On a similar concept, some insurance companies will pay claims direct to whoever it is that seeks payment, others require you to pay yourself and then seek reimbursement. This is not necessarily always up to the insurance company – sometimes people will want to get money direct from you rather than trust on a faceless insurance company in another state or country to pay them, but where it is an option, you’d obviously prefer the insurance company to directly pay rather than to have to suffer the cash-flow consequences of making large payments yourself with reimbursement to follow who knows exactly when.

There are many different types of travel insurance, and it is important to understand what sort you’re getting and what it does and does not cover. For example, some credit cards boast that they provide ‘free travel insurance’ but when you work your way through the fine print, you find that all they offer is to pay some small sum of money to your estate if a plane that you’re on crashes and you’re killed!

The first part of this two part article talked about the different sellers of travel insurance, this part looks at the different types of travel insurance that they sell.

Types of Coverage Offered

The ‘big two’ risks that are covered to some extent by most travel insurance policies are the costs of changing or canceling your travels, and the cost of any medical care and emergency assistance while on your travels.

Mexico Travel Forum