travel insurance questions

First, read the fine print at least three times to make sure that you can cancel for ANY reason. Some policies only pay for certain kind of cancellations. Second, most insurance will only cover actual losses or damages. So only count your true, out-of-pocket, losses. In other words, if you cancel you airfare but you get a credit minus a change fee, all you will receive is the change fee. Same for deposits if the deposits are refundable or partially refundable. Insurance policy of this type do not want you to make money on the deal. At best you break even and you may need lots of documentation to prove your exact losses.

I've only had to purchase insurance once last year but did a lot of prior research. In addition to what Frank said, ask the carrier to send you the certificate of insurance (the contract) so you can read it before you buy it. They'll typically just have their brochures online but will e-mail the certificate if asked. Cancel for any reason usually needs to be purchased within a certain number of days of making your reservation (like 30 as opposed to a basic plan, which can often be purchased right up to departure), may not reimburse you at 100%, and could have specific timeframes when it no longer applies right before the trip. The rates are set by coverage increments ($0-$500 costs x, $500-$1000 costs y, $1000-$1500 cost z, and so on). Yes, include all of your non-refundable expenses and deposits to get to the total amount of coverage needed.

When I last used Access America 1 1/2 years ago, I could (if I chose to as I bought them over time) add train and hotel reservations that were non-refundable. That only added a few dollars to the total cost of the insurance. Their website is pretty clear about what is and isn't covered (as clear as any insurance info!); when I had a few questions, a phone operator gave me very good guidance and cleared things up for me. My particular package was the one offered through American Airlines - the option to purchase shows up as you are finalizing your ticket purchase...You can research them ahead of time, and I believe (in the past, anyway) that I could have added the ins. on at a later date at the same price. That package included trip cancellation due to certain work-related scenarios...

I've used the service www.Squaremouth.com twice now. It seems a good tool for figuring out what you need to include. Thank God I haven't had to make a claim yet, but I felt they gave good guidance on the options and the site allows you to compare many policies. I included my lodging deposits as well as final payments due prior to travel, along with airfare. If your $$ add up to say $3000, the difference between that and a $4000 policy is worth considering "just in case." Frankly my big worry, and reason for purchase of insurance, is delay. What if the Icelandic Volcano happens again and I am "stuck" 5 days in Rome and can't go home (darn it!)? The inconvenience will be ameliorated by the $250 per day coverage to pay for expenses.

But I also read in our local papers that travel insurance for some people did not cover the volcano because it was an act of nature. If you are planning on your insurance policy covering such situation it better be in the fine print. To many people assume things are covered when they are not.

Good point Frank. Taht is indeed covered in the fine print, but not available in the cheapest policies!