You’ve decided on where you want to go on your next vacation.  The time is perfect, the location is everything you want and the price is in your budget.  You’re ready to deposit your trip when you get asked the question about trip cancellation and interruption insurance. 

What is trip insurance? 

• Trip cancellation insurance can provide reimbursement for pre-paid, non-refundable expenses incurred when you are forced to cancel or interrupt your trip due to covered reasons. 

What might be some examples a covered reason?

• Illness, injury or death of the traveler, traveling companion and certain family members.
• A terrorist act committed by an organized terrorist group in a city that you are scheduled to visit within 30 days.
• Financial default of the travel supplier.
• Strikes, adverse weather or natural disasters that cause the complete cessation of travel services.
• Employer termination- if you have been terminated due to no fault of your own after being employed by the same employer for a certain amount of time.

What else is covered by trip cancellation insurance?

• Missed connections that cause you to miss flights or cruises
• Travel delay that may cause additional expenses
• Emergency medical or dental coverage
• Emergency medical transportation
• Loss, damage or theft of luggage and personal effects
• Baggage delay
• Assistance services to help solve medical, legal or travel related emergencies

Why should I take trip cancellation insurance?

Each travel supplier, such as cruise lines, tour operators, airlines and hotels, have set cancellation penalties.  They can range from $25 per person up to 100% of the price paid, depending upon when the trip is cancelled.  Insurance may cover these fees.

On a personal note:

Insurance is something that we hope we never have to use but let me relay a story of when my family had to use trip cancellation insurance. 

In August 1999, my family, along with friends and relatives, embarked on a Carnival cruise out of Miami, Florida.  On day 3 of the cruise, we were docked in Cozumel.  My husband wasn’t feeling well.  He went down to the infirmary because he was exhibiting symptoms of a heart attack.  After running a couple of tests, we were told that he would have to be transferred to the hospital in Cozumel.

Let me break down some of the charges incurred:

Infirmary medical bill                                                $350

5 days of the cruise lost                                          $2500

Hotel in Cozumel for 4 nights for myself

     and children                                                       $600

Meals in Cozumel for myself and children                                                                   $250

Air fare back from Cozumel to Newark                        $2400

Hospital bill                                                            $3000

                                                                            $9100

Cost of insurance for the family      $186

Amount saved by taking insurance  $8914

What else did the insurance cover? 

• The doctors from the insurance company spoke to the doctors from Cozumel to monitor my husband’s medical situation.  
• Assistance with getting home.  My airline confirmations were faxed to the hotel.  I didn’t have to call any airlines to get flights home.
• All medical bills not covered by our health insurance would have been covered for up to 1 year after the initial claim. 
• Peace of mind.  There was 24 hour assistance just a phone call away.

Of course honeymooners will never cancel their honeymoon-right?

My niece was so excited about her honeymoon to Hawaii in September of 2004.  They had planned the perfect itinerary, with the perfect hotels and already planned some of their excursions.  Ten days before their wedding, the groom broke his leg and ended up in a cast up to his thigh.  This was not the perfect way to honeymoon in Hawaii, so 7 days before the honeymoon, we completely changed the entire honeymoon package.

What was the end result?  Sara and Tim took a longer honeymoon in January after his leg was completely healed.  They ended up taking an extra day, since one of the resorts was offering 1 free night.  We did have to switch 1 hotel since it was booked but they loved the new hotel even more.  The new package cost a few hundred dollars more than the old one since they were now traveling in peak season but the entire honeymoon package was cancelled and rebooked with no problem what so ever.

Do I recommend insurance- without a doubt!

Insurance is recommended at an additional cost.  Please contact us for the Travel Insurance options that will best fit your needs.

For more information, email me at mindy@myvacationlady.com