What You Need To Know About Travel Insurance And Swine Flu

Not all travel insurance is alike. Like other types of insurance, it does pay to shop around and find the best insurance to cover all contingencies. Since swine flu has been declared pandemic pretty much everywhere in the world, you should know that some travel insurance has “pandemic exemptions” that won’t allow you to collect if you need to cancel your trip, or cut it short because you come down with swine flu. Do not buy this type of insurance right now.

If you hear that swine flu is raging in your destination, so you decide to defer or cancel your trip, you are out of luck. According to an article in the Tampa Bay News, “None of the regular package policies will cover financial losses for hotels, airlines or cruises for canceling a trip because you're worried about catching swine flu at your destination. For that, travelers must upgrade to "cancel for any reason" coverage.”

“Cancel for any reason” coverage costs about 40% more than the standard premium for travel insurance. In addition, this type of policy usually has to be purchased within 10 - 14 days of making your reservation, and must be canceled 2 days before your scheduled departure.

In general, it is more advisable to purchase travel insurance for more expensive trips, trips that include multiple travelers (it’s much more likely that one person out of a family could get sick or injured than a single traveler), and travel during seasons with weather related issues.

Not all travel insurance is alike. Like other types of insurance, it does pay to shop around and find the best insurance to cover all contingencies. As winter approaches, in addition to pandemic swine flu, there can be weather issues like snow and ice storms that delay flights and even close down airports.

What if you miss a connecting flight? What if your baggage went out on the wrong flight? What if you lose important papers, like your passport? What if you have to cancel at the last minute because of an emergency? All these contingencies and more can be covered if you have purchased the right type of insurance.

According to Rick Steves, travel guru, travel insurance comes in 5 basic types: trip cancellation and interruption, medical, evacuation, baggage, and flight insurance. Supplemental policies can be added to cover specific concerns, such as terrorism, identity theft, or political evacuation. The various types are generally sold in some combination — rather than buying only baggage, medical, or cancellation insurance, you'll usually purchase a package that includes all of them. If you want one type of coverage in particular — such as medical — ask for a policy that focuses on that coverage (though it might come with a little cancellation or baggage insurance, too). The most complete version is called "comprehensive insurance."

Insuremytrip.com allows you to compare insurance policies and costs among various providers. It is well worth the time to check out this site for all the information it provides.

Be aware though. Travel insurance can cost 5% - 10% of the total cost of your trip and more. For a $3000 trip, that totals up to $300 that you will not get back if nothing goes wrong! As with all insurance, there are state laws that govern insurance policies, so check out your state laws.

In addition, cost for insurance goes up with age, especially for travelers over 50, and premiums are higher for more expensive trips.

Before you buy, check out what your homeowner’s insurance and/or health insurance will cover. Because of the cost, it doesn’t make sense to purchase duplicate insurance.

If you are purchasing travel insurance, make sure it is with a reputable company. You might find a better deal with an internet company you’ve never heard of, but you might pay for that “better deal” in the end.

I can hear you now – “It just might be a good idea to get that swine flu shot after all.

Written by Shelby Bateson