Travel Insurance

Travel insurance is one of the most overlooked items on most traveler's agenda. Even some experienced travelers have done without travel insurance - until they hit their first really bad travel experience. Like the airline lost all your luggage - and if it is ever found it's somewhere in Belize and will be delivered to you sometime when you arrive back home. Or the ship left without you and you have to pay additional airfare to "catch" the ship. So what is travel insurance?

Travel insurance is a combination of travel coverage and 24 hour emergency assistance services designed to give travelers on the road peace of mind. The belongings that you take on your trip are covered, and you are covered for emergency medical services (this depends to a certain degree on the type of travel insurance you purchase.

Most benefits include:

• Reimbursement of the non-refunded portion of your travel investment if your trip is cancelled or interrupted for a covered reason
• 24-hour access to emergency medical referrals and assistance
• Reimbursement for unexpected travel expenses, including lost luggage, loss or damage to a rental car, or medical emergencies
• Coverage in case of travel delays
• Emergency medical transportation

Many travelers are under the assumption that their credit card, health care plan or homeowner's insurance will take care of their insurance needs when traveling. A recent study by Chadwick Martin Bailey Inc. consultants for Travel Gard International found that:

• Medical Evacuation - Emergency medical evacuation and transportation to the nearest adequate medical facilities is a standard benefit of most comprehensive travel insurance plans. While some credit cards will arrange emergency medical transportation, it is always at the cardholder's expense. The more compete travel insurance plans will also pay airfare for a special medical escort if recommended by the attending doctor.
• Baggage Protection - A comprehensive travel insurance policy that covers lost or damaged baggage will often provide coverage above and beyond the standard reimbursement by the airlines. A travel insurance policy that offers comprehensive baggage protection will not only pay for damage to or loss of baggage, but may also take over baggage tracking by liaising with airlines to find and return lost luggage to insured travelers. Homeowner's insurance, conversely, may not cover bags that are stolen, and may only cover bags that are damaged by "fire and water."
• Car Rental Accident Insurance - A dedicated car rental collision damage policy that pays "primary coverage" will pay for damage to a rental car, regardless of the insured renter's personal auto insurance coverage, and will protect a traveler against the threat of higher future premiums. Personal auto insurance, when used to insure a rental car, is subject to premium increases and insurance surcharges in the event of an accident. Some credit cards also offer car rental protection when the card is used to pay for the rental, but most coverage is secondary, and will only cover expenses that are not covered by personal auto insurance.
  
• Trip Cancellation/Trip Interruption - A comprehensive travel insurance policy is the only source of trip cancellation coverage available to travelers for reasons of illness, injury, inclement weather, jury duty or organized labor strikes. A complete travel insurance policy will reimburse a traveler for the pre-paid, unused, non-refundable portion of a trip payment, plus the cost of returning home or rejoining the trip. Credit cards do not offer trip cancellation coverage.
  
• Medical Expenses - Most comprehensive travel insurance policies cover necessary medical and surgical expenses while traveling, usually as primary coverage. Primary coverage means that the travel insurance company will pay the traveler first, rather than supplementing any payment by the traveler's health plan or HMO. Domestic medical plans generally provide some coverage outside of the United States, but a traveler must carefully review the fine print to understand conditions and exclusions, since some plans only cover emergency care. Travelers with Medicare are not covered outside of the U.S.

Buying some travel insurance is really a small price to pay for peace of mind. You really wouldn't want to run the risk of pan handling for small change in a foreign land.

Next page: Home