Travel Insurance – Is it necessary?

I am often asked by new clients if travel insurance is really necessary? And if people actually use it? These are very important questions people should be asking and evaluating for themselves if travel insurance is appropriate for them. As with all forms of insurance there is the risk of both under-insuring as well as over-insuring.

A couple of things I bring up for my clients:

• I never travel without insurance, I have both an annual plan, plus also sometimes supplement for when I’m traveling abroad.
• I have personally filed 3 claims in the past two years and was thankful that I had insurance
• Of my clients, about 90% of them purchase insurance
• I help clients process between 1-2 claims per month

This fall season has seen an unusual increase in the number of insurance claims. I’d like to outline a few of these cases for you where the client was happy they had travel insurance.

1. A client who was about to go on a family vacation to Disneyland called 2 days prior to the vacation start date that he was in the emergency room and would need to cancel his trip. Beyond him and his wife, the extended family was also going along. Travel Protection can cover trip cancellation due to serious medical emergencies, compensating travelers for non-refunded portions of their trip.
2. Returning home at the end of a vacation in Mexico the clients boarded the airplane to return home. After they boarded the plane, it was discovered there was a major mechanical issue, and there were no other outbound flights for the day. The airline provided them a hotel that was perhaps a 2 star hotel, while they had previously been staying at a 4-star all inclusive resort. The airlines are simply required to give you some for of lodging. When they called the Travel Protection company, they made arrangements for the clients to return to a similar 4-star All Inclusive Resort. Consider the experience difference between our clients with Travel Protection and that of those who stayed at the basic hotel.
3. During a business trip on a cruise line a client’s wife fell ill back home, and was admitted to the emergency room. The Travel Protection gave options to the client so they knew they could interrupt their trip and fly home if necessary. Insurance would reimburse the prorated amount of the interrupted trip plus the cost to fly home. In this case, the client opted to continue the trip because the kids were able to attend to his wife. But having that option available brought significant peace of mind.
4. While on a cruise to Mexico, a client called and let us know that his father (not on the cruise) had unexpectedly passed away. His father was in his 50’s. Insurance reimbursed him for his flight home, plus the unused portion of his cruise.
5. A clients outbound flight was delayed which caused their bags to miss their connecting flight. When they arrived at the cruise terminal they had no luggage. The luggage took 3 days to catch up with them. Of course they had immediate expenses for clothes and basic supplies. Travel insurance provided up to $300 per person to purchase these incidentals while they waited for their bags to catch up.
6. One client was traveling on a basic domestic trip to see family. When they arrived they discovered the wheels on their checked suitcase was damaged. When they brought it to the attention of the airline, they said that they do not cover wheels. Through Travel Protection they received $75 to have the wheels replaced.
7. A self-employed client was scheduled to take a much needed vacation. About two months prior to the trip, he had a business growth opportunity which would require his full attention. The policy he had enabled him to cancel his trip for work related reasons and receive a full refund of the trip costs paid.
8. A client was scheduled to travel to Paris for a vacation, however we are all aware of the attacks on Paris. Because they were scheduled to travel to Paris within 30 days of an actual attack, they were able to cancel and receive a full refund.

Some thoughts on travel insurance from our owner, Jason Olson:

• Top 10 Reasons why to purchase travel insurance
• Get Assistance while traveling
• Winter Storms & Travel Insurance
• Some of Jason’s thoughts on travel insurance

Also see:

• Unforeseen Events: What Does Travel Insurance Cover?
• 5 Reasons Your Trip Cancellation Insurance Won’t Cover You

IMPORTANT DISCLOSURE: As a travel agent, we’re not licensed as insurance agents in California, so we’re simply able to provide you with insurance options you can choose between. The information provided above are simply illustrations of real situations that have occurred with clients. The determination of a claim extends beyond a quick summary of the incident and as most things, the details are what really matter. Nothing here shall be considered legal or insurance advice, nor can we discuss the merits of a specific claim will be paid. The clients above may have purchased different policies than we currently offer, or than what you currently have. Each insurance policy is defined in the insurance contract which includes very important terms and conditions, along with various exclusions from coverage. For questions about what your specific insurance plan covers, please contact the insurance company directly.