Travel

Trip Insurance

You've decided to take a vacation. All the big "what-if's" start to cross your mind. What if your child gets sick? What if you have to call of the for some other reason? Will we get our money back? What if the tour operator goes belly up or has a strike before you leave. What if my baggage gets stolen, or lost?

Do I need travel insurance?  You may, or you may not. You may already be adequately covered. 

Travel insurance may cover you - depending on the plan, travel promises to cover you for cancellation or interruption of your trip, also emergency medical care while you are not at home, stolen or lost luggage, and other problems. A comprehensive package which covers a variety of circumstances may add more than 10 percent to the cost of the trip.

Before you shop for travel insurance read the fine print and between the lines.

Get it in writing - Look closely at your agreements with your travel agent, tour operators, airlines, or other companies involved with your travel plans. Ask for an explanation of these agreements. They should be happy to do this for you. Remember, they have traveled and know the details you may overlook. Look and you may find written guarantees. If you have a fully refundable airline ticket this secure a fairly large proportion of your trip's cost and you probably don't need trip cancellation insurance.

Be knowledgeable about tour operators - Buy tours only from operators that will guarantee the safety of your money through a consumer protection plan. in some cases, the Federal Marine Commission requires cruise lines leaving from U.S. ports to post a bond sufficient to cover passenger deposits or payments if the line becomes insolvent. More and more states are acting to protect travelers. Ask your travel agent exactly how you are protected in your state.

Your credit cards may help protect you - By paying for your airline tickets, tours, and other expenses with a major credit card, you automatically receive several kinds of protection. For example, if your tour operator goes bankrupt and cancels your trip, immediately contact the card issuer in writing and explain why you don't intend to pay. If you have already paid, the issuer may credit your account. Credit card issuers are obliged by law to extend protection only within 60 days after the first charge appears on your statement, however some companies may extend this period.
 
 

Many major credit cards include travel insurance and accident insurance when you use them to buy airline, cruise, rail, boat, or bus tickets. Most AAA/Visa or AAA/Mastercard, for example, include at least $100,000 of free coverage against accidental death, dismemberment, paralysis and loss of sight resulting from accidents. Some credit cards even provide emergency protection, including coverage for evacuations. The card issuer, in many cases, may also help you with referrals to local doctors, dentists, hospitals, pharmacies and (if you get in trouble) attorneys. If your card does not carry these provisions, purchasing travel insurance that does from your agent may be a wise decision. Because credit cards' complimentary travel insurance varies widely in types, restrictions, and amounts, study the card issuer's guide to their specific coverage carefully, or call for an explanation. If you don't already have a document showing the specifics, request one before you travel.

Am I already insured? Look at your other insurance policies. Your health insurance policy may provide adequate insurance, regardless of how you travel. However some policies only cover some medical expenses abroad. Medicare, for example, generally does not cover you outside of the Unites States. Your homeowners insurance may cover your luggage, and airlines are required to covered checked baggage for certain amounts. Credit cards also pick up losses above these limits.

One type of insurance that people often need but don't have is trip cancellation or interruption insurance, which protects you financially from a variety of problems. This coverage is generally inexpensive, regardless of the length of the trip. For example, you can be protected from....

A severe injury or illness to you or a family member or traveling companion.

Financial default of the tour operator, airline or cruise line.

Strikes or natural disasters.

A terrorist incident within 10 days of your arrival.

You, or a member of your party, being hijacked, quarantined, required to serve on a jury, or served with a court order.

Your direct involvement in a traffic accident en route to departure.

Your travel agency should be able to help you find the right package at the right price. In fact, most of the best plans are sold only through travel agents. But beware of the agent who sells you packages you don't need. Check you own insurance and credit card insurance first. Before you purchase coverage, go over the policy and ask questions. What is excluded? What if a close relative (and maybe not a traveling companion) need your help? What "pre-existing" medical conditions are excluded?

Okay - are you ready to go? Write down all the important information and take it with you, also leave it with someone at home! Include the basics of various coverages and guarantees, plus names and phone numbers if you have to file a claim during a trip. Keep the paperwork after your trip so the next time you travel, you won't have to do this all over again. Even if some of this information might change, your original work will be a helpful guide for the next vacation.

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