Travel insurance is an essential financial cover that protects one from unforeseen circumstances while traveling. From losing luggage to hotel cancellations, there are a few incidents against which insurance can be claimed. But before opting for one, it is important to thoroughly understand the policy document, including what is covered in the insurance and what is not. Here are a few common travel insurance mistakes that travelers can easily avoid.

Ignoring credit card perks
Several credit card companies offer travel insurance benefits to card holders. If you purchase a ticket using the card, you may be eligible for insurance. Credit card-based travel coverage may include claims against delayed, lost, or damaged baggage; trip cancellation or interruption; medical emergencies; evacuation; travel mishaps; or rental car insurance. With these advantages, frequent travelers might not need to get additional insurance.

Not reading the details of the insurance
Most travel insurance policies have a “cancel for any reason” provision. However, the requirement for this is often overlooked. The “cancel for any reason” coverage often has to be bought 7 to 21 days after paying the original trip deposit. Additionally, one can only receive compensation if they cancel their trip 48 hours in advance. Depending on one’s level of insurance, the reimbursement amount may vary. Most of the time, 50 to 75 percent of the trip’s cost will be refunded. So, it is advisable to carefully examine the terms before choosing any insurance.

Buying the wrong policy
One can opt for travel insurance that covers particular requirements or concerns for one’s upcoming trip. For instance, one may not need to carry much baggage on a brief business trip. In this instance, it may be preferable to forego baggage or personal item loss coverage and avoid paying premium prices.

Similarly, customers who wish to take a cruise in 2023 might need to get cruise insurance. Many companies offer coverage for missed departures, bad weather, or medical emergencies while on board. Vacationers can also obtain better coverage for less cost at the cruise’s point of booking.

Paying more than required
Insurance premium is based on many factors like the length of trip, number of travelers, their age, and so on. Not all pricey insurances are beneficial. On average, the trip can be covered well with several benefits by investing roughly four to ten percent of the trip cost. Infrequent travelers or those who are not concerned with insuring their costs can choose a cheaper plan with basic coverage like emergencies, evacuation, and delays in flight.