An easy way to analyze and compare trip cancellation insurance from QuoteWright.com.
East Hartford, CT., April 11, 2005 — Insurance can be confusing and in some cases overwhelming. There are many things to consider but the foremost concern that most people think of is:
Can I afford to lose the cost of my trip if I have to cancel or interrupt my travel plans?
If the answer is that you can’t afford to lose the money, then you want to buy trip cancellation insurance. But how do you find the right plan? John Cook, President of QuoteWright.com has the following advice:
“It’s not as hard as you think. The first thing you have to understand is that trip cancellation insurance is sold as part of a “package” of travel insurance. Packages are plans that are pre-bundled by the insurance companies. The second thing to understand is that not all trip cancellation insurance is the same. They do have some commonalities where the benefits are concerned but they don’t all share the same covered reasons or exclusions. Because of the differences it is important that you shop around and find the plan that is closest to your needs.
How do you determine the plan that best fits your needs? It’s easy if you follow a 4 step process:
1. Take a look at the plan’s benefits. These are the financial losses that will be reimbursed by the insurance company. This is the area of trip cancellation/interruption coverage where the plans are basically similar. Most of them will reimburse you non-refundable deposits and fees if you have to cancel or interrupt your trip and will pay additional, economy transportation charges if you must interrupt your trip.
2. Trip cancellation/interruption coverage is “named peril” coverage. Translated that means that the policies have specific “covered reasons” that are recognized by the travel insurance companies as valid reasons for a claim. Read these “covered reasons” carefully because if the reason you cancel is not listed within the plan then you will not be covered. As an example some companies say that in order to be covered for “financial default” of an airline, cruise line, or tour operator that you must buy your travel through a third party rather than directly with the airline, cruise line, or tour operator and you must buy the coverage within a specific time period of your intial trip deposit.
3. Look at the exclusions and the pre-existing medical conditions clause. These exclusions are used to limit the “covered reasons” and should be read carefully and in concert with the “covered reasons”. Many of the plans will waive the pre-existing conditions clause if you purchase your insurance within a 10 to 21 day period(depends on the plan) from when you pay your initial trip deposit.
4. Finally, look at the definition of “family member.” Trip cancellation/interruption coverage usually will include coverage if you must cancel or interrupt your trip due to a medical reason or death of a “family member” regardless of whether they are traveling with you. However, not all companies define “family members” the same. Some companies will provide a broader definition than others. Some companies will provide coverage if you must cancel or interrupt your trip because of the “family members” of traveling companions while others will only cover you if the travel companion has cancelled due to a medical reason or has died.
Another helpful hint is that when you are reading a policy you will find some terms and words capitalized. Usually when you find a word or phrase that is capitalized when it normally shouldn’t be it indicates that it has a special meaning and you should look at the plan’s definitions to understand what it means within the plan you are comparing.
Keeping these points in mind will help you find the travel insurance plan that will best fit your traveling needs. There are other coverages that you have to view as well but if trip cancellation/interruption insurance is your primary concern stay focused on that first and than review the others coverages after you’ve found the trip cancellation that is best for you.