Travel Insurance...dont be caught without it

Travel insurance for the holiday was formerly looked upon as a luxury, consumers concerned about whether their vacations can be cancelled by incidents outside their control, or worried about the quality of medical care in the area they are visiting, now view travel insurance as a good value. Generally, a comprehensive travel insurance policy costs 5 to 7 percent of the price of your trip.

Travel insurance is not so much an optional extra as an integral part of any holiday. Travel Insurance and holiday insurance policies cover the obvious problems, such as a stolen wallet or purse, an accident or an illness. Travel insurance also provides compensation for delays and cancellation, for damaged or lost luggage, and even a telephone help line for emergencies.

Nobody wants the unexpected to happen when they go abroad, but unfortunately there is no such thing as a totally risk-free holiday.

A travel insurance policy usually offers two coverages: trip cancellation/interruption and emergency medical evacuation. Reimbursements for lost baggage or trip delays are nice if they come bundled with trip cancellation/interruption or emergency medical evacuation, but they're usually not good buys on their own. If you have absolutely no health insurance, or if your health plan won't cover you at all while you're abroad, then you should look into medical or hospital coverage. Be sure to check your health insurance policy carefully.

Trip cancellation/interruption coverage will reimburse you for any nonrefundable deposits you put down on a trip or cruise if it turns out that you won't be able to go after all, or if you have to leave early. The catch? It will only pay out if you have to cancel or leave early because of a covered reason. That's why it's so important to read the fine print. Some policies will cover only medical reasons (say you're admitted to the hospital), and some will not cover pre-existing medical conditions (like an old back injury flaring up).

Trip cancellation/interruption will pay the difference between what you can get refunded from the cruise line, tour company, or airline, and what you originally paid. That means that you must seek a refund first with the tour company before you file a claim on your trip cancellation/interruption insurance.

Trip cancellation/interruption policies may also cover "unforeseen emergencies," such as an accident on the way to the airport, a hijacking, a natural disaster, a fire or flood at your house, or a call to jury duty. However, they probably still won't cover you if you change your plans, if your job forces you to stay in town, or if you can't go because of personal finances. Travel insurance in general also excludes self-inflicted injuries and problems arising from the use of illegal drugs.

If your cruise line or touring company goes out of business, your trip cancellation/interruption policy may cover the loss. If you bought the policy from the tour company itself however, chances are you're out of luck. Your coverage also depends on how the policy is written: Some will only pay out if the company ceases all operations for 10 days or more, or if it files for bankruptcy. But many touring companies never bother to file for bankruptcy, they just disappear. And if your trip operator closes down for just a few days, it can still mess up your plans.

If you're up on top of a mountain and break your leg, or if you're in the depths of the Amazon jungle and you get a fever, emergency medical evacuation coverage will pay for the cost of transporting you to safety and, in some cases, all the way home.

This is coverage for the really big problems such as a helicopter rescue, which can save you as much as $20,000!
For more information on travel insurance log onto www.byokids.com.au ....your family travel gurus