Financial Tips for Traveling Overseas

If you are planning a trip overseas, your biggest financial concerns may be getting the best rates on air fares and hotel rooms. In fact, there are a number of other financial issues you should consider before going abroad. Here are 6 financial tips for traveling overseas.

Protect Your Money and Other Valuables. Pickpockets are a problem in many countries and they are adept at spotting unwary travelers who have let down their guards. Beyond staying alert, there are several steps that you can take to safeguard your money. First, don't carry all your cash, debit or credit cards and travelers' check in one place. If you must carry them with you, divide them up so that if a thief is able to snatch your purse or grab your wallet, you do not lose everything. Second, keep records of all debit and credit card numbers and contact information so that you can notify the issuer immediately if a card is stolen. Third, don't take every credit card you have with you. Take one to use and a spare (kept in a separate place) in case the first is stolen. Fourth, find out if your bank has a partner bank overseas. Using a partner bank's ATMs may be fee-free. Fifth, avoid flashing your cash, which is a good way to make yourself a thief's target.

Be Sure You Have Health Coverage. Find out if your health insurance policy covers you overseas. If not, you should purchase a policy that does. Depending on how long you will be out of the country, a short-term policy may be adequate. Otherwise, you may need an extended-stay policy. Among other things, be sure that your policy covers the cost of medical emergency evacuation in the unlikely event that you need it.

Evaluate Other Insurance Coverage. Investigate what insurance coverage you already have for overseas travel and evaluate whether you need to purchase additional coverage. You may already have some protection through your credit card company (perhaps travel assistance, lost bag coverage, trip interruption or cancellation insurance, and so on), your auto policy and your homeowner's policy (for theft). Once you know what you have, decide if you need more. For example, if you are planning a lengthy and expensive trip-of-a lifetime and you don't have trip cancellation coverage, you may decide that purchasing a travel insurance policy is worth the cost for the peace of mind it gives you.

Use Hotel Safes and Lock Boxes to Protect Valuables. The less you carry with you while sightseeing, the less thieves can take, so use hotel safes and lock boxes to secure valuables that you don't need to take with you.

Talk to Your Credit Card Company. If you will be using a credit card while you travel overseas, check with your credit card company to be sure that you can use the card overseas. Also, find out your credit card company's currency translation policies. In particular, look for a credit card without currency exchange fees (since you will probably be hit on the currency exchange rate anyway).

Protect Your Home and Belongings while You Are Gone. If you will be away for an extended period, be sure that your homeowners' insurance doesn't lapse. Many policies terminate coverage without notice if a home is empty 30 to 60 days. Using a house sitter can help you avoid this problem, or you may be able to buy a short-term policy to cover your home while you are gone. Also, take sensible steps to protect your home and belongings, like using your security system, setting timers on lights, discontinuing mail and paper delivery, and asking a neighbor to keep an eye on your home.

Sources:

Scott McCartney, www.smartmoney.com, Safety Tips for International Travelers

www.yourcreditadvisor.com, 27 Personal Finance Tips for Overseas Travel

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