Travel Insurance Explained

March 31, 2017 - Terry

Last Updated on 3/17/2023

You’re getting ready to plan your next vacation. You may go to Exedia.com or Orbitz.com to start pricing out those airline tickets and hotels. Depending on why you’re traveling, you might start to do some research for your destination on TripAdvisor.com or Lonelyplanet.com.

You book your trip and are getting excited! Now what? The next best step you can take is to protect the money you just spent on your booking with travel insurance. Yonder recommends skipping the airline-offered travel insurance and instead get a policy like those found on our travel insurance comparison site.

Keep reading below to learn what travel insurance covers and what it does not. Be informed and protect your family against unexpected emergencies before your trip and after you’ve departed.

What is Travel Insurance?

Assistance in Medical Emergencies

Most people aren’t aware that their Medicare or health insurance in the States might not cover them if they travel out of the country. Travel insurance contains medical expense coverage, which provides 24/7 assistance if you’re involved in an accident or fall ill. Some even provide benefits if a pre-existing condition flares up again.

Medical Evacuation insurance is most definitely something that is not provided by your stateside health insurance plan. In the event of a serious accident or illness when you travel, the emergency assistance services provided with your travel insurance would completely arrange your medical evacuation. These expenses can add up quickly, especially if you’ll be traveling outside of major cities.

Protection for Your Trip Investment $

Cancelling your trip can be expensive, especially if this trip is a big investment for you or your family. Unexpected events such as a loss of a job, you or someone in your family getting sick or injured, or a terrorist attack occurring at your destination are just a few that could cause you to cancel. It’s important to buy a cancellation insurance policy early. Purchasing usually within the first couple weeks of making your first deposit ensures your wallet doesn’t take a hit when life happens.

Not all trip cancellation policies are the same either. Some are very limited in what the covered reasons are for cancelling, especially the policies offered by airlines or cruise lines. If you’re looking for additional wiggle room and flexible cancellation terms, we recommend you purchase a policy with the option to add on “cancel for any reason “ coverage.

PRO TIP: We at insureyonder.com always recommend that people check with the state department to see what’s going on at your destination. We’d also recommend enrolling in the STEP program so the local U.S. Embassy is aware of your travels.

Prevents Travel Headaches

You can’t control Mother Nature but she sure can control whether or not your flight departs due to severe weather. Travel delay and missed connection coverage protect you when delay expenses start adding up. And we’ve all had the headache of arriving at our destination but our luggage decided to take a long detour. Baggage delay coverage would compensate you for toiletry and clothing items needed to get by until your bags arrives. If those bags somehow ended up lost or if your belongings were stolen from you on your trip, baggage and personal effects loss can refund you for those unexpected out-of-pocket expenses. Just make sure to check your policy documents for any limitations. Talk about a travel miracle!

In a nutshell, travel insurance protects you from those scary “what if” situations that could occur during your trip.

What Travel Insurance Isn’t

A Replacement for Health Insurance at Home

While travel insurance is an excellent form of medical coverage while you’re traveling away from home, this coverage will end, with some exceptions, when you return from your trip and walk through your front door. Insurance companies have been especially strict about staying compliant since the implementation of the Affordable Care Act.

Coverage for Anything & Everything

Every travel insurance plan has a list of definitions and exclusions as to what is covered and not covered during your trip. Some lists are more extensive than others. Make sure you have a general idea of what’s included and excluded from your travel insurance before assuming coverage.

Always Compare Travel Insurance Quotes

It is important you know your coverage benefits since no two travel insurance plans are exactly the same. The last thing you want to assume is that travel insurance is a cookie-cutter product. We can assure you, it definitely is not! Comparing insurance quotes helps you avoid paying for an expensive policy with the coverage you may not need.

For example, if you are going on an adventure trip, there are certain policies that insure the gear you’re bringing with you and rental gear if it doesn’t make it to your destination. Renting a car during your vacation? There are some policies that provide additional rental car damage coverage if the vehicle gets in a collision or is damaged in other way.

So how much is this going to cost me? Travel insurance is usually between 4% to 8% of your total trip cost. Compare policies with ease at insureyonder.com. We know that you won’t find a lower price anywhere on the Internet. We can 100% guarantee that!

Terry

Not only is he a co-founder and the president of Yonder, but Terry is also a seasoned traveler in countless countries. He's passionate about people getting the right travel insurance and even more so about serving some of the world's poorest children through Yonder's social mission. Fun fact, he's served in the Marines and is a record-breaking powerlifter!