Travel insurance is an important purchase and should be considered carefully. Knowing specifics of vacation cancellation and medical coverage is beneficial when planning your next getaway. I found this out on a trip to Luxembourg when my husband, Miguel, had an episode of Transient Global Amnesia (TGA) in our hotel room one morning.
TGA is a temporary episode of memory loss affecting the ability to form new memories and recall recent events. He was alert, knew who he and I were, but continued to ask the same questions repeatedly because he couldn’t retain any new information — “where are we?”, “how did we get here?”, “what time is it?”, “where are we?”, “how did we get here?”, etc. I thought he was having a stroke! I rushed to the front desk and asked them to call an ambulance. The receptionist said a cab was faster and within two minutes one appeared at the hotel lobby.
The emergency room doctor saw Miguel right away. It didn’t take long to rule out a stroke and determine it was TGA. But, to make sure, they admitted him into the hospital to run numerous test.
All Miguel’s tests, medical care, hospital stay — everything — was reimbursed by our travel insurance.
When choosing a policy, distinguish if you’re purchasing travel protection or travel insurance. The biggest difference is that travel protection may be a package of non-insurance services or benefits, while travel insurance is typically underwritten by insurance companies and regulated by state agencies.
Protection may cover a portion of the trip, and not fully reimburse a cancellation. Instead, they’ll issue a credit for future travel. Trip protection is usually offered by tour operators and cruise lines, and can be full of exclusions.
Select vacation booking sites, such as Orbitz and Travelocity, offer inexpensive protection waivers. These usually allow you to change plans for any reason without charging a fee. Should you need to cancel your vacation, they may not refund all the money.
Travel insurance reimburses nonrefundable trip costs, emergency medical care and help with issues like lost baggage or travel delays and much more.
Reputable insurance providers are members of the US Travel Insurance Association and rated by AM Best When purchasing, choose a well-known name. The one I always use is Allianz Travel Insurance. They not only covered Luxembourg’s entire $7,200 medical bill, but also our extra fee charged by the rental car company for a late return.
Insure My Trip and Travel Insurance Center are platforms that compare different providers. They tailor packages to suit your needs. Policies cover medical care if you need to see a doctor abroad, as well as personal loss, damages, or stolen luggage. While this coverage cost more, it’s worth the extra money. Especially for expensive international trips.
Here is an important tip…providers recommend purchasing insurance when making your first trip payment, such as airfare or a cruise. This will maximize your coverage if you have to cancel, even if you haven’t paid in full.
Credit cards are another travel insurance option.
Credit cards sometimes offer travel reimbursement when flights, trains, and hotels, are charged onto the card. You’ll need to determine what your specific credit card offers.
Chase Sapphire Reserve is touted as one of the best. Their trip cancellation and interruption covers up to $10,000 per person and $20,000 per trip for pre-paid, non-refundable travel expenses. Also, $2,500 of medical expenses on a trip more than 100 miles from home that has been arranged by a travel agency. Even necessary medical evacuation and transportation on a trip of five to 60 days is covered up to $100,000. Rental car coverage, trip delay and more are included. Chase Sapphire Reserve has an annual card fee of $795.
American Express Platinum card’s travel benefits are comparable. Lost/damaged baggage compensation is up to $2,000 per covered person for checked suitcases. Trip cancellation is the same as Chase Sapphire Reserve. But, only on round trip flights. Medical evacuation has no cap on trips less than 30 days. It excludes pre-existing conditions. This card also has a $895 annual fee.
Losing documents when abroad can make it extremely difficult to return home. A good policy will assist in replacement tickets. Lost medicine can be replaced, and injuries covered. Pickpocketing and theft are rampant in Europe. I was victim when kids in Paris stole my cell phone off a café table while I was having coffee. This was the catalyst to assure my policies now include electrical items.
Most travel insurance providers offer different types of protection. For example, comprehensive travel insurance for a $5,000 two-week Aruba vacation will cost a couple in their 50’s approximately $300 -$500. This includes trip cancellation or interruption. Also, baggage protection, $250,000 emergency medical evacuation, $50,000 emergency medical, and more.
As you can see, there are numerous options
Don’t rely on your existing domestic health insurance policy to cover you abroad.
Peace of mind is worth the nominal price of travel insurance. Particularly when booking a trip costing thousands of dollars. As with any policies, read them carefully for hidden caveats.
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