Going on a vacation or an extended business trip? You've probably bought some new things to take with you. But have you considered buying travel insurance?
Although many travelers are unaware of its existence, today you can buy insurance to cover the cost of many of the things that can go wrong on (or before) a trip. Offered through travel agents and insurance agents, policies are sold either for a flat, per vacation price, or on a per-day-of-travel basis.
Some policies allow you to purchase coverage against specific risks, while others "package" together coverage against the cost of a number of exposures that can occur on or before a trip or vacation.
The risks that can be insured against include:
Trip Cancellation or Interruption
This coverage insures you against the loss of your deposit or prepaid expenses in the event your trip or vacation is canceled or interrupted due to illness or injury, or due to the default or bankruptcy of a company (i.e., cruise line, tour group) with which you're scheduled to travel. In addition, depending on the policy, coverage may apply to a number of other reasons for your trip's cancellation or interruption, including:
Vacation Delay
This coverage insures you against the loss of your deposit or prepaid expenses in the event your vacation is delayed (generally, for 12 hours or more) due to a number of causes, including:
Baggage Travel Insurance
Airlines only cover baggage while it's in their possession, and most cruise lines, tour operators, and hotels offer little or no coverage. Baggage travel insurance covers your belongings that are lost, stolen, or damaged at anytime throughout your trip.
Medical Travel Insurance
This insurance generally covers two expenses:
Life and Accident Insurance
This coverage pays a benefit in the event of the death or dismemberment of an insured while traveling or on vacation.
Reparation of Remains
Covers the cost of arranging for having an insured's remains returned home in the event of their death while traveling.
Additional Services
Some travel insurance "package" policies also offer you a number of services while traveling. These include:
A travel insurance policy is a contract, and as with all contracts, you should always "read the fine print."
"Read the policy exclusions first. Check to see what's not covered, then check to see what is covered." says Warren Winnick, an insurance broker from Wellesley, MA.
In particular, when reading the policy, check for the following:
If you have specific questions about the travel insurance you're considering purchasing, its best to call and direct these questions to the insurance company underwriting the policy (many have toll free numbers for this purpose).
Okay, now that you know what travel insurance can include, the obvious question is, should you buy it? For most people, the answer is yes. As noted, many other insurance policies you currently have (such as homeowners' and health insurance) won't cover you when you're traveling, especially if you're traveling abroad. And, even if it does, in many cases the trip cancellation/interruption coverage itself is worth the cost of travel insurance. This is especially true given the fact that travel insurance has become, relatively speaking, very inexpensive.
RESOURCES:
TravelASSIST Magazine
http://www.travelassist.com
Travel Insurance Services
http://www.travelinsure.com
CANADIAN RESOURCES:
Transport Canada
http://www.tc.gc.ca/en/menu.htm
References:
Travel insurance. TravelASSIST Magazine . Available at: http://www.travelassist.com/mag/a64.html .
Last reviewed January 2008 by Rosalyn Carson-DeWitt, MD
Please be aware that this information is provided to supplement the care provided by your physician. It is neither intended nor implied to be a substitute for professional medical advice. CALL YOUR HEALTHCARE PROVIDER IMMEDIATELY IF YOU THINK YOU MAY HAVE A MEDICAL EMERGENCY. Always seek the advice of your physician or other qualified health provider prior to starting any new treatment or with any questions you may have regarding a medical condition.
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