International Travel Insurance

Wednesday, July 10, 2013

International Travel Insurance

1:28 PM editor 10 comments

Protect Yourself From Unexpected Delays, Cancelations and Mishaps While In Another Country

Before 9/11, only about 10% of Americans purchased travel insurance. After 9/11 that number increased to about one third of American travelers. It is especially popular with those going on cruises. More than two thirds of cruise line passengers purchase international travel insurance. It provides financial coverage of the significant expense of going on a costly trip overseas.

Reasons To Buy International Travel Insurance

There are several reasons why travelers purchase international travel insurance. Many people who book their international travel far in advance, have concerns that something unexpected might happen prohibiting them from going on their trip. For example, if you get sick, weather delays or cancels your flight, or there is a terrorist attack. International travel insurance covers expenses if the cruise, resort, hotel or tour does not allow changes or refunds. It also helps you if you have your travel documents, money or luggage stolen. International travel insurance can replace these items including urgently needed medication. Policies can also cover medical expenses if you get sick or injured in a foreign country. It will even pay to transport you back home with medical attention if you are too sick to travel on your own. International travel insurance also protects you if your travel provider goes out of business and keeps your money.

Types of International Travel Insurance

Trip Cancellation and Interruption insurance
Non Refundable Deposit Insurance
Baggage Loss Insurance
Medical Evacuation and Repariation Insurance
Extreme Sports Insurance
Terrorism Insurance

Trip Cancellation and Interruption insurance

This type of travel insurance pays you back if you can't go on a trip or can't complete a trip for some reason. It covers most reasons, like illness, personal emergency and the travel provider going bankrupt. However, it is important to always read the fine print. Some policies cover you if miss a flight and a cruise ship has sailed without you. Others require that you miss at least half the cruise before you are covered. Others wont cover you at all. Trip cancelation and interruption insurance should always be purchased through a third party and not the travel provider itself. The insurance will do you no good if the company you bought it from is out of business. Consider the cost of a trip cancellation and interruption policy carefully before buying it. If your trip costs a lot of money then a policy might be wise. If the policy costs a large percentage of the trip cost, it may not be worth it.

Non Refundable Deposit Insurance

For an additional cost, non refundable deposit insurance can be added to an international travel insurance policy. This will refund your non refundable cost for airline tickets or other reservations in case you can't go. It is a rather expensive coverage, sometimes as much as 15% of the non refundable ticket price. It should only be purchased if the cost does not negate the savings of a non refundable ticket versus a refundable ticket, and there is a significant chance that you might not be able to go.

Baggage Loss Insurance

Baggage loss insurance is included with some trip cancellation and interruption insurance, but sometimes must be purchased separately. This is a worthwhile option if you have valuable luggage and contents. The airlines will compensate you for lost luggage, but they do it by weight, not by what was lost. At the most they will pay you a few hundred dollars for losing your things. Separate baggage loss insurance policies will pay much more but you will pay a heafty premium. You can also ask at the airline counter for excess valuation. You can buy up to $5000 extra coverage for about $1 for every $100 in coverage. You must declare to the airline what is in your luggage that is valuable and often provide proof for a claim. An even better option is not to pack valuables in your luggage. Carry them with you on the plane instead.

Medical Evacuation and Repatriation Insurance

Many health insurance companies will not cover you when you are traveling internationally. Those that do usually only cover emergency care, not urgent or routine medical attention. Very few will pay to fly you back home for medical treatment. Medical Evacuation and Repatriation insurance will do that. These policies are especially important if you are traveling to a third world country where medical care is suspect, or if you will be traveling internationally for an extended period of time. Some third world medical facilities are downright frightening and the cost of flying yourself back home on a medically equipped aircraft could bankrupt you. Medical Evacuation and Repatriation insurance policies only cost a few hundred dollars per year.

Extreme Sports Insurance

There are a number of high risk activities that are excluded from ordinary international travel insurance policies. Most extreme sports like scuba diving, rock climbing and running with the bulls in Pamplona, Spain are in this category. However, if the purpose of your international trip is to engage in these types of activities, there is no reason that you should not enjoy them. You can buy an additional policy for extreme sports coverage. Different travel insurance companies call this coverage different things, but they are all basically the same. They are an insurance rider for a specific activity.

Terrorism Insurance

After the 9/11 attacks, many Americans were afraid to travel overseas. Some travel insurance companies considered this a valid reason to cancel international vacations while most did not. It is very important to check with your travel insurance company to find out if they recognize terrorism as a valid reason to cancel a trip. Those who do recognize terrorism as a valid reason may require that the terrorism happened in the country you are traveling to within a specified period of time. Some will only allow you to cancel your trip if the State Department issues a travel warning. Insurance companies vary widely on this point, so check the wording carefully.