Travel costs have gone up in the last five years, partly due to rising gas prices, and the end doesn’t appear to be in sight. Many people have put off expensive travel over the past few years in favor of ‘staycations’ (vacations at home with family) due to fears of the economy, unemployment, and slow job growth. Those who are currently making travel plans may find that adding the cost of travel insurance to the tab is worth the cost simply to avoid the huge financial bills that can occur on vacation.

Any good comprehensive travel insurance policy comes with a 24-hour assistance services number staffed with representatives who can provide travel assistance, help navigate a medical emergency, and provide assistance and reimbursement for canceled or delayed plans in addition to problems with accommodations.

Travelers wanting financial protection may opt for these coverages

In addition to having a help hot-line at your fingertips, travel insurance can provide reimbursement for unexpected travel costs that can wreck your travel budget. Protection for financial losses due to stolen baggage, missed connections, and travel delays are included in many comprehensive travel insurance package plans.

If you plan to rent a car on your vacation, avoiding the high charges imposed by rental car companies if the car is damaged is also crucial – especially since this type of coverage is not typically provided by your own auto insurance coverage or the coverage provided by your credit card.

Of course, it’s important for those traveling abroad to consider any pre-existing medical conditions along with medical coverage because U.S.-based health insurance does not extend outside the American borders. If you or someone traveling with you gets ill or injured on the trip, you could face a large medical bill very quickly.

Having travel delay and missed connection coverage can help in instances when a tornado crashes through the airport you planned to flight out of or land at. The airlines don’t provide any help when the situation that caused the delay is a natural act, but travel insurance protection for these situations can mean the difference between sleeping on the floor of the airport and having a hotel room and meals reimbursed.

The travel website of the U.S. Department of State has a load of information available for first-time appliers and those who need to renew their passport in advance of the summer travel season.

See the Travel.State.Gov website for information and download a passport form.

• Applying
• Renewing a passport
• Processing times
• Fees
• Photo Requirements
• Getting a passport quickly
• Passport card info
• and more.

Check out the link, double-check your passport expiration date (if you’ve got one already), and get ready to travel!

This plan does not cover any loss caused by or resulting from war or act of war, whether declared or not, civil disorder, riot, or insurrection.

Therefore, it’s vital that those purchasing travel insurance plans understand their policies and what is (and is not) covered.

How Travel Insurance Covers War, Civil Disorder, and Unrest

Travel insurance plans cover travelers for war, civil disorder, and political unrest by allowing travelers to cancel their trip if they have ‘cancel for any reason’ coverage.

Some plans allow for non medical evacuations that include social upheaval as a covered reason for evacuation, but it’s important to understand your policy limits and exclusions. See a list of plans offering non medical evacuations.

Important notes

1. If political unrest is not listed as a covered reason for a non medical evacuation, you won’t have coverage.
2. All evacuation arrangements must be arranged and coordinated by the travel insurance provider’s assistance services for coverage to apply.

One report indicates that the British Airways strike action must take place between April 4th and the 25th. Travelers are encouraged to purchase travel insurance that specifically allows for strike action as a covered reason for claims including travel delays and trip cancellations.

Key points to understand

1. If the travel insurance policy does not include strikes as a covered reason, you will not have coverage for potential losses should their flight or travel plans be disrupted.
2. If you purchase the travel insurance policy after the strikes are announced, you will not have coverage for losses the occur as a result of the strike action.

Important note

British Airways has indicated it will update customers whose flights are affected using the methods of contact provided by the customers. This includes sending notices via e-mail, SMS, or phone. It’s vital that customers verify their contact information is updated in their booking details if they are to receive those notices.

Demonstrations and revolts across the Arab world appear to have inspired this latest unrest, but the U.S. has long had contentious relations with Syria, which maintains an anti-Israel alliance with Iran and supports the groups Hezbollah and Hamas. As clashes between Syrian security forces and protesters continue, the U.S. is particularly concerned about what activists have dubbed the “Friday of Martyrs”.

Although President Assad claimed to be taking steps toward addressing the demands of protesters yesterday, including forming a panel to study the path to eliminating an emergency law that has been in force and used repeatedly by security forces to control the population, the continued demonstrations seem unlikely to be satisfied just yet.

A s a result of the earthquake, tsunami, and nuclear plant worries, many travelers are scrambling to figure out whether their travel insurance plans provide coverage for current and future travel. Travel insurance companies consider the earthquake and tsunami to be natural disasters and will provide benefits to the extent natural disasters are covered in their policies. You can read the insurance provider position statements here.

For travelers already traveling

As of Friday, March 11, 2011, the tsunami is no longer considered an unforeseen event; therefore, insured travelers in affected areas may be eligible for trip cancellation, trip interruption, and trip delay benefits as well as emergency medical and medical evacuation coverage depending on their travel insurance plans. Some travel plans provide coverage for non medical evacuations when government-issued warnings are in place.

