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Safe & Sound Insurance Blog

Travel

Understanding Travel Insurance

As you wake up on a winter morning, ready to go to work, you notice that thick blanket of ice surrounding your car windshield. The nervous walk down the icy driveway that you slipped on last week has you thinking, you need a vacation. It’s cold out and the thought of that resort in Mexico your friend told you about is looking more tempting by the second.

Your vacation request has been approved by the boss and you’re ready to book your flights and accommodation. The online reviews of the resort are outstanding, the food and drinks are included, and the flights came at a great price. All that’s left to do is to buy a new bathing suit. However, the main thing travelers overlook is adequate travel insurance. Many travelers rigorously research their wanderlust bucket list, but rely solely on the sometimes minimal travel insurance coverage they receive bundled with their credit card.

Whether it’s skiing, hiking or climbing, some of these outdoor activities might be considered high-risk and may not be covered by your bundled credit card insurance plan. The paired travel insurance may have been the key factor for you signing up to that credit card contract, but how valuable is saving a few dollars compared to potentially footing an astronomical hospital bill? Your safety in the outdoors is not always guaranteed, but sufficient travel insurance guarantees the safety of your bank account balance.

Medical coverage is arguably the most important aspect of travel insurance. Millennial and Generation X travelers in particular are crossing more items off their travel bucket lists than any previous generation. The notion of capturing moments and “no regrets” makes this group most likely to push the limits when traveling abroad.

Something as simple as taking a tumble while snowboarding can quickly cut your adventure short. Snow sports and other outdoor adventures are often not included in your basic credit card medical coverage.

Travel insurance plans can be restrictive and before you step on the plane, conducting a thorough search of what is included could be the difference between paradise and hell. Here are a few examples of things you need to find out:

 

  • Does your plan cover every day of your trip?
  • Does your plan have added fees depending on your age?
  • Will your family be covered?
  • Is there a limit of coverage for lost luggage?
  • If you’re over 65, what type of coverage do you have?

 

Credit card travel insurance plans offer coverage for lost luggage, but does your plan offer enough if the airline misplaces your valuables? Some credit card insurance plans will only offer $1000 for your entire group. This may not scratch the surface of the dollar value of your prized possessions.

Imagine touching down in Aruba for the destination wedding of your dreams, only to find out that the airline has lost your dress. You look at the terms and conditions of your contract and your credit card travel insurance only covers $1000 of your $5000 wedding dress! Nobody could blame even the calmest bride turning into Bridezilla in this situation. Or picture yourself heading down to Pebble Beach to hit the links and the airline has lost the only thing you really cared about losing; your golf clubs! You spent all year saving for them, dreaming about using them for the first time on one of the top courses in the world, only to find out that you need to wait to submit a claim and use rental clubs.

The insurance that is paired with your credit card might be enough for your travel needs, but you don’t want to get caught underinsured in a foreign country. Sometimes things don’t quite go to plan, so if you’re unsure if you need additional coverage why not talk to a Knight Archer Insurance advisor today. It’s free so what have you got to lose?!

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