Why You Should Need Travel Insurance in US ?

Why You Should Need Travel Insurance in US ? - You might be wondering when or if it makes sense to purchase travel insurance, whether you're planning a dream vacation or a cross-country trip for a cousin's wedding. The best response is probably that it depends on how much you can stand to lose. You can decide whether to purchase travel insurance wisely if you are aware of what it is and what it covers.

The Operation of Travel Insurance

How does this function in practice? Let's imagine that you decide to cover your upcoming cruise to Cozumel by purchasing the OneTrip Prime Plan, which offers benefits for trip cancellation. You start feeling sick with a high fever and chest pain two days prior to departure. The cruise line informs you that it is too late to receive a refund when you notify them.

Fortunately, a severe, incapacitating illness may qualify as a covered reason for trip cancellation, entitling you to a refund of your paid, nonrefundable travel expenses. When you feel better, you gather the necessary paperwork, such as your airline and cruise line receipts, as well as details about any refunds you may have received or not, and you submit a claim.

This procedure operates a little bit differently on occasion. A fixed payment of $100 per day for a covered travel delay or $200 for a covered baggage delay may also be available to you under the OneTrip Premier plan. You only need to show evidence of your covered delay; no purchase receipts are needed.

What is covered by travel insurance ?

Travel insurance can provide coverage for a wide range of potential losses and damages, depending on the plan you select:

1. Injury or sickness

When your regular health insurance does not provide coverage for medical costs abroad, travel insurance can help. Most health insurance policies don't offer complete coverage abroad, and some do not offer any coverage at all, including Medicare. If you get sick or hurt before or during your trip, travel insurance can help cover the costs of your medical care in addition to your regular health insurance.

2. Lost luggage

The costs associated with lost or stolen luggage may be partially covered by travel insurance. It can be very challenging to get an airline to pay for lost luggage, so this is especially helpful if they lose your bags. The Department of Transportation (DOT) in the US mandates that airlines pay passengers up to $2,300 for lost luggage. There is a $1,850 cap on that amount in other nations. Passengers must present receipts demonstrating the value of the lost bags and their contents in order to be eligible for those maximum payouts. Additionally, some airlines demand that claims be submitted within 21 days.

3. Last-minute cancellations

Travel insurance can help cover the costs of trip cancellations. Most resorts and cruise lines will not give you a full refund if you cancel. Most resorts will charge a cancellation fee if you cancel two weeks or more before your trip; many cruise lines will only give you a 25% refund or partial credit on another cruise if you cancel two weeks or more before your trip. Most companies will not give you a refund if you cancel within two weeks of your trip.

4. Coverage beyond your credit card

Some credit cards offer limited coverage, such as annual limits and restrictions on cancellations and interruptions (if they offer cancellation/interruption coverage at all). Few credit cards, however, cover the most expensive travel risks, such as medical expenses or emergency evacuations, which travel insurance can cover.

How do I locate an insurance company?

If you've never purchased travel insurance before. Simply complete a short questionnaire about the trip and the traveler.

Squaremouth also offers verified customer reviews to help travelers feel more confident in the policy they are purchasing. Squaremouth is free to use because they receive a commission on every sale directly from the provider and do not charge any fees to consumers.

Aside from comparison sites, you can always visit the website of a specific travel insurance carrier for a quote or call the company's toll-free customer service number for more information.

If you book your reservations through a site like Expedia, you usually have the option of purchasing travel insurance through a third-party provider as well. You should carefully read the policy's full details because the plans are based on the trip elements (hotel, flight, rental car) and may differ each time you book, and you want to make sure you understand what you're getting.

What is the policy on travel insurance ?

1. Trip cancellation coverage

If a trip is canceled for a covered reason, your travel insurance policy may reimburse you for prepaid, non-refundable trip deposits. According to Daniel Durazo, a spokesperson for Allianz Travel Insurance, these outlays can include airline tickets, hotel rooms, rental cars, tours, and cruises.

You can't usually cancel your trip and expect to be reimbursed just because you have travel insurance. For example, if you have a disagreement with a friend and do not want to travel with her, or if you change your mind about flying to Hawaii, these are not covered reasons.

2. Trip delay coverage

If your travel plans are disrupted, your travel insurance policy may provide financial assistance. If a traveler is delayed for one of the policy's covered reasons, the policy will reimburse them. Reasons covered will typically include severe weather, airline maintenance, or civil unrest.

According to Moncrief, daily limits typically range from $150 to $250 per traveler, while policy limits can range from $500 to $2,000 per traveler. It is critical that you save all of your receipts because you will need to submit them with your reimbursement claim.

3. Trip interruption coverage

If you have to cut your trip short due to illness or injury, or if you have a family emergency back home, your policy may reimburse non-refundable expenses you forfeit if you return home early.

Your insurance policy may also cover the cost of a one-way economy flight home. However, not all of the reasons are covered. For example, if your beach vacation is a flop or you miss your new puppy, your trip interruption benefits will be null and void.

4. Medical expenses and evacuation benefits

If you're traveling within the United States, your personal health insurance should cover any illness or injury that occurs while you're away. However, if you're traveling to another country, your U.S.-based health plan will provide no or very little coverage, and Medicare isn't accepted abroad, so you should sign up for additional coverage.

An emergency medical evacuation, which the right travel insurance policy can arrange and cover, is even more expensive than medical treatment.

5. Baggage loss

You must notify your airline, airport, police, or any other relevant authority, such as a tour operator or hotel manager, of any losses. This documentation will be required when you file a claim.

Your travel insurance policy may not cover all items. Cash, for example, is not reimbursable, and many policies will not cover extremely valuable jewelry, art, antiques, or heirloom items. Bring irreplaceable items on vacation to reduce the risk of losing them. Also, read your policy carefully to see what is covered.


Trip cancellation or interruption coverage, baggage and personal effects coverage, medical expense coverage, and accidental death or flight accident coverage are the most common types of travel insurance.

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