Travel Insurance FAQ's
Types of travel insurance
Travel insurance policies provide at least
six types of coverage, intended for different types of travelers and trips:
1-Comprehensive travel medical
insurance is for
people who don't have any other medical insurance, even at home. Since most
people who can afford it have health care coverage in their home country, often
through their employer, comprehensive travel medical insurance is mainly of
interest to long-term travelers who've left their jobs and lost their insurance
coverage at home, or to those living and working outside their country of
citizenship or permanent residence.
2-Emergency travel medical
insurance is for
people who have medical coverage at home, but whose health plan at home doesn't
cover them while they are traveling. Emergency travel medical insurance only
covers emergency services abroad; once you get home, you're on your own (back under your regular home coverage) for any necessary follow-up
treatment or continuing care. Most health insurance plans and health
maintenance organizations in the USA include their own provisions for emergency
care while abroad, at least for trips of less than 30 days. Check with your
current insurer or HMO before you waste money on an emergency travel medical
plan that duplicates your existing coverage.
3-Medical evacuation insurance covers the cost of an air
ambulance, attending physician and nurse, etc. if you are so badly injured, or
become so ill, that you can't come home (or get to a suitable medical facility)
on a scheduled commercial passenger flight. Medical evacuations can cost tens
of thousands of dollars, but are rarely necessary. Even very badly injured travelers
usually can come home on regular flights after no more than a couple of weeks
of emergency treatment and stabilization abroad.
4-Trip cancellation and
covers the cancellation or refund penalties and the cost of getting home if you
have to cancel your trip, or cut it short, for specified reasons. The covered
reasons vary typically include injury or illness to
you, a traveling companion, or a member of your immediate family. War and
terrorism may or may not be included, or may be covered only at additional
5-Supplier default insurance covers any money you lose
because of the bankruptcy of an airline, cruise line, tour operator, or other
provider of travel services. Supplier default coverage has been drastically cut
back since 11 September 2001. Some travel insurance companies no longer offer it
at all, while others pick and choose which travel suppliers they will insure.
6-Rental car insurance covers damage or theft to a
vehicle you rent (usually referred to as "collision" insurance)
and/or liability to other people or vehicles you injure or damage. Many credit
cards include rental car collision insurance, but not liability insurance. If
you own a vehicle, your insurance may or may not provide liability coverage
when you are driving a rented vehicle. Your liability if someone is killed or
injured in an accident can be much greater than the value of the vehicle. If
liability insurance isn't available as part of a "travel insurance"
package, see if you can add a third-party liability or "umbrella"
rider to your homeowner's or renter's insurance.
Five Things about Travel Insurance You
What does travel insurance cover?
Trip Cancellation/Trip Interruption: Reimburse travelers who are unable
to take their trip due to illness or death, weather, airline strikes,
terrorism, bankruptcy, becoming unemployed or home being rendered uninhabitable
due to fire, flood etc.
Medical/Health: Reimburses medical or emergency dental costs. All most all insurance plans work by reimbursing
the traveler after he has paid
locally for the treatment. Medical evacuation insurance covers the cost of an air ambulance, attending physician
and nurse if you are badly injured or become so ill that you are unable to come
Death: Air Fight Accident: Covers death
during an air flight only. Usually covers the highest amount of coverage due to
Carrier: Covers death while traveling in public transport such as
ferry, train, bus or taxi.
Death: Covers death at any time on your
trip. Usually provides the lowest amount of coverage due to higher risk.
Delay: Reimburses travelers for hotel, food or clothing expenses in the event of a
Loss: The plan includes reimbursement to travelers for their, lost, stolen or
damaged personal items. This coverage is generally for the duration of the trip
and not confined to baggage damaged or lost by the airline.
Car Damage: A specific amount is reimbursed to
the traveler for damage or loss
of a rental vehicle.
travel insurance necessary?
One issue that often strikes us while planning for a vacation is the necessity
of travel insurance. Nobody likes to think of
the odds that could make you cancel or shorten a vacation. No matter how well
you plan for your vacation, things go wrong due some unavoidable circumstances.
And it is here that you seek for shelter of travel insurance.
As with most things in life, we are exposed to a certain amount of risk when we
travel. This is the sole reason
why we require travel insurance. Now, whether a person is a
student or a professional, it is applicable for both. For students, however,
there are certain separate rules and regulations compared to the insurance policies for the other groups
So before you finalize your vacation plans, be sure you have given careful
thought to whether you need to purchase an insurance policy while you are traveling. There are circumstances that could cause you to cancel
your trip, return home early or force you to seek emergency medical treatment
while traveling. Travel insurance provides you with that extra
protection cover you need.
