Two recent articles brought trip insurance to the forefront again. So should you buy trip insurance, and if so, when and how.
The first article: From the New York Times. A couple purchased trip insurance through their cruise ship company. When a medical condition forced them to cancel, they could not collect a cash refund.
My take: Never buy insurance from a tour company, airline or cruise ship at the time of booking. Shop around for the best insurance for your specific needs and the best deal using my tips at the end of this article.
The second article: From yesterday’s Garden Island newspaper. A local vacation rental company skipped town and left people stranded.
My take: Trip insurance does not cover situations where a hotel or vacation rental does not accommodate you. For protection, I suggest always using a credit card so you can get a refund if you find yourself in this situation.
Do I need trip insurance for my Hawaii vacation?
Yes, if you are using a cruise ship or tour company. Also, if you cannot reschedule your airline ticket within a year of purchase, you may want trip insurance coverage.
No, when the non-refundable, insurable costs associated with a planned trip are less than the cost of trip insurance.
Do I need trip insurance for international vacations?
Yes, in almost all instances, your health insurance will not provide coverage in countries outside of North America.
Travel Insurance Tips for those who need to purchase:
1. Do not buy on a whim, no matter what. If you are going to get trip insurance, you need to do your homework in order to avoid throwing away your money or worse.
2. Use on-line sites like Insure My Trip which offer comparisons between companies and policies. Check the A.M. best rating of carriers.
3. Each policy has specific limits as to how soon it needs to be purchased in order to provide full coverage. Start shopping for insurance within a few days of making your first trip reservation.
4. Read every word of all clauses that are the basis for you’re need to buy insurance. Do not rely on statements made by insurance agency representatives. As with all types of insurance, don’t assume buying insurance means that you’re covered.
5. I wrote four articles on travel insurance that contain 28 coverage areas plus more helpful things to consider before buying:
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