You insure your home, your car, your health, your life, and you buy insurance to hedge against the rising cost of nursing home and funeral expenses. There is even pet insurance. So, with thousands of dollars at risk, why wouldn’t you insure your vacation?
If you are buying one of Disney’s vacation packages you will be offered travel insurance as a part of the package. Not only is this one of the most affordable policies available, it offers good, basic coverage. The cost of the Travel Guard vacation insurance is only $66.95 per adult; those under age 18 are included free. For a family of four, 2 adults and 2 children 17 or younger, you would only pay $134. Compare that with any prepaid, nonrefundable expenses like airfare and park passes.
What’s covered?
Trip Cancellation/Interruption (This now includes airfare whether purchased as a part of your Disney vacation package or purchased separately on your own.)
Travel Delay
Lost baggage
Baggage Delay
Medical Expenses
Emergency Medical Transportation
Accidental Death & Dismemberment
24-hour Travel Assistance
Of course you will want to read the fine print for exclusions. For example, your trip being cancelled or cut short due to business reasons is typically not covered, this includes military service. This policy is also a good deal if you are over 50. Disney’s coverage is through AIG Companies and if you want extended coverages like ‘cancel for any reason’ or ‘cancel for business reasons’ or if you are not purchasing a Disney vacation package, you can buy the same or similar coverage, as well as compare other companies’ policies, through an online store like www.InsureMyTrip.com.
What makes Disney’s coverage a better deal for travelers over the age of 50 is that if you purchase coverage elsewhere, you will pay more, upwards of $70 compared to $66.95, depending on how much over 50 you are.
When purchasing travel insurance look at what coverage is considered primary; that could save you from paying deductibles under your existing policies for those losses. Also, don’t pay extra for coverage you may already have such as Collision Damage Waiver on rental cars. Check both your personal auto policy and coverage provided through credit cards you may have. As an optional coverage, you may pay $50+ for a week. Some travel insurance policies include the coverage, but these policies are usually considerably more expensive. American Express offers an excellent product to its card members: Premium Car Rental Protection. For a flat fee of $24.95 per rental (car rental agencies typically charge about $25 per day), American Express provides primary coverage for theft or damage to your rented vehicle. What this means is that, not only are you getting a reasonably priced product, but you won’t have to pay the deductibles of your personal auto policy or risk having your rates go up.
Again, compare travel insurance premiums and what they cover to what it would cost in the event of a loss. In the example of a Disney vacation package for 2 adults and 2 children 17 or under, the cost would be $134 for travel insurance. If you purchased 6-day Park Hopper passes and airfare totaling, say, $1,400, and at the last minute someone became ill which forced the cancellation of your trip, you would be looking at loosing at least $2,400 to possibly more than $2,500, depending on the age of the children.
Ed Perkins, syndicated travel writer (www.smartertravel.com) and consumer advocate offers these tips:
In general, buy the least expensive policy that meets your needs.
If you (or your traveling companion) work in a job with unexpected demands, look for a policy that covers cancellation for any reason, not just a list of “covered” reasons.
Some “gold plated” policies cover a lot of other circumstances, including delays, delayed baggage, and personal property. However, your regular homeowner’s policy may well cover property losses, and the other financial risks are marginal and don’t justify the extra cost. If they come with the policy, fine, but don’t pay extra.
Check out these tips for planning your family’s Disney World vacation:
Join The Practical Mom’s Disney Vacation Companion Forum on Facebook
