Are you planning a vacation this summer?yes, you and almost everyone.
More than nine in 10 Americans say they’ll do more this year, according to a recent survey by Nationwide Travel Insurance. Most of those trips will take place in June, July and August.
In addition, 40% of respondents say they will spend more this year than they did last year. So, how is your vacation investment going?
Travel insurance is the popular answer, but what type of insurance and how do you find it?This is the question many Americans ask themselves when designing their plans.
Protecting your vacation is the number one fear this summer, experts say.
“Travelers are bolstering their coverage with defense and anti-extraction hedging tips,” says Dan Richards, CEO of The Global Rescue Companies.
It’s not just that they’re spending more. There’s more to lose. The ongoing war in Ukraine, Hamas attacks on Israel, and other violent conflicts have made insurance a key component when making travel plans.
Records may be broken this summer, experts say.
Overall policy sales for the 2024 summer season have increased this year, but there is an uptick in policy sales in August, which is usually the busiest time of the summer. “Sales are up more than 25% compared to last year,” says Stan Sandberg, co-founder of insurance site TravelInsurance. com.
Western Europe remains the most popular summer destination for Americans, with a few highlights. Travel insurance sales in Greece increased by more than 60% this year to 2023, followed by Norway and Portugal, which increased by 57% and 52%. , respectively, according to Sandberg.
Laura Heidt, manager of Brownell Travel’s insurance office in Birmingham, Alabama, says any insurance policy deserves to cover a few things this summer.
“I’m proposing that other people insure themselves against the unexpected, such as flight delays, missed connections, and out-of-country medical coverage,” he says. “If you’re willing to forgo cancellation and delay coverage, which are generally the most expensive parts of a policy, you’ll want to cover yourself at least with the medical component. “
Heidt says they’ve noticed a 10% increase in insurance sales this summer compared to the same period last year, and many other people are opting for the more expensive “cancel for any reason” policies, which allow you to cancel your vacation. and obtain partial compensation. Reimbursement of your prepaid, non-refundable expenses.
Travel insurance corporations are seeing a trend.
“Most users opt for a comprehensive insurance plan that includes a vacation cancellation, medical emergency, lost or delayed baggage, and delays policy,” says Tim Dodge, vice president of marketing at Arch RoamRight.
He says this year, travelers are purchasing insurance on average within 11 days of submitting their vacation to get the added perks of waiving the pre-existing condition exclusion.
If you’re traveling with children, you want more travel insurance coverage.
Travel insurance comes in all shapes and sizes, so you need to check a few out before you buy them. You can really do this, as maximum policies have a “free verification” era that makes them fully refundable for the first week or two (depending on the policy).
“It’s vital for your express travel plans and any potential disruption to protect your investment,” says Robert Gallagher, president of the U. S. Travel Insurance Association. U. S. Securities and Exchange Commission (USTIA).
He says classic plans offer a policy against cancellations, interruptions, delays, emergency medical expenses, and lost or delayed luggage. For foreign travel, the USTIA advises opting for a plan with a medical evacuation and medical emergency policy.
It also depends on who you’re traveling with. For example, if you’re traveling with your children, you may need travel insurance at a family price. But their fate matters, too, says Carol Mueller, vice president of Berkshire Hathaway Travel Protection (BHTP).
“For young families, I propose the ExactCare plan because of its rate for two youth with no additional charge for each adult with the policy,” he says. “However, for families venturing abroad, I propose to contemplate a plan such as BHTP LuxuryCare, designed to meet the specific desires of high-investment vacations. “
It has a selection when it comes to family members’ policy. For example, Allianz’s OneTrip Prime plan also includes a policy for children under the age of 17 when traveling with their parents or grandparents.
Medical evacuations can be costly.
Mike Hallman, executive director of the Medjet Air Medical and Travel Security program, says MedjetHorizon’s memberships are selling out fast. They will offer 24/7 security and crisis response, as well as dispatch to a hospital at home if you are injured. Travelers are nervous even if they don’t bungee jump.
“It’s no surprise that geopolitical tensions are on the rise — all the unrest in France, Italy, Ecuador and other tourist destinations last year — and that crime is expanding the risk point for the Bahamas and Jamaica. “
He makes a clever comment. Travel insurance can cover many of the occasions you’re likely to encounter, such as a missed connection, lost luggage, or a medical emergency. But it’s also vital to know what’s not covered and plan accordingly.
The summer season is still a few months away, but insurance adjusters are worried. Yes, they’ve noticed an overall increase in insurance sales, but some policyholders are still unprotected.
“We’ve started to see early signs that users are exercising less caution and are less likely to purchase insurance,” says Joe Cronin, executive director of International Citizens Insurance.
In comparison, travelers bought a lot of health insurance in 2020 and 2021 due to the pandemic. Cronin believes travelers were terrified of being stuck with COVID-19 in foreign country insurance.
“For those who are thinking of traveling abroad without insurance, I suggest you think for a few minutes before making a decision,” he adds.
Some types of insurance, such as a stand-alone health insurance policy, charge only a few dollars a day. A medical evacuation club is also affordable. And even comprehensive travel insurance policies can be cost-effective when the benefits are taken advantage of.
“Don’t jeopardize your summer travel memories or investment by forgoing the right vacation coverage,” says Daniel Durazo, director of communications at Allianz Partners USA. “While foreign travel peaks during the summer season, unprotected travel would possibly require travelers to pay prices resulting from an unforeseen delay in their trip or a medical emergency abroad.
Bottom line: seriously, travel insurance to protect your vacation, and don’t overconfident. You never know what could happen this summer.