Travel Insurance Basics

While there is no legal obligation to take out travel insurance before you go on vacation, protecting yourself against cancellation, illness, injury, losing your passport or money is a great idea, and may not cost as much as you think. Cover for a 7 night domestic trip can cost as little as $30, with a worldwide annual multi-trip policy starting from around $200.

Travel insurance is designed to protect you from a range of adverse events that could happen while you are on vacation. These typically include:

• Loss or damage to your baggage.
• Loss or theft of money.
• Compensation if your trip is cancelled or curtailed due to circumstances beyond your control.
• Medical emergency and/or repatriation expenses if you are ill or injured.
• Compensation if you suffer permanent disability or death while on vacation.
• Expenses incurred due to a delayed departure.
• Expenses incurred replacing a lost passport.
• Legal expenses and personal liability cover in the case of an accident where you cause injury or damage to a third party or their property.

These areas of cover are subject to specified excesses and limits. As with all insurance, you should read your policy document carefully to check how much you are covered for and what (if any) deductibles you would need to pay in the event of a claim.