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The Truth about Travel Insurance

Credit: Bruce Bennett/Getty Images
A general view of an American Airline passenger headed for the terminal at JFK Airport.

Columbia, SC (WLTX) - It's summer which means many are pinning down the details for their next vacation.

Just like any other situation, its time to hope for the best and plan for the worst. Just in case of an emergency situation popping up on your trip, let's talk about travel insurance, how it works, and if you need it.

  • What is Travel Insurance? - Travel insurance is a policy to financially cover you for losses during your trip(s). The two most common types of travel insurance are medical coverage and trip cancellation, but you can find policies that include lost luggage and a host of other things that may arise while you're away from home.
  • Are You Already Covered? - You may have travel insurance and never knew it. Check with your human resources department to learn if your group includes travel coverage. Also, check your club/association memberships. We're used to seeing discounts for our organizations as perks of being members and travel insurance. Other travel insurance policies that are more well known can be found as part of your credit card benefits and car insurance, but call your company to get clarity on your policy.
  • When Should You Consider a Third-Party Policy? - You may consider purchasing additional insurance from a third-party vendor to fill in the gaps of your current travel insurance coverage.
    • In the case of lost bags, the US Department of Transportation requires that reimbursement limits cannot be lower than $3,500 for domestic travel and $1,536 for international travel.
    • If you're traveling with golf clubs or other costly luggage/equipment, you'll be interested in getting some quotes from third-party vendors.

Do your research to see how you're currently covered when you travel with your current insurance policies, memberships, and credit card if you meet your companies purchase requirements.

For more information about Know Money, Inc., contact Steven M. Hughes, via email at steven@knowmoney.org.

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