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

What Should You Look For In A Travel Insurance?
Planning to rent a car or go bungee jumping? Here's a quick guide on what you should look for in your travel insurance

By: Jonathan Tan

Don't forget your vacation insurance before you take off for any travel. I am very serious when it comes to travel 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.

3. 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.

4. 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

5. Price of Vacation Insurance also known as Premium - Premium Computation For 'per-trip' policies, the premium payable hinges considerably on the number of days of travel, the country of destination and choice of plan. For example, if you are from Europe, a vacation in USA warrants a much higher premium than a trip within Europe for the same number of days. Some traveler insurance companies provide the option of higher limits of coverage at of course, a higher premium. If price is of concern, it is advisable to keep on hand the premium schedule from a few traveler insurance companies for comparison before you activate your insurance before each trip.

6. Claim Procedure I consider this the most important aspect of buying a vacation insurance. All traveler insurance companies will require you to lodge your claims within a certain time frame. You would be required to complete and submit a claim form, which can be obtained from the traveler insurance company.

In almost all instances, your claims must be accompanied by relevant documents, such as medical receipts for medical reimbursement or hospital cash; a police report for loss of money or personal documents; an official letter from the airline in cases of flight or luggage delay and loss of luggage if within custody of the airline. In all cases, call up and inform your traveler insurance company immediately for necessary advice.

There you are... now with a basic knowledge of vacation insurance, you are equipped to choose the best suited to your travel needs and you are all set to fly!

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