Friday, 9 November 2018
We all have the best intentions and highest hopes when it comes to making travel plans.
Of course we'll make it to the airport on time. The plane won't be late so we won't miss our connection or the cruise. Our bags will arrive promptly and intact. No one will get sick and everything will go smoothly.
Unfortunately, as in every other aspect of life, travel doesn't always turn out as we plan, and that's why many people opt for travel insurance.
According to the U.S. Travel Insurance Association, Americans spent nearly $2.8 billion on all types of travel protection in 2016, an increase of 19.1 percent from 2014. More than 87 percent of travel protection products purchased were trip cancellation/interruption packages. Medical and medical evacuation travel protection accounted for 8.7 percent of the money spent, the U.S. Travel Insurance Association found.
Travel insurance typically protects against losing a huge investment in a trip or incurring unforeseen costs that could be too much to absorb on your own. However, if nothing goes wrong, it can feel like a waste. Here are some things to consider:
Travel insurance is typically packaged into a comprehensive plan that groups a variety of coverage including trip cancellations or interruptions; baggage and belongings; and emergency medical services including evacuation.
Of course not all coverage is equal, and you often can customize a policy by adding more extensive coverage. It's wise to check for:
A comprehensive travel insurance plan will typically cost about 4 to 8 percent of the cost of the trip, according to the U.S. Travel Insurance Association. Factors that could affect pricing include the length of the trip, the destination, amount of coverage you want, and your age.
You probably spent some time deciding where you're traveling, what hotels to book, and what attractions to visit. It just makes sense to dedicate some time to researching your best options for travel insurance. Several sites, including InsureMyTrip.com, have travel-insurance comparison tools.
Keep in mind fraudsters are constantly improving their craft and have become quite adept at tricking consumers into purchasing useless products and services, including travel insurance policies. The warning signs of a potential scam include:
Travel insurance can provide peace of mind before a big trip. Deciding on whether to invest in coverage depends on your risk tolerance for the unexpected. For many, the added sense of security is worth the price.
The content provided is for informational purposes only. Neither BBVA Compass, nor any of its affiliates, is providing legal, tax, or investment advice. You should consult your legal, tax, or financial advisor about your personal situation. Opinions expressed are those of the author(s) and do not necessarily represent the opinions of BBVA Compass or any of its affiliates.
Links to third party sites are provided for your convenience and do not constitute an endorsement. BBVA Compass does not provide, is not responsible for, and does not guarantee the products, services or overall content available at third party sites. These sites may not have the same privacy, security or accessibility standards.
Dream about quitting your job and traveling the world? It is possible! Read how this traveler was able to save enough to afford to travel for a whole year.
Follow our travel guide for must-see spots in Massachusetts, Rhode Island, Connecticut, and New York all in one week.