Is Peace Of Mind Is Worth A Extra Bucks?
Let’s face it.. no one wants to buy insurance.. but since things outside your control can turn a dream vacation into a pipe dream, it’s well worth the few extra bucks to protect your travel investment. I want to give you a quick overview of what trip insurance is, how it’s priced out, and how we recommend you purchase it.
First - what is travel insurance? There are generally two levels of coverage:
Standard coverage - covers a multitude of issues outside your control that prevent you from going on your trip, like weather delays, illness or a job loss...
as well as things that could arise arise while you’re away, like breaking a leg, losing your medications or glasses, or a weather-related evacuation. Standard protection reimburses you the full cost of the trip, if something outside your control prevents you from getting away. The other level of protection is the coverage above, plus what's typically called, “Cancel Anytime”. This plan gives you the added freedom of canceling for reasons within your control, but pays out at 80% of the trip cost, vs. 100%. A "cancel anytime" policy may cost as much as 50% more than a typical policy, and only a small percentage of travelers opt for it.
How is it priced?
Travel insurance pricing is based on two things - the cost of trip and your age. It’s typically equal to a small % of the cost of the trip. Totally worth the added cost.
How should you purchase it?
We recommend buying your trip insurance through a third party like our partner, Allianz, instead of buying the cruise line or tour operator’s coverage, and here’s why:
If you buy it directly from a cruise line or tour operator, for instance, the policy will cover your cruise or tour, but will not reimburse you for your airfare, hotel nights or other trip-related expenses you book separately. You want to protect your WHOLE trip, not just the tour or cruise. A third party insurer will allow you to include all the cost elements of your trip, in case you need to file a claim.
One quick example of why trip insurance is worth it:
An East Coast client booked a luxury cruise from Vancouver to San Francisco, and added an extra full travel day to get from Maryland to the port. Their initial flight out of BWI was canceled due to a mechanical issue, so they booked another flight that connected through Minneapolis. Unfortunately, severe summer storms in the Midwest shut down all air travel to the West Coast. They never made it to the ship. Had they not purchased trip insurance, they would have lost the total cost of the trip, which was well over $20,000. Allianz paid their claim promptly, and they were free to take another vacation shortly after their cruise would have ended.
If you have questions about travel protection, let us know. Thank you!