Area of Law: Insurance Law
Answer # 2782
Travel insuranceRegion: Ontario Answer # 2782
What is travel insurance?
Travel insurance is insurance which covers medical expenses or other financial losses that you may experience while travelling. Travel insurance is often bought by people when they book their trip, and it generally lasts for the duration of the trip. In cases where people are travelling on multiple occasions during a specific time-period, they have the option of buying a multi-trip insurance policy. This is a convenient way to have insurance for all the trips while only needing to purchase it once. The cost of travel insurance is determined by a number of factors, including the age of the insured, the length of the trip, and the type of coverage and benefits.
Generally, travel insurance covers the following types of expenses:
- trip cancellation, and trip interruption
- medical emergencies (including accidents or illness)
- accidental death, injury or disablement
- overseas funeral expenses
- lost, stolen or damaged baggage, personal effects or travel documents
Cancel for Any Reason (CFAR) insurance
With Cancel for Any Reason (CFAR), you do not need a reason to cancel your travel plans. It is additional optional travel insurance coverage. However, there may by some eligibility criteria, such as
- travel must be cancelled within a certain time period of departure date, usually 48 or 72 hours
- the benefit may cover only part of your travel cost, depending on the plan
Do you already have travel insurance?
Before buying travel insurance, you should determine if you are already covered under any of your other insurance policies. Often, insurance for theft and other property losses away from home is included as part of credit card agreements and home insurance policies. Also, some medical and automobile insurance policies may apply to losses sustained outside of the country. Further, most life insurance policies will cover you while you travel.
If you determine that you are not otherwise covered and you need to purchase travel insurance, ensure that you know what exactly your insurance will cover. It is also important to make sure that you have information about who to contact in case of an emergency, and how to submit a claim.
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