More and more Americans are buying travel insurance these days, according to a recent AAA survey. In the past few years, travel insurance sales have seen double-digit growth year over year.
Should you buy travel insurance for your next trip? Here are the factors to consider.
Why Buy Travel Insurance
There are many good reasons to consider buying travel insurance. It’s particularly wise when taking an extended trip, an international vacation or any potentially high-cost trip.
Trip Cancellation Insurance
In the AAA survey, trip cancellation protection was the top reason for purchasing travel insurance. This reimburses travelers for their insured trip costs if they have to cancel their trip due to a covered reason. The covered reasons vary by provider and plan, but depending on the plan, these typically include:
- Accidental injury, sickness, or death of you, a traveling companion or a family member
- Weather events that cause cancellations in travel plans or a service stoppage
- Mandatory evacuation at your destination due to hurricane or other natural disaster
- Workers’ strike that causes complete cessation of travel services of your air carrier
- Bankruptcy and/or default of your travel supplier
- Terrorist attacks that occur in your destination
- You or your traveling companion are terminated or laid off from employment
According to the AAA survey, other top reasons to buy travel insurance included the cost of the trip (70 percent), personal or family health concerns (69 percent), how far in advance the trip is booked (61 percent) and recommendations made by friends or family (57 percent).
Medical Coverage
If you’re traveling internationally, your health insurance probably may not cover medical bills from another country. A travel insurance plan with medical coverage will take care of medical care and related costs, including the expensive cost of transporting a patient back home. Medevac costs can easily climb to over $100,000.
It’s also important to note that travel health insurance covers domestic as well as international hospitalization and treatment costs, and for people with the bare minimum health insurance, it can be helpful protection during domestic trips as well.
Collision Damage Protection
Renting a car in another country? Your personal auto insurance policy and credit card coverage may not extend to overseas. Some travel insurance plans include collision damage protection; this is a smart inclusion if you will be renting a car in a foreign country.
On a personal note, I’ve been unlucky enough to experience rental car damage in two countries. When I traveled to New Zealand, it was still excluded from coverage by most credit card policies. Of course, in New Zealand I had a window smashed in. Thankfully, the policy I had bought from Travel Guard stepped up and cut me a check for what I had to pay.
A few years later, I had a bumper smashed in in Cape Town, South Africa. I had collision coverage on my Travel Guard policy and had no issues there with my credit card paying me back for that damage. Still, it always feels more secure to have two layers of protection, and so even with credit cards that cover damage, I appreciate the travel insurance policy being there to back me up.
For Multiple Trips, Consider an Annual Plan
Not only is there an uptick in travel insurance sales, but there has also been a significant increase in the number of travelers opting for annual trip insurance plans in the last year. Annual plans generally cost several hundred dollars per year for a middle-aged individual and make sense if you plan to take more than two or three trips in a year.
Where To Buy Travel Insurance
As a rule of thumb, it’s not a great idea to purchase travel insurance from the same place as you are buying your trip. The idea is that travel agencies like Expedia and Priceline or cruise lines like Carnival or Royal Caribbean may offer travel insurance as an add-on, but the boiler-plate language is more favorable to them than insurance from an independent third party.
Sites like InsureMyTrip and SquareMouth let you compare and contrast plans from dozens of different providers so you can find a plan that provides the coverage you need at a price that fits your budget.
Two major travel insurance providers that get high marks for reliability are:
- Allianz
- Travel Guard
Frequently Asked Questions
Do I have to pay for hail damage if I rent a vehicle in the United States?
Your insurance company will cover any damage caused by natural events such as tornadoes, hurricanes, floods, etc. You can ask your rental agency to clarify if your rental vehicle qualifies for this coverage.
Do I need separate car insurance to drive in Europe?
If you are driving abroad and your insurer doesn’t cover them, you might consider purchasing additional insurance for drivers.
This is because it is possible for different rules to govern who is liable in case of an accident between two vehicles from different countries.
