What is Trip Insurance?

Trip insurance is available in many packages to ensure your peace of mind when traveling. Package policies are issued for a single trip, which could be a cruise, tour, flight, rental house, or other type of trip. These types of policies generally cover cancellation, baggage loss or delay, medical and dental expenses, emergency evacuation, travel delay, round-the-clock traveler assistance, and accidental death. Other options available include flight insurance, coverage for children, and/or collision damage coverage on rental cars.

A business trip insurance policy provides coverage for a single business trip or for multiple trips taken within a year. This type of insurance covers trip cancellation, identity theft, and concierge services. Because many business travelers attend conferences or trade shows, these policies might also include coverage for the loss or damage of laptop computers, cell phones, or booth exhibits.

Other trip insurance policies include medical policies, medical evaluation policies, flight accident policies, major medical policies, and accidental death policies. Some travel medical policies cover evacuation, flight, accidental death, some baggage, and trip interruption. Other medical trip insurance policies are valid for multiple trips during a year, with individual trip length restrictions. To be covered in the event of serious illness or injury on a trip, a medical evacuation policy will provide emergency transportation to a hospital or other care facility. Accidental death and dismemberment (AD&D) policies can be written either for travelers taking a single trip, or on an annual basis for individuals, companies, or groups.

Some travel gurus advise buying your trip insurance from a third party to protect you from whatever losses might occur due to your travel provider. Some normal insurance policies may cover certain events that occur during travel. Check before deciding whether to purchase trip insurance, or how much to purchase. Credit card companies often cover any purchases made with their cards. Your health insurance carrier may or may not cover medical care, but it will most likely be on a reimbursement basis. A homeowner’s policy can cover personal items and clothing if your baggage is lost.

In general, children under the age of 16 are covered under a trip insurance plan if the family member who is accompanying them is covered, but be sure to check with your particular policy. If a person is traveling with a companion who cancels his or her trip, and that causes the remaining person to incur higher rates, some trip insurance plans will pay for the upgrade to single accommodations.