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What does trip insurance cover

what does trip insurance cover

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What is Trip Insurance?

Trip insurance is a plan that covers a traveler in case of unexpected events before and during the trip. A number of issues could come up after booking a travel date. For instance, the trip could get canceled due to inclement weather or cut short due to an emergency. These are issues that are out of the traveler's control, so the insurance reimburses him for some or all of the inconvenience.

What's Covered

Besides reimbursement for canceled, interrupted or delayed trips, trip insurance also provides you with additional coverages. If you lose your luggage, you can make a claim to get back the value of the contents. If you have a medical concern, the policy covers some or all of those costs. Some plans may also cover additional needs, such as legal assistance or the cost of renting a car in an emergency.

How Much Does It Cost

The cost of travel insurance varies depending on the provider and the coverage choices you make. The typical charge is about 4 to 8 percent of the cost of the trip. So for instance, if you pay your travel agent $1,500 for an all-inclusive cruise to the Bahamas, the trip insurance option costs about $60 to $120 extra. Shop around for quotes online or by calling trip insurance companies just as you would for any other type of policy.

Credit Cards

Some credit card companies offer some type of trip insurance as a perk to customers. If something comes up during the trip, the traveler contacts a credit card representative to get relief. The terms vary, but in many cases you have to use the credit card to purchase the trip in order to get the insurance coverage. So check your credit card agreement to see if it has trip insurance before you purchase a separate plan.

Category: Insurance

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