You should carefully read all the fine print before you sign up for this additional cover. Some policies may exclude certain types.
Also, make sure to check if your existing policy covers overseas trip. This is often called an “extended warranty” and it might be cheaper to purchase it separately.
What documents do I need to drive in Europe?
All documentation is required for every country, including passports, visa requirements and customs clearance.
You also need copies of your passport, driving license, and insurance policy. You will need your insurance policy to protect you when driving in Europe.
In some countries, you may also need to show proof of ownership of the car. This includes a bill or registration papers.
Some countries require drivers that they have a valid driver’s licence from their homeland.
What is the top car rental company in the USA
Hertz customer service is unsurpassed. They are always there to help you find a vehicle that suits your needs. They offer great deals on vehicles and have an extensive fleet of cars available across all major cities. Renting a car can be as low as $10 per day
Hertz also offers free airport pickup-and-drop-off services, 24-hour assistance on the road, and even a complete line accessories and equipment to make sure you are safe while driving around town.
If you’re looking for a quality car rental experience, check out the Hertz website today!
Who is the largest car rental company in the world?
Hertz Corporation is America’s largest car rental agency. Harry Hertz founded Hertz Corporation in 1919.
Hertz Corporation has over 6,000 locations in North America, Europe and Asia-Pacific. Additionally, Hertz Corporation owns several other businesses including hotels and real estate holdings as well as financial services and automotive parts manufacturing.
Today, the company employs more than 4 million people in all over the world.
Are European cars rented with automatic transmissions?
Yes. Renting vehicles without automatic transmissions is not allowed by rental agencies because they are costly to replace if they are damaged while being driven around. It would be expensive to replace all those parts every time you cause damage to the vehicle’s bodywork.
If you want to rent a car in Europe, ask for one with an automatic transmission.
Statistics
- In 2019, the most crucial factor is the cost and fees of the rental (accounting for 28% of overall satisfaction with the rental experience), followed by the rental car itself at 25% and the pick-up process at 23%. (cnet.com)
- You can rent an automatic but these cars can cost as much as 50% more than a manual vehicle. (earthtrekkers.com)
- I’d say 70% of the time, we have a hassle-free encounter, but there have been certain companies that we prefer not to use anymore. (theworldpursuit.com)
- For example, the Blue Cash Preferred® Card from American Express earns 3 percent cash back on purchases at U.S. gas stations (terms apply), and the Citi Premier® Card earns three points per dollar at gas stations, too. (afar.com)
- Save up to 30% on your rental car in Europe when you book with us today. (autoeurope.com)
External Links
enterprise.com
sixt.com
alamo.com
jdpower.com
How To
How to book a rental car
What should I consider before booking a rental car?
When you’re looking for a rental vehicle, the following are important points to remember:
- You have the option to choose from a variety of car types (small, medium, large, and SUVs as well as minivans).
- The cost of renting a vehicle varies depending on its make and model. It starts at $15 per day for small compact vehicles, while larger ones cost much more.
- You will also be charged an additional fee depending on how long you lease the vehicle.
- Additional fees will be charged if you hire your vehicle.
- Renting a vehicle allows you to travel any time of day. But, there are some restrictions. You cannot rent your car during rush hour.
- Be sure to choose a model that suits your budget before you commit to buying a car. Make sure the car has air conditioning. This is especially useful during hot weather.
- Reserve a certain type of car in advance if it is important to you. Many people don’t realize they need one until the very last minute.
- There are many safety features in rental cars. In an emergency, it is a good idea to have a blanket and a first-aid kit.
- You might want to add a collision waiver to your rental. You can save money by adding this waiver to your rental agreement.
- Special needs can be requested during your booking process and upon your arrival, if you have any special needs.
- Take your luggage and your ID with you to the airport.
- You must be alert when driving. Concentrate on your driving and avoid distractions.
- If you are involved in an auto accident, immediately contact the police.
- After you have used the car for a while, you must return it to us. Otherwise, you will be fined.
