Travel Insurance
One of the questions I'm asked most frequently is where to buy travel insurance. There are lots of companies selling travel insurance. You can spend hours on the phone or internet comparing policies, but I find that InsureMyTrip.com does all that quickly and easily.
You input some basic information, like your age, the amount you're insuring, and where you're headed, then InsureMyTrip.com displays policies from just about every travel insurance company out there, complete with rates and policy comparisons.
Traveling involves risk, just like everything else in life. While nobody wants to cancel a trip, or expects to become seriously ill while they're traveling, it's worth considering some kind of insurance to cover you if you do. First, let's look at the different kinds of insurance, and what they cover.
Trip Cancellation Insurance covers you against the risk that you become ill before or during a trip, and have to cancel. It doesn't pay any of your health care costs, but reimburses you the money you paid for a trip if you have to cancel or leave a tour early due to illness. Most companies have all kinds of restrictions on pre-existing conditions, and what does and does not constitute a valid reason for canceling a trip. It is incumbent upon you to check out the details of individual companies' policies.
If you'll be doing an independent trip, this kind of insurance may be of little or no value to you, since most of your costs don't occur until after the trip has started. If you do purchase Trip Cancellation insurance for an independent trip, consider insuring only the value of the items that are difficult to cancel or change.
Airline tickets, even restricted fares, can almost always be changed to a later date (usually with a penalty, but at least you don't lose the whole thing); most hotel reservations can be canceled without a penalty 24 to 48 hours in advance; rental car reservations can be canceled with no charge; railpasses usually incur a 15% refund penalty, but many point-to-point ticket, such as the cheapest Eurostar Channel Tunnel tickets, don't allow any changes or refunds.
If you're taking a tour, you probably have a lot of up front costs at risk, especially if you have to cancel in the last 60 to 90 days before a tour, which is when most companies require final payment for a tour. Once the final payment has been made, most tour companies will not refund anything if you have to cancel. In this case, it's up to each individual to weigh their own risks against the cost of the insurance.
Once your trip actually starts Trip Cancellation becomes less important, as the chance of you being hurt or becoming too ill to continue during a tour is small. It does happen, though, so again each individual needs to weigh their own risk.
During a trip there are basically two kinds of insurance that might be important: Emergency Evacuation Insurance and Traveler's Health Insurance.
Statistically, very few people require Emergency Medical Evacuation (which is probably why it seems like such a bargain, compared to Trip Cancellation or Health Insurance). Emergency Evacuation insurance covers the costs of having you transported to the nearest medical facility where appropriate treatment can be provided. If you're traveling in western Europe, where medical training and care are very good, chances are that a nearby hospital will be able to do anything for you that you could possibly need. In this case, emergency evacuation isn't necessary and the insurance generally will not cover flying you home just because you don't feel good and want to go home.
If you're traveling in less developed areas, like parts of eastern Europe, Asia or Africa, then Emergency Evacuation insurance is definitely something to think about. The costs of emergency transportation can be extremely high. Most evacuations cost between $3000 and $15,000, but in some instances can be much higher.
For Emergency Evacuation and overseas medical service, consider membership in SOS International, the world's leading medical and security assistance company. They specialize in emergency evacuation and 24-hour help for any travel emergency.
Traveler's Health Insurance covers care and treatment that you undergo if you become ill or are injured while overseas. Your regular health insurance may cover treatment abroad, but many do not (Medicare, for example, doesn't cover any treatment outside the US). Ask your insurance company specifically about their overseas coverage.
Even if your insurance company covers overseas treatments, European doctors and hospitals will require you to pay up front. Once you return to the US, you'll need to have the bills translated, and then submit them to your insurance company for reimbursement.
Traveler's Health Insurance covers these costs for you, without having to pay up front or worry about reimbursements once you get home. Most companies also provide services that are just as valuable when you're overseas: referrals to English speaking doctors, translators if necessary, and assistance in contacting family members.
Below are companies that provide some combination of Trip Cancellation Insurance, Emergency Evacuation Insurance, and/or Traveler's Health Insurance. I don't recommend or endorse any of these companies specifically, and provide the names only for your information. Most of the policies from these companies are included in rate and policy comparisons provided by InsureMyTrip.com.
Traveler's Emergency Network, 800.275.4836. Provides emergency medical evacuation insurance.
TravelGap is one of several travel health plans offered by Highway to Health, an internet based health insurance company. For more info call 888.243.2358.
CSA Travel Protection, 800.348.9505. Offers a variety of travel insurance packages, including trip cancellation. Rates vary with your age. Under 55 they run about 2.5% of the prepaid trip costs, with the percentage increasing with your age.
Access America, 800.284.8300.
Travel Guard, 800.826.1300.