When to Buy Travel Insurance for Trip Coverage
The decision to buy travel insurance can be a smart investment for savvy travelers. It can remove risk and protects the oftentimes substantial outlay of prepaid cash payments for an expensive family vacation. But before buying trip travel insurance products it is important to know what circumstances warrant having it, what travel insurance covers and where to get the best coverage at a fair price.
Trip Travel Insurance for Cancellations and Interruptions
Trip travel insurance coverage is aimed at guarding against substantial financial loss associated with having planned travel canceled, delayed or interrupted. Vacation plans sometimes have to be canceled by those planning to travel due to unexpected personal circumstances like last-minute illnesses, family emergencies, work-related contingencies and the like, visit here: https://misshuan.tw/air-gene-2020-1230/.
Travel plans can also be upset as a result of a travel provider going bankrupt or otherwise ceasing business operations. In addition, circumstances like terrorist attacks, natural disasters (e.g., earthquakes, volcanic eruptions, flood) and weather-related circumstances like hurricanes can force vacation plans to be put on hold.
Per trip travel insurance for trip cancellation-interruption, according to the U.S. Travel Insurance Association’s “Travel Market Survey for 2006 – 2008” (USTIA press release: 22 June 2009), represented 90 percent of all travel insurance purchased by the 120 million American travelers purchasing travel coverage during the period of the survey.
Trip Cancellation-Interruption Insurance Coverage
According to, “Trip Cancellation Insurance” (Travel Insured.com. 12 August 2010), trip cancellation coverage protects against the loss of prepaid travel expenditures when a traveler must cancel a trip due to an acceptable, covered reason like:
- illness of the traveler or travel companion(s)
- serious illness of a family member or death in the family
- inclement weather at travel destination that precludes travel
- a traveler being summoned for jury duty or to testify in court
- terrorist acts at travel destination or point of departure preclude travel
- emergencies like automobile accidents, bad weather, labor strikes and the like that prevent a traveler or travel companion(s) from making a scheduled departure
- death or hospitalization of a destination host
- natural disasters that make a destination hotel uninhabitable.
Coverage is also available under these policies for cancellations due to bankruptcy and other unforeseeable circumstances that render a travel provider unable to fulfill a contractual obligation, forcing a cancellation.
Travel trip insurance for travel cancellations typically reimburses for any cancellation penalties incurred, due to covered contingencies, up to the full prepaid cost of the trip. For travel interruptions that occur for covered reasons, the policies provide reimbursement for the portion of the travel that was not completed.
When Travel Insurance Makes Good Sense
It is impossible to predict the future with certainty so for peace of mind travel insurance can make good financial sense. For prepaid domestic family vacations where only a couple of thousand dollars are at risk, travel insurance is probably a unnecessary expense. However, for expensive, once-in-a-lifetime trips costing many thousands of dollars, travel insurance protection can be quite cheap in comparison to what a traveler stands to lose.
By way of an example, the official Celebrity Cruise Line’s “Cruise/Cruise tour Ticket Contract” (Celebrity Cruises.com: 13 August 2010) states that in the event of cancellations by passengers 14 days or less before a sailing results in “no refund less taxes and fees.” The contract also states that Celebrity “may for any reason at any time and without prior notice, cancel, advance, postpone or deviate from any scheduled sailing, port of call, destination, lodging or any activity on or off the Vessel…and shall not be liable for any claim whatsoever by Passenger, including but not limited to loss, compensation or refund, by reason of such cancellation, advancement, postponement, substitution or deviation.”
Thus for people that have paid thousands of dollars upfront for an expensive family cruise vacation, having trip cancellation insurance can prevent a financial disaster. In the event an illness or other family emergency arises at the last minute that prevents them from traveling, the disappointment of a missed vacation will not be further compounded by a huge financial loss.
Direct Travel Insurance
Travel insurance coverage is available from a number of different sources. To get the best protection however, travelers should purchase it directly from the insurer. While coverage is often offered by individual travel providers like airlines and cruise ship lines, if the travel provider should go bankrupt before the scheduled vacation, chances are the insurance would also become worthless. For this reason buying direct travel insurance is the wisest decision. There are numerous sites on the Web to get a travel insurance quote on policies sold directly to the consumer. Also there are many sites that provide reviews and comparisons of what is available that will aid in making the most informed choice.
While not always necessary, travel insurance can be a good financial hedge against losing a complete prepaid vacation investment for consumers who find themselves in the categories that make it a wise decision. It is important to read the fine print to know exactly what is covered. It is also a good idea according to the U.S. Travel Insurance Association (“USTIA Press.” USTIA.org. 13 August 2010) to check with a local Better Business Bureau to make certain that any travel insurance company being considered is a member of the association. USTIA requires member companies to meet high standards and high ethics in their dealings with consumers.