Demystifying Travel Insurance: Your Top Questions Answered
When we consider what the best experience is for our clients, protecting their health and investment, and providing peace of mind is top priority. We look at travel insurance as a part of a total trip package, rather than an add-on. This mental model allows our clients to make decisions around coverage and protection needs, rather than just cost.
Below are the top questions surrounding travel insurance and why we recommend all of our clients to purchase.
What is travel insurance and why do I need it?
This is an independent type of insurance meant to provide medical coverage and protection of assets related to your travel in case of changes, cancellations, damages, etc. Traveling can be unpredictable, and we can never predict emergencies. Occurrences like lost/delayed baggage, trip cancellation/interruption, defaulted tour operators or airlines, injury or sickness while traveling, etc. are all important to evaluate the proper coverage required. Hopefully using travel insurance won’t be necessary, but if it is then you will be extremely grateful to have it!
What is a Cancel for Any Reason (CFAR) policy and why should I purchase it?
This is an additional feature you can add onto your policy that allows you to cancel your trip beyond the traditional covered reasons in a policy. For example, if you simply didn’t want to go on the trip anymore, a CFAR policy will typically reimburse up to 75% of the cost of the trip. Without this add-on, you would need to provide a covered reason along with documentation of why you need to cancel the trip. CFAR must be purchased within 21 days of the initial deposit of the trip, and has become a popular option with the COVID-19 pandemic and political unrest which may cause travelers to reconsider travel.
My credit card provides me with a travel insurance policy. Do I still need to purchase an independent policy?
Some credit cards offer sufficient coverage as long as you purchase the trip on that particular credit card. It’s always a good idea to cross reference your credit card policy with an independent travel insurance policy to ensure you have the correct coverages. Keep in mind provisions like CFAR and pre-existing condition coverage are not typically a part of credit card policies.
Do I need to purchase travel insurance for fully refundable portions of my trip?
For items that are fully refundable, for example until the day before use, you are still hedging a bet that you will be able to use the service without any issues coming up. It’s important to weigh various cancellation policies when making decisions about coverage to ensure your trip is fully protected.
Do I need travel insurance for issues covered by airlines, such as lost baggage, delays, or cancellations?
Airline coverage for varying incidents is not always guaranteed, and differs from airline to airline. Things are further complicated when you are dealing with foreign airlines and you end up relying on goodwill. Dealing with airlines to provide reimbursement can also be a lengthy process and may not result in any gain. Travel insurance can also help fill the gaps for non-covered reasons such as inclement weather resulting in flight cancellations and missed connections.
Can my travel advisor sell me an insurance policy?
No, but we work with reputable travel insurance companies that can! We are not licensed insurance agents and therefore we will refer you to our travel insurance partners who are able to offer quality policies. No matter what company you choose, it’s important for travelers to review the Description of Coverage documents to understand what aspects of travel are protected, and to direct any questions regarding specific coverages to a licensed travel insurance agent.
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