The Travel Factory Blog
Travel Insurance Revisited
We have visited before about the value of having travel insurance especially when one has a significant investment in the trip. Most travel companies, if not all, refer to this as “travel protection”, with cruise companies especially using this title for coverage. Most folks take the travel protection to provide protection if they have to cancel the reservations. There are other coverages too including accident, sickness, lost baggage, and delays.
Some companies, especially the tour operators we sell, have what they call “cancel for any reason” coverage. So when the company or an agent gives you this description of coverage, that really is what it is....any reason, and you'll get your travel investment back with the exception of the cost for the travel protection.
Some of the cruise companies will have the cancel-for-any-reason but you don't get your money back, rather they will give you travel vouchers equal to the refund value.
The type of most travel protection policies you get is referred to as “cancel for covered reasons”. You are covered if you have to cancel because you, your travel companion, or immediate family member have one of those “covered” reasons.
The cost of that coverage typically runs 8-10% of the cruise/tour cost. That seems fairly expensive at first look, but if you have to file a claim, you are certainly glad you made the investment.
Some folks say that they have travel insurance coverages with their credit card. Just be careful to read the fine print. They might offer help of some kind but they won't cover the expenses, and there may be deductibles you are required to pay before your card policy applies.
Another objection to purchasing travel protection is they think they don't need insurance coverage. But, if an illness, accident, or sudden change in plans forces you to cancel or interrupt your trip, you face two major financial losses. One is the money you've invested in nonrefundable prepayments, and another is the medical expenses that aren't covered by your health insurance purchased here in the United States. Lots of policies purchased here are not applicable in a foreign country either.
Almost all tour operators and cruise lines have third party travel protection coverages. There are, however, travel insurance companies that offer travel protection through travel agents. We discovered a while back that the insurance company we sell the most had a better rate for the same coverage that the tour operator had, and we were able to save the clients about $100 a person on the insurance coverage.
Travel insurance, if nothing else, does give you peace of mind whether something dramatic happens or not. The experienced travel agent at our office who handles this transaction has performed this task many, many times and is happy to give you a quote for comparison. So call The Travel Factory today at 325-698-1421 or come by for a visit at 4150 Southwest Drive. You might also get a good travel education by going to our website at www.thetravelfactoryabilene.com. Be travel confident with sufficient protection, and we'll be more than happy to help.