Sicily is one of the hottest destinations of 2023. But should you go there without travel insurance? … [+]
Mark Graham is planning a trip to Sicily and France with his wife this summer. He’s still working out some of the details, but one thing he is sure of: getting travel insurance. Graham can’t imagine traveling without it.
“We feel better knowing we have the safety of insurance,” says Graham, a retired telecommunications worker from Danville, Calif.
And who can blame him? The pandemic made travel insurance a must-have item for many travelers, including people like Graham, who fit the “must be insured” profile (retired, overseas travel, cruising). Others who are planning their 2023 trips may still be on the fence. I can help you decide.
It’s going to be another interesting year for travel, experts say.
“Between flight disruptions, weather issues, and unexpected medical emergencies, travel is unpredictable and will continue to be so in 2023,” says Carol Mueller, a vice president at Berkshire Hathaway Travel Protection.
It’s natural for people to think about travel insurance. But what should they do? Graham’s concerns are common. For example, what if there’s another COVID outbreak or the war in Ukraine affects his cruise? He’s also worried about a possible trip disruption or medical emergency. Those are issues that a standard travel insurance policy can address. But there are so many choices.
“Travelers are more interested in purchasing travel insurance than ever,” says Karisa Cernera, a director at Redpoint Travel Protection, a travel insurance company. “But choosing a travel protection plan can be overwhelming.”
France is always a favorite for U.S. travelers. But what kind of travel insurance will cover you in … [+]
What kind of insurance is available for your 2023 trip?
If you’re planning to spend more than $5,000 on a trip and you have prepaid, nonrefundable expenses like airfare and a hotel, you need some kind of insurance.
Here are your options:
- Most standard travel insurance policies cover “named” perils such as trip cancellation, delays, medical emergencies, medical evacuation, interruptions, and lost luggage. They cost between 5% and 7% of your nonrefundable, prepaid trip expenses.
- A “cancel for any reason” policy covers all of the above — plus, you can cancel your trip for any reason and get anywhere between 50% and 75% of your money back. A “cancel for any reason” policy costs between 9% and 12% of the cost of your trip.
- You may also have coverage through your homeowner’s or renter’s insurance, auto insurance, or credit card. You’re already paying for them, so you may be able to skip a separate policy.
Before you buy anything, you owe it to yourself to check the type of insurance you already have. It may be enough. That’s what Anand Kumar, a program manager from San Ramon, Calif., discovered when he booked a Baltic cruise.
“I concluded that my credit card provides reasonable travel insurance as well as other benefits, …….