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Travel Insurance

Do you really need travel insurance?

For years, it was the great unmentionable in the travel transaction: insurance. Travel agents were afraid to bring up the subject of travel insurance for fear of losing the overall deal. It was considered a negative.

Not anymore. Whether it’s your trip, your possessions, your luggage, or your health, travel insurance — and most important, the right kind of travel insurance — has become an essential item to pack for smart travelers. And if you don’t buy travel insurance — or the right kind — more than your trip could be ruined.

According to the U.S. Travel Insurance Association, about 30 percent of Americans purchase travel insurance, an increase from 10 percent before 9/11. The top three reasons are: peace of mind, protection against the unexpected and concern over losing the financial investment in a trip. Some 70 percent of cruisers buy travel insurance.

While a majority of those who don’t buy travel insurance are familiar with flight and trip cancellation insurance, many people are unaware of travel health insurance, baggage coverage and medical evacuation insurance. Even among travel insurance buyers, only 50 percent were aware of medical evacuation insurance.

There’s yet another kind of insurance that’s available to air travelers that the airlines aren’t exactly rushing to tell you about. In fact, they actually wish you didn’t know about it. It’s called excess valuation.

Reasons to buy travel insurance
1. Your flight has been cancelled.
2. Your bags are lost and your medication is in it. You need to have an emergency prescription filled.
3. Your passport and wallet are stolen, and you need emergency cash and a replacement passport.
4. You’re involved in an accident and adequate medical treatment is not available. You need medical evacuation.
5. You need to cancel your trip due to illness.
6. Your cruise line, airline or tour operator goes bankrupt. You need your non-refundable expenses covered and to get to your destination.
7. You have a medical emergency in a foreign country.
8. A terrorist incident occurs in the city where you’re planning to visit and you want to cancel your trip.
9. A hurricane forces you to evacuate your resort, hotel or cruise.

Check your existing insurance policies and credit card coverage before you buy travel insurance. You may already be covered for medical expenses, canceled tickets or lost luggage.

Step 2
Decide which type of travel insurance is best suited for your destination (for example, terrorism insurance for your trip to Egypt, or emergency medical transportation insurance during your ocean cruise). Keep in mind that the cost varies widely, depending on your age, your health, and the cost and length of your trip.

Step 3
Determine whether the following is included in your policy: international medical insurance, emergency medical evacuation (including helicopter transport), accidental death and dismemberment, repatriation of remains and family travel benefits.

Step 4
Have your travel agent purchase an insurance plan for you or shop commission-free online. You’ll find a wide selection of reputable insurance companies on the Web, including Travel Guard and Access America, that can get you a policy within 24 hours (see Resources).

Step 5
Make sure your travel insurance provider offers 24-hour hotline service. Don’t buy trip-cancellation insurance from the tour operator that may be responsible for the cancellation, and don’t overbuy—you won’t be reimbursed for more than the cost of your trip.