Why should I buy trip insurance?

Many people say they don't need trip insurance. Here are some of their reasons:

• I'm not going to cancel anyway 
• My credit card will cover it 
• It's too expensive 
• Once they hear why I have to cancel, the cruise line will refund the money  

Cruise lines and Tour Operators are not humanitarians. They don't want to know that your son broke his ankle and you can't go on the cruise. They don't care if you missed your flight and missed the ship's departure from port. What will they say? They'll ask if you have insurance? No? Well, then, you are out of luck. 

If you have to cancel at the last minute and you don't have trip insurance, you will most likely lose the entire fare...no refund...no credit. 

Okay, so you ask why would I cancel at the last minute? Perhaps, God forbid, there is a death in the family; someone in your family is hospitalized; you miss your flight because of a car accident on the way to the airport; there is a blizzard and you can't get out of your neighborhood; you lost your job; I think you get the idea. 

No one plans to cancel their trip, but it does happen. And these aren't the only reasons for canceling. What happens if you are on a shore excursion and you break your leg? It happens. You say your medical insurance will cover that. Will it? Not if you have Medicare. And if you have other insurance, you better find out exactly what they will cover if you are out of the country. Will they cover your evacuation back to the U.S? What about the recent volcano flight cancellations? Once something like this has happened, it's too late to buy the insurance. That would be like buying car insurance after you have an accident. 

Insurance protects you from the unforeseen. It will save you a lot of heartache if something does happen which causes you to cancel, or to cut your cruise short. What happens if you lose your passport or your money and credit cards while on the trip? Well, if you have insurance you can just call the trip insurance company and they will help you get your passport or they will arrange for you to get the money you need. 

One thing to also keep in mind. Trip insurance through the supplier is fine, but if there is any type of problem such as a bankruptcy or strike, the supplier cannot insure itself against such things. It is usually in your better interest to purchase the insurance through a third party company such as Travel Guard.

Another Reason for Trip Insurance

I read an article this morning on cnn.com, which addressed a honeymoon couple's predicament when their flight was canceled. The bottom line is that your vacation is a huge investment. Why would you not insure it? Would you buy a car and not insure it? Hopefully not, or we're all in trouble!

Here is the article from Chris Elliott:

Help! My honeymoon went south


Loyd Jobe's honeymoon doesn't get off to a good start when his flight is canceled. His airline sends the newlyweds on their vacation the next day, but they must pay for an extra night in their hotel. Is that fair?

Q: My wife and I recently booked a honeymoon in Costa Rica through Apple Vacations. On the morning we were supposed to leave, our flights on Delta Air Lines were canceled, and they didn't have any other flights until two days later.

I called Apple and they simply told me to call the airline. They refused to help. Delta's customer service was only a little more helpful. They ended up getting us to Costa Rica a day later on a different airline.

Because of this we missed one day at an all-inclusive resort and decided to stay an extra day. I again called Apple and asked them to refund our missed day and wanted to book an extra day on the end of our honeymoon. They would not refund any money for the missed day and charged us for the extra day.

I sent a letter to Apple's customer service like they suggested I do. I have not gotten any response from them after two letters. Any advice on this issue?

-- Loyd Jobe, Evansville, Indiana

A: It sounds as if Apple could have done more to save your honeymoon. But let's take a closer look at the facts.

Delta canceled your flight, not Apple. So in a sense, Apple was right: You would have to talk with the airline about rescheduling your flight. At the same time, Apple advertises a "beginning-to-end" vacation experience, which includes employees greeting you at your departure airport and meeting you when you arrive.

Perhaps Apple raised the bar a little high when it promised "the ultimate in a quality vacation experience."

I contacted Apple, and a few other details emerged. First, the company says you were offered travel insurance, which would have protected your vacation investment. You declined, according to Apple.

So technically, the delay wasn't Apple's fault and you didn't buy its insurance. It owed you nothing, in a contractual sense.

But who cares about contracts? This is your honeymoon, and you booked a vacation with a company that you believed would take care of you rather than do just what's legally required of it.

I always recommend that for once-in-a-lifetime vacations like yours, travelers consider the services of a travel agent who specializes in honeymoons. I think an agent would be able to offer this kind of personalized attention you require for your Costa Rica getaway.

It turns out Apple asked your resort for a date swap, which would have allowed you to stay an extra day at your hotel, but it turned them down. I think you might have started a dialogue with your hotel, letting them know that this was your honeymoon and that you didn't really want to lose the last day of a special vacation.

Next time -- and I really hope there isn't a next time -- you might want to either send an e-mail to Apple Vacations or ask for a return receipt from the post office. The company had no record of either of your letters.

Apple contacted your resort again on your behalf and secured a $184 refund for the last night of your vacation. It also sent you two $100 travel certificates.

(Christopher Elliott is the ombudsman for National Geographic Traveler magazine.)

Protect Yourself with Travel Insurance

Many people think travel insurance is too expensive and that they will never need it, so why pay for insurance?

Travel insurance usually costs about 10% of your trip cost. This varies by the age of the travelers, the per person cost of the trip, and the amount of coverage you desire. However, a vacation costs a significant amount of your hard earned money and should something come up that causes your trip to be canceled, delayed, etc, insurance can make all the difference.

Examples:
Your mother breaks her hip and needs surgery
You are delayed getting to the airport because of a car crash
Your luggage
A snowstorm, hurricane, or even an ash cloud in Europe causes you to be delayed or canceled

There are hundreds of scenarios that can cause you to lose your money invested in your vacation. And once something happens, such as a hurricane or the ash cloud, it is too late to insure your trip to cover you for those reasons. That would be like insuring your car after it is hit or insuring your house after a fire.

A family of four will invest thousands of dollars in their vacation but it only takes a second to lose that money if the vacation is not insured. Wouldn't you rather have that peace of mind, knowing that if the unexpected happens, you are insured and your money will be refunded?

There are exclusions when it comes to travel insurance and one exclusion is pre-existing conditions. But if you insure your trip, usually within 14 days of your initial deposit, most pre-existing conditions (i.e. heart condition, severe asthma, etc) will be covered if you have to cancel your trip. And in most cases, if your travel companion has to cancel, you will be insured to cancel as well.

Most policies offer free insurance for your children under the age of 18. So, for example, you would only pay for the adults portion of the total trip cost. This saves quite a bit of money when buying the insurance.

If you cancel your trip before there are any penalties from the supplier (cruise or land), most times you can also have the insurance applied toward the next trip, as long as it is within the guidelines of the particular insurance company.

So do yourself a favor, insure your trip and ensure your peace of mind!