MONEY & THE LAW: Travel insurance coverage can vary greatly
|By Jim Flynn; JIM FLYNN|
A few years ago, I was checking in for a flight at
Recently, I decided to try
Now, however, I have a policy in hand and have at least a basic understanding of what the policy covers. So let me share some of what I've learned.
To begin, travel insurance is like other forms of peril-related insurance. It involves a contract (called a policy) between the insured and the insurer. Under the terms of the contract, the insured pays a premium and the insurer takes on certain risks the insured faces in traveling. Like other forms of insurance, there are conditions to, limitations on and exclusions from coverage, and a careful review of the contract (painful though that may be) is necessary to understand the protection it does - and does not - provide.
As with other forms of insurance, companies offering travel insurance must abide by Colorado's insurance laws, and they're subject to regulation by the
Premiums are determined by competition, the scope of the coverage and the cost of the travel. Premiums and coverage can vary greatly from one company to the next and from one insurance product to the next.
The protection I am receiving for my
The trip cancellation/delay/interruption coverage kicks in only if the cause is injury, illness or death; a traffic accident on the way to the airport; a subpoena to appear in court; severe weather or a natural disaster; a hijacking; or a terrorist event at my travel destination (but only if it's in a foreign country. I don't believe
A change in personal commitments necessitating a postponement of my trip is not covered. In that case, I will still be at the mercy of
<p>With regard to claims limitations, my trip cancellation/delay/ interruption coverage is capped at
Did I get my money's worth when I bought travel insurance for this trip? That's a hard call and requires me to weigh such things as the risk of an accident on the way to the airport (substantial); an April blizzard (moderate); and
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