I.I.I. Provides Tips for Purchasing Travel Insurance

INSURANCE INFORMATION INSTITUTE
Contact: Press Offices
New York: 212-346-5500; media@iii.org
Washington, D.C.: 202-833-1580


NEW YORK, September 12, 2007 — Hurricanes can wreak havoc on the best laid vacation plans, so late-summer travelers should consider purchasing a travel insurance package that includes 24-hour assistance and emergency travel services, according to the Insurance Information Institute (I.I.I.).

“Vacations can sometimes cost thousands of dollars, so it is important to have travel insurance to provide financial protection in case you have to cancel your trip due to a hurricane or some other type of disaster,” said Jeanne Salvatore, senior vice president and consumer spokesperson for the I.I.I.

Travel insurance can help cover your vacation investment if severe weather conditions directly affect your travel arrangements or accommodations. For example, if you are forced to cancel your trip to the Caribbean due to a hurricane, travel insurance with trip cancellation coverage can provide reimbursement. For losses to be covered, however, the insurance must be purchased before the hurricane is forecast.

“Most travel insurance plans sold in the U.S. incorporate 24/7 emergency travel services that come in handy when travelers are faced with unexpected situations such as severe weather,” said Dan McGinnity, a member of the United States Travel Insurance Association (USTIA). “In addition to help with some of the more common travel mishaps such as lost passports and cash wire assistance, some travel insurance providers even help their clients rebook cancelled flights, make new travel arrangements and coordinate ground transportation and lodging,” added McGinnity. These services are heavily used when a storm is quickly approaching.

Specific travel related coverage can be purchased individually or bundled together as a package. Following is a list of the five major types of travel insurance:

1. Trip Cancellation Insurance provides coverage for pre-paid nonrefundable expenses—up to the limit of coverage purchased—in the event you have to cancel a trip due to sickness, a death in the family or other types of disasters listed in the policy, a hurricane, or even an accident on the way to the airport. It will also reimburse you if the cruise line or tour operator goes out of business.
   
   Trip cancellation insurance is different from the cancellation waivers that many cruise and tour operators offer. Waivers are relatively inexpensive, costing approximately $40 to $60. They provide some coverage if you have to cancel the trip, but have many restrictions.
   
   For example, waivers must be purchased when you book the trip and they will usually not cover you immediately before departure (the time period during which the majority of travelers need to cancel) or after the trip has begun. Most importantly, waivers are not insurance—they are not regulated by the state department of insurance, so if your tour or cruise operator gets into financial difficulty you may not be able to collect.
   
   
2. Trip Interruption reimburses you if you or an immediate family member, become Ill or die, or if due to any other misfortune listed in the policy you are forced to return home earlier than planned. This could include bad weather, airline strikes and terrorism. Most policies reimburse you for the unused portion of the vacation.
   
   
3. Baggage Loss reimburses you for lost, stolen or damaged personal items. If you buy baggage insurance, be sure to review the policy for the list of property that would not be covered. Some of your property could exceed the limits allowed. And, keep in mind that your homeowners insurance may cover many of those items already.
   
   
4. Emergency Medical Assistance and Evacuation provides insurance and medical assistance for travelers. For example, it would cover you if you had to be airlifted to a hospital, or if you had to stay in a foreign hospital for a prolonged period of time. It also provides coverage if you become seriously ill or injured and need to be flown to a better medical facility than is available where you are vacationing.
   
   Before purchasing this type of coverage, check with your own health insurance carrier to find out what type of coverage you already have when traveling abroad and what the coverage limits are. And be sure to ask whether your own health policy pays to fly you home or to a country with first-rate medical care.
   
   
5. Accidental Death provides a variety of coverages if you, or a family member, die on the trip. If you have a good life insurance plan and have made other financial provisions for your loved ones, this may be duplicate insurance so check that you actually need it before purchasing accidental death coverage.

• Is the travel insurance company licensed by the state insurance department where I live?
  
• What disasters are covered and are there any restrictions?
  
• Do I already have coverage through a credit card or another insurance policy?
  
• What type of assistance does the insurer provide in the event of a medical emergency or other disaster?
  
• How is the reimbursement determined?