The New Passport Rules – What You Need to Know
Starting January 23, 2007:

• All persons traveling by air between the United States and Canada, Mexico, Central and South America, the Caribbean and Bermuda must present a valid U.S. passport or other accepted document (Air NEXUS card or U.S. Coast Guard Merchant Mariner Document) that establishes the traveler’s identity and nationality to enter or re-enter the United States.
• U.S. citizens traveling directly between the United States and its territories do not need to present a passport. U.S. territories include: Guam, Puerto Rico, the U.S. Virgin Islands, American Samoa, Swains Island and the Commonwealth of the Northern Mariana Islands.
• U.S. citizens may also use a passport or other documents when traveling via land and sea (including ferry crossings), although for those modes of transport, such documentation won’t be formally required until January 1, 2008.

Shopping online lets travelers get instant quotes

Most travel insurance is sold online because it is quick and simple. Unlike some online businesses that offer free “quotes”, then ask for an email or phone number where you can be contacted, travel insurance is quoted in real time. It takes a minute or two to fill out some general travel information, and you can get actual premium quotes.

When using a comparison site (see How to Compare Quotes with a Travel Insurance Comparison Site), travelers can even look at several policies at once and choose which is best based on a variety of factors. Some travelers look for specific aspects like high baggage coverage or good delayed trip coverage.

Shopping online also lets travelers get instant coverage

Another advantage of using a comparison site is the fact that you can get instant coverage. When you get a quote and find the right policy, you can take out a credit card and make the purchase right online. For most coverage, the insurance company will respond within hours with a confirmation number guaranteeing coverage.

They will usually also send a paper copy of your policy in the mail, but with this email confirmation you are covered. Many travelers print this out and go. It has your policy number, personal information, and important contact numbers if you have any questions or claims.

Comparison sites make shopping for travel insurance easier

One way to buy travel insurance is to go directly to the source, the travel insurance company. Groups like TravelGuard, CSA Travel protection, and TravelSafe all have websites where you can sign up and buy a trip insurance policy online. This works just fine…if you know what you are looking for.

Many travelers do not know what they need without comparing different policies. It just makes sense. Most planned purchases require some research…if for no other reason than to get the best price.

Find the right plan and get the best price

Travel insurance comparison sites give you quotes from all the different companies at the same time. You can also compare the different coverages, benefits, and “small print” in the insurance policies.

Is it cheaper to buy directly from the insurance company?

No. Travel insurance comparison sites are agents and earn a commission on each policy sold, just like your local agency that insures your home or car. If you buy directly from the travel insurance company, they simply keep the portion of the premium that would go to an agent. Since the price is the same either way, you might as well use a comparison website and find the best policy at the right price.

“Shopping for travel insurance with comparison sites is like shopping for plane tickets at Expedia.com”

(see How to Compare Quotes with a Travel Insurance Comparison Site)

Travel insurance can cover a variety of situations, including medical emergencies while away from home. The same health insurance that covers you at home does not work once you leave the US.

Imagine you are in a foreign country and you get sick or have an accident

This is why smart travelers purchase a travel medical policy, or a package policy which includes medical coverage. The purpose of travel medical insurance is to provide medical coverage while in a foreign country, because your insurance from home will not cover you.

Travel medical insurance typically includes at least $50,000 in medical emergency coverage, and usually more. There is also coverage for medical evacuation, which a the very costly process of transporting an injured person. Usually, medical evacuation involved special planes, personnel, and medical equipment. It can easily cost over $100,000 just to be taken back home.

Travel medical insurance is a great idea for all travelers leaving their home country. The cost is very reasonable, and the potential costs of treatment or evacuation can be devastating if paid out-of-pocket.

There are, however, several exclusions in a typical travel medical policy. These are situations in which benefits would not apply, and expenses are not covered.

Travel insurance companies need to exclude certain activities or situations because they greatly increase the risk to the traveler, and they are usually avoidable.

There are several exclusions, but here is a list of some common reasons why a medical claim could be denied:

As you can see, all of these activities increase the risk for injury, and they are all choices made by the traveler. By taking part in these activities, insured or not, you are putting yourself at risk for personal injury. This is why they are excluded from coverage.

Travel insurance policies provide many different coverages, here are the 5 main ones:

1. Trip cancellation

This provides coverage in case you need to cancel your trip or vacation. The coverage pays for non-refundable trip costs such as airfare, hotel, tour costs, etc. Covered reasons for cancellation include:

• you or your traveling companion get sick and cannot travel
• a death in the family prevents you from traveling
• your home is damaged by fire
• you or your travel companion lose your job

Travel insurance provides cancellation coverage that covers pre-paid, non-refundable trip costs up to the policy limit.

2. Medical emergencies

This provides medical coverage while you are away from home. Most people do not know that their health insurance from home does not work in foreign countries, and any medical expenses must be paid out of pocket, often even before treatment is received. An accident or illness in a foreign country can be a scary experience without the proper medical coverage. Travel insurance policies provide up to $1,000,000 of medical emergency coverage, depending on the plan and insurance company.

3. Trip interruption

When an accident or illness does effect your trip, coverage for trip interruption will help pay the unused portion of the trip as well as last-minute expenses for heading back home.

4. Lost, damaged, stolen baggage

Baggage coverage includes personal items, baggage, and travel documents. If your baggage is lost, stolen, or damaged and you need to replace items, baggage coverage will provide benefits up to the policy limit, usually between $500-$2000.

5. Medical evacuation

If you are in a foreign country and suffer an accident or illness, there will most likely be some medical evacuation expenses. From simple transportation to the nearest suitable hospital to an extensive medical flight back to the US, evacuation costs can easily cost over $100,000. Medical flights are specially staffed with trained professionals, and stocked with medical supplies and equipment. It is not as simple as hopping on the next commercial flight. Medical evacuation coverage provides up to $1,000,000 in evacuation expenses, depending on the company.

