Is Insurance something that you need?
by Vinnie Bravdica
One of the most important considerations of traveling is what level of insurance do you need. There are numerous answers, and quite honestly, none of which are bad choices. In this area of our Blog, we’re going to provide assistance in the main options of insurance available. While this will not be an all inclusive list of your options, it will provide you with a better understanding of the options available, and some cost ideas too.
We’ll be demonstrating multiple options of what you can insure on a vacation, variations of how the rates will be determined and most importantly, what level of coverage you’ll be getting. The variations can be confusing, yet the coverages are what sets foremost in your mind when selecting the right coverage. This, we always look for that answer when we talk to you about the options to choose from.
Let’s Dive into the basics to begin with – and then value each plan into a better understanding of benefits. Insurances can become quite confusing, to say the least. Yet fining the best coverage for your needs can be made by answering a few basic questions.
The first question everyone asks about insurance is “How much does it cost?”. Though it’s a very broad question, we always start with a broad answer, though not set in stone, I usually start at about 10% of the total travel investment. The variables that may add or subtract from there will be the age of the travelers, and how far in advance is the policy you’re purchasing.
Let’s break that equation down just a little bit. Age is the number one determining factor in your cost. As an example, family travel insurance will usually not charge for kids. As you’ve already guessed, seniors are going to pay a higher premium. So the best rates are going to be for a young family not traveling with Grandma and Grandpa. This puts a drain on my personal situation as I fall into the Grandpa category personally. The next categorical consideration will be if any pre-existing conditions will need to be considered. Lastly, in just a brief scenario, will be how close to the travel date that you are requesting to be insured. This being a tough subject, because it will become very difficult insuring a trip that is happening within a few days versus insurang a trip that will begin in a few months. I’ll dive into that a little more in depth later on.
Basic Coverage is the primary source of coverage
Don’t be fooled by the term Basic. The coverage usually far exceeds the needs, yet the cost savings can be significant, usually around 10%-20% less. While you’re giving up coverage value (that you may never require), bargain costs may outweigh your coverage needs. This is actually the number one level of coverage we provide, and besides the cost savings, the coverage is more than enough for the average traveler. Plus, as a recommendation, if you are wanting to cover your entire travel budget in your insurance, you can add the cost of your insurance to your overall costs, making 100% of your travel investment insured! I will base this level of coverage on 2 Seniors traveling on a $10,000 travel budget. When comparing we’ll do the same for each level of comparison.
You will get:
- Trip Cancellation to cover your total investment
- Trip Interruption to cover your total investment
- Travel delay for $300
- Baggage coverage for $500
- Baggage delay coverage for $200
- Emergency Medical/Dental coverage for $10,000
- Emergency Transportation coverage for $50,000
When using a Travel Professional while booking, you can request coverage assistance to file your claims too. Pre-existing medical conditions will need to be disclosed as necessary, of course, to ensure these coverages are effective for your travel.
Best Coverage is still reasonable
To make sure you are getting the best coverage, doesn’t necessarily mean you’ll be paying too much for that coverage. As a matter of fact, it’s probably the opposite, in that you can get some really awesome coverage for about 10%-20% more. Coverage increases that will equate to 10 times the basic maximums. This is really a case of, “You get what you pay for”.
You will get:
- Trip Cancellation to cover your total investment
- Trip Interruption to cover your total investment
- Travel delay for $500
- Baggage coverage for $1000
- Baggage delay coverage for $500
- Emergency Medical/Dental coverage for $50,000
- Emergency Transportation coverage for $500,000
As you can see, when spending a little more for the insurance, your coverage can more than double towards your needs.
How does the Travel Agency determine my needs?
Excellent question! Every traveler’s needs are unique, and every circumstance will cause us to ask many questions about your specific insurance requirements. Being under insured can be just as detrimental to being over insured. Every traveler will have specific needs, and perhaps one of the options will not meet those needs, thus upgrading would be the best thought.
The information we are laying out here is solely for travelers from the United States, also. If you reside outside of the United States, we would require some additional conversation to make sure to meet your specific needs. As our training allows us only to provide this type of service to USA residents.