A Checklist for Trip Insurance

The world-wide COVID-19 pandemic threw a lot of monkey wrenches into travel plans everywhere. Though some travelers may have had trip insurance to protect the investment of their fun, not all insurance plans covered the large-scale shut-down of the world. Travel Medical Insurance, described in our other post, is one type of insurance coverage recommended. Trip Insurance is another type of coverage that can protect your wallet.

There are three vocabulary terms you need to understand Trip Insurance. It IS NOT the same as Travel Medical Insurance, but some policies include small medical benefits just to make your head spin with confusion and vocabulary. You can read more about these vocabulary differences at the Nerd Wallet links below.

1. Trip Cancellation: This benefit is designed to protect prepaid, nonrefundable reservations, including flights, hotel reservations and other bookings if the trip is canceled due to extraordinary circumstances. For example, a family member is hospitalized, and you cancel the trip. Each policy will state exactly which events are considered valid reasons for cancellations. https://www.nerdwallet.com/article/travel/trip-cancellation-insurance-explained

2. Trip Interruption: This benefit is a post-departure insurance to use if your travel gets interrupted and you cannot finish the journey. For example, if you must go home early because a tree fell on your home, some policies would cover this trip interruption. Not all reasons are covered, so read the details to get reimbursed for any unused, prepaid, non-refundable trip expenses. https://www.nerdwallet.com/article/travel/trip-interruption-insurance-explained

3. Trip delay: This benefit is protection against additional expenses you incur when your travel booked on a common carrier is delayed. For example, if there is an unexpected weather delay and you must stay overnight in a hotel. Common carriers include airlines, ferry operators, passenger railroads and long-distance bus servicehttps://www.nerdwallet.com/article/travel/trip-delay-insurance-explained

Now, if you’ve ever had to find new insurance for your house, car, body, appliances, or anything else, you may know that all insurance companies are in business to SELL-SELL-SELL. No matter how nice the salesperson seems to be, their goal is to SELL policies to you whether you need them or not. If you find yourself ready to purchase insurance for your special traveling adventure, start with this checklist for some of the top questions to ask. There are ways to purchase trip insurance online, but buyer-beware. Calling an agent means facing the hard-sell, but asking an agent the “what-if” questions make you an informed buyer.

Don’t travel blindly. Choose the insurance that will meet your needs for that special week at the beach or month on a cruise. Always pay attention to the fine print and never say yes to the insurance company pushing you to choose NOW. Take notes during your research and call the companies that fit your needs. They will be able to send you a sample policy to read before you purchase.