Importance of International Travel Insurance in 2023
Insurance is a contract depicted by a policy. In this contract, the policyholder receives financial protection against losses from an insurance company. The company helps its clients financially to make payments more affordable. Insurance policies are used to minimize the risk of financial losses, whether they are big or small. This can be a result of damage to the insured or their property or liability for damage or injury caused to a third party. In this post, you will learn everything you need to know about the importance of international travel insurance in 2023 and beyond.
Why Opt for International Travel Insurance?
Medicare or domestic health insurance will usually not shield American citizens while traveling abroad. Due to this, the U.S. Department of State recommends acquiring international travel insurance. A policy that reimburses you for the money you lose from non-refundable deposits and payments if something goes wrong on your trip. These problems, as mentioned above, can range from lost baggage to flight delays to medical issues.
The more expensive a trip, the more crucial your travel insurance. Travel insurance helps save money and time and ensures hassle-free travel. Without Travel Insurance, you will have to deal with expenses while you’re away, or you may lose money if you cancel a trip and need help getting your money back. Following are a few major reasons for getting travel insurance:
1. A Boon for the Senior Citizens
Travel insurance is also essential for senior citizens traveling outside of America. Senior citizens are more likely to incur accidental injuries or illness and fall prey to travel-related crimes like theft. It is specifically for people over the age of 60, and their travel plans. The age limit varies from one insurance company to another. For instance, some senior citizen travel insurance companies have conserved their eligibility at 71 years.
Most insurance providers offer a complete break-up of the sum assured for different coverages. For instance, some insurance companies may have a cap on medical expenses or a different limit on dental care. While acquiring senior citizen insurance coverage, you should look into these sub-limits according to your circumstances. (3)
2. The Outdoor Boom- Travel is Getting Popular
When the COVID-19 pandemic upended, participation in outdoor recreation increased. Many national parks witnessed record numbers of visitors in 2020. The outdoor boom took place as a necessity in the COVID era. Quarantine made us value the physical experiences of nature, civilization, and interaction with fellow human beings.
Travel has become a lifestyle today, and an international travel insurance policy protects one financially in case of mishaps like extra accommodation costs, lost checked-in baggage or passport, and many optional add-ons like home-burglary insurance, etc. The tourism marketplace in the US economy as of 2023 is worth $1.2 trillion, and expenses like flight tickets and hotel bills are not getting any cheaper. Getting travel insurance is a great option; this is especially true for international trips and cruises, where travel problems become more expensive to solve. (1)
3. Flight Cancellation or Delay
Federal law mandates airlines to reimburse costs if they cancel or delay a flight for a certain amount of time; as a traveler, you may choose not to travel due to this inconvenience. The time limit varies from airline to airline. If your delay or cancellation qualifies, you can file a request to the airline for a refund. You can still file a claim through your travel insurance for other prepaid, non-refundable costs caused by the covered delay or cancellation. When a flight delay occurs, you are entitled to reimbursement, rerouting, and rebooking. (4)
On the other hand, comprehensive travel insurance generally covers canceled flights that delay your trip for at least 3–12 hours, depending on your plan. If your flight is delayed over 12 hours, you may even qualify for trip cancellation coverage.
With the right travel insurance policy, you could be reimbursed or refunded partially in case of any flight cancellation or delay under the terms and conditions of the policy. It would help if you had an appropriate insurance policy to avoid missing out on this privilege.
4. Takes Care of Fraudulent Charges
While on vacation, if you lose your debit or credit card and get notifications implying that someone is using them, you are armed with a good travel insurance policy and can avoid losing that money. Your money could be refunded through your stolen payment cards for up to 12 hours before you report the incident. Depending on what you are looking for in your Travel Insurance, the following are a few recommended companies:
- Allianz Global Assistance is an economically viable option for travelers who want to add on cheap rental car protection.
- Travel Guard by AIG is an excellent fit for those traveling with pre-existing medical conditions and cruise-goers.
- Berkshire Hathaway Travel Protection is economical and great for customizers and cruise-goers.
- USI Affinity Travel Insurance Services is recommended for International students and cruise-goers;
- Travel Insured International is ideal for traveling with expensive electronic equipment and high-cost ticketed events.
- World Nomads is ideal for adventurous folks. Their plans cover 200+ adventurous activities, and there is also an option of extending your trip with coverage.
- IMG is good for Long-term budget travelers. The starting package covers trips up to 180 days and offers 100% trip cancellation coverage and 125% trip interruption coverage. (2)
Conclusion
It is very important to go through the policies of your airline as well as your Travel Insurance Company. Some travel insurance companies also provide house security while you’re traveling abroad, which involves protection against financial losses due to any burglary or a fire.
It is very important to have an appropriate International Travel Insurance plan. Besides other value-added services, it safeguards against unanticipated scenarios so that you enjoy carefree trips. As a traveler, you already have a lot on your plate; let the Insurance companies handle some of it!
References
- Megna, M. (2023, January 29). Best Travel Insurance Companies Of January 2023. Forbes Advisor. https://www.forbes.com/advisor/travel-insurance/best-travel-insurance/
- Lee, M. (2023, January 26). 10 Best Travel Insurance Companies in January 2023. NerdWallet. https://www.nerdwallet.com/article/travel/best-travel-insurance
- Asthana, R. (2023, January 4). How To Choose Travel Insurance for Senior Citizens. Forbes Advisor INDIA. https://www.forbes.com/advisor/in/travel-insurance/travel-insurance-for-senior-citizens/
- McHugh, M. (2023, January 1). How To Get Compensation When Your Flight Is Delayed or Canceled [2023]. UpgradedPoints.com. https://upgradedpoints.com/travel/airlines/flight-delay-cancelation-compensation/
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