When Should I Buy Travel Insurance?

We’re heading into peak travel season, which means those in the insurance industry are starting to get a lot of questions about travel insurance. Travel insurance is a rather misunderstood type of insurance policy, and while it isn’t right for every situation it can save you a lot of financial stress when implemented correctly. Let’s take a closer look at what exactly travel insurance does, and when you should consider purchasing a policy.

There are two types of travel insurance policies: basic and comprehensive. Each have their own pros and cons. A basic policy offers all the types coverage typically associated with travel insurance. A basic policy will kick in if you miss your connecting flight, if you lose your luggage etc. What a basic policy does not offer coverage for is anything related to medical treatment.

A comprehensive travel insurance policy always includes some type of medical insurance as well. That means if you’re hiking in the jungle somewhere and have to get medivaced out, you won’t be stuck with $100,000 bill. Naturally, a comprehensive travel policy is significantly more expensive than a basic policy.

So, when do you need travel coverage and how do you know which type of policy to invest in? In short, it depends. Always look at how far ahead of time you are booking a trip. If you’re planning your travel a year out, a lot more unexpected things can happen before your trip then if you’re planning a vacation a month out. A good rule of thumb to follow is to purchase travel insurance if you are planning your travel more than six months out.

If you do decide to purchase a travel insurance policy the decision to go with a basic or comprehensive policy should be pretty easy. If you aren’t traveling to a country with free healthcare services, you are going to want a comprehensive policy. Yes, it’s a bit more expensive, but if something does happen it will save you a serious amount of money. Think about the cost of an ambulance ride vs the cost of a $200 insurance policy.

Of course, there are times when travel insurance is not worth the cost. If you’re traveling domestically, you really don’t need travel insurance. This is particularly true in the United States where your other insurance policies will still be providing coverage, even if you are in a different state. It’s also worth noting that the average cost of a domestic trip is significantly less than an international one. It makes sense to get insurance protection on a trip that costs $4000, where as a $500 trip may not be worth the extra cost of a policy.

If you are looking to purchase a travel insurance policy, or just want to learn more about your options, we encourage you to talk with staff at TGS Insurance. Not only are they experts in their field, but they are always willing to work with you to find the right policy for your lifestyle and your wallet. Visit www.tgsinsurance.com to learn more.

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