How much does it cost?
of annual travel insurance policies is dependent on one’s age, trip length, trip
cost, the plan you want and coverage limits. Trip cancellation and interruption
plans on a per trip basis are typically based on the cost of your trip, your
age and amount of coverage you want. Most vacation insurance plans are between
4% and 8% of total trip price.
Travel medical and evacuation plans are quite inexpensive, especially if you
Won’t my domestic insurance plan cover me?
important to know what coverage you may have through your home or health
insurance, or on your credit card. However, only travel insurance provides trip
cancellation/trip interruption coverage, protecting your financial investment.
And not all health insurance plans will provide full coverage when you travel
internationally or outside of a designated network area. (For example, Medicare
does not cover health care expenses outside of the United States.) Medical
evacuation coverage is rarely covered in most standard health insurance
Why should I buy a travel insurance plan?
six reasons to buy travel insurance:
- To protect your personal items
- To protect your financial
investment in your trip
- To protect your health and
- To cover the high medical costs
associated with getting sick or injured while traveling abroad that may
not be covered by your domestic health plan.
- To cover the cost of being
evacuated to a medical center of excellence or back home.
- Peace of mind
Travel insurance is a great value for travelers who are concerned about:
their trip being cancelled, delayed or interrupted for reasons outside their
control; urgent access to medical care while abroad, medical evacuation and
payments for those services; and protection of personal baggage.
Where can I get travel insurance? Contact us online, www.acrossocean.com/support
Travel Insurance is vital for
Business persons who are traveling should make sure
that they get adequate travel insurance when they travel on business.Business
owners should make sure that they are and their employees are covered by a
comprehensive travel insurance policy that will cover medical and evacuation
Employers should purchase a single or group travel insurance policy to cover
employees while traveling for business. If employees are traveling more than
one time per year, a multi-trip travel insurance plan is the most cost
effective travel insurance plan. A group travel insurance plan can also offer
great savings either on single or multi-trip basis. It is recommended that such
a group multi-trip plan, which can be a standalone plan or part of a group
benefit plan, also cover the employee while he or she is on non-business trips.
Medical evacuation coverage is a must for any travel
insurance plan as the costs can also run into the thousands of dollars and the
travel insurance assistance provider can coordinate the evacuation details.
Most travel insurance plans include medical evacuation, but it can be sold on a
standalone basis for individuals and groups. A business travel insurance plan
can also aid in assessing your medical condition, provide translation or even
Some business travel insurance plans also include
coverage for baggage loss, which is quite common these days, especially in some
airports such as Terminal 5 at Heathrow. Some business travel insurance plans
also include trip cancellation and trip
delay, but these can also easily be purchased on a single trip basis.
For business trips to dangerous regions such as Iraq
or Afghanistan, make sure you get a travel insurance policy that will cover terrorism & war risk . You may
also want to obtain Accidental Death and Dismemberment coverage to cover travel
to dangerous regions.
If you are a business traveler this year, make sure
that you check to see if your company travel insurance policy exists and if it
will cover you while traveling on business and/or pleasure. Also, note that
Expedia's online poll revealed that 19% of US travelers postpone or cancel
holiday travel plans because of work reasons.
What is top-up travel
Top-up travel insurance is an emergency medical
travel insurance policy. It is a policy that is purchased by travelers who
already have travel insurance coverage, but do not have the coverage they need
for the entire length of time they will be away.
Who needs top-up travel
There are three common scenarios for someone to need top-up travel
Your coverage through work only covers a portion of
Your coverage through your credit card only covers a
portion of your trip
Your holiday is longer than the trip length of your
annual, multi-trip policy
Why you need top-up
Anytime you go abroad, having supplemental
emergency medical travel insurance is essential. Relying solely on your
provincial health plan to cover costs if you get sick or are injured while
outside of Canada could prove costly. How much is covered by your provincial
health plan for out-of-country emergency care is highly limited, and will
almost surely not be enough to cover the total bill; healthcare outside of
Canada can be expensive. It is for this reason, that having emergency medical
travel insurance for the full duration of your trip is why you need top-up travel insurance.
When can you get top-up
Firstly, will your existing travel insurance policy
allow top-up coverage to be issued?
If not, you should purchase travel
insurance for the full duration of your trip.
Secondly, remember that top-up travel insurance is typically purchased prior to
the start of your holiday
Contact us online www.acrossocean.com/support