Are you confused about the difference between travel insurance, trip cancellation insurance, and international medical insurance? Here is some useful information about travel insurance basics:
Trip Cancellation / Interruption Insurance
If you have to cancel or interrupt your trip because of a covered reason, this insurance will reimburse you for nonrefundable deposits. What is a covered reason? It depends on the policy. Reasons may include illness, tour operator bankruptcy, or terrorism. Do your research on About Travel Insurance directory, then plan to buy travel insurance when you book your trip – most companies selling these policies require that you book your trip cancellation policy within seven days of making your initial trip deposit.
Trip cancellation insurance is often paired with medical insurance, in which case the combination is referred to as Travel Insurance. (We advice you focus on understanding what protection you need and making sure the policy that you buy includes it.)
The medical element of travel insurance is critical, since very few health plans travel beyond their country of issue. Indeed, most HMOs and many PPOs don’t travel well even beyond their local network. In a recent interview given to About.com, Dan McGinnity, spokesperson for industry leader Travel Guard, said “The vast majority of Americans have the perception that their health policy travels with them, and that’s often not true.”
If you’re not sure whether your health plan will cover you on a particular trip, then do not hesitate to ASK! Don’t wait until you are in traction in Colorado to find out that your Florida HMO does not provide coverage or medical evacuation. If you travel a lot, buy an annual travel insurance policy that will cover you wherever you go.
International Medical Insurance
Finally, International Medical Insurance is important for people who plan to be away from their native country for an extended period of time.
Travel Insurance is a Growth Business
According to an interview posted on About.com website, Dan McGinnity of Travel Guard reported about the changes that they have seen in their customers and its business since September 11. He said, “At first, people were focused on safety and security. Then financial defaults became an issue, with a couple of big cruise line bankruptcies. Now, people seem to be most focused on the service aspect. We offer a 24-hour, international “911” travel emergency service, and that’s what people want. Our retail sales are up 78%.”