The holiday season is in full swing, which means that it is one of the busiest times of the year for travel. Airports, train stations, and interstate highways are overflowing with people on their way to visit (or escape) family during the holidays. It’s also becoming increasingly popular to combine the holidays with a major vacation destination—Christmas in Hawaii, perhaps, or New York or Paris.
Anytime you’re spending a fair amount of money to travel, you run the risk of having to cancel at the last minute—or worse, during the vacation itself—because of some unforeseen emergency. The further you’re planning to go, the more expensive a cancelled vacation becomes. After all, cancelling a four-hour drive to visit your parents in Cleveland isn’t going to be the big deal a missed 10-day trip to Morocco would be. Or, what if you become sick on your trip, or your luggage is stolen, or you end up stranded somewhere? This is where travelers insurance comes in.
Here’s what you need to know:
What Travelers Insurance Covers
Before you can decide whether you need travelers insurance, you need to know what, exactly, it covers. Travelers insurance is meant to protect you from financial loss in the event that you have a sudden medical emergency before or during your trip, a death occurs (for example, the untimely demise of your travel companion), the location you are visiting experiences some kind of political upheaval that makes it unsafe, a natural disaster occurs, or your belongings are lost or stolen. If you are planning a trip to an area that is politically unstable (or potentially so) or is particularly prone to things like hurricanes during the dates you will be there, it might make sense to buy travel insurance–especially if it is a very expensive trip purchased in such a way that it cannot be cancelled or refunded. However, it’s important to be aware of the limitations of travelers insurance and to know what to look for in a policy.
Overlapping Coverage
Many times, travelers insurance overlaps with preexisting coverage, so it may not be worth the expense. Before you buy, know what your medical and homeowners policies will take care of. For example, illness or injury is generally covered by your own medical insurance, even overseas. If you are worried about a preexisting condition that makes it more likely that you’ll experience a medical emergency while away, be aware that they are generally exempted in travel insurance policies.
In addition, theft of high-value items such as laptops or cameras is usually covered under homeowners insurance. And if an airline loses your luggage, they are required to reimburse you up to a certain amount, so that eventuality is covered, too. Even things that aren’t covered elsewhere—for example, travel delays—are often very limited with travelers insurance, so check the policy carefully before buying.
Buyer Beware
Unfortunately, it is possible to spend hundreds of dollars on travelers insurance and be left holding the bag when it comes time to make a claim. Scam insurance companies are out there, and they can even fool travel agents, who may unknowingly sell you a policy from a disreputable company.
One of the first things to look for is whether the policy you are considering is actually referred to as insurance or a “protection plan.” Insurance policies are regulated by the state and come with legal recourse if you are scammed. However, anyone can sell a “protection policy” and it can legally say anything.
Red flags also include a lack of clear instructions on how to file a claim, lack of customer service information on the policy itself, and assurances from the agent that the policy or “protection plan” covers things your other insurance doesn’t without having seen your other policies.
If You Buy
If you feel you truly need travelers insurance, avoid buying a policy through a cruise line or travel agency. Look for a well-respected company with a known name and reputation and then buy it directly from them. Be sure to read all the fine print yourself and understand what is included and what is exempt. Look for detailed information on how to file a claim, and try calling the customer service number to make sure it exists. Finally, using a major credit card to buy your travelers insurance provides an extra layer of protection against fraud.
1 comment
Joe Dunn
Some of the medical policies for travel cover the cost of shipping your body back home if you die on the trip ---I know of no other insurance that covers that. FYI
Travelers need to be aware also that even if their medical or Medicare insurance covers them for foreign travel emergencies, they may have to pay the medical bills UP FRONT and get reimbursed when they get back to the U.S, Whipping out your AETNA card in Ireland or Mexico is not the same as doing it here....