Part 4. What are the other benefits of travel insurance?

(This is one part of our Travel Insurance 101: The Complete Guide to Travel Insurance. For other parts, check the following links)

1. Introduction- General definitions, FAQ’s, Traveler Profiles
2. Trip Cancellation Coverage- What is it? Do I need it?
3. Travel Medical/Evacuation Coverage- What is it? Do I need it?
4. Additional Trip Insurance Coverages- What else does travel insurance cover?
5. Buying Travel Insurance- Where and how do I buy travel insurance?

 

This section will cover:

• What other coverage does travel insurance provide?
• Baggage, trip delays, missed connections, etc

 

Travel insurance Package  Plans provide a variety of coverages. As opposed to a travel medical only policy or flight only policy, package plans give comprehensive coverage to travelers for a variety of needs.

This is why “package policies” are the most popular type of plan purchased by everyday travelers. Package plans provide coverage for Trip Cancellation, Medical Emergencies, and Medical Evacuation (as already discussed), but also provide a variety of other benefits. 

 

Travel insurance package plans typically include coverage for:

Lost, stolen, or damaged baggage- For most travelers, this ends up being a very important coverage to have. It provides coverage for your personal property while on your trip, and protects against damage to property, theft, or even loss. This benefit usually covers luggage, clothing cameras, travel documents, and even passports.

Baggage delay- If you arrive on time but your baggage is late, you might need some basic supplies to hold you over until they arrive. Baggage delay coverage provides reimbursement for essential items like toiletries, basic clothing, or a bathing suit for that first day on the beach.

Travel Delay- If your trip is delayed, you might spend additional money on accommodations and meals. Travel insurance package plans often include coverage for these extra expenses through travel delay coverage.

Missed connection- This coverage provides reimbursement for additional expenses if you miss your flight or cruise due to a travel accident or severe weather.

Assistance services- This is a very important coverage. All travel insurance companies provide some sort of 24/7 emergency services, the better ones even multilingual. This gives you peace of mind while traveling, knowing that you have someone to call in the case of an emergency.

 

Optional coverages available with many package plans:

Rental car damage protection- Many package plans either provide the option for, or automatically include coverage for rental car damage. Even though you are typically offered insurance coverage from your rental company, the coverage is very expensive. Opt for this and you can skip the rental counter policy.

Identity theft- Some companies provide coverage for identity theft resolution costs in the event your suffer ID theft on your trip.

“Cancel for any reason” coverage- This is a newer coverage available as an add-on option, and it does exactly what it says. If you purchase this option, you can “cancel for any reason” and receive reimbursement for pre-paid trip expenses. The reimbursement varies by company, but usually varies from 75%-100%.

“Cancel for work reasons”- Similar to “cancel for any reason”, this benefit adds a list of work-related reasons to your coverage. Mergers, moves, or other job-related cancellations can be covered under this optional add-on.

Adventure travel coverage- This add-on work in two ways. First,  it covers medical treatment for accidents as a result of adventure activities. Since all package plans have coverage exclusions that usually eliminate injuries resulting from certain “adventure” activities, this coverage is necessary to cover them.

Second, it can provide coverage for sports equipment under the baggage coverage, which usually excludes sports gear.

There are many other benefits offered under package plans, but this covers the major ones. Travel insurance companies are constantly innovating and making their plans more inclusive, so it is always smart to read up on the latest coverages available.

 

Do I need these additional coverages?

These extra trip coverages are usually secondary to Trip Cancellation and Travel Medical coverage, but they are still important. Most travelers like the peace-of-mind knowing they have extensive coverage for every aspect of their trip.

Unless you only want a Travel Medical or Evacuation plan, you might as well enjoy the benefits of these extra trip benefits. It’s a wide variety of coverage for a very reasonable price, and can help ensure you long awaited vacation doesn’t become a nightmare.

 

Section Summary

• Package policies are popular because they provide a comprehensive benefits
• In addition to Trip Cancellation and Medical coverage, package plans include many other benefits
• Some plans offer special “add on” coverage for an additional cost
• Unless you only need Travel Medical/Evacuation, it is smart to get the extra package policy benefits

 

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