Travel Insurance Can Help Holiday Visits Remain Jolly

Dec. 28, 2008 – With the travel industry offering great deals, those considering a cruise, a European tour or another type of pre-paid vacation should consider travel insurance to protect their financial investment, according to the Insurance Information Institute (I.I.I.).

“Anyone considering an expensive, pre-paid vacation should seriously consider travel insurance,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “It provides important financial protection in the event you need to cancel your trip, the tour operator goes bankrupt, you get seriously injured or you suffer an emergency while traveling.”

A comprehensive travel insurance policy will reimburse policyholders for nonrefundable airline tickets and other expenses if forced to cancel a trip due to an unexpected family illness, injury, severe weather or other perils listed in the policy.

“Most travel insurance plans sold in the United States provides 24-hour emergency travel services that come in handy when travelers are faced with unexpected situations such as severe weather,” said Dan McGinnity, a member of the U.S. Travel Insurance Association. “Some travel insurance providers even help their clients rebook cancelled flights, make new travel arrangements and coordinate ground transportation and lodging.”

Specific travel-related coverage can be purchased individually or bundled together as a package. There are five types of travel insurance coverage.

Trip cancellation insurance covers pre-paid, nonrefundable expenses up to policy limits if forced to cancel a trip due to sickness, a death in the family or other causes listed in the policy. Trip cancellation insurance also reimburses policyholders if their cruise lines or tour operators go out of business.

Trip interruption insurance reimburses policyholders if they or an immediate family member become ill or die or if any misfortune listed in the policy forces an early end to the trip. Bad weather, airline strikes and terrorist attacks are among the many potential “misfortunes” typically covered by trip interruption insurance. Most policies also reimburse for the unused portion of a vacation.

Baggage loss insurance reimburses for lost, stolen or damaged personal items. Insurance Information Institute officials advise policyholders review their policies to know which property isn’t covered and if any personal property could exceed the coverage limits. Homeowners insurance also might cover many of those items, making additional coverage needless.

Emergency medical assistance and evacuation insurance provides medical coverage for travelers. It covers policyholders for emergency transportation costs, medical attention and prolonged hospitalization stays while overseas. It also provides coverage if policyholders become seriously ill or injured and need to be flown to a more qualified medical facility.

Travel insurance can be purchased through most travel agents or directly from a company offering travel insurance policies.