if and when you ultimately need them.

Photo by bfraz

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