Archive
Subscribe
Weather
 |
|
 |
|
You and Your
Money: Are you really insured to travel? |
Weather delays, terrorism
scares and general overcrowding in the skies have lead to plenty of
frightening travel news. If you’ve ever been stuck on the airport
runway for hours or had a flight canceled on the way to a brief but
desperately needed vacation, you’ve probably faced the irritating
possibility of losing hundreds or thousands of dollars of your
hard-earned vacation savings.
So you’ll just insure the trip and there will be no problem, right?
In the majority of cases, you’d be wrong.
Most people perceive that the purchase of travel insurance will
protect everything from lost luggage to unforeseen medical bills —
but that’s rarely true anymore. So, when shopping for travel
insurance, it’s time to understand what you’re really buying. Some
important things to check before you buy:
Start at least a month in advance: Most people make major trip
reservations fairly far in advance to get the best fares and you
need to do the same for travel insurance. Book early and you’ll get
the best coverage and rates. You’ll find that carriers are
particularly picky about pre-existing conditions for medical or
dental treatments, so read the fine print.
There’s no such thing as full coverage unless you’re willing
to pay for it: What’s full coverage? That’s a good question, and it
sometimes depends on dozens of factors unique to your trip. Your
carrier might not offer protection on your chosen airline or cruise
line. You’ll find that terrorism insurance is rare and complicated.
And you have to examine medical insurance options closely to
understand exactly what is covered. The rare “full” coverage — for
trip cancellations, lost luggage, delays that leave you stranded,
flight accidents, emergency medical and medical evacuations — is
typically priced in the hundreds of dollars and may only cover up to
75 percent of the total cost of your trip.
Start online: If you really want an eye-opening experience in
buying travel coverage, go to some of the leading Web sites that
deal in single or multiple-insurer offerings. InsureMyTrip.com is a
market leader and a good first stop in analyzing coverage. Punch in
the necessary information on your trip (dates, age of travelers,
medical coverage needed, etc.) and it spits back more than a dozen
possibilities at all price levels. Clicking on any of the choices
will give you a detailed view of what those policies will and won’t
cover.
Check with your credit card company: It’s time your credit card
company earned its money. Call customer service and find out what
kind of travel protection they offer automatically or by fee. You
may end up saving money. Or, if you travel often enough, you may
want to go with a particular card company that provides better
travel coverage. But even for cards that tout their travel benefits,
it’s critical you investigate exactly what their insurance covers
relative to where you want to go. Take the time to make them explain
the coverage to you.
Call your HR department or health insurer: Your health benefits may
not cross state or country lines. Before you take any trip, check to
see if your employer’s or your own personal health coverage will be
effective there. An emergency room visit can cost at least several
hundred dollars and a short hospital stay can cost thousands more.
You might be interested in travel insurance if you find your own
domestic insurer won’t pay claims in certain parts of the country
where you’re going.
Ask about hurricane coverage: The 2007 Atlantic hurricane season
begins June 1 and runs through Nov. 30. Even if you don’t live in a
hurricane area, severe hurricanes can disrupt flights all across the
nation, which may lead to a delay of your trip here or abroad. Ask
whether your travel insurance has hurricane coverage and what it
entails.
If you’re stuck, never be afraid to ask for a break: If you’re
sidetracked as the result of a major disaster (weather-related or
otherwise), always ask if your airline, hotel or other providers
might be willing to give you a credit or discount on your bill. It’s
rare, but some destinations might see it as a chance to build
goodwill. Ask nicely — the worst they can do is say no.
This column is produced by the
Financial Planning Association. |
|
From
May 30, 2007,
Newberg Graphic
Click Here to Subscribe |
|
|
|
 |
|
