Travel insurance, like other forms of insurance, is designed to protect you financially for unexpected situations you may encounter while traveling. It offers you peace of mind while you travel.
Travel insurance can offer financial coverage in the following cases:
- Unplanned expenses while traveling,
- Travel delays
- Missing a connecting flight,
- Accommodation in the case of a natural disaster,
- Loss or damage of luggage, and,
- Medical emergencies (some travel insurance policies do not cover pre-existing conditions).
Some websites suggest that travel insurance is available for purchase in 30 day packages or multiples. This means that if you are traveling for 25 days then you will need to purchase a 30 day travel insurance package. If you’re traveling for 41 days then you will need to purchase 2 X 30 day travel insurance packages. According to Squaremouth, a popular Travel insurance website there are three different types of travel insurance which are:
- Single trip travel insurance,
- Group travel insurance, and,
- Annual travel insurance policies.
Single Trip Travel Insurance
This type of travel insurance covers up to ten travelers for one international or domestic trip for a specified period of time. You will need to specify the dates of your travel when purchasing insurance. Once purchased, the travel insurance is valid for the duration of the trip regardless of how many destinations you travel to within the same region e.g. different destinations within the United Kingdom. It also offers travelers the option of choosing trip cancellation coverage which reimburses travelers if they cancel the trip for one of the reasons listed in the policy. The cost depends on the age of the travelers, the length of the trip, and the total trip cost and cost anything between 4% and 10% of the traveler’s trips cost. Purchasing travel insurance with cancellation coverage is optional.
Single trip travel insurance covers medical emergencies, luggage, and travel delays. It is suitable for travelers who travel once a year.
Group Travel Insurance Policies
Group travel insurance is only available for groups of ten travelers or more and is purchased per trip for a specified period of time. It also offers coverage for medical emergencies, travel delays, and luggage. Trip cancellation coverage is optional. The advantage is that the cost of this policy does not depend on the age of the travel group and it can be less expensive than purchasing single trip travel insurance. The benefits are similar to a single travel insurance policy.
Annual Travel Insurance Policies
Annual travel insurance policies covers travelers for 12 months and may allow you to take as many trips as you desire within those 12 months. You will have to select your preferred region of cover when purchasing your annual cover. The regions are Europe, Worldwide excluding North America, and Worldwide including North America. Unlike single trip insurance cover, annual travel insurance has restrictions on the duration of your trip. Different service providers offer different trip duration restrictions. Also, most annual trip insurance policies do not have trip cancellation cover.
Annual travel insurance can be purchased for trips longer than 30 days and up to 365 days and provides coverage for medical emergencies, luggage, and delays.
One of the advantages of annual travel insurance is that you can change your destination while traveling whereas with single travel insurance cover you can only make changes if the service provider allows it.
Always do your own research on the different types of travel insurance that are available and the coverage that it offers. Obtain online quotes and compare the tariffs before making a selection.