Summer is the time for traveling, with 657 million Americans taking long-distance trips each year from Memorial Day to Labor Day, reports Statistic Brain.
Trips like these often include traveling by airplane, checking luggage and renting vehicles all of which come with risks. What if an airline goes out of business? What if luggage is lost? What if something happens while driving a rental car?
Read more: Summer can be the riskiest time of year
There's specialty insurance available for anything that can go wrong during long-distance travel, but not all coverage options are completely necessary. Sometimes a traveler's existing insurance policies can cover incidents that occur while traveling even if the incidents occur while traveling in different countries.
Here are some key summer travel insurance tips from InsuranceQuotes.com to keep in mind while advising clients who are traveling this summer:
What if your baggage doesn't show up on at the baggage carousel? Lost baggage coverage is availble through most airlines. (Photo: iStock)
Lost baggage
DON'T purchase protection for lost baggage.
Lost baggage is a scary scenario, so buying insurance for lost baggage directly from the airline seems like a smart idea. However, before they purchase any coverage, advise customers to check if their credit card providers offer reimbursement for lost luggage. Oftentimes, cards used to purchase airfare offer protection for lost baggage.
DO file a claim in the event of lost baggage.
If a client hasn't purchased lost baggage insurance and their credit card provider doesn't offer reimbursement, travelers can still file a claim to be compensated. Airlines are responsible for reimbursing customers if they lose their luggage. The only catch is that customers most likely won't receive as much of a payout as they believe they deserve. Airlines will factor in the depreciation of missing items and adjust their payout accordingly. Lost baggage insurance should provide clients with an extra financial payout if they invest in it.
It's not uncommon to pick up a rental car right from the airport. When the rental company offers additional auto insurance, it's best to decline. (Photo: iStock)
Car rental insurance
DON'T purchase car rental insurance.
A client's existing auto insurance will most likely cover a them in a rental, and most credit cards also insure rentals if it is paid for with the card. As always, advise clients to check their policies and call their credit card provider to verify that they don't need any supplemental insurance.
DO purchase car rental insurance IF traveling for business.
If a client is renting a car for business use, their auto insurance policy won't cover them. If a client also doesn't get any coverage from their credit card provider, investing in rental insurance might be a smart move.
Things happen. Is trip-cancellation insurance the right move? (Photo: iStock)
Cancelled trip
DO purchase trip-cancellation insurance.
What if the airline carrier goes out of business a week before the trip? What if a traveler get seriously ill and has to cancel their hotel reservation three days before check in? Trip-cancellation insurance can help. This insurance will reimburse clients for hotel reservations and airline tickets if the trip is cancelled or delayed.
DON'T purchase trip-cancellation insurance if the trip is cheap.
Trip-cancellation insurance might not be worth it if a traveler hasn't spent a lot of money upfront. For example, if a client got a bargain on airline tickets and is only paying $99 each way, and has only reserved one night in a hotel room for another $100. That's probably not enough upfront costs to justify investing in trip-cancellation insurance.
Existing health insurance will most likely cover a traveler's medical expenses in another country. (Photo: iStock)
Medical expenses
DON'T get emergency medical insurance.
A traveler's existing health insurance will probably cover medical expenses even if they get sick in another country.
DO call insurers to find out what is covered outside the United States.
If a client's health insurance provider won't cover them once they leave the country, then recommend they purchase emergency medical insurance for their trip. Emergency medical insurance is also a smart buy for clients on Medicare and Medicaid. These programs don't cover clients when they leave the United States, or they may only provide coverage in Canada and Mexico, but only in certain situations.
If a traveler has a life insurance policy already, then they don't need to purchase accidental death insurance. (Photo: iStock)
Accidental death insurance
DON'T purchase accidental death insurance if the traveler already has a life insurance policy.
That policy should payout to beneficiaries if the traveler dies while traveling. Recommend travelers call their life insurer to confirm they are covered in this instance.
DO purchase accidental death insurance if the traveler does not have a life insurance policy.
This coverage will provide survivors with a sizable payout in the event the traveler dies on their trip.
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