Here’s what you need to know to determine whether you’ll be covered while traveling – domestically or internationally – and the steps you can take for more extensive coverage if your insurer doesn’t cover you while you’re away.
Your Insurance: What You’ve Already Got Going for You
Your current homeowners or renters insurance policy might already cover losses like theft while you’re traveling. If so, you might not need to take additional steps to ensure your belongings are protected.
If your policy includes off-premise protection, your belongings are covered even when they’re not at home. This can provide significant relief if your luggage is stolen or valuables go missing from a hotel room. However, consider a few things before setting off on your adventure, such as the question many travelers have: “Do I need rental car insurance coverage?”
Figure Out How Much Is Covered
Typically, for losses outside your home, you’re covered up to the full amount of personal property coverage on your homeowners policy. However, check with your carrier to confirm this. Deductibles and limits are important considerations. For instance, if your policy has a $500 deductible and your stolen luggage is worth $400, it may not be worth claiming that loss.
Additionally, not all items are covered to the same extent. Many policies limit payouts on high-value items like cameras, computers, and jewelry. Verify which of your items are covered and to what extent. If you want to ensure the safety of your belongings while traveling, consider buying supplemental valuable items coverage.
Protect Yourself Against Liability
Your homeowners or renters insurance policy often covers liability in case of accidents while traveling. For example, if you accidentally break a dishwasher in a rental house or hit someone with a golf ball, your policy can cover the damages. If you plan to leave the country, confirm with your insurer that your liability coverage extends to foreign countries.
Double-Check Your Rental Car Coverage
If you plan on renting a car, your coverage depends on two key questions:
- What type of car insurance coverage do you currently have?
- Where are you vacationing?
Collision Coverage
Usually, you need collision coverage on at least one vehicle on your policy, and you need to be traveling within the United States, its territories, Puerto Rico, or Canada for rental coverage to apply. If these conditions are met, comprehensive and collision coverage may extend to your rental vehicle, subject to your deductible. If you have a multi-car policy with different deductibles, the lower deductible generally applies.
Collision Damage Waiver
If you have coverage, it may make sense to reject the Collision Damage Waiver (CDW) offered at the rental car counter. However, be aware that the rental company may require immediate payment for any damages when the vehicle is returned. You might need to pay from $1,000 to the full value of the car if it’s damaged. Consider your financial ability to handle this payment before rejecting the waiver.
If your auto policy lacks collision coverage, purchasing the collision damage waiver is a wise choice. For international travel, contact the U.S. consulate for rental coverage options in the destination country, or ask the rental car company about coverage options.
Have the Right Insurance Coverage
If you’re traveling for work, you likely can’t submit claims to your home or rental insurer. Work trip losses should be covered under your employer’s business insurance policy. If you’re self-employed, don’t assume your business property is covered. Many policies limit coverage for business tools. If you need to insure your business items, consider a business insurance policy.
Ensure you’ve explored your insurance options and have the necessary coverage to feel secure during your journey. No one wants to worry about potential issues while on vacation. Let your insurance company handle those concerns for you.
Contact your insurance agent today to review your travel coverage options and secure peace of mind for your next adventure!