Dear Ben: Like everyone else, I’m
financially paranoid about traveling. I feel the skies are safer,
but am more concerned about the economic risks involved with
planning a trip right now. Do you have any advice?
– Karen in Los Angeles
Dear Ben: My wife and I want to travel over
the holidays but are afraid of our trip being negatively impacted
by the current state of world affairs. I already canceled two
business trips in mid-September; although the airlines were pretty
forgiving then, recreational travel a few months later might not
carry that same level of understanding. What do you think about
insuring the trips?
– Jerome in Dallas
Dear Karen & Jerome: You’re smart to
want to reduce your travel-induced exposure, but don’t let it
paralyze you from getting on with your life. Thankfully, the
airline industry has woken up and decided to dramatically reduce
airfares to entice consumers back into the friendlier (and safer)
skies. There’s lots of great on-line resources to help you find
a great airfare deal; my picks include www.bestfares.com
or www.travelocity.com or
www.orbitz.com. The hotel and
travel car industries are also helping make you "a
deal-you-can’t-refuse" on rooms and rental car rates that
represent some really incredible bargains. My favorite one-stop
resource for this area is http://www.hotels.com.
And if you’re determined to reduce your travel anxiety (and
minimize potential financial losses) even further, consider
spreading the risk by purchasing travel insurance. I’ve never
been a fan of this type of insurance in the past, but today’s
travel landscape dictates a new attitude. Consider buying travel
insurance that not only pays (traditional) accidental death
benefits, but also covers trip cancellation costs or
"stranded away from home" costs that are almost
impossible to predict. Travel Cancellation and Travel Interruption
coverage is increasingly popular and covers a range of
non-refundable expenses. Before you spend a bunch of dough on
travel insurance, check your homeowners/renters, automobile and
medical insurance policies first, as well as any additional
coverage you may have through one of your precious metal [gold or
platinum] credit cards if you pay for the trip using one of these.
Bottom line? Make sure you’re not
duplicating coverages you already have but aren’t aware of.
Here’s some tips from Ben on things you need to know as you
being shopping for travel insurance:
- Travel insurance premiums are
usually priced as a percentage of the total trip cost.
- Cancellation/Interruption
insurance usually pays non-refundable expenses, such as hotel
or tour deposits. They usually pay off if you don’t depart
as scheduled or if you are forced to leave your destination
early.
- While most policies will cover
death or illness of the traveler and immediate family [or
party] traveling, many policies will pay if the
insured/traveler is in a traffic accident.
- Especially in today’s travel
environment: Check to see if your coverage covers trips
canceled or shortened due to being called away for military
service.
- ALWAYS check your
homeowners or renters policies first to make sure you’re not
buying duplicate coverage.
- If you’re using a GOLD or
PLATINUM credit card, check to make sure you’re not
duplicating a "perk" coverage you’re already
receiving when paying for the trip using one of these cards.
- Do your homework before
spending a dime! But once you’re convinced that you need to
hedge your bets and spend some money on this type of
insurance, here’s some of the top names in the travel
insurance business:
