Why You Need Travel Insurance and What Makes a Great Policy
Figuring out travel insurance can be a bit daunting. This week Ben Camille joins us to talk about everything that you need to know about travel insurance.
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Why would I want to get travel insurance?
You will typically want travel insurance for international trips.
If there is an expensive trip cost, like an Airbnb or tour, you’ll want to have insurance in case something happens and you need money back.
A huge reason for travel insurance is for medical coverage. If something bad happens in another country, you’ll definitely want to have travel insurance.
Be aware that your health insurance may not cover you in other countries.
If I’m traveling within my own country, do I still need travel insurance?
If you’re going on a typical family vacation, you probably don’t need travel insurance.
However, if you’re going on a very expensive vacation, then you might want insurance. If anything were to happen and end your trip, the insurance can help you to get your money back.
Can I buy an annual policy to cover all of my trips for a year?
Annual plans tend to have problems.
Even though you bought the annual plan, you still have to register each trip with the insurance company.
Annual plans are typically secondary coverage.
What is the difference between primary and secondary coverage?
Primary insurance means that the insurance company is saying from the beginning that it is their obligation to pay you. You may assume that this is always what you’re buying, but not all policies are like this.
Secondary coverage means that even the best insurance companies still have the right to point the finger at someone else. Basically, they can claim that someone else is more liable to pay for you.
What are the main protections of travel insurance?
Medical
Bag delay
If you arrive at your destination and your bags are delayed, the insurance company will give you money to go and buy the things that you need in the meantime.
Trip delay
Example: Your flight gets delayed to the next day, so your insurance will pay for hotels and meals until you are able to continue your travels.
Add on: Travel inconvenience
This feature is not built-in to most travel insurances, but you can choose to add it.
Basically, there is a list of 22 things and if any of them happen on your trip, the insurance company will pay you $250 a person.
This includes flight delays or cancellations!
How early before my trip do I need to get trip insurance?
You can get it anytime! Even right before the trip.
However, the longer you wait, the more expensive it might be.
What’s the process for getting travel insurance?
If you decide to use Ben’s company, Travel Defend, start by going to their website.
Be aware that you do NOT pay extra to have Ben’s team help you! They are there simply to help you get the best travel insurance that fits your needs. You will pay the same price for the insurance whether or not you decide to go through Travel Defend. (They make their money through commissions from the insurance companies as they refer clients.)
Click “Get Quote”. This price optimizer will help you find which travel insurance is best for you and your situation.
You can also call the phone number on their website.
A team member will reach out to you about the policy that you choose.
If you don’t want to use Travel Defend, you will have to research different policies through Expedia or another online website.
How much will I have to pay for travel insurance?
If you want great coverage, then you will need to pay more.
There are cheap options, but sometimes they don’t cover much.
Ben recommends getting a plan that covers around $100,000 in medical expenses and $1 million for medical evacuation.
Prices range based on age, price of the trip, etc.
Example scenario: If you and your spouse are in your 40s and go on a $10,000 trip to Europe, this kind of coverage will be about $400-500. However, if you’re 70 years old, this could go up to $1000.
Do my kids cost as much as I do?
No, they don’t! It’s not a fixed price per person.
Since kids are less of a liability than adults (due to their young age), more kids can actually decrease the overall price of the insurance policy.
Example: If you plan a $10,000 trip for two parents and three kids, then each person represents about $2,000 of the trip cost. Since kids are cheaper than adults, the overall price is going to be lower in comparison to two adults going on the same-priced trip ($5,000 per adult).
To get in touch with Ben or his company, check out traveldefend.com!