There was a time when I thought that Travel Protection Insurance was just another attempt for travel agencies and tour operators to make more money. Years ago airlines had a better record of being on time and there were less disruptions in travel, making travel fairly routine with minor hiccups.
This past year has given me a new outlook on Travel Protection Insurance and I'm now pushing clients to purchase it in an effort to protect their vacation, an investment in their sanity and wellbeing. I am so adamant about Travel Protection Insurance that each client must sign a special section on our Credit Card Authorization indicating that they have been explained the costs and whether they have accepted or declined to add this to their trip.
So What Does Travel Insurance Cover? Can I Pick My Coverage?
Each policy is different and you truly have to read the policy to understand the extent of coverage and how the policy can be invoked. Some policies will cover items like luggage delays or loss to flight delays while others only protect you if you are sick or there is a death in the family. It's very important to read the policy prior to purchasing the insurance -- ask for it and I'll quickly email you a copy.
You can purchase Travel Protection Insurance to cover just about any travel hiccup out there and some policies now allow you to cancel for any reason which I'll discuss later.
When you purchase insurance for a particular product, such as airfare and hotels, the insurance will cover you for only those items purchased through a travel agent or tour operator. If you purchase a tour and accept the insurance but you've decided to purchase your airfare yourself ... the insurance will not cover your airfare purcahsed separately.
Most basic Travel Protection Policies will cover your vacation package should there be a documented medical emergency with you, a traveling companion or someone in your immediate family as well as death among any of those people. The key here is that a medical doctor must document the emergency and you must prove the relationship if the member is not traveling... it will be quite difficult to forge a relationship or emergency and the insurance company will investigate before paying out a claim.
If you need to use your Travel Protection Insurance you simply file a claim with the insurance company with the required documentation -- and don't show up for your trip. You would think that you should inform me so I can notify the airlines, hotels and car rental agencies but you've already paid for those services and cannot cancel them -- the insurance will simply reimburse you for the package.
I once had a group of travelers from Chicago where the father was sick and they were trying to get everyone to Ireland on a chauffeur tour. The trip was planned and paid for and shortly after the family informed me that the father was denied travel by his doctor. Since the trip is pre-planned and non-refundable (as most are), the family could cancel because he was unable to go or they could go without him and his portion would be reimbursed by the insurance company. The latter was the course of action. They went on their trip and when they returned they filed an insurance claim for reimbursement.
What About Pre-Existing Conditions?
Insurance policies are completely different so each policy should be read carefully.
Most insurance policies cover pre-existing conditions if you purchase the insurance at the time of booking. After all, who would purchase an expensive vacation when they knew they couldn't take it, right?
If you purchase insurance after booking your vacation, then pre-existing conditions will not allow you to invoke the policy when needed. Suppose you purchased a trip and then found out you couldn't go due to medical reasons ... and then purchased a trip to get your money back? The odds aren't so good for the insurance company, are they? Trust me, they will require documents to establish date of diagnosis to determine if you file a claim.
Some policies purchased online (see below) will give you a grace period of a few days to purchase all of your travel pieces and then cover them under one umbrella policy -- so the pre-existing condition will be considered if the policy is purchased within that window.
For example, Policy A may require that you purchase insurance within 7-days of purchasing your travel. If you purchase your airfare on Monday... and then you purchase hotels over the next few days and a car rental on Saturday. If you purchase your Travel Protection Insurance on the following Monday then it will cover pre-existing conditions. If you purchase it on the following Tuesday (Day #8) then pre-existing conditions will not be covered.
Tour Operator vs. Purchase My Own Travel Protection Policy
When you purchase a tour or complete package, the tour operator typically offers an insurance policy to cover all items purchased in that one reservation. These policies are actually quite convenient and their coverage is fairly good ... but you're not required to purchase the insurance.
You may go online or use your favorite company to purchase insurance. You'll need a copy of your confirmation and costs to select the appropriate amount of coverage.
Can I Compare Travel Protection Policies?
One of my clients sent me this site:
Insure My Trip Travel Protection Comparison
It allows you to select the amount of coverage as well as the type and then it aggregates the policies so you can view each one online, ensuring you choose the right coverage for your trip.
The Travel Lite policy appears to be quite popular and I actually had a client who had to file a minor claim, with my help. Their flight was routed from Shannon to Dublin due to weather and they were bused 4 hours back to Shannon. They arrived the same day but the delay getting back to Shannon for their car rental afforded them a $200+ refund per person, a percentage of their total per person cost!
"Cancel For Any Reason" Insurance Policies
The newest policy to enter the arena in Travel Protection Insurance is the "cancel for any reason" which allows you to do just that... with restrictions.
You can cancel your trip anytime until a few days prior to your vacation and you don't need a reason! You won't receive a refund when you cancel your vacation but rather a credit (voucher) for the value of your package which must be redeemed within a certain amount of time.
This is where things become a bit murky -- one particular policy required the traveler to redeem their vacation, and travel, by the date when the package was originally booked. Ok, so if a client books a trip in April for travel in October ... and they cancel the trip in September, they must rebook their trip and travel before April of the following year.
After the "Cancel for any reason" period passes (typically 72-hours prior to departure), then the second portion of the insurance policy kicks in and you must have a medical emergency or death in the family. At that point you will receive a refund for your trip, minus the insurance premium of course.
Just Consider It Required
When traveling these days I consider Travel Protection Insurance a required part of my package because my vacation is an investment to me. Where American Airlines grounded many of their flights due to maintenance issues -- travel insurance would have protected those passengers. When bad weather, delays and cancellations wreak travel on vacation plans, insurance will help recover money. Although it cannot alleviate the headaches of travel, it can protect the price you paid for it, your investment in your own sanity.
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