You can be reimbursed if your tour operator or cruise line goes bankrupt before your trip. You can also get coverage for cancellations on your end, caused by illness, the death of a relative, or other specific events.
If you or a family member becomes very ill or experiences an injury on your trip, most insurers will pay out the part of your vacation you were unable to enjoy.
Cancellation coverage usually costs 5 to 7% of your vacation’s price. A $5,000 vacation would cost you roughly $300 in insurance.
Trip cancellation insurance differs from the cancellation waivers many tour and cruise companies offer. These waivers are often inexpensive; they may cost $50 or so. Waivers provide trip cancellation coverage but are quite restricted. You must purchase these waivers at the time you book your trip; they usually don’t cover the time right before your departure (when most people will cancel trips) or after you begin your trip. Remember – waivers aren’t insurance policies. Cancellation waivers aren’t regulated by state insurance departments; if your cruise or tour operator has financial difficulties, you might not have any luck collecting from them.
You can get insurance coverage for your personal belongings if they’re stolen, damaged or lost on your trip. You can insure $1,000 of your personal belongings for roughly $50. Of course, rates vary according to your insurer and other factors.
Before you purchase baggage and personal effects coverage, ask your tour operator or airline how much property insurance they provide.
Also, read your renters or homeowners policy; you may already have off-premises loss or theft coverage. If someone steals your luggage, your insurer covers your replacement costs, minus your deductible.
If you travel with any expensive sports equipment, electronics, or jewelry, you may want to purchase a “floater” or an endorsement on your renters or homeowners policy. You could insure a ring worth $1,000 for roughly forty dollars a year. You would get full coverage for this ring –anywhere in the world.
Consider getting insurance for any medical assistance you require while traveling. You might need to be airlifted off of a mountain in a hiking or skiing accident. You could also be required to stay for many days at an overseas hospital. This type of insurance can even provide compensation if you’re seriously ill or become injured and must be flown back home. Remember – commercial airlines may require extremely ill passengers to fly home on stretchers with doctors in attendance. In such a case, you may need to buy ten (or even more) airplane seats at costs exceeding $10,000.
Before buying this kind of coverage, ask your health insurance company about any current protection you may have. Ask what kinds of protections you have if you’re traveling abroad; ask about any limits or caps. Find out if your insurer would pay the expenses of flying you back home (or fly you to a first-world country) for the high-quality medical care you deserve.
You can get many kinds of insurance for yourself or your family members; it’s rare, but sometimes people die on vacation. However, if you carry a high-quality life insurance policy, or have made enough financial provisions to care for your family and loved ones, you may not require this additional insurance.
Ask your credit card company about travel-related coverages and services. You may want to get travel insurance from your travel agent; however, your independent insurance agent specializes in these kinds of coverage and can help you find the best deals for your unique situation.
Be safe, and have a great trip!