Traveling to China can be a long journey with sorts of possible incidents. Thus, a travel insurance is definitely necessary to every visitor who is planning a china travel so that you can secure the safety and mirth of your China Tours.
Here are the basics of travel insurance which you should know before you buy!
What Are the Major Types of Travel Insurance?
There are two main types of travel insurance. The first type, commonly called trip cancellation insurance, protects against the loss of non-refundable travel costs – like airfare, hotel or tour expenses. So if you’re making a deposit on a cruise or have non-refundable airline tickets, this would be the type of coverage you’d consider.
The other type of travel insurance offers protection against loss due to medical emergencies, damage to personal property or death that occurs while you are traveling.
Trip Cancellation/Delay/Interruption Insurance
Travel insurance generally covers a very specific list of reasons for cancellation, delay or interruption. Before you buy a policy make sure you’ve reviewed these situations carefully.
- Trip Cancellation – Reimburses pre-paid travel expenses if you aren’t able to take your trip because you become ill or die.
- Travel Delay – Reimburses pre-paid expenses if you aren’t able to take your trip because of a travel delay, such as a flight delay or cancellation.
- Trip Interruption – Reimburses pre-paid expenses if your trip is cut short because you become ill or die, or because of any other misfortune listed in policy. Covered reasons might include bad weather, airline strikes, terrorism, bankruptcy, jury duty, or fire or flood damage to your home.
Medical/Accidental Death Insurance
When considering a medical or accidental death travel policy, ask about pre-existing conditions and age limits. How companies deal with pre-existing conditions can vary widely. Read the terms of coverage carefully if you have a pre-existing condition and be prepared to pay a higher premium to cover them. Some insurers also charge more for older travelers. American health insurance is generally not accepted outside of the United States. To find out more about the extent of your coverage, speak with your insurance agent or company before you leave home.
- Medical/Health – Reimburses medical and emergency dental expenses that you incur because of an illness or injury while you’re traveling.
- Medical Evacuation – Provides emergency transportation to either a hospital in the geographic region where you are and/or transportation back to a hospital near your home.
- Accidental Death – This coverage is usually split into three parts:
- Air Flight Accident – Covers death or dismemberment during flight only.
- Common Carrier – Covers death or dismemberment while traveling on public transportation such as a plane, ferry, train, bus or taxi.
- Accidental Death – Covers death or dismemberment at any time during a trip.
Baggage/Rental Car Damage Insurance
Homeowners or renter’s insurance may cover baggage or personal property damage when you’re traveling and your auto insurance may extend to a rental car, but you should always check the terms of your current policy or ask your insurance agent or company.
- Baggage Loss – Reimburses for lost, stolen or damaged personal items. This usually doesn’t cover personal items lost or damaged by an airline. If you buy baggage insurance, be sure to review the policy for the list of property that is not covered and the value limits associated with the property.
- Rental Car Damage – Reimburses for damage or loss to a rental vehicle. If you purchase this coverage you can decline the rental car company’s “collision damage waiver.” This coverage doesn’t provide liability protection.
What Should I Check Before I Buy?
- Are the company and the person I am buying the policy from licensed by the state where I live to sell insurance?
- What is the refund policy on prepaid expenses? How long in advance do I have to cancel to get a refund?
- Other than a full refund, what benefits will the insurance company offer? Will they rebook a flight or help me find a new hotel room?
- Read the policy to see if the coverage applies only to the traveler, or if an illness or emergency with a family member will also trigger the coverage.
- If you’re working with a travel agent you trust, ask about his or her experiences with any recommended travel insurance companies. Have their customers filed claims? Were those claims paid?
- If you’re planning an adventurous vacation (i.e. skydiving, scuba diving), ask if the insurance will cover those activities.
- You don’t have to buy travel insurance from the travel agent booking your trip. You may get a better deal if you work directly with the travel insurance company. Just make sure the quotes you’re comparing are for the same coverages.
- If you buy from your travel agent, ask to speak with the licensed insurance agent in their office, and check with your state insurance department to make sure that person’s license is up to date.
With these simple tips, your insurance purchase could go smoothly. Enjoy your china travel, good luck!
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