By Sonya Sellmeyer, Consumer Advocacy Officer for the Iowa Insurance Division
Travel insurance safeguards your investment in a costly trip by covering unexpected events that could disrupt your plans. It can reimburse pre-paid, non-refundable expenses for unforeseen circumstances. Consider purchasing a policy if there is a chance the trip could be impacted by severe weather, a loved one has a pre-existing health condition, or non-refundable expenses have already been incurred. Before purchasing a policy, understand the different coverage options, exclusions, and limitations, as policies vary significantly. Check current insurance policies and credit card protections for coverage already provided.
Travel interruption or cancellation coverage may reimburse for non-refundable costs like flights, hotels, and tours if you have to cancel or cut a trip short due to covered reasons such as illness, injury, or unexpected severe weather. Cancel for any reason policies are more expensive and may only reimburse for a portion of the travel loss.
Regular health insurance may not cover medical expenses incurred abroad. Travel insurance may cover doctor visits, hospital stays, emergency medical transportation, and transportation home for treatment. If traveling to a remote area or participating in adventure activities, ensure the policy offers adequate coverage for medical evacuation and specialized activities. Many policies have exclusions or limitations for pre-existing medical conditions. If needed, consider a policy with a pre-existing condition waiver.
Review coverage for flight delays and missed connections which may result in extra expenses for meals, accommodations, and transportation.
Lost or delayed baggage coverage may cover lost, stolen, or damaged luggage and personal belongings, and help you replace lost property.
A policy may also provide travel assistance for problems such as rebooking flights, lost passports, or finding medical facilities. There may also be legal assistance in case of an accident or other incident.
When purchasing a policy, compare quotes from multiple licensed providers to find a policy that fits your budget and offers the coverage needed. On average a policy costs between 4-8% of the trip’s price. The expense for the policy is based on the traveler’s age, the destination and length of the trip, the coverage limits for medical expenses and baggage, and the covered reasons for the trip cancellation/interruption. Purchase travel insurance soon after booking your trip to maximize coverage, especially for trip cancellation benefits. Many tour companies can recommend a travel insurance policy. Shorter trips closer to home do not need travel insurance.
If you need to file a claim under a travel insurance policy, do so as soon as possible and provide all required documentation to support your claim. Call the Iowa Insurance Division with concerns regarding your travel insurance policy at 877-955-1212.
If you can’t afford to cancel and rebook your trip, consider travel insurance. Before purchasing, carefully review the fine print, compare quotes, and choose coverage that suits your individual travel needs and budget. The best thing about travel insurance is the peace of mind. Knowing you're protected against various travel mishaps allows you to relax and enjoy your trip without worrying about potential financial losses.