If you’re planning on taking a trip, then you should consider Trip Insurance. If you’ve never heard of it before, trip insurance, also called travel insurance, is an insurance policy that protects you from financial loss in a variety of circumstances connected with your travel. All kinds of things can happen when you, from trip delays, lost luggage, or illnesses and injuries, and trip insurance is there to help you when these conditions arise.

The Basics:

Trip insurance is typically a policy you buy for a single trip. You pay a one-time premium in exchange for coverage for your trip. There are trip insurance policies available for all kinds of trips, including both domestic and international travel, as well as cruises.

Your premium is based on several factors, including where you are going, how long your trip is, the number of travelers and their ages, and the total cost of your trip. The level of coverage you select is also relevant, as more full-featured plans cost more.

Let’s Talk Coverages:

The first thing people think about when it comes to trip insurance is cancellation. What if you or a member of your party gets sick and you have to cancel? Or what if inclement weather prohibits you from travelling to your destination, or forces you to leave ahead of schedule? These would be covered losses under a trip insurance policy that would pay you for the cost of your trip.

Say for example you book a Caribbean vacation, and the total cost of your vacation is $5,000, including airfare, accommodations, and transportation to and from the airport. If your trip is cancelled for a covered loss, such as a natural disaster like a hurricane, then the policy will reimburse you for the cost of the trip, up to the limit you purchased, in this case, the full $5,000.

Other covered losses can include the illness or death of a member of the party or a close family member of a member of the party, losing your job before you leave on the trip (there are conditions that apply to this), active-duty military receiving orders that prevent the trip, being the victim of a violent felony, or being in a car accident while en route to your departure. Every company is slightly different, so if you do purchase a policy for your travel, be sure to read what all of the covered losses are.

Trip Interruption is another coverage that will take effect if you have to end your trip early or join it late for reasons similar to those above. Many policies actually pay a higher benefit for trip interruption than for cancellation, so it is important to read the terms of the policy before you buy it!

Now, what about some of the other things that are covered?

Lost/Delayed Luggage:

If your bags are delayed in getting to you for a specified amount of time (typically 12 hours) then your policy will reimburse you up to its sublimit for delayed bags. This will allow you to purchase replacements for whatever items you need from those bags until they are returned to you. If they are never returned to you, then this is a lost bag, and the policy will usually pay a higher limit, since you now have to replace everything. One policy we looked at from a major carrier offered $100 for delayed bags, and $600 for bags that are completely lost. Policies that offer more are available however, for higher premiums.

Emergency Medical Coverage:

No one plans on a doctor visit during their vacation, but people do get sick and injured while traveling. If you require the services of a physician or other medical provider during your trip, your trip insurance policy has benefits to cover those costs. The policy we looked at has a $75,000 sublimit for medical treatment, as well as an additional $250,000 for medical evacuation, if you or a traveling companion’s condition warrants it, and the premium was only $78 total. Having this coverage can provide real relief in the event of an emergency while you’re away from home, particularly if you are abroad.

Trip insurance is an inexpensive way to protect your trip, and getting a quote couldn’t be easier. There are many different companies out there offering reliable trip insurance, and many let you quote and purchase the policy online in minutes. If you don’t know where to start, give your local agent a call. They can either sell you a policy right then, as well as answer any questions about it and explain coverage in detail, or direct you to the sites of companies they know and trust.

Don’t let the unexpected ruin your next getaway!