Insurance gets a second look as travel world evolves

InsuranceTravel insurance was once something that only the most careful of travelers bought – an option that was easy to pass up and rarely used. But talk of airline bankruptcy, problems on a normally safe cruise vacation, and political unrest around the world have travelers taking a second look. Even impossible-to-predict natural disasters affecting travel are pushing consumers to buy. The travel industry has seen its fair share of major changes and developments in recent years, and 2012 shows no signs of slowing down.

“The big, dramatic stories are what get people thinking about travel insurance,” as Carol Mueller, vice president at Travel Guard North America, a major third-party insurer, told Gadling.

The Costa Concordia grounding, the recent robbing of cruise passengers while on a normally safe shore excursion in safety-challenged Mexico, and the disabling fire on Costa Allegra, have left travelers with questions about cruise ship safety and regulations.

Both cruise lines and airlines have tightened cancellation policies, leaving travelers with stiffer penalties when changing itineraries. News of airline consolidations and bankruptcies continue to make headlines across the globe, as the number of seats available to passengers shrinks even more.Travel experts have predicted that the cost of airfare will continue to rise in 2012 due to factors including: oil prices, increased regulation, fees, and decreased competition.

In a recent story in the Seattle Times, Anne Banas, executive editor of SmarterTravel, said, “We’re going to see higher airfares.” Additionally, George Hobica, founder of travel website AirfareWatchdog added, “Fares are probably going to inch up.”

Still, travel to far-away, bucket-list destinations has become increasingly common. Exotic, long haul destinations landed on lists of the “must see” destinations for 2012 compiled by some of the country’s top travel editors and experts.

Travel+Leisure’s Hottest Travel Destinations of 2012 list includes Sri Lanka, St. Vincent, the Grenadines, and Mozambique’s Northern Coast as hot places to visit. Earlier this year, Gadling recommended some highly specific adventures that included traveling to Rwanda for gorilla spotting, a hike and bike tour of Easter Island and a ski trip to the South Pole, among others.

In a world with more places to go and more things that can go wrong, it’s important for travelers to educate themselves on how to cover their investment and safeguard themselves when traveling.

According to Travelguard’s Mueller, “the majority of insured’s file claims are as a result of trip cancellation; interruption or delay; lost or delayed luggage; and medical emergencies. Others take advantage of ‘Cancel for Any Reason’ plans that provide reimbursement in the event that they must call off the trip entirely.”

What travelers don’t realize is that travel insurance plans often do more than just cover the costs of these types of inconveniences. They can serve as a resource for travelers in need, providing assistance services like facilitating cash transfers, making last-minute hotel arrangements, and tracking lost luggage. This type of assistance can be especially helpful in a foreign country, where insurance providers can help locate English-speaking doctors, assist with replacing lost or stolen travel documents, and relay messages to family and friends back home.

Still, buying travel insurance does not protect travelers against all perils. Cruise passengers who buy travel insurance because they are concerned about hurricanes or other weather-related events that might affect their itinerary are often surprised to find out that those are not normally covered reasons for cancellation.

Knowing what is covered and what is not should be a primary focus for travelers considering the valuable protection that a travel insurance policy can provide.

“A good policy can offer you peace of mind for your upcoming vacation,” says consumer expert Chris Elliott, adding “If something goes wrong – if your trip is interrupted or if you have to cancel – you can recover some or all of your costs.”



The Truth About Travel Insurance

Flickr photo by F H Mira