How does trip cancellation and interruption coverage work?
It reimburses for forfeited, non-refundable, unused payments or deposits if the traveler must cancel or interrupt their trip due to a covered reason. These could include non-refundable housing rental costs, airline fares, or other tickets.
How much does travel insurance cost?
The cost of travel insurance is based, in most cases, on the value of the trip and the age of the traveler. Typically, the cost is five to seven percent of the trip cost.
What happens if a traveler must cancel their vacation?
Often a traveler will lose non-refundable deposits and prepayments that can add up to hundreds, or even thousands, of dollars. A comprehensive travel insurance plan through can provide trip cancellation coverage for the traveler’s vacation
What other coverage is typically included in a travel insurance plan?
In addition to trip cancellation and interruption, the more comprehensive travel insurance plans available today may also cover emergency medical expenses, including emergency medical transportation, when ordered by a doctor, to the nearest adequate medical facility, reimbursement for accommodations and expenses.
Are travel insurance plans tailored to specific types of travel?
Yes. Various carriers offer travel insurance plans for an array of budgets, from modest trips to high-end luxury vacations. There are also products for last-minute getaways and extended trips, and specific coverage plans for cruise travelers, golf travelers, students, and sports travel.
Does travel insurance cover terrorism?
Many travel insurance policies do not cover terrorism, or only cover terrorist acts that occur on foreign soil. Check the specific terms and conditions of the various policies available.
Is the financial default of an airline, cruise line or tour operator covered?
Many retail insurance programs include financial default coverage if the program is purchased within 15 days of making the initial trip deposit.
What else is offered with the purchase of a travel insurance plan?
To boost travelers’ confidence when traveling, carriers have added Travel Assistance programs, which provide 24-hour, “911” emergency travel agency-type services to all standard retail plans, in case a traveler has to change a flight or a hotel room. Assistance may also be provided for emergency cash transfers, pre-trip consultation services (travel advisories, passport requirements, inoculation information, etc.), and live messaging, which will relay any e-mail or phone message to family, friends or business associates. Check your specific policy to learn the specific additional services.
Why should a traveler buy travel insurance?
Travel insurance gives travelers coverage for unforeseen problems, from a canceled flight to a serious illness, or in rare cases, even an act of terrorism or the financial default of a travel supplier. If an illness, accident, or other covered unforeseen circumstance forces a traveler to cancel or interrupt their plans, they face two major financial losses, money invested in non-refundable pre-payments, and medical expenses that in many instances may not be covered by health insurance.