Oak Creek Insurance Agency

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IN: Four Reasons Why You Need Travel Insurance

Dear Valued Customer,

In this issue of the “———————“ we focus on travel insurance.

With airlines regularly going out of business, the cost of vacations and out of country medical care skyrocketing, you just have to consider getting travel insurance. It can cover anything from an airline or cruise line that goes out of business, the loss of your personal belongings, or a medical emergency in a faraway place like Bali.

Read the four reasons why you need travel insurance; ask yourself whether you should obtain travel insurance from the travel vendors themselves. Get travel tips to help you avoid serious difficulties during your overseas travel, and more.

We appreciate your continued business and look forward to serving you.

Kind regards,

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Travel Insurance

Misc_VacationSavingsBefore leaving on vacation, make sure you have adequate insurance. Vacations can sometimes cost thousands of dollars so it is important to have the proper insurance protection in case the cruise or tour operator goes bankrupt or you need to cancel the trip due to illness or other unforeseen events.

There are four major types of travel insurance, although you can also purchase packages that offer several options, including Trip Cancellation, Lost Baggage, Medical, Dental, Emergency Evacuation, 24 Hour Traveler Assistance, Baggage Delay, Travel Delay, and Accidental Death Coverages. Some policies also have options for Collision/Damage coverage for rented cars.

1. Trip Cancellation Insurance

This would reimburse you if the cruise line or tour operator goes out of business. It would also provide coverage if you have to cancel the trip due to sickness, a death in the family or another calamity listed in the policy.

In addition, if you or an immediate family member becomes seriously ill or is injured during the trip most policies would reimburse you for the unused portion of the vacation.

The cost is generally five to seven percent of the price of the vacation, so a $5,000 trip would cost roughly $250 to $350 to insure.

Trip cancellation is very different from a Cancellation Waiver that many cruise and tour operators offer. Waivers are relatively inexpensive, costing approximately $40 to $60. They provide coverage if you have to cancel the trip, but they have many restrictions. They must be purchased when you book the trip and will usually not cover you immediately before departure (the time period most people cancel) or after the trip has begun. Most importantly, waivers are not insurance. Cancellation Waivers are not regulated by the state department of insurance, so if your tour or cruise operator gets into financial difficulty, you may not be able to collect.

2. Baggage Insurance or Personal Effects Coverage

This would provide coverage if your personal belongings are lost, stolen or damaged during the trip.

To insure $1,000 worth of personal belongings for a week, it would cost roughly $50 per year.

Before purchasing this type of coverage, find out how much insurance the airline or trip operator provides for your belongings.

Also, check your homeowners or renters policy. It will usually provide coverage for off-premises theft. Therefore, if your luggage is stolen, your insurer will pay to replace it, less the deductible.

If you are traveling with expensive electronic equipment, jewelry or sporting gear, it might be more cost-effective to purchase a floater or endorsement to your homeowners or renters policy. The cost to insure a $1,000 ring would be between $10 and $40 annually. This would provide full coverage for the item, anywhere in the world, usually for one year.

3. Emergency Medical Assistance

This provides insurance and medical assistance for travelers. It would cover you if you had to be airlifted off a mountain due to a skiing or hiking accident, or if you had to stay for a prolonged period of time in a foreign hospital. It would also provide coverage if you got seriously sick or were injured and needed to be flown home. Some commercial airlines require very sick passengers to travel on a stretcher with a doctor. This means that you might have to purchase 10 or more seats on a plane at a possible cost of over $10,000.

Before purchasing this type of coverage, check with your own health insurance carrier. Find out what type of coverage you have when traveling abroad and if there are any limits. Also, ask if the policy will pay to fly you home or to a country with first-rate medical care.

4. Accidental Death

This provides a variety of coverages if you or a family member die on the trip. If you have a good life insurance plan or made other financial provisions for your loved ones, this may be duplicate insurance.

Your credit card company may provide travel-related services and coverage. You can also purchase travel insurance from either a travel agent or you can buy directly from an insurer that specializes in this type of coverage.

Source: Insurance Information Institute, “Travel Insurance” http://www.iii.org website. Accessed November 28, 2015. http://www.iii.org/article/travel-insurance

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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Traveler’s Checklist

Misc_ChecklistA trip requires careful planning.  Listed below are important steps you can take to prepare for a safe trip anywhere outside the United States. In addition, you can search for your destination to view more specific information about that country or area.

Getting There

  • Beware of Any Travel Alerts and Warnings for Your Destination

    The State Department issues Travel Warnings to recommend postponing travel to a country because of civil unrest, dangerous conditions, terrorist activity or, in some cases, because the U.S. has no diplomatic relations with the country and may have great difficulty in assisting U.S. citizens in distress. Travel Alerts disseminate information quickly about terrorist threats or other relatively short-term or transnational conditions that could pose significant risks to you and affect your travel plans.

  • Do You Have All Required Travel Documents?

    Most U.S. citizens must use a U.S. passport to travel overseas and reenter the United States. A passport is an internationally recognized travel document that verifies your identity and citizenship. Only the U.S. Department of State and U.S. Embassies and Consulates have the authority to issue or verify U.S. passports.

    Most foreign countries require a valid passport to enter and leave. Some countries may allow you to enter with only a birth certificate, or with a birth certificate and a driver’s license, but all persons, including U.S. citizens, traveling by air, must present a valid passport to reenter the United States.

    If you are traveling by land or sea, you must provide evidence of bothyