5 main types of travel insurance and what they cover
Maybe you’ve recently decided to take the trip of a lifetime, or maybe you’re just looking to get away for a quick weekend jaunt. Either way, you will probably need to purchase some travel insurance, even if you are just traveling to another province. Unfortunately, travel insurance is one of the more complex forms of insurance. With your health and financial well being on the line, you need to be sure you understand what you’re buying. Fortunately, we have complied this helpful list of different types travel insurance to make shopping around easier.
Trip Cancellation
Trip cancellation insurance is what you want to buy if you’re booking a trip with a lot of pre-payments or deposits. This is especially useful if you are booking the trip well in advance, a lot can change within the matter of a few months! This insurance covers you if you have booked non-refundable travel and you’re unable to take your trip.
Trip Interruption
Similar to trip cancellation insurance, trip interruption insurance covers you if you’ve made non-refundable deposits, or pre-payments and you find yourself needing to cut your trip short. The two forms of insurance are very similar, with one generally applying before you leave on your trip and then other applying once you have already left home.
Medical Insurance
Medical insurance is exactly what it sounds like – this insurance is meant to act as a replacement for your provincial health insurance if you travel outside of the province or country. The type of medical insurance you can get varies depending on your insurance company, insurance policy, vacation destination and age. It’s best to discuss the different options available with your broker, especially if you have any pre-existing medical conditions .
Baggage Insurance
Ever been caught at a new destination without your toothbrush? If you have, you know that it sucks. If you’re in a part of the world that speaks English, forgetting a toothbrush is a minor inconvenience. If you don’t speak the local language, it can quickly turn into a major issue. Now imagine you’re traveling and the airline loses your checked luggage. It would be extremely difficult to survive an entire trip with only your carry-on luggage, and without knowing where to buy anything and with no time to be a smart, frugal shopper, you can quickly rack up hundreds of dollars in expenses just to replace what was in your bag.
Baggage insurance covers reasonable expenses incurred if your luggage is merely delayed. If your luggage is lost, damaged or stolen, baggage insurance will usually cover the cost of replacing your suitcase as well as its contents.
All-inclusive Insurance
The best way to think of all-inclusive insurance is to imagine that it’s a combination of all the above forms of travel insurance. You’re covered if you pre-book a vacation and need to cancel ahead of time, you’re covered if you get sick while at a resort and want to go home right away, you’re probably covered if you end up in a Guatemalan hospital, and you’re covered if your airline sends you to Cuba and your luggage to Peru.
Because all-inclusive insurance covers so much, it’s usually the most expensive travel insurance option. However, if the worst should happen, there are very few situations that your all-inclusive insurance does not cover. If you’re planning a trip of a lifetime, or even just taking some much-needed rest and relaxation time, having travel insurance is worth the cost for the peace of mind!