As borders and countries slowly start opening worldwide, there is one thing on everyone’s mind- travelling. We all want to either travel back home, plan that dream holiday, or even travel to visit clients. For some, it has been years since they have booked an exciting trip, packed, and stepped onto a flight. Landing into a new country or seeing family after a long is amazing and should happen more often now (hopefully).
However, as we have seen in recent years, travelling is full of doubt and sudden travel risks that could ruin the trip. Travel risks included cancelled flights, baggage loss, injuries abroad and more. These risks can be costly and hard to deal with in a foreign country.
Even if you cancel a trip week in advance, there will still be some non-refundable costs you may not get back. In addition, a medical emergency could occur while you are travelling too, which may cost thousands in a new country. These costs can add up to a significant amount and could be out of your control.
Uncertain travel risks and financial worries are why you should purchase travel insurance beforehand. Fortunately, the insurance can be a saviour when things go wrong. It is better to be safe than lose money that you could re-invest into the next holiday. The article will explain why travel insurance is the perfect cover for travels.
What Is Travel Insurance?
Travel insuranceprotects the policyholder from certain financial risks and losses while travelling. These incidents are known as travelling risks. Common travel risks include delayed or lost suitcases, cancellations, overseas medical emergencies, and shocking liability accidents.
The insurance can be bought for a single trip or annually. Many businesses purchase annual travel insurance for the company travels, and families seem to lean more towards single trip insurance. They both have the same benefits and cover for the policyholders.
Additionally, travel insurance will cover whether travelling for a day or months, as travel risks can occur at any point of the trip. Insurers can also customise the insurance for an individual or a family.
Travel Risks Covered by Travel Insurance
Sudden or Forced Cancelations
The build-up to a trip is full of mixed emotions, from excitement to anxiety. However, many factors can force a person to cancel a trip. Such as you or a family member falling sick, weather, a natural disaster at the destination or any sudden emergency. A cancellation can be costly due to all the various non-refundable costs. All costs can add up to a significant financial loss.
It is important to know that cancellation doesn’t have to be before the trip- it could be during the holiday. For example, in 2019, a volcano eruption in the Philippines forced hundreds of locals and tourists to evacuate. A devastating natural disaster can ruin the entire trip; it will force you to cancel many plans and lose the remaining holiday expenses.
Having to cancel a holiday is always a disappointing travel risk and costly, but travel insurance can help reduce the financial pain. If you cancel the trip for a covered reason, the travel insurance policy will reimburse you for the loss. The costs covered will include flight tickets, hotel rooms, rental cars, shows/tours, or any additional payments lost due to the cancellation.
We want to take almost everything we value when packing for a holiday. Some of the stuff includes expensive assets, like laptops, jewellery, branded accessories, etc. However, no one thinks about the possible loss or damage risk due to the excitement. Unfortunately, there is always a chance your baggage and valuables may be lost, delayed, or damaged during the trip. The travel risk could occur due to the airlines, theft, or sudden damage at the location. It is a travel risk that is out of your control.
No matter how good the airline is, there is always a chance the company may lose or damage your baggage. From simple human error to mishandling luggage. Even a top airline: Emirates, has had cases of lost bags. In one case, Emirates did not find the bag for 12 years. Unfortunately, it could happen to anyone, and a situation like this can ruin your trip and result in a significant financial loss.
Baggage loss or damage is one of the most frustrating travel risks. However, travel insurance reduces the stress. The insurance will reimburse the cost of loss, damaged or stolen baggage and valuables. Additionally, the insurance will provide emergency funds for essential items if baggage is delayed for at least 6 hours. Therefore, you can move forward from such travel risk incidents and still enjoy your holiday with travel insurance.
Medical Emergency Abroad
Most of us pack a small pouch full of medicines, just in case we fall sick during the trip. However, there are no pills for serious medical illnesses or injuries. In these cases, one must go to the local hospital and get the appropriate treatment. Travel medical emergencies can be costly, especially in an unfamiliar country. Travel medical emergencies could include anything from food positioning to a severe heart attack.
For example, someone mightslip or fall in areas such as a swimming pool or sauna. In a situation like this, the injured will rush to the hospital for treatment and medications. After the person is out of medical care, they will have to pay for the massive bill. A relaxing time can quickly turn into an expensive time.
Travel insurance is a must-have for these medical travel risks. The insurance will provide the funds for the treatment and medicines. Additionally, travel insurance will cover the sudden trip home and reimburse you for the unused portion of the vacation. Although, travel insurance won’t cover medical emergencies- if a medical expert has informed you not to travel. It is essential to get the best care and not worry about the cost in tough medical situations.
One of the rare but possible travel risks is third-party accidents. A third-party accident is when one accidently causes third-party injuries or property damage. A third-party accident could result in claims or legal lawsuits against the traveller. These accidents could include damaging someone’s house, car, public property or accidently hurting someone.
For example, when you rent a car and get into an accident. The car owner and the other party involved in the accident have the right to sue you for third-party property damage. These travel risks are costly and harder to deal with abroad. The claim will also harm your liability and holiday.
Travel insurance will cover this travel risk by providing the cost of settlement and legal fees. Such accidently can be shocking and could happen at any point of the trip; insurance is the best coverage to reduce the impact.
Does Travel Insurance Cover Pandemic-Related Risks?
Travel insurance policies do not includepandemic cover. Therefore, the insurance will not reimburse costs when flights and hotels are cancelled due to covid positive or government bans. The recent change is due to the unpredictability of the pandemic and country laws worldwide.
For instance, if you cancel the holiday because you have heard there has been an increase in Covid-19 cases. Unfortunately, the insurance will not provide any financial assistance in such cancellations. Although, travel insurance will cover if you have been admitted to the hospital due to Covid and will reimburse the medical costs.
When To Buy Travel Insurance?
Unfortunately, we brush off the possible chances of these travel risks before the trip and then stress when we’re in the middle of it. It is time to make the change and consider the possible risks and financial impact. You should buy travel insurance as soon as you have paid for your transportation and hotel rooms– but you can still purchase any time before the trip.
In addition, along with the wide range of cover, the insurance provides 24/7 customer service assistance. Insurers offer 24/7 customer service to assist policyholders during emergencies in most countries. The insurance understands it’s awful to feel lost and hopeless in an unfamiliar location.
Travel insurance can help in the worst situations- financially and mentally. So why not be safe and insured rather than uninsured and sorry.