Comparison sites are the best way to shop for travel insurance

There are several websites where travelers can compare policies from all major companies (see How to Compare Quotes with a Travel Insurance Comparison Site)

Want coverage no matter what happens? Buy “cancel for any reason” coverage

If you want cancellation coverage no matter what happens, some travel insurance companies offer policies with an optional “cancel for any reason” clause. This lets you cancel your trip, no matter what the reason, and receive 75% of the non-refundable trip cost.

“Cancel for any reason” coverage is a new product that gives travelers more flexibility

This is a relatively new product to come to the market, and it shows how travel insurance companies are tailoring their products to the customer’s needs. Two companies offer policies with “cancel for any reason” options: Travelsafe and M.H.Ross, who operates Tripinsurance.com.

Coverage costs extra, but provides peace of mind

Cancel for any reason coverage costs extra money, but many travelers like the flexibility of being able to cancel their trip without taking a total loss financially.

Cancel for any reason coverage will pay 75% of the non-refundable trip cost. Even though it is only partial refund of payments, it is better than a total loss, and many travelers spend the extra money for the peace of mind.

Be aware of the small print with “cancel for any reason” coverage

There are some conditions for cancel for any reason policies. This policy option covers 75% of the non-refundable trip costs. Cover requires that:

• the plan be purchased within 15 days of the trip deposit
• you select the “cancel for any reason” option when purchasing the policy
• all pre-paid, non-refundable trip costs are insured
• your trip is canceled 2 days prior to the departure date

(see How to Compare Quotes with a Travel Insurance Comparison Site)

SRI re-brands travel insurance company under the name Seven Corners

Specialty Risk International, or SRI, of Indianapolis has re-branded the company under the name Seven Corners.

Started in 1993, SRI has incorporated several related businesses in the travel insurance industry, and wanted to re-brand under the Seven Corners name to unify the company.

All policies, contact information, and claims are handled in the same manner as before. The former homepage at www.specialtyrisk.com is still operational, as well as the new site, www.sevencorners.com.

(read disclosure on about page)

Boomers are finally retiring, and with the extra time and cash will come more travel. Even though health care is better than ever, it is important for the over 65 group to make sure they are insured when they travel. There are a few reasons it is especially important for travelers in this age group to buy insurance.

Medicare provides no coverage outside the US

First, if you are depending on Medicare and plan on traveling abroad, you need to understand there is no Medicare coverage outside of the United States. Medicare will just does not provide any coverage abroad, and even a private plan will most likely not work outside the US. This is why is it important to purchase a travel insurance plan to cover you.

Over 65s have special medical coverage needs

Second, even though they are more active than any retiring generation in history, over 65s simply have greater medical needs than younger travelers. They are also more active and willing to get out and travel. Travel insurance is designed to give travelers from the US the same type of coverage they receive here at home. Don’t get stuck in a foreign country with the right kind of medical coverage.

Trip cancellation coverage protects your vacation investment

Finally, many things can go wrong before leaving for your trip, any one of them can cause you to cancel and lose your non-refundable trip payments. This can easily cost thousands of dollars, unless you purchase trip cancellation coverages. This insurance can cover cancellation due to an illness, accident, death in the family, or even a home fire. Trip cancellation coverage costs more than just medical coverage, but the extra premium can save you thousands of dollars.

Boomers have special considerations when shopping for travel insurance

• Shop online and compare different companies. Use a comparison site  (see How to Compare Quotes with a Travel Insurance Comparison Site) where you can look at quotes from all insurance companies at once without visiting a dozen different sites.
• Travel insurance companies limit the amount of coverage depending on the travelers age. This lets the over 65 traveler get some level of coverage, and for a reasonable price.
• Pre-existing medical conditions can effect the policy coverage. Call the insurance company with specific questions if you have pre-existing medical conditions.

Bad weather can cause severe travel delays

Every holiday season is a very busy time for air travel, and winter storms can cause severe delays. The recent blizzards in Denver caused major delays and closed Denver airports for days. Thousands of travelers were stuck in the airport, and were forced to wait it out. Many connecting flight were missed in other locations due to the delays that ripple through the airline system.

Travel insurance can cover travel delay costs

Package plan travel insurance policies include coverage for travel delay and expenses caused by travel delay. Travel insurance can cover hotel costs or alternate transportation. The major variable is the length of delay before the policy kicks in, and the amount of coverage. The lower delay time, the sooner the delay benefits can be used. The amount of coverage usually states a daily amount and a maximum amount.

Here is a table showing the major travel insurance companies and their respective coverage for travel delay. Companies and policies are listed in order of length of delay. They range from 3 hours to 24 hours.

Platinum is Travel Guard’s premier package plan

Most travel insurance companies offer something called a “package” plan. Package plans are popular because they offer comprehensive, all-in-one coverage, usually including:

• trip cancellation
• trip interruption
• medical emergencies
• emergency evacuation
• baggage

Look for a plan with the appropriate amount of coverage for your trip

When comparing package plans, look at the coverage limits and ask yourself if you feel comfortable with the amount. For example, some people are not as concerned with emergency medical expenses but want as much baggage coverage as possible. Before you start shopping, take a moment and write down what is important to you in a policy. What type of coverage is most important and how much do you need?

Travel Guard offers a plan called Platinum. This is their premier package plan, and offers comprehensive coverage for travelers, including:

See the full review on Travel Guard’s Platinum plan.

Essential, individual coverage for the basic travel protections and not a lot of extras