The Importance of Travel Insurance

You love to travel, or you would probably not be reading our travel blog.  When you book a vacation, you’re not just buying travel, you’re buying memories.  But even the best-planned trip can incur unforeseen issues.  I would never travel without travel insurance.  Travel insurance should really be thought of more as travel protection, because it includes so much more than just trip cancellation insurance.

Did you know that when you travel out of the country, your medical insurance may not cover you?  Did you know that if you obtain your travel insurance from the provider (i.e., buying the cruise line’s insurance protection plan) you will not have financial default coverage if that provider goes out of business before your trip?

Some common misconceptions about travel insurance:

Misconception 1: 78% don’t buy travel insurance because they think they do not need it.   However, the US State Department reports that 310,000 passports were lost and stolen abroad last year and the Air Transport Industry Baggage Report indicated that 25 million bags are mishandled every year.  Travel insurance and travel assistance can help consumers with these common mishaps.

Misconception 2: Many travelers think travel insurance coverage is mainly for overseas medical emergencies only.   However, nearly half of travel insurance purchasers (48%) bought travel insurance for travel inside the Continental U.S.  More than half of purchasers (55%) buy travel insurance for all or most trips and nearly a third (31%) buy for some trips.

Most good travel insurance policies provide:

  • Coverage for trip cancellation/interruption due to sickness, injury, or death
  • Coverage for trip cancellation/interruption due to per-existing medical conditions, if policy purchased within 15 days (time period depends on provider)
  • Coverage for trip cancellation/interruption due to cessation of services of a common carrier due to an unannounced strike, mechanical breakdown, or bad weather
  • Trip cancellation for involuntary termination of your employment, if been with employer for 1 year  (time period depends on provider)
  • Coverage for trip cancellation due to residence, workplace, or destination made uninhabitable by fire, flood, or natural disaster
  • Protection against default, bankruptcy, or financial insolvency of your travel supplier, cruise line, or tour operator
  • Coverage for baggage delay beginning at 12 hours  (time period depends on provider)
  • Coverage for travel delay due to sickness, injury, common carrier delay, quarantine, hijacking, strike, natural disaster, terrorism, riot, lost/stolen passports or travel documents
  • Optional “cancel for any reason” that pays up to 100% cash back depending on what cancellation penalty level you would be facing from the travel provider
  • Coverage for hurricane warning coverage for trip cancellation
  • Coverage for pandemics and epidemics (e.g. H1N1)
  • Coverage for trip cancellation due to revocation of previously approved time off work
  • Coverage for revocation of previously approved military leave due to war
  • Coverage for missed connections
  • Coverage for non-medical emergency evacuations due to political unrest, natural disasters (e.g, recent incidents in Egypt, New Zealand)
  • Coverage for terrorism, hijackings, quarantines, jury duty
  • No deductibles
  • Coverage for airline cancellation fees
  • 24/7 Worldwide customer service help line for medical, legal, or other emergency assistance
  • Some policies include (or available as an add-on) business-related coverage, which enhances your trip cancellation coverage by adding work-related covered reasons including Required to Work.
  • Many travel insurance providers offer a free “10 day look” which allows you to obtain a refund of your insurance premium if you have not filed a claim or departed on your trip

Contact Island Time Travel or click here to discuss your insurance needs and to get a quote.

Related: REDjet Airlines Grounded Due to Financial Problems
Related: Cruise Lines Imposing Stiffer Cancellation Penalties
Related: Police investigate two separate deaths on cruise ship
Also see: The Value of Travel Insurance–It’s a Must Have


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