What better remedy for chasing away the winter blahs than an idyllic seven-day cruise to the balmy Caribbean?
That’s what Viola and Thomas Clements had in mind last November. And to make it even more memorable they booked the trip along with Viola Clements’ uncle and aunt.
But before anyone bid a “bon voyage,” the uncle came down with pneumonia, just a few weeks before the ship set sail. The vacation was off.
Luckily, the Clementses–who always buy travel insurance for cruises–had purchased it for this trip and persuaded their relatives to buy it.
“We always get it,” says Viola Clements. “But this is the first time we ever had to use it, and it worked.”
Travel insurance–though it can be pricey, often adding an additional 6 percent to total trip costs–can be a worthwhile investment. Like all insurance policies, experts advise consumers to ask plenty of questions about what and how much is covered.
Last year, about 40 percent of customers who used travel agents bought travel insurance, says Steve Loucks, spokesman for the American Society of Travel Agents in Alexandria, Va.
“When you travel on a domestic or international basis, the experienced traveler knows to consider travel insurance,” says Hal Norvell, a spokesman for the American Association of Retired Persons in Washington, D.C. “Things happen to people at any age.”
Because travel insurance policies are revised frequently, Norvell cautions consumers to carefully study the plan’s terms and agreements.
Policies can be comprehensive, covering emergencies such as “trip delay coverage,” says Joe Walters, owner of The Cruise Shoppe Ltd. in Versailles, Ky. This could mean if your plane to Florida to catch the Caribbean cruise was grounded because of a blizzard, some insurers cover the cost to transport you to the next port of call to get you on the cruise.
Medical insurance might also be a part of the policy, covering you abroad where your health insurance or Medicare might not work, Walters says.
If you go on a cruise and are offered a “cancellation waiver fee,” make sure you know it is not travel insurance, says John Cook, chief operating officer of Travel Insured International Inc. in East Hartford, Conn., and a member of ASTA’s insurance committee.
Some cruise lines offer these plans, Cook says, but you are paying a fee to avoid their penalties, and you don’t get coverage for medical costs, lost baggage, theft or other expenses.
Cancellation penalties can begin 60 days before departure. For example, on a seven-day Carnival cruise, if you cancel 30 to 60 days before departure, the fine is $100 a person; 4 to 29 days before departure, it’s $200 a person; and three days or less before departure, you lose the entire cost of the cruise, Walters says.
Here are some tips to keep in mind:
– If you want comprehensive travel insurance, Cook recommends that a policy include the following coverage: accidental death; trip cancellation; emergency evacuation coverage ($25,000 is usually enough to get you from nearly anywhere–even if you need a private air ambulance or four first-class seats to lie down); baggage coverage; domestic/international medical coverage.
– How much will it cost? Here’s an example: From Travel Insured, for a $600, seven-day Caribbean trip with air fare, a policy costs $128 a person and you are covered for up to $150,000 for accidental death; $5,000 for medical expenses for accidents; $2,000 for medical expenses for illness; $1,000 for baggage; $600 trip cancellation; and $6,000 for emergency medical evacuation.
– Don’t buy coverage you don’t need. For example, the Caribbean trip described above, most people need only trip cancellation insurance, which would cost $33 a person. Or your homeowners’ or renter’s insurance might cover your possessions when you travel, so you don’t need the extra baggage coverage.
– Most policies cover default if a tour/cruise operator goes into bankruptcy, but some companies might not. Beware: If you buy a policy directly from the tour operator and it goes belly-up, you might have no recourse.
– For cruises, don’t pay for insurance before the 60-day departure window. If you cancel your trip before this, there are no penalties to pay, so you wasted the insurance.
WHO OFFERS IT
You can call direct or many travel agents offer policies from these companies:
– Access America, 800-284-8300.
– The Berkely Group, 800-323-3149.
– CSA, 800-348-9505
– Mutual of Omaha, 800-228-9792
– Travel Guard International, 800-826-1300
– Travel Insured International, Inc. 800-243-3174
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THIS ADVICE IS IN THE BAGS
Some tips from the American Society of Travel Agents to avoid luggage problems:
– Make sure your identification is on the outside and inside of your luggage.
– Remove old destination tags. The bags might end up at your last trip destination.
– Why tempt thieves? Leave the flashy luggage at home. Take the plain stuff even if it’s a beatup suitcase.
– Put a copy of your itinerary in your luggage. It might help if you have a lot of stops on your trip and your luggage is lost.
– As required by the U.S. Department of Transportation, airlines are liable for checked baggage losses of up to $1,250 for each traveler on a domestic flight. If you do have a loss, says the ASTA’s Steve Loucks, write to the airline, describe your schedule, how the loss affected you, and include your frequent flier number.
