When should someone consider getting trip protection insurance? There is really nothing to stop anybody taking out trip protection insurance, although not everybody actually needs it. Firstly check with...
There is really nothing to stop anybody taking out trip protection insurance, although not everybody actually needs it. Firstly check with your tour operator or cruise company to see if they offer this type of insurance, and whether it is included in your package. You aren't required to purchase it through them, although it may be less expensive to do so.
Most people purchase travel insurance or trip protection insurance if they have a particularly expensive or a once in a lifetime trip - a honeymoon is a good example of the type of trip where people are anxious for everything to go as planned. Statistics also indicate that people also tend to take out more insurance the further away from home they are traveling to - you may need extra insurance if you are traveling somewhere remote, primitive or dangerous
Current affairs and the general fear of terrorism also persuades more travelers to take out extra travel insurance - since the terrorist attacks on September 11th, 2001, The number of Americans taking out trip protection insurance has risen from about 10% before the attack, to about 30% afterwards.
Many people take out travel insurance after a natural disaster or catastrophe - purchase of travel insurance increased dramatically after the tsunami that devastated Asia at the end of 2004. In recent months, the fear of avian flu has been very much in the news, causing travelers to rethink their travel insurance coverage.
One of the most important clauses is the bankruptcy clause - today virtually all the major US airlines have declared bankruptcy; only American Airlines has not succumbed. Passengers are justifiably concerned about booking a trip several months out on an airline that may not be flying - although in most cases, bankruptcy or "chapter 11" has no noticeable difference on the daily operation of the airline.
If your airline does declare bankruptcy, it is required by law to refund your ticket or "protect" you on another airline offering a similar flight schedule - but it is still nice to have the peace of mind that extra coverage brings. Always pay for your plane tickets with a credit card - this gives you additional coverage as under the Fair Credit Billing Act, credit card customers have the right to refuse paying for charges for services which were not provided.
As far as trip protection for cruises is concerned, it is usually a good idea to be covered - many cruise lines will actually ask to see your travel insurance. Be particularly wary of booking a cruise line's maiden voyage or a new itinerary - statistically, it is more likely to be canceled. Cruise lines actually reserve the right to cancel a particular port of call as long as it is replaced with something comparable - it is all in their small print.
Aside from the usual coverage, one of the useful features of this type of insurance is that it will cover the cost of getting you to the next port of call (sometimes called "catch-up transportation") should you miss the cruise at its first departure port.