For travelers with future travel plans

Travelers who have purchased travel to Tokyo prior to the earthquake and have not yet departed may have valid reasons to request trip cancellation benefits, but travel that is scheduled to take place later in the year may not be covered once the travel advisory is lifted. For those who purchased ‘cancel for any reason’ coverage, it’s important to cancel within the number of hours prior to your scheduled departure in order for coverage to be effective.

As always, refer to the specific terms and conditions of the policy you purchased to understand coverage terms and exclusions.

Recent Trip Cancellation Claim Denial Examples
A client purchased coverage for an airline ticket to a wedding, but the bride canceled the wedding. The insured was surprised to find that the coverage she purchased did not reimburse her for the airline ticket because the reason for the cancellation was not specifically listed as a covered reason.

A couple purchased travel insurance for a trip to South America and then canceled after a magnitude 8.8 earthquake hit Chile. The insurance company rejected their claim to cancel their trip because the cancellation was not made by the airline. In addition, the couple’s trip wasn’t for a couple of months so they would not be directly affected by the earthquake.

Purchasing a ‘cancel for any reason’ upgrade would likely have helped both of these clients.

Understanding Trip Cancellation Policies
The key to understanding trip cancellation policies is this: if a travel insurance plan does not list the situation as a covered reason for cancellation, then the cancellation is not covered. So, it’s important to review your plan certificate carefully and use the free review period to ask questions so you understand your trip cancellation limits.

If you’re concerned about having to cancel your trip, consider choosing a policy with the ‘cancel for any reason’ benefit or purchasing it as an upgrade. See more details about trip cancellation coverage and a complete list of travel insurance plans that provide ‘cancel for any reason’ coverage.

Travel insurance plans typically view rescheduling as a cancellation to the original travel and most plans only cover one cancellation per policy.

Initially, when she filed the claim, the travel insurance provider refused to reschedule the second time because the travel protection she had purchased covered only one cancellation, but later waived the fees and rescheduled for their client.

While this story has a happy ending, the client’s initial surprise could have been avoided by understanding exactly what coverage their travel insurance company is providing.

Use the free review period wisely
Most plans offer a free 10- to 15-day review period with their policies, so you have time to read through the policy certificate and information to understand your travel insurance plan.

Review covered reasons for trip cancellation
The reasons for pre-trip cancellations vary from plan to plan, but most plans cover trip cancellations due to illness as long as it’s not a pre-existing condition. It’s important to note that if an even isn’t specifically listed as a covered reason, then it’s not covered.

Filing a trip cancellation claim
For pre-trip cancellations due to an illness, the travel insurance company is going to want a little proof. So, you’ll need to see a doctor and obtain written documentation that you are too ill for travel. The key is to prove to the travel insurance provider that you are canceling for a covered reason.

The article describes how Peggy and Clifford Williams were forced to cancel their cruise because Peggy was stricken with a bout of vertigo, a condition that strikes without warning and leaves her dizzy and severely nauseous. Peggy was familiar with what to do to counteract the effects of vertigo, so she took her medication and stayed in bed.

Why the Trip Cancellation Claim was Rejected
Knowing that Peggy was not up to a cruise, the Williams’ cancelled their trip. Their claim was initially rejected because Peggy hadn’t seen a doctor immediately and the travel insurance company was unable to verify treatment for any illness. To be fair, the insurance company has to protect their investment as well, and the policy indicated that sicknesses must be verified by a physician before the insured terminates the trip.

The policy’s language was very clear, however, Peggy was able to go to the doctor, prove that she missed work the day of the cancellation, and verify her condition in writing with the travel insurance company who later reviewed their decision and paid the couple’s claim.

What you can do to Avoid Trip Cancellation Confusion
To avoid this situation, you can use the free review period to understand the covered and not covered reasons for trip cancellation. Every policy varies slightly, but if the reason isn’t specifically listed in the policy as a covered reason, then you can be sure it’s not covered. You can research the plans that provide trip cancellation coverage and the reasons they cover cancellations.

The key to this story is that the couple should have known that they couldn’t cancel their trip without first having Peggy visit a doctor. It was clearly stated in the policy and the couple was lucky the travel insurance provider decided to honor their claim.

I asked Scott Perfetto from Travelsafe Insurance to name the most common “mistakes” and misunderstandings when travelers buy insurance. He responded with several, and if you want to avoid a problem later, it’s a good idea to read this now.

1. Buying a travel insurance policy after something happens: Travel insurance, like all insurance, is meant to cover sudden and unforeseen events. In order to be covered, you need to have purchased the insurance before the unforeseen events. Many travelers wait until something happens, then purchase a policy. Unfortunately, those claims are not covered.

