War and Travel Insurance – What a traveler needs to know.

April 19th, 2017

Sabers are being rattled on the Korean peninsula and travelers are calling about coverage in case they have to cancel due to a war or an act or threat of war.   Does travel insurance provide coverage.  Probably not unless the traveler buys “cancel for any reason” coverage(CFAR).

Why doesn’t traditional travel insurance provide coverage?  The main reason is that most travel insurance policies have a general exclusion that eliminates coverage if cause by war or any act of war or civil commotion.   Because of this exclusion, basic travel insurance won’t provide coverage however, those plans with CFAR coverage at least provide partial coverage for cancellations.  Simply put, CFAR coverage provides benefits if you have to cancel a trip for a reason that is not otherwise covered either because it isn’t a covered reason or because it’s specifically excluded – such as cancellations caused by war.

“Cancel for any reason” coverage is found on some plans either built into the basic plans or available as an option that can be added to a basic policy.    As a general rule, in order to be eligible for CFAR coverage you must purchase the coverage within a short period of time following your first payment date and you must insure you trip to value.  Plans usually have a 25% copay and a black out period of 48 hours prior to departure where cancellation caused by a non-covered reason will not be covered.

CFAR isn’t for everyone but if a traveler is concerned about the potential for war than it is their only alternative.

Beware of common travel insurance misconceptions

September 20th, 2016

Interesting article that appeared online at U.S. News & World Report.  Makes for a good read about things to think of when buying travel insurance.  I enjoyed being interviewed for the article and seeing the final result.  The author, Liz Weiss, has done a great job with a difficult subject.

CNBC – Street Signs How Terrorism Impacts Travel Insurance

August 23rd, 2016

Yesterday, I was interviewed by the CNBC news show, Street Signs, concerning the impact of terrorism on travel insurance.  You can view the interview at http://video.cnbc.com/gallery/?video=3000545183.

For more specific information about terrorism coverage visit our Buyers Guide terrorism page.

 

Rudy Maxa’s World with John Cook from QuoteWright

May 23rd, 2016

This Saturday I was a guest on Rudy Maxa’s World where I answered questions about travel insurance and TSA delays. You can listen to my segment

or you can visit Rudy Maxa’s World site at: http://rudymaxa.com/podcasts/2016-2/ . If you haven’t seen Rudy on PBS TV or listen to him on radio that I strongly recommend making it a habit.

TSA delays – does travel insurance cover you?

May 18th, 2016

We’ve all seen the headlines:

  • TSA Hell:  passengers in Chicago miss flights due to lines
  • TSA Turmoil
  • Long TSA lines strands 450 fliers overnight

At QuoteWright.com, one of the most popular questions that travelers are currently asking is “What coverage do I have if I’m delayed by long TSA lines and my flight leaves without me?”

The bottom line is that travel insurance probably doesn’t cover a delay or missed flight due to long TSA lines.  Why?  Because coverage designed to insure your trip, such as trip cancellation/interruption, travel delays and missed connections, is named “peril coverage,” and long lines are not considered perilous.

“Named peril” is an insurance term that translates to the insurance company only covering those specific reasons listed in the policy for that coverage. Most plans will cover delays or missed connections due to “inclement weather,” causing common carrier delays, or, in some plans, “mechanical breakdown or strike.” However, none of the plans covers delays or missed connections due to TSA delays.

At QuoteWright.com we believe that an informed traveler is an empowered consumer. It is essential the traveler be told of not only what is covered by his/her policy, but essentially what is not covered as well.