Should You Buy Travel Insurance?
Wednesday, June 22nd, 2011
With the summer officially here, many people are getting ready for vacations that they have been planning for months, maybe even years! Every detail has been considered, what to visit, where to eat, what to bring….but did you ever think about travel insurance?
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.
To buy, or not to buy?
Compare the cost of the trip versus the cost of the policy. If you just bought a $200 airline ticket, is that worth covering? If you paid for it with a credit card, and the airline ceases to operate before your flight, you’re already covered – under federal credit laws – by your own credit card company, since you bought or contracted for a service which you didn’t get.
Look for a policy with a travel insurer that is independent from your tour operator and is licensed by your state. Many cruise lines and tour operators offer insurance, often at lower premiums than those charged by outside insurers. But if the cruise line or tour company goes out of business, there may not be money to cover your claim.
If flight or cruise delays make you want to cancel, you may be out of luck. Read the fine print, as with some policies, more than half of your vacation has to be delayed before you can cancel and be covered.
