Insurance is designed to offer protection from problems – and travel insurance is no different.
Think illness hitting when a long way from home. Or a departure delayed due to certain surprise events.
People pay an amount of money – known as a premium – to get cover should problems strike.
If all goes well, travellers will pay but not need to use their insurance, however even having it can offer “peace of mind”, which in itself has value.
Already have cover?
A trap to watch for is buying travel insurance when you already have adequate cover under another policy.
Some credit cards may offer travel insurance under certain conditions. Individuals who qualify will need to read the terms and conditions, however, and determine if it suits their needs.
Price or service?
Price is only part of the consideration when buying insurance. Good service – particularly in times of stress – can be very important as well, as this earlier eZonomics poll indicates.
ING senior economist Ian Bright blogged about his experience renewing car insurance, in which a policy that best suited his needs was more important than finding the best price.