These pointers can help you find the best travel insurance policy to protect your family trip investment in case the unexpected occurs
A travel insurance policy is more important than ever – whether you’re planning an international trip, renting a beachfront vacation home or taking a cruise. The travel landscape is constantly shifting in today’s environment and the financial risks involved can be considerable. Insurance can protect the investment you make in your family’s trip, providing valuable peace of mind as situations change.
In fact, insurance can also reimburse vacationers for covered losses such as unexpected illnesses, cancellations, flight delays and lost baggage. It also may cover emergency evacuations, travel interruptions, and medical expenses due to accidents or injuries. Some international destinations also require proof of your travel insurance policy for entry. Therefore, it’s crucial to understand the coverages and exclusions in every travel insurance policy.
Here are 11 essential tips when budgeting for your next family trip and considering insurance:
1. Verify Your Existing Insurance Policy Coverage
Review your existing plans before purchasing a travel insurance policy to see what kinds of coverage you already have. Check your personal and family health insurance, car insurance, club memberships and credit card programs. See what types of travel insurance coverage are provided, if any. Look for potential gaps in policies, particularly concerning who and what is covered under your existing insurance plans. If you’re traveling internationally, determine whether your policies will cover medical expenses and other issues occurring outside of the United States.
2. Determine What Type of Coverage Your Family Trip Needs
Family trips aren’t all the same – and neither are the diverse types of travel insurance. Insurance can be expensive, often costing 5% to 10% of the total trip price. If you’re planning a low-cost domestic roa trip to visit friends, travel insurance may not be worth the price. An annual travel insurance policy may make sense for families taking lots of short domestic trips each year. Alternatively, international vacations with substantial prepaid, non-refundable expenses and potential medical liabilities might require a more comprehensive insurance policy. A good travel agent or travel advisor can help you decide what kind of insurance policy is right for your family trip.
Purchasing an insurance policy for your family trip is a smart idea. Courtesy of Pixabay
3. Buy Travel Insurance Promptly For Added Benefits
Purchasing travel insurance for your family trip within 10-15 days of making your first payment can offer added coverage for pre-existing conditions and other issues. In addition, timely purchasing can also provide full cancellation benefits in case something comes up after your first payment has been made. It’s vital to carefully understand the potential benefits offered by your travel insurance policy. If you’re considering coverage, such as Cancel for Any Reason (CFAR) insurance, it’s also essential to purchase your policy soon after booking.
4. Strongly Consider ‘Cancel for Any Reason’ Insurance
Travel insurance generally does not cover family trip cancellations due to uncertainties. These include border closures, demonstrations or civil strife, unfavorable weather forecasts, or concerns that cruise or tour itineraries might change. These issues typically would only be covered by Cancel for Any Reason (CFAR) policies. A Cancel for Any Reason insurance policy can provide varying amounts of money back, generally up to as much as 50-75% of your trip cost. This is available if you decide to change your plans at least 2-3 days before departure.
Even more, CFAR policies are significantly more expensive, but they can sometimes be worth the cost. Here again, the timing of your insurance policy purchase is important. Purchase deadlines vary, but CFAR insurance riders often must be purchased within 14-21 days of your first travel booking. These riders typically cannot be added to an existing trip insurance policy at a later date. In addition, all non-refundable prepaid trip expenses must be fully insured under these policies. Check with travel insurance companies to understand the rules and potential benefits associated with CFAR insurance.
CFAR insurance policy mitigates cancellation issues. Courtesy of Pexels/Kindel Media
5. Shop Around For the Right Insurance Policy
Insurance plans and costs vary significantly, so it’s essential to research different options and carefully compare them with your specific needs. Look at leading travel insurer websites such as Travel Guard, Allianz and others. Trip insurance plans from a wide variety of companies can also be compared and purchased on sites such as InsureMyTrip.com, TravelInsurance.com and SquareMouth.com. Additionally, having a good travel advisor on your side can help as well.
