Travel insurance tips from Mango's blog

Travel insurance has long been considered a type of insurance that is unnecessary. In comparison to health insurance or auto insurance, the prospect of insuring your travel was not appealing to most individuals. Travel agents rarely suggested the use of travel insurance to customers as it suggested that their travel packages may be susceptible to untimely mishaps which would require financial compensation that has not been accounted for.

However, in recent times, the importance of travel insurance has been looked at with more enthusiasm and broadmindedness. People are more receptive to the idea of being insured when traveling as it meant that the travel, would be less stressful and thus more enjoyable. Even if the travel was for other purposes than leisure such as business, having travel insurance would mean that the individual can solely focus on business rather than worry about any unexpected occurrences. Travel insurance provides insurance for an array of aspects during your travel such as your health, luggage or other possessions.

The use of travel insurance has dramatically increased following the horrific event of 9/11. About 30% of Americans invest in travel insurance. Having travel insurance will assuredly provide a sense of relief and even out any unexpected incidents that may occur during the trip. Another concern is the loss of investment that was made for the travel. Having insurance will ensure the safety of this investment. People who wish to take a cruise are more vigilant about travel insurance with over 70% of people on a cruise being insured.

If you travel by plane, which is virtually the most common mode of travel when going on a trip for relaxation or business, you may also purchase what is known as excess valuation insurance. This is not exactly a type of insurance however it acts as a type of baggage coverage and is available by your airline even though airlines usually don’t acknowledge this feature heavily. There is also coverage if a trip has been delayed or even cancelled due to some reason. Of course, here the cost of the trip will matter. If the price is relatively low, having insurance for trip cancellation or interruption may be futile.

Your flight may be missed due to a multitude of reasons. Illness is unpredictable and you may contract a severe case of the flu on the day of your flight and may have to miss it. You may also miss your flight for other reasons, if this happens, having insurance will have you covered. It is highly recommended to purchase insurance for this from the travel provider. One reason for missing a flight could be due to a travel agency going bankrupt. If insurance was bought from the same travel provider, your insurance would be invalidated too. Choosing an external insurance provider may be a tad more expensive, but it will be guaranteed.

Another useful cover provided in travel insurance is cover for baggage. This provides cover in case bags are damaged, delayed, stolen or lost for some reason, which commonly occurs at airports. This is primarily important if you are flying overseas. If you are flying within the US, this may not be as worth it. Alternatively, you can opt for liability provided by the airline if you lose your baggage.

As aforementioned, perhaps the most important aspect is the excess valuation. While this is not part of travel insurance, it does provide “insurance”. This makes you entitled to up to $5000 if your airline loses your possessions. This would include items that can’t be otherwise insured using standard travel insurance. Always compare costs relatively and consider if the price is worth the investment. If you are taking a relatively low budget trip, having expensive travel insurance would be futile. The goal is to save as much money and not be financially tied up. Be smart when making your investment.

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By Mango
Added Nov 1 '11

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