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Friday, May 18, 2012

Vacation Insurance... Saves Your Money, Time And Frustrations!

Don't forget your vacation insurance before you take off for any travel.

I am very serious when it comes to insurance, I do not want to take any chances, I grew up in a family with my mother as a sole bread winner, my Dad passed away when I was 10 years old without any insurance. Life was very very difficult then.

So the same goes with vacation insurance too!

It can cost you an extra few thousands of dollars if the cruise or tour operator goes bankrupt, or if you need to shorten your vacation due to sickness or injury.

Quick Tip

The biggest myth would be that your normal health insurance covers you when you are away, or that since many travelers visit an area or region, access to medical care is easy or affordable.

Here's a quick guide to understanding what a good vacation insurance should cover for any travel.

1. Travel Curtailment

If you or an immediate family member becomes seriously ill or is injured during the vacation most vacation insurance companies would reimburse you for the unused portion of the vacation.

2. Travel Cancellation

You would be reimbursed if the cruise line or tour operator goes out of business. It would also reimburse you if you have to cancel the vacation due to sickness, a death in the family or other calamity listed in the insurance policy.

Travel cancellation is very different from a Cancellation Waiver that many cruise and tour operators offer. Waivers are relatively inexpensive. They provide coverage if you have to cancel the trip, but they have many restrictions.

They must be purchased when you book the trip and will usually not cover you immediately before departure. Most importantly, waiver is not insurance.

2. Personal liability

Personal Liability is important in case of legal liability, arising out of one's negligence in causing a third party injury (or death) and/or third party property damage.

Some traveler insurance companies even insure against the loss or theft of golfing equipment and laptops.

3. Luggage/Baggage/Flight Delay

This feature comes along with a "Time" excess, meaning that the traveler insurance companies only compensate when the delay exceeds a certain time frame. The limit for loss of luggage/baggage/flight varies, usually with a cap for individual items.

4. Emergency & Medical Assistance and Information Service

Look for those 24-hour services that offer information on visa requirements, foreign exchange, weather forecasts and medical advice et cetera.

Emergency evacuation is very helpful indeed for inexperienced travelers or travelers with medical conditions or for those who are traveling to more remote and less traveled places.

These service centers may also offer emergency assistance in the form of embassy, legal, interpreter and medical referrals.

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