Travel Insurance: Take a Vacation with Peace of Mind

Vacations are special occasions that often create lasting memories - of new adventures, hometowns revisited and once-in-a-lifetime experiences you can cherish forever.

And, then, there are some memories you would rather forget - the lost suitcase on the trip to Florida, the broken leg on the ski vacation to Steamboat Springs, or little Tommy’s emergency appendectomy that forced the family to cancel its cruise.

Unfortunate incidents like these can create hassles and unforeseen costs in the form of lost deposits, non-refundable prepaid travel expenses, and lost baggage and emergency medical expenses.

Purchasing travel insurance can help you prepare for the unexpected and vacation with peace of mind. In its most basic form, travel insurance provides trip cancellation protection that reimburses you for penalties imposed by cruise lines, tour operators, airlines and hotels, if you must cancel your trip. Illness, injury, and the death of a family member or traveling companion are among the most common reasons for canceling a vacation. Cancellation benefits also can be triggered for a variety of other reasons including strikes, natural disasters or bad weather occurring before your trip begins.

Another important benefit of travel insurance is trip interruption protection. As the name implies, this coverage provides protection if your trip is interrupted after it begins. In addition to providing reimbursement for lost deposits and prepaid expenses, benefits usually include the cost of one-way economy airfare to return home. If your trip is only temporarily delayed, in most cases at least six hours, a good travel insurance policy includes benefits for hotel and meal costs incurred during the delay and additional costs you incur to catch up to your cruise or tour. If medical procedures happen outside of the family’s health insurance coverage area, travel insurance would provide emergency medical coverage to help pay out-of-network fees or costs not otherwise covered by your regular health policy.

Many people don’t think they will need this insurance, but AAA Central Penn Vice President of Support Services Tom McGowan found out that having Travel Guard insurance eased a bad situation. While traveling in Ireland with his wife last summer, Tom was in a car accident that left his leg crushed from the knee down. He was rushed to the regional medical center in Limerick and then had to be transported to the trauma center a half-hour away. He had to undergo two operations while there and was in the hospital for five days. They were supposed to return to the states on Aug. 5 but couldn’t until Aug. 8. That meant in addition to the medical bills, the McGowans had to obtain additional accommodations for Mrs. McGowan for the extra days, they had to change their airline tickets and Tom had to fly first-class because of the positioning of his leg. His regular health insurance did pay some of the bills. But after all was said and done, they faced approximately $4,000 in other expenses, which Travel Guard covered.

"It was one of the easiest things I’ve ever done," Tom said of his experience with TravelGuard. "That was an experience I’ll never forget but I realized that I had everything covered. You buy insurance hoping you don’t have to use it, but I knew I had it."

Many travel insurance policies also provide:

• 24-hour emergency assistance for arranging the services covered
• Emergency medical transportation
• Collision/Loss damage insurance for rental cars
• Emergency cash transfers
• Baggage delay or replacement coverage
• Assistance with lost travel documents
• Access to assistance in your native language when traveling in a foreign country.

Like all insurance, travel policies come with limits and exclusions. The cost and destination of your trip are two major factors you should carefully consider when determining the type and amount of travel protection to purchase. A knowledgeable AAA insurance or travel representative can help you plan for the coverages you need.

Tom plans to return to Ireland, and like every trip he plans, he is buying Travel Guard Insurance. "We always factor in the cost of travel insurance when budgeting for our trips. In this case, the cost was less than $200 for coverage for my wife and me," he said. "That’s not a lot for the peace of mind it brings."