Don’t you hate being offered that extended warranty after you spent so much time deliberating on which high tech gadget you were going to purchase? The cost of the insurance often dwarfs repair costs and as you see the value in your recent acquisition, many feel an immense amount of pressure to protect their gizmo with an extended warranty insurance. Isn’t it then reasonable to assume that spending 5x’s as much on a honeymoon, destination wedding, or vacation would result in many travelers opting to purchase travel insurance? However, seldom do travelers even inquire about the coverages and many simply ask what are the penalties for cancelling.
The truth is that often when you don’t have insurance; is when you truly need it and when you do have insurance, it usually goes unused. So ask yourself, when was the last time you pulled out that extended warranty and actually needed to use it?
Incidentally, the most asked question about travel insurance always seems to revolve around coverage for weather related events. Sadly, the best insurances which protect you when you have medical emergencies, or need to cancel because of illness, do not cover any acts of nature. Those high priced “cancel for any reason” policies have clauses which require you to cancel up to 3 days prior (weather changes all the time so how is 3 days truly advantageous?) And these very same policies have the worst coverage provisions for medical, emergency evacuation, or baggage loss. Like the pushy sales person offering you that extended warranty, cancel for any reason policies are hoping you will take the bait and buy a very pricey policy because you are worried about hurricanes or snowstorms.
The questions I like to ask my clients are; would you happen to have any medical issues that could flare up that could force you to cancel or become a problem in the destination you are traveling to? Do you have any immediate family members that are currently ill which could result in you having to cut short your vacation or cancel at the last minute? If either of the questions are answered affirmatively, then insurance is a wise choice. But it is even more important to then check the policies and find the one that best covers exactly what you need and ensure you purchase the plan within their coverage time requirements. The costs for travel insurance range based on the price of the trip and your age. Many insurances also have options to add additional coverage for higher valued luggage, or insuring a car rental. It is best to read carefully the limitations and provisions of each insurance plan.
Travel insurance is not an extended warranty, but it can provide peace of mind. When thinking about insurance, make sure you ask for the coverages and check with a travel professional that is licensed to sell travel insurance so you are not wasting your money on a policy that doesn’t offer the provisions you require.