Travel Insurance

In the mid-1800s traveling was an activity reserved for the wealthy. Not a lot of folks were socking away money during the fall and spring with a plan to spend a month long summer at the beach with the kids. The vast majority was getting by, but with little left over.

Yet, the wealthy did constitute a significant number of people fond of traveling, and the risks while doing so (theft, loss due to fires or flooding, etc) was real. The very first travel agencies insured against things like theft and loss due to natural disasters. By the time the 20th century hit, travel insurance policies were covering things like missed hotel reservations or even canceled flights. Over time acts of war or terrorism were included, and depending on the company, even ransom.

The Internet has radically shifted how we shop for travel insurance. Pre-Internet there were (and still are) brick and mortar travel insurance brokers that attended to interested clientele. You received a quote, and if you so desired, you went to another couple of brokers to retrieve similar quotes. After comparing the three, a decision took place. Nowadays, brokers actively compete online for your business. It takes minutes to compare quotes, and because so many folks opt in to travel insurance, the overall costs have plummeted.

There are some commonly shared tips that many cite to keep in mind before purchasing travel insurance. First, it is not recommended to buy from an airline, tour operator or a travel agent. They are middle-men (and women), and as such work in a percentage in terms of their commission to the overall price. Bottom line, it is more expensive with them. Next, calculate the coverage you’ll need prior to comparing rates. For example, are you taking a cheap tablet or your $3,000 Macbook on this trip to South Africa? Potential medical expenses in Europe are going to be vastly different than say in the US or Asia. Figure out the things that could go wrong (or get stolen), and nail down a rough figure.

If you have a home insurance policy, review that first. Many home policies insure against things happening to personal possessions when you’re not at home. In many respects, you might already have travel insurance coverage on things that you would take on a trip from your home. Another handy tip is to consider how often you travel. If you’re traveling over three times per year then you might want to opt in to an annual policy that covers all trips rather than a single one. The fee in this case is likely to be less. Do take into account that trips where you might be backpacking, for example, where and traveling over 31 days do not count. These are “exceptional trips” for many travel insurance agents.

And finally, keep a keen eye out for age limits and medical exclusions. Cheap policies will most certainly not insure folks over 65, and many medium-scale policies won’t either. But you’ll need to read the fine print. Pre-existing medical conditions aren’t typically covered either, so depending on your case these should be taken into account. For most however, travel insurance is reasonably inexpensive and a great thing to have in case the worst should strike. Like in the case of a pandemic, for example!