Peace Of Mind
Let's face it -- travel can be stressful and there are risks. Travel insurance (1) protects you from losing all (or part of) your major vacation investment due to cancelations and interruptions, and (2) from enormous foreign medical costs that can quickly exceed your normal medical insurance coverage.
Some Major Reasons For Getting Travel Insurance
1. Trip Cancellation Penalties - Almost all travel providers (cruise lines, tour operators, resorts, etc.) have hefty cancellation fees - no matter why you cancel. Depending on when you cancel, you could lose everything you've paid.
2. Foreign Medical Costs - Does your medical insurance cover foreign medical treatment, and if so, how much? Foreign medical costs can quickly exceed normal limits, especially for emergency medical evacuation and repatriation (getting you home).
3. Lost Or Stolen Luggage, Passports, Wallet, Medicine, Etc. - Any of these would cause great stress and cost you valuable time. One call to your travel insurance provider hotline gets you the emergency help (and cash) you need.
4. Natural Disasters, Terrorism, Provider Bankruptcy, Flight Cancelations - You have no control over incidents like these, yet you may still have to pay for the very trip they ruined.
Even if you don't need it, travel insurance gives you comfort and peace of mind. If you do need it, it's a lifesaver!
When You Might Not Need It
You might consider not getting travel insurance, if there are no cancellaton fees, or if cancelation fees are minimal, or your total trip cost is small. Even with no cancellation fees, consider buying a "post-departure" plan that covers everything a regular plan covers except non-refundable cancellation fees. The cost is far less.
Always Consider, "What if..."
What if...you've made final payment on a $4,000 cruise, but 3 weeks before you leave, you are injured and have to cancel? With no insurance, you will probably lose 50% ($2,000) of your payments. If you cancel 1 week before you leave, you will probably lose 100% of everything you've paid.
What if...you're driving in Italy (or anywhere else in the world), and you're invovled in an accident, requiring medical evacuation? What if your medical expenses total $200,000 and you discover your medicare or health insurance doesn't pay for expenses overseas...and the hospital will not release you until you pay?
What if...you arrive at your destination to discover a terror incident is taking place and you want to go back home, or...your resort is destroyed by a hurricane, or...your travel supplier didn't pay the bills and left you stranded?
What if...you get there but your luggage doesn't, or...you miss the last connecting flight of the day, or...you fall for a fast "petty crime" scam and suddenly you have no wallet, cash, credit cards or passport...what now?
Hopefully, and most likely, none of this will happen to you -- but one out of every six travelers with travel insurance has a situation that requires them to file a claim.
In all these cases, if you have travel insurance, you simply call a 24 hour emergency assistance line and immediate help is on the way to save your vacation.
IMPORTANT NOTE: Even with travel insurance that includes cancellation coverage, it still only covers cancellations due to "covered reasons," such as injury, sickness, death, travel supplier bankruptcy, and other reasons specified in the policy. You can buy cancellation coverage "for any reason," but expect to pay more, and get paid for only most of your non-refundabales.
TIPS...
Check with your medical
insurance company to see if
you are covered overseas
and what your maximums
are.
Check what travel insurance
you have automatically
when you pay for your travel
with your credit card.
Certain coverages, such as
pre-existing medical
conditions, provider financial
default, terrorism, etc. may
be covered only if you buy
your polilcy within 10-14
days of your initial deposit.
Do not buy insurance from
the cruise or tour operator
since they may not cover
incidents on excursions
not booked through them.
The least needed type of
travel insurance is "Flight
Life Insurance."
Definition of Some Common Coverages
Trip Cancellation -- The amount you will be paid by the insurer if you are prevented from taking your trip due to a covered reason.
(Check your policy to see the "covered reasons.")
Trip Interruption -- Reimbursement for the expenses you have paid to a travel supplier if you must return home early, due to a covered reason.
Missed Connection -- Covers expenses due to missed cruise or trip departures due to inclement weather or any other common-carrier-caused delays.
Trip Delay -- Reimbursement for covered reasons on a one-time basis if you are delayed en-route to or from the covered trip due to a covered reason.
Baggage and Personal Effects -- The insurer will reimburse you up to the maximum amount for your plan, for loss, theft, or damage to your baggage and personal effects.
Baggage Delay -- Reimbursement for any expenses for your necessary personal effects, up to the maximum for your plan, if your checked baggage is delayed or misdirected bya common-carrier. (Usually applies to outward journies only)
Emergency Accident and Sickness Medical Expenses -- Insurer pays up to the maximum for your plan, if you incur medical expenes for emergency treatment as a result of an accidental injury which occurs on the covered trip, or a sickeness which first manifests itself during the covered trip. (Some private and medicare plans do not cover medical expenses overseas)
Emergency Evacuation and Repatriation of Remains -- Insurer will pay up to the maximum for your plan, if you suffer an injury or emergency sickenss that warrants your emergency evacuation while on a covered trip.
Pet Care -- Pays up to a certain amount per day for an additional boarding fee if your return home is delayed due to a hospital in-patient treatment abroad.
Accidental Death and Dismemberment -- The amount paid if you sustain an injury while on a trip which results in loss of life, severance of a limb, or enitre and irrecoverable loss of eyesight, speech, or hearing; within in 180 days of the accident.
Collision Damage Waiver -- If insured rents a vehicle on a covered trip and the vehicle is damaged due to collsion or any cause not within the insured control.
Sports Covereage (usually optional) -- Covers pre-paid, non-refundable ski pases, ski or equipment rentals or green fees, and if your own equipment is delayed or mis-directled by a commom-carrier.
