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Travel insurance can
be broken down into the following major categories:
Trip Cancellation – Reimburses travelers unable to take
their trip due to Illness or death (of the traveler or a
family member), weather, airline strikes, terrorism,
bankruptcy, becoming unemployed, jury duty or their home
being rendered uninhabitable due to fire/flood etc.
Trip Interruption – Reimburses travelers if they have to
cut short their trip due to Illness or death (of the
traveler or a family member), weather, airline strikes,
terrorism, bankruptcy, becoming unemployed, jury duty or
their home being rendered uninhabitable due to fire/flood
etc.
Medical/Health – Reimburses medical and emergency dental
costs. Almost all travel insurance plans work by
reimbursing the traveler after they have paid locally for
treatment. Claims are usually paid within 7 to 10 days.
Pre-Existing conditions are covered by most policies if the
policy is purchased within (at the most) 21 days from the
date the traveler made the first trip payment (deposit).
Medical Evacuation – Provides emergency transportation to
either a local hospital in the event the traveler is unable
to get there by themselves or back to a hospital near the
travelers home. If family members are covered on the same
policy they can return home also.
Accidental Death – This coverage is split into 3 parts –
Air Flight Accident – Covers death or dismemberment during
an air flight only. Usually provides the highest amount of
coverage due to a lower risk.
Common Carrier – Covers death or dismemberment while
traveling on public transport such as, plane, ferry, train,
bus or taxi.
Accidental Death – Covers death or dismemberment at any
time on your trip. Usually provides the lowest amount of
coverage due to a higher risk.
Travel Delay – Reimburses travelers for hotel, food or
clothing expenses in the event of a flight delay. Some
plans also cover costs associated with catching up to a
cruise should a delay cause the traveler to miss
embarkation.
Baggage Loss – Reimburses travelers for lost, stolen or
damaged personal items. This coverage is usually for the
duration of the trip and not confined to baggage damaged or
lost by the airline. There are two policy limits, total
claim and per item maximum. Some policies also place limits
on the type of items that can be claimed for such as
jewelry, laptops and sporting goods.
Rental Car Damage – Reimburses travelers for damage or loss
to a rental vehicle. It is designed to allow the traveler
to decline CDW (collision damage waiver) coverage offered
by the car rental companies. Liability coverage should
still be purchased through the car rental company. Rental
Car Damage coverage is also often included with the credit
card used to pay for the car rental which is often
identical to the coverage provided in the policy.
Assistance Services – Provides a 24 hour collect call
advice and assistance service to travelers. This service
can be used anytime a traveler needs advice
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