Do you know how travel insurance works and that it’s one of the first things you should pack as you prepare for any journey? If you have been travelling all this time without travel insurance then you are of the 10 million Brits at risk abroad.
Of course, no one wants to incur more expenses. If anything, smart travellers always look for ways to cut back on their travel expenses. That said, it’s essential to point out that travel insurance is not an expense but an investment to save you from a possible debt in the future.
How? Well, grab a cuppa and join me in this enlightening journey as we discover together how travel insurance works, why travel insurance is a must-have, and why you are at risk without one. Don’t sleep on it!
How Does Travel Insurance Work?
First things first, I’d like to quickly point out that there are several types of travel insurance. While they may work in similar ways, they sure do differ in the type and number of things they cover. Therefore, I strongly recommend you know exactly what your policy covers before purchasing any insurance.
Now let’s see how travel insurance works.
As I stated earlier, they all work in a similar way. However, the little difference lies in the type of travel insurance you purchase.
As with other insurance policies, the insurer – the firm you purchased insurance from – is obligated (by the terms of the insurance) to compensate the insured – the person who is covered by the insurance policy – in times of ‘damage’. In case of damages covered by the policy, you are required to file a claim – usually include providing proof – and get compensated once your claim is accepted.
A travel insurance that covers your health, for example, will come in handy if you develop any illness while you are away from home. This is especially critical because health care can be very expensive in most countries. You don’t want to incur a fortune in debt. With travel insurance, your insurer handles all the expenses, according to the terms of the insurance bought. Worth it after all!
Do I Really Need a Travel Insurance?
** This is especially important during the current Covid times, if you chose to still travel!**
I am sure you must have seen a ton of articles telling you how and why you should get travel insurance for every trip. Oh, well, that’s not always true. You do not need travel insurance for every trip you take, especially those within your home country. But, if you’re travelling outside your home country where your health insurance doesn’t work, then you absolutely need one. Besides providing a safety net for your medical needs, these are some other reasons travel insurance is very important
1. It protects your travel investment
Most travel agencies clearly state that every cent paid for a trip is non-refundable. Now, what happens when a medical emergency arises just before the trip? You lose out on everything – the trip and the cash. But with travel insurance, you are sure to get your cash back.
2. Personal liabilities are covered too
You can’t be too careful, right? Sometimes the damage might come from your end. With the right insurance, you can go unscathed from every personal liability. Meaning that if you break something for example, it will be insured. So you don’t have to panic too much when dropping a strangers phone after taking their picture… awkward!
3. Non-medical emergencies are covered too
Sometimes, the help you need might not be medical related. Fortunately, your typical travel insurance is not exclusive to medical emergencies. So, you have a backup plan if you lose your checked-in baggage, passport, international driving license, or laptop, for example.
Why travelling without insurance is a big mistake
With the pros explained in the previous sections, I’m sure you already know why travelling without insurance is a big mistake. But let me spell it out: Because you don’t want to go unprepared and risk ending up in big debt or stuck in a foreign country. Don’t risk it, Sisters!