Do You Need Traveler's Insurance? Tips on What You Should Ask

Most travel agents will encourage you to purchase traveler's insurance. Nevertheless, purchasing traveler's insurance for a trip is dependent upon an individual's concern about their financial risk that could be incurred if something unforeseen happens prior or during the travel. It can give you a peace of mind which to some travelers is important. However, like all insurance, you need to know what you are being covered for and whether the cost of the insurance warrants the replacement cost of the lost.

In the past, I have bought traveler's insurance when going to Europe because the cost of the insurance was only a few dollars to the cost of my airline ticket - approximately $12 for a $600 ticket for limited coverage. For what my traveler's insurance covered which was the ticket fare - medical cost that my own health insurance company wouldn't pick up, lost bags and a couple of nights in a hotel if delayed. That was worth it for me.

Presently, my daughter is planning on taking a trip to Europe in August to celebrate her graduating from college. My concern right now is the struggle in the airline industry. In the past two months, there were several airlines grounded and cancelling flights leaving passengers confused and abandoned for days. So, I wanted to get updated on what some traveler's insurance would cover and what their costs were. Here are some questions I asked the traveler's insurance company that I found helpful in making my decision:

If the airline is delayed, causing me to miss a connecting flight, how many days can I recover for hotel and transportation costs?

If the airline I select is grounded for a certain amount of days, can I buy a new ticket to get out quicker? Can I get reimbursed for a new ticket from the traveler's insurance?

What are my reimbursements if my baggage is delayed, damaged, or lost?

If I am sick, injured, or a death in the family, am I covered before and during the trip for reimbursement of all expenses? Is there a declining value of any kind?

What proof do I need to submit to the insurance company for a claim?

How far in advance must I purchase my traveler's insurance?

Can I read the details of the policy coverage?

If all the airlines were grounded at once due to a strike, what am I covered for?

Do you cover all airlines or are there any airlines that are not covered under this policy?

Does the premium I pay cover 100% of the total cost?

It's important to compare premiums and coverage with several traveler insurance companies. Check them out with the Better Business Bureau to see if there are any complaints. Furthermore, make sure they are licensed in your state. Otherwise, you may not have a leg to stand on when submitting a claim.

The first thing you should do is check with your credit card company and find out who they recommend. I checked with American Express and they gave me Global Travel Shield. I gave the company a dollar figure on how much my daughter's outlay cost would be which included any deposits she would lose. My estimate was $2,000. Their quote to me was $68 for a total comprehensive plan which includes just about everything that would satisfy her needs. She can wait just prior to the trip if she wishes to purchase this coverage. In my opinion, this works out well with my concerns because I figure we will have a better feeling of the airline industry by then. And, she may not even need a comprehensive amount or any at all.

It's important to select a reputable company and one that represents your state. Just because it is on the Internet, do not assume its reputability.
Make sure you take the phone number of the travel insurance company and any necessary documents with you while travelling.

Also, check outRick Steves website for more information on traveler's insurance and a list of companies he recommends. Rick is a renowned traveler and has his own TV travel program. Besides, traveler's insurance, his website is extremely helpful for any traveler - new or experienced.

Traveler's insurance is a personal choice. Not everyone needs it. However, with the volatility we are seeing in the airline industry, you might want to consider it.