Along with all the other planning and preparing one has to do to take a trip the added stress and expense of purchasing Travel Insurance can seem like as though it isn’t worth the effort. But it is. And it doesn’t have to be all that painful anyhow. A little shopping around can find reasonable rates that are well worth the peace of mind they bring

But what if you’ve never bought Travel Insurance before? What if you’ve never bought any kind of insurance before? Here are some key terms, some of which apply to insurance generally, and others that apply to Travel Insurance specifically.

  • Maximum Policy Coverage: This indicates the maximum amount of money the provider will pay for covered expenses.
  • Deductible: Also called the Excess, this is the amount of money the policyholder will have to pay before the provider begins to pay.
  • Co-Pay/Co-Insurance: The amount or percentage the policyholder must pay after the deductible.
  • Exclusions: These are expenses that the provider will not pay for, for various reasons; they often are medical in nature, e.g. a pre-existing illness or condition.
  • 3rd Party Insurance: Travel agencies often offer their own insurance, but it’s often beneficial to go through a 3rd party insurance company, for various reasons.
  • Waiver: A waiver from a travel agency will partially reimburse financial loss on a trip, but is not insurance, and enforcement of the agreement isn’t guaranteed.
  • Individual vs. Family Plan: Indicates whom the policy will include.
  • Single Trip vs. Annual Multi Trip Plan: Indicates the length of coverage.