Travel Insuranc e 101

We all get to that dreaded question in every travel inquiry form... Would you like to add travel insurance?

We all contemplate weather it’s needed Just like all insurances, we can never get reimbursed if we don’t use it 🙁 Will I actually use it? Is it worth it? Many questions come to mind,

There are so many types of travel insurance available that it’s not as broad as you think. I always suggest speaking with your Travel Professional and ask what types of insurance options are available. In many cases, there are at least 2 options to choose from. Prices mostly depend on total amount of total value of your trip.

Full Coverage

The most expensive will be the one where you get a full monetary refund (with the exception of the cost of the actual travel insurance). Some of the key pros/cons features are:

  • You get an instant adjustment for cancellations or changes

  • You can cancel for any reason

  • You can cancel up to 24hrs (or less) before departure times

  • There is minimal (if any) financial penalty

  • In many cases, one of the perks of getting the higher insurance is that you have a lower deposit

  • This higher price is for this vacation only

This covers the details of this trip (if air is not included in your itinerary, you may want opt for third-party insurance)

This is a great option if this is your first time traveling with this vendor and you want to cover all basis. I always recommend this option for traveling international as well a security blanket. So many things can happen. In many cases, this option covers cancelling for any reason as well as if you get sick while on vacation. So if the girls trip is a bust, you get sick a week before travel, or you and break-up 2 weeks before departure, you are covered.

If the funds are low, but you want to secure the trip at a great price (maybe a Black Friday or Cyber Monday deal), I would tack on this option as well. Small deposit and no penalty for cancellation (outside the cost of the insurance).

Less Coverage

There is a more economical option which has fewer perks, but you are covered in the event you decide to cancel your vacation plans. Here of some of the pros/cons if this option:

  • In the event of cancellation, you will suffer a small(er) financial penalty (some companies offer no penalty if you cancel for a qualified reason)

  • You may also have to sacrifice your deposit, receiving a vacation credit for future use for a period of time

  • There is an instant adjustment for changes to your itinerary (or possibly cancellations)

  • You can cancel up to a week before departure without sacrificing the entire cost of the trip (confirm with the vendor or travel professional)

  • Since you receive the vacation voucher, you are somewhat committed to his vendor for future travel, and in most cases within a short time in the future (usually 12-24 months)

  • Like above... this is for this vacation only

  • This covers the details of this trip (if air is not included in your itinerary, you may want opt for third-party insurance)

This is a great option if you definitely know that you are going on the vacation, or if you often travel with this vendor since you will expect to receive a future travel voucher in the event of cancellation. This option often does not affect the deposit amount - meaning you may still have a large deposit at time of booking even with insurance.

Third Party Option

There is an option for those avid travelers... especially if you use a few different vendors/resources to get the best deals. Some of the pros/cons to this option is:

  • You must file a claim to get reimbursed

  • This is often cheaper than the per vacation premiums listed above

  • You have the flexibility on your trip's total cost

  • You can add on items from many resources

  • There are no (less) limitations on your travel trips

  • There may be an option to offer semi-annual and annual plans

The great thing about this option is that you read your contract once and you now know your coverage no matter where you go - whether it be Vegas, Cancun, or Milan - your coverage is what it is. You read it over once and you're done, no need to read the fine print every time you decide to travel (unless an addendum is provided). Also note that some companies offer discounts if you are affiliated with an organization, so please check those services out as well.

Please note that this list is for mostly land/air travels. If you opt for cruising, please read their travel insurance policy guidelines and that is in another blog. (lol)

This is by far not a full list of the pros and cons of each so please take your time and consider each trip and your situation independently when making a selection. If you are an avid traveler, the third party option may not always be the best route, but consider it and evaluate the situation.

For higher priced vacations, if I have the third party insurance, I may still opt for vendor insurance for the instant adjustment satisfaction. Remember the choice is yours.

...And if you opt to waive travel insurance, at least you have an idea of what you may be sacrificing. Please read the cancellation policies and deadlines to make decisions to add insurance if you decide to do so.

Well, I think I gave you a little to think about and do your research. No matter what you do, don't be afraid to waive travel protection if you have and are satisfied with your third party travel insurance carrier service.

In closing, please be sure to ask your Travel Professional about travel insurance options if you opt to go through the vendor service and understand the difference of each and respective prices.

Happy Travels.

Baque Tie Travel

#TravelInsurance #TravelTips

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