2. You cancel your trip before you see a doctor, and expect to be covered: If you’re going to cancel due to medical reasons, you have to visit the doctor first, and your doctor must recommend you do not go. The same goes for interrupting a trip due to illness. Travel Insurance requires documentation (medical records) from your medical professional indicating the illness/reason that you are unable to travel. The medical records must indicate you visited the doctor before canceling your trip.

3. Using the wrong Policy Effective Dates when submitting a claim: Many travelers misunderstand the Departure and Return dates, use the wrong ones on their claims, and then have their claims denied. Departure and Return Dates are actually very simple. The Departure Date is the day you depart your home for your journey or trip. The Return Date is the day you return home from your journey/trip.

So, for example, if you plan on staying at a hotel close the airport the night before your plane departs, your departure date is the day you leave your house; not the day you take the plane.

There are also two effective dates associated with most travel policies:

• Trip Cancellation policies cover you from purchase* until you actually depart for your trip. (*It generally goes into effect the day after the payment is received or the date after the postmark on the application.) You need to purchase Trip Cancellation upfront, not when you’re ready to cancel your trip.
• All other coverage goes into effect on the Date of Departure.

4. Not fully understanding pre-existing condition exclusion waiver: Many travel insurance policies have an exclusion for “pre-existing conditions”; meaning any condition you had before your coverage began. Recently, companies have included a waiver for this exclusion if certain conditions are met. This usually includes the time of purchase, but it will also state a “look back” period. This is an amount of prior time that the insurance company will look to find a condition.

Depending on the look back period, a pre-existing condition with one company is not the same for another. Some look back 60 days, others look back 90 days or more. Not all travel insurance plans will waive for pre-existing conditions. It’s important to read the policy carefully to understand the “rules” for pre-existing conditions.

There are some policies that do not waive for pre-existing medical conditions under any circumstances. Make sure you ask whether your pre-existing condition exclusion waiver applies to only the policy holder, or to their immediate family as well. This is an important distinction. Travelers have fewer limitations when the policy lists only them, allowing them more flexibility. When policies also list immediate family members, the travelers are limited by the pre-existing conditions of the family, which adds loopholes and affects (limits) the benefits.

5. Mistaking an Administrator with the Insurance Company: Very often, the traveler believes they are purchasing a policy from an insurance company, when in most cases they are buying from a third party administrator. In most cases, the administrator markets, sells, and issues the policy. The insurance company underwrites the risk and is responsible for how claims are paid or denied.

6. Thinking “Cancel For Any Reason” and “Cancel At Any Time” mean the same thing: These are two optioned offered by several companies, and are different policies with their own rules.

With “Cancel For Any Reason,” you can cancel for divorce, illness of a pet, lay offs, work, etc. “Cancel At Any Time” will let you cancel whenever you like, but does have restrictions on the reasons you want to cancel.

Travel Insurance provides Trip Cancellation for “coverable” reasons which are clearly stated in your policy. “Cancel For Any Reason” is an optional insurance benefit.

Upon purchase of “Cancel For Any Reason” coverage, you can cancel your trip for any reason but you need to do this within a certain number of days, often 2 days. As long as you cancel your trip at least two days before departure, you will be covered.

Some travel insurance companies specify that you must cancel your trip at least 48 hours before departure (as opposed to “2 days”). While the two sound the same, this is an important distinction – so make sure you understand which will work best for you. It is easier to use two days as a measurement rather than counting hours/minutes from your purchase time.

7. Expecting Baggage Delay Benefits for your return home: Baggage Delay Benefits are not the same on your return home as they are on your outbound trip. This benefit allows travelers to buy the essentials they need until there luggage arrives to their destination. This might include essential toiletries or a swimming suit for the beach. If your bags are delayed on your return home, you do not receive a benefit.

8. Not saving receipts for Additional Purchases: If you are required to purchase additional hotels, meals, etc. due to flight delays or cancellations, keep the receipts. And make sure to find out from the airline why the flight is cancelled or delayed – weather, mechanical, etc.

Bonus

9. Not reading your policy: A travel insurance policy does you no good if you don’t read and understand it. Most anger and resentment over denied claims could be prevented by reading the policy. Insurance companies are extremely specific…they don’t just make up a reason to deny a claim.

Make sure you read the details before you make the purchase. Know what you are buying, and shop around for the benefits that will help you.

TravelSafe Insurance, a division of the Chester Perfetto Agency, Inc. has become a gold standard in travel insurance products through innovation, experience and excellent customer service.

Since 1971, they have marketed and administered some of the most comprehensive policies available in the industry, and are leading the way in developing new solutions for the insurance needs of individuals and families throughout the United States and Canada. Whether you are traveling close to home or around the world, TravelSafe will provide the security and peace of mind you need to enjoy your trip.