6. Clearly Understand What Each Plan Covers
When purchasing an insurance policy for your trip, it’s crucial to understand exactly what is covered. Trip insurance policies can be confusing, so don’t assume anything. Review the entire policy carefully, always read the fine print and talk with a travel insurance agent before purchasing.
If you have questions about what is covered under the policies you are considering, call the travel insurance issuer directly. You should review the policy coverages and exclusions with them before making any purchases. In addition, InsureMyTrip.com and SquareMouth.com provide recommendation tools and information for finding and evaluating insurance plans with pandemic-related protections.
7. Find Out If Certain Family Trip Activities Are Excluded
Family vacationers often enjoy adventurous excursions on their trips. Glacier hikes in Alaska, parasailing at the beach, scuba diving in the Caribbean and whitewater rafting near Yellowstone National Park are some examples. Insurance companies may categorize these activities as “extreme sports” or “adventure travel.” In that case, any injuries occurring while taking part in these “extreme sports” activities might not be covered in these cases. SquareMouth.com provides a convenient form to help travel insurance shoppers identify an insurance policy that offers coverage for sports and adventure activities.
Choose an insurance policy that covers “extreme sports” family trip activities like scuba diving. Courtesy of Pexels/Richard Segal
8. Check International Destination Requirements in Your Travel Insurance Policy
Some foreign countries now have mandatory travel insurance requirements for entry. This has become more common due to the COVID-19 pandemic. Arriving travelers must show that they have travel medical insurance that covers specific COVID-19 costs related to hospitalization, doctors’ visits, prescriptions, and air ambulance transportation if needed. Sometimes a set amount of insurance must be purchased directly from the country’s government prior to entry. Other countries allow travelers to buy their insurance independently as long as they can show proof of a policy with the required dollar amount of coverage.
9. Make Sure Your Entire Family Trip Is Protected
Families may purchase travel insurance independently or as part of a vacation or cruise package. It’s crucial to ensure that your family trip is fully protected from the time of departure through the date you return home – not just when you arrive at your destination. Consider the following scenarios:
- You’re buying travel insurance as part of a land vacation or cruise package, so make sure that the insurance policy covers all flights, car rentals and transportation to/from your home
- Your travel advisor is handling all of your arrangements, thus your agent should be able to wrap the entire purchase into your insurance policy
- You are purchasing the airline tickets on your own, but remember that you may need to buy a travel insurance policy independently to cover your flights
10. Purchase A Travel Insurance Policy Before Hazardous Weather Develops
When hurricanes and other storm warnings appear, travelers often start thinking about canceling their vacation plans and begin inquiring about travel insurance. A travel insurance policy only protects against “unforeseen” circumstances, however. Once a hurricane or severe storm develops, it is no longer unforeseen – and new travel insurance offering hurricane protection coverage will not protect against it.
Vacationers already holding travel insurance policies may be covered if hazardous weather develops. However, it’s important to note that not all policies cover hurricanes, tropical storms, snowstorms and other weather issues. Some will only cover hurricane-related claims that occur 14 days after travel insurance is purchased. Other policies have precise language defining when hurricane coverage is applicable as well. Research several travel insurance policies and read the fine print carefully. This will ensure you see what will be covered if a hurricane or severe weather situation develops.
Hazardous weather can ruin a family trip, but the right insurance policy may help. Photo courtesy of Pixels/Raychel Sanner
11. Update Your Insurance Policy If Your Family Trip Plans Change
Once you’ve purchased your travel insurance policy, it’s critical to alert your provider if your travel plans need to be rescheduled. Your insurance plan will need to be modified if you alter your travel dates, the price of your trip, the age and number of people traveling with you, your state of residence and other aspects of your vacation. Some insurance companies have mobile apps that make it easy to manage your travel plans, claims and any issues that may arise. Get in touch with your travel insurance provider or your travel advisor for more details.
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By Nancy Schretter, Contributing Editor
