by Karin Breuer

Created on: October 31, 2008   Last Updated: November 04, 2008

Life is unpredictable. The more one travels, the greater the chance one will need the assistance best be obtained from a reputable insurance carrier. Carriers vary in the amount of information they require before paying a claim, and the amount of help they give when you do make a claim. It is therefore best to purchase travel insurance from either your travel agent, a reputable nationationl carrier or a local broker who will assist you should you run into problems.

One policy generally does not cover all contingencies so it is important to ask in advance what additional riders must be purchased for full coverage. For example, when purchasing travel medical insurance it is often less expensive to add riders for airline cancellations and lost baggage than if each is purchased separately. For people who travel regularly, especially internationally, it is cheaper to purchase insurance for the year than for each trip.

Baggage insurance is given a flat rate of return to cover clothing and the luggage itself. Carriers do not attempt to value the cost of the lost items so it is important to check how much a policy will cover. Since the average amount that luggage is valued is $1,500 it does not cover money, jewelry or other valuable items. These are best taken as carry-on luggage. One can also purchase a "misplaced luggage" rider which will pay up to $700 if the luggage arrives at the destination more than 6 hours after you have arrived. This will allow the insurer to purchase a change of clothing and toiletries while the luggage is being located by the airline. Receipts for items purchased are required by the agency.

Cancellation insurance is not always a money-back item. Ask whether you will have your money returned and under what circumstances some only cover illness, accident or death in the familyor whether the rider only purchases a ticket of equal value for another date. If the airline cancels a flight, insurance may cover cost of hotel, food and miscellaneous expenses associated with the cancellation such as taxi fares. Airlines no longer offer accommodation automatically although they give consideration to the infirm if the matter is pressed. More often they may offer food vouchers, an upgrade in seating on a subsequent flight or a money-voucher that can be applied to a future flight.

Insurance agencies generally require original documentation for any claims, dates of departure and arrival at the destination, date the loss or accident occurred, airline name and flight number, baggage tickets and your insurance policy number. They require your home address and telephone number and in the case of a medical claim also the name and policy number of your regular health insurance carrier. Some agencies will require your social insurance number for medical claims and may ask you to sign a waver permitting them to bill your regular medical insurance carrier for the maximum amount that your policy would pay. It is not difficult; it is exacting.

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