Top 5 Things To Consider Before Buying Travel Insurance

Business Travel

Top 5 Things To Consider Before Buying Travel Insurance

Assuming travel insurance as an unnecessary arrangement for your travel plan is a big mistake and can cost you both monetary and physical losses.

But, many people think that when you plan a trip for a week or two, what can go wrong at the destination?

There are various reasons and circumstances which can save your travel plan if you get the travel insurance on time:

  • You may have to cancel your trip a day before and can get a maximum refund of the ticket amount.
  • You may lose your personal belongings in the travel and can reclaim the amount for the same.
  • You can foresee some medical conditions with any of the travel partners and can get a quick medical response at your destination.

Or there can be many circumstances like you may find trouble in your work schedule, or your travel mode can face some issues and delay your plan.

In most of these situations, the travel insurance program helps you recoup the losses incurred and save your money from losing on plane tickets, hotels, and other excursions.

But, finding the right travel insurance plan can also be daunting, and you need to make sure that you get the right travel claims in your insurance package.

There are various considerations which can save you from making a wrong deal, and find the best travel insurance plan for your trip. Below are five important things to keep in mind when it comes to travel insurance cover:

Find The Right Coverage Amount

Before you buy your travel insurance, you need to check the coverage amount that you will be getting in your claims.

Moreover, with too little coverage, you bear the risk of losing money even after claiming the insurance coverage.

On the other hand, buying too much coverage can make you pay more for the travel insurance than you would have paid for the right one.

Therefore, you must look for coverage plans like trip interruption, trip cancellation, missed or lost luggage, medical emergency, and damage to your belongings.

While calculating your coverage amount you need to know that these factors come up through a rough estimate, and you need to make sure of the circumstances which can occur in your travel plan.

Access The Policy Fine Print

You need to know that the travel insurance policies have a “fine print”, which constitutes a set of terms and conditions for the policyholder to adhere to for receiving the coverage amount. Many policies provide some extensive fine print documents, but some can have a small one.

The fine print check of the travel insurance policy can be crucial before you buy your travel insurance as it allows us to find the coverage amount for different situations, their terms, and the situations which won’t be covered under the same.

When you’re aware of the fine print legal clauses, it helps in preventing the policyholder off guard with an unexpected situation, and ending up with the wrong travel insurance plan.

With the fine print, you need to first check if it covers the travel insurance of the type of trip that you planned – whether it is for vacation, or honeymoon, business, etc. There are different restrictions and conditions for the type of trip covered by the policy.

Mind The Policy Limitations and Exclusions

While you’re calculating your policy coverage of claims, you need to ensure that you account for all the exclusions and limitations of the insurance plan which can hamper your claims.

For example, travel coverage has an exclusion where you won’t get any refund if the reason for trip cancellation is a pre-existing medical condition, or some age related factors.

Also, you need to read between the lines of the fine print where you can find different limitations on the coverage amount.

For example, there are various policies with a cap on the coverage amount provided against the claims, which limits your loss compensation and causes more pain to you.

Don’t Miss Out Baggage Cover

Also, in the calculation of the coverage amount that you will need, you must take into account the potential damage of loss of your personal belongings.

Another most important factor to consider while calculating your coverage is inclusion of luggage or baggage.

Most of the travel insurance plans will cover for your baggage loss or damage, but some don’t. Covering the travel security of your personal belongings is very important as it is a common issue that occurs while travelling to any destination.

That’s why your travel insurance should cover the personal baggage coverage claim, or you can look for a specific baggage insurance policy.

Figure Out Between Cancellation and Travel Insurance

You must be aware that there are two major types of travel insurance policies: travel insurance and cancellation insurance.

Both the insurance plans protect you in certain situations which may arise during your trip, though with some exceptions here and there.

The cancellation insurance plans cover the situations where you may have to cancel your trip for a wide range of issues, which also includes illness or sudden death in the family, or some medical injury, etc.

While the travel insurance plans cover more than just trip cancellation reasons, including travel infrastructure issues, airline delays, baggage issues, etc.

When you have to decide which one to go for, it clearly depends on the situations which may arise for that particular trip plan of yours.

For example, the chances of getting your trip cancelled due to the weather issue are more than a sudden death in your family.


You need to make sure to include these five important clauses in your travel insurance. Be sure to check the fine print, check for exclusions and limitations, get the right amount of coverage, decide between travel or cancellation insurance, and don’t forget about baggage coverage, so that you’re protected in the event of an unexpected event, and you can still enjoy your trip. Now that you know what to look for in a travel insurance policy, it’s time to go shopping.

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