Insurance for the traveler
Do you need Travel Insurance?
In today’s budget conscious economy, the first thing you need to know is, do you actually need to purchase additional insurance policies before embarking on a trip?
With costs running in the tens of thousands of dollars should an unforseen accident happen while you are away, insurance is a wise choice. But you may already be covered for some features of travel insurance under your existing insurance policies and credit card programs.
Read the fine print on your insurance policies to see what they will cover. Some homeowner's policies or will cover baggage loss while on a trip. Credit card companies, especially the premium cards, will offer medical and accidental death coverage for a cut-rate fee, if you use their card to pay for your trip. Check your health insurance to see if it will cover medical needs when out of area. Do they cover shipboard doctors, medicine, or other medical needs while on a cruise? Will they cover you if you need to seek medical treatment during a shore excursion? Medicare and most HMOs will not cover you outside of the US, even in an emergency situation. Research the medical care offered at your destination. Many countries have socialized medicine and you may not even be charged for emergency care. On the other hand, if you need to be evacuated for adequate medical care, the expenses can mount quickly. If in doubt, contact your insurance agent and get their travel policies in writing.
Even if your medical needs and baggage loss are covered under your existing insurance policies, trip cancellation insurance is worthwhile, as cruise lines are tightening their belts and rarely reimburse uninsured passengers who must interrupt or cancel their cruises, or miss connections that cause you to arrive after the ship has embarked. Some cruise lines offer cancellation waiver insurance, which applys to cancellations made by the cruiseline at least several days prior to the scheduled start of the cruise. Even if you find your needs are covered by your existing insurance policies, we recommend purchasing a combined waiver and cancellation and interruption insurance policy to cover your cruise
Travel Insurance
When it comes to travel insurance policies, you are faced with many options. You can purchase packages or pick and choose according to your needs. Policies vary according to company, in coverage, restrictions, and in price.
Be aware that almost all travel insurance plans work by reimbursing the traveler after they have paid locally. Be prepared to pay in cash at the time of service.
Packages
Most travel insurance packages include trip cancellation, travel delay, baggage delay or loss, medical, dental, and accidental death coverage, emergency evacuation, and 24 hour traveler assistance. Your package may also include rental car collision and damage coverage, and flight insurance. Some travel insurance packages may include coverage for children, without an additional fee.
Policy Options
Trip Cancellation will reimburse passengers who are unable to travel due to the hospitalization or death of the traveler, their traveling companions or immediate family, severe weather, airline strikes, terrorism, bankruptcy, jury duty, or if their home is rendered uninhabitable due to a fire or natural disaster.
Trip Interruption will reimburse passengers who have to terminate their trip due to the death or illness of the traveler, their traveling companions or immediate family, severe weather, airline strikes, terrorism, bankruptcy, jury duty, or if their home is rendered uninhabitable due to a fire or natural disaster.
Some travel insurers are now offering comprehensive "cancel for any reason" policies. As always, read the policy carefully to be sure all contingencies are covered.
Medical/Health will reimburse the passenger for emergency medical and dental costs. Most policies obtained through cruise lines do not cover preexisting medical conditions, while others require that insurance be purchased within seven to 14 days of making the first deposit on the trip. Claims are usually paid within 7 to 10 days.
Medical Evacuation reimburses for emergency transportation to a local hospital, or in the event local facilities are inadequate, the cost of airlifting the traveler to the United States. Costs for emergency medical airlift can run into the tens of thousands of dollars. If family members are covered on the same policy they can return home also.
Accidental Death and Dismemberment coverage is divided into three parts:
- Air Flight Accident – covers death or dismemberment during an air flight only.
- Common Carrier – covers death or dismemberment while traveling on public transport.
- Accidental Death – covers death or dismemberment at any time on your trip.
Travel Delay covers the costs for a hotel, food and clothing expenses in the event of a flight delay. Some plans may also cover the cost of catching up to a cruise should the passenger miss embarkation.
Baggage Loss covers the cost of lost, stolen or damaged personal items. Some policies place limits on the type of items that can be claimed, or require you to declare them and pay a rider for jewelry, computer equipment, and other high priced items.
Rental Car covers damage or loss to a rental vehicle. If you purchase rental car insurance you should be able to decline the collision damage waiver (CDW) coverage offered by the car rental companies. You should still purchase liability coverage through the car rental company. Prior to purchasing a separate policy, check your credit card options. Credit card companies usually provide the same collision insurance if you use their card to rent a vehicle.
Travel Document Protection will help you replace a passport or other travel documents when they're lost or stolen.
Assistance Services provides a 24/7 collect call assistance service for cruise passengers.
Acts of Terrorism are covered by a clause in most basic policies, stating you will be reimbursed for costs incurred if you miss or are delayed in getting to your destination because of acts of terrorism.
Other Types of Insurance
Multi Trip Policies / Annual Insurance provides medical coverage for multiple trips throughout the year. All policies have trip length restrictions and thus are not meant for people residing outside the US, but rather for those who travel frequently. Policies are available that also include coverage for accidental death, flight, baggage, trip interruption, and evacuation.
Business Package Policies are designed for business travelers. They provide coverage for up to 30 travel days per year. Business Travel Insurance packages include trip cancellation, identity theft protection, and concierge services for the traveler, and also provide for lost business equipment and event, conference, and meeting delays and cancellations. Consider a Business package if your cruise is a work related expense or if you are an offshore corporation using cruise facilities to hold your annual stockholder meeting.
Travel Major Medical Policies are more permanent insurance that provides comprehensive medical protection including wellness care, emergency treatment, and optional prescription drug coverage for the career traveler both in and out of network. Look for policies that include coverage for accidental death and emergency medical evacuation.
Student Teacher Policies If you are a student aged 12 - 25, or a teacher, look into international travel insurance specifically for students and teachers. With some of the best bargain rates available, student/teacher policies covers baggage insurance, emergency and accident medical expenses, emergency evacuation, accidental death and dismemberment, and passport protection.
What happens if your cruise line defaults?
Even previously rock solid companies are declaring bankruptcy in our difficult economy. It is bad enough to hear your cruise has been canceled, or your cruise line has gone bankrupt – but if you have purchased insurance sold by the cruise line and not an independent company, you may find your insurance went down with your cruise and you won’t be getting your money back.
Only purchase travel insurance policies from an independent company. That way, if your cruise line stops operation, the cost of your vacation will not be lost. Some policies only cover tour operator default if the operator ceases operations entirely, which they may not do even if they file for bankruptcy.
Read the policy carefully and understand the terms prior to purchase.
