There may be no better way to explore the world than from the road! Road trips give you an up-close view of a destination, with plenty of opportunities to discover hidden gems along the way. However, you may need to be extra prepared for any trouble that can happen on the road.
Automobile insurance might be your first thought when it comes to preparing for the worst on a road trip. Car accidents are common, so it probably makes sense to cover yourself or anyone else who may get behind the wheel. But what about other emergencies? What will you do if your hotel booking is cancelled? What about if you’re injured on the road? Or worse, would you be prepared if someone in your family suddenly passed away?
Families might discover that more than just car insurance is needed for their next road trip. Here are three types of insurances that you may want to consider before heading out.
These short-term policies aren’t just for when you’re traveling abroad. Road trippers may also want to purchase travel insurance before leaving the driveway. Travel insurance might be useful for any number of unexpected events that could happen on the road.
From cancellations — hotel rooms, car rental, or even your entire trip—to lost or damaged items, a travel insurance policy could help cover out-of-pocket expenses for last minute changes. A policy could also provide some extra help in medical emergencies, especially if you’re driving in a foreign country.
Beyond simply reimbursing some expenses, the team behind your travel insurance policy could be an important lifeline if you get stuck. Many companies offer 24/7 assistance to their customers. This might be a godsend if you need to arrange medical assistance or replace a lost passport far from home.
Life or funeral insurance
Almost anything can happen on the road, including a serious accident. It may be unthinkable that tragedy could strike when we’re having fun, but it could make sense to prepare for all worst-case scenarios—just in case.
Most travel insurance policies only cover deaths directly caused by an accident. However, life and funeral insurance may pay out for a wider range of circumstances, such as a heart attack or serious illness (subject to any stand down periods or health exclusions). While travel insurance may help your family get your body home, it might not cover much else. The cost of a funeral could be up to $15,000, according to New Zealand insurance brand Dollar Insurance, which a life or funeral insurance policy is typically better designed to handle.
Life insurance could help your family for an even longer time after the trip ends. The benefit is usually much larger than other types of policies, helping your family get back on their feet after you’re gone. This money could help them take time off work, pay down a mortgage or cover ongoing school fees.
Total Permanent Disability insurance
This type of policy is also designed to help you and your family beyond the end of your road trip. Total & Permanent Disability (TPD) insurance may pay a lump sum if you’re disabled due to an accident or illness and are unable to return to work.
Again, no one wants to think that something serious could happen during a holiday, but it might make sense to be prepared for serious car accidents or other trouble. Travel insurance (and medical insurance, if you have it) may help pay for hospital treatment and transportation home. But, there could be ongoing medical bills for months or years to come that will still need to be paid regardless of whether you’re working or not. In this way, TPD could help shield your family against financial hardship once you return home.
Before your next road trip, maybe take a moment to think about you and your family’s insurance needs. You might decide that several policies could help provide the best protection from the beginning of your trip to long after you’ve returned home.
Dollar Insurance brings simple and affordable insurance to everyday Kiwi families.