Read Fine Print on Insurance Policies
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As if the world of travel insurance weren’t confusing enough already, the events of Sept. 11 have made it more so. It’s more important than ever to read a policy’s fine print.
Some things have not changed, however. If you’re in good health and taking a modestly priced trip within the U.S., you probably don’t need travel insurance. Definitions of “moderately priced” will differ, of course. To determine your comfort level, ask yourself how much you can afford to lose without causing significant financial pain and how much risk you’re willing to take. Balance that against the insurance premium, typically 4% to 8% of the trip cost, depending on the type of coverage.
On the other hand, if you’re investing several thousand dollars in a cruise or group tour that requires you to make substantial deposits and imposes heavy penalties for late cancellations, insurance may be a good idea.
Among the types of travel insurance are trip interruption/cancellation, medical (covering emergency transport or medical care or both) and packages that combine both types, along with provisions for lost baggage.
Trip cancellation/interruption insurance is designed to cover losses if certain types of emergencies force you to cancel a trip or cut it short. Such emergencies may include a serious injury or illness for you or your family, a natural disaster, being called for jury duty, a labor strike or an array of other circumstances, depending on the policy.
If your employer changes your schedule and requires you to work when you were expecting to vacation, however, you’re generally out of luck with such policies. Coverage also varies for terrorist incidents; some policies cover them only abroad, some since Sept. 11, in the U.S.
Many trip-cancellation policies used to pay if your tour operator or cruise line went out of business, a so-called financial default clause. But since Sept. 11 and the travel industry financial problems that followed, some have eliminated such coverage or limited it to certain companies.
More cruise lines have begun selling “cancel for any reason” waiver programs, some of which allow you to cancel as late as the day of departure. Such programs typically do not pay if the cruise company goes out of business or files for bankruptcy. But they can be useful if you think your travel plans may be in flux.
A useful Internet site for comparing some of the major insurance plans is
Some of the major companies selling travel insurance:
Access America: (866) 807-3982
CSA Travel Protection: (800) 873-9855
Globalcare Insurance Services Inc.: (800) 821-2488
International S.O.S. Assistance: (800) 523-8930
MEDICAL COVERAGE
Travel Insurance Services: (800) 937-1387
Travelex Insurance Services: (800) 228-9792
Travel Guard International: (800) 826-1300
Travel Insured International: (800) 243-3174
Tripguard Plus: (800) 423-3632
Travel Assistance International: sold through Specialty Risk International (800) 821-2828
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