Adding travel insurance to your vacation is a way of protecting your investment. This is why it is an important consideration when planning your next vacation. With travel insurance, the price of your vacation can be refunded (less the cost of the insurance) should any unforeseen circumstances arise.
To find the right travel insurance for your vacation, knowing your options is essential. Below are some points to consider that will help you choose the right travel insurance for your next vacation.
Types of Travel Insurance
The first type is a true comprehensive insurance product that covers cancellations prior to departure as well as for circumstances during your trip. This insurance can be purchased from your travel agent, directly from an insurance company or from the tour company or cruise line when you book your trip.
The second type is called a penalty waiver and is technically not insurance. With a penalty waiver, the cancellation fees charged by the tour operator or cruise line are waived should you need to cancel. Waivers are offered by travel agents and tour operators.
Types of Coverage
Comprehensive travel insurance covers much more than a penalty waiver. The coverage includes cancellation, trip interruption, baggage loss, theft and emergency medical coverage. It also offers added benefits such as 24-hour emergency assistance and coverage due to bankruptcy of the airline, cruise line or tour operator.
Cancellation reasons that are covered are medical in nature due to illness or injury of either you, an immediate family member or a traveling companion. Some other unforeseen circumstances for cancellation may be considered and is dependent on the type and amount of coverage you choose.
If the comprehensive travel insurance is purchased at time of booking or within a week or two of booking, most insurers will waive any preexisting conditions. This insurance is ideal for seniors as it includes medical insurance that covers them outside of the United States, a coverage not included by Medicare and many other stateside medical insurance companies.
Penalty waivers are primarily used to cover cancellations prior to departure. Should you need to cancel your trip, the penalties that you would normally be charged will be waived. An added bonus is that penalty waivers allow for cancellations that are not medical in nature and can be for any reason. Some cancellation penalty waivers additionally include price protection and hurricane guarantees.
Typical Costs
Comprehensive travel insurance usually costs about 7% of the total trip price. This cost is generally higher than a cancellation waiver as it covers more and takes the age of the travelers into consideration. (For example, an 75 year old would be charged more than a 25 year old due to a higher chance of illness or injury.)
Cancellation penalty waiver costs depend on the length of your trip and can vary between tour operators. Waivers can offer different levels of coverage at corresponding price levels. Prices generally start from $29.99 and can run up to $159.00 per person.
Know Your Bottom Line
Make sure that you thoroughly read and understand your travel insurance or penalty waiver policy before purchasing. If you have questions, ask your travel agent or the insurance company for details.
To learn more about travel insurance/waivers for your next vacation, contact me at divalisatravel@gmail.com!! ~ Lisa :)
No comments:
Post a Comment