Travel Insurance, its Exclusions and Illusions
Aug. 22, 2006. While terrorism scares and hurricane warnings have spurred an increase in sales of travel insurance, many travelers who purchase it fail to read the fine print, according to an article in today’s Wall Street Journal (Subscription only) titled, “The Exclusions and Illusions of Travel Insurance�.
Scott McCartney urges that before you buy travel insurance policy, you should consider the following facts:
• Many disasters, such as terrorist attacks and hurricanes, are uncovered.
• Some policies that do cover terrorism impose strict limitations.
• Cancel-for-any-reason policies typically cost at least 40% more than standard insurance policies.
• In many major disruptions, airlines and hotels typically waive restrictions and fees on rebooking.
We believe that, as usual, Mr. McCartney is offering very sound advice in his column, “The Middle Seat�. In a time when vacationers are being pinched by higher costs on all fronts, it may be wise to forego a travel insurance policy that probably won’t pay off even in the unlikely event of a ruined vacation.
A better approach might be to only take a vacation that you can afford, and realize that prudent planning might be better insurance that buying a travel insurance policy. With that approach, the worst that could happen is that you lose some of the money you could afford to spend on a vacation. You should try to make sure that you are dealing with reputable travel agents, airlines, and lodging operators when planning your vacation.
When planning to stay at a vacation rental, it is prudent to carefully check out the property to determine the quality you expect will be what you get. If a property is available at VacationRental.org, that is a good place to start because it is dedicated to listing only properties whose owners agree to meet certain standard of quality.
