Travel Insurance

There is varying advise on whether or not to purchase coverage: some consumer advocate groups say no, some newspaper columnists have advised against it while others have written articles advocating such coverage. What is a consumer to think? The answer is – believe it or not – convoluted and highly depended upon your unique situation. Hence the U-factor dominates the balance between risk, benefit, and cost.

Dominick A. Leone

Trip or “Travel Insurance” covers a broad spectrum of coverage and policies. Most Travel Insurance is offered in packages, but can often be purchased a la carte. The following is a list of coverages available:

• Medical
• Evacuation
• Travel Cancellation
• Travel Interuption
• Flight Insurance
• Rental Car Insurance
• Baggage Insurance

Dominick A. Leone

Medical covers you when you if your medical insurance doesn't cover you in a foreign country for local physicians or hospital costs. Some medical policies will also cover medical evacuation. Be careful, most travel insurance companies preface this with the condition that you are in a place without "adequate facilities".

Travel cancellation or interruption covers you when certain evens force you to cancel or postpone your trip due to causes outside of your control.
EXAMPLES: A storm closes the hotel where you were staying; your sick mother requires your care; The airline on which you were traveling goes bankrupt.

Flight insurance is simply accidental death coverage.

Rental car insurance can provide everything from comprehensive and collision to increased liability insurance on the rental car you are driving.

Baggage insurance provides for the replacement of your luggage and its contents in the case of loss or damage.

RISK
The primary risk is being stuck with unforeseen costs, including replacement of baggage, unusable tickets, hotel costs, rental car repairs, medical care and/or evacuation.

Imagine you, or your love one, become ill before your big vacation. You may find yourself out the cost of the plane tickets. If you reck a rental car, get ready to fork out more than just the cost to repair the rental: regardless of your personal insurance deductible you may be charged rental fees while the vehicle is being repaired in addition to towing and storage fees.

Dominick A. Leone
BENEFITS
Two words describe the main benefit of travel insurance: Cost Control. In the case of loss, you will be buffered from unforeseen costs. You can predict them and budget for the cost of coverage.


Dominick A. Leone
COST
The premiums vary, with those offered by major credit cards like American Express being among the lowest. Several companies offer coverage:

• AIG Travel Guard
• Access America
• TruTravel Insurance
• Travelex Insurance Services
• Travel Safe Insurance

Dominick A. Leone
U-Factors
Does your credit card offer automatic coverage? Check your card policy's terms and conditions for limitations and conditions such as deductibles. Some credit cards require you to activate coverage before a loss occurs, and may charge you a premium for using them.

Does your medical insurance cover you abroad? Ask your insurance company representative. Do you have pre-existing medical conditions? Some travel insurance only charges a pre-existing condition fee, but will still cover you.

What is going on in your life? Do you have any reason that might "pop up" and cause you to cancel your trip? Where are you going? How much can you afford to lose?

As always, the decision is yours, and the final question is: Is it worth IT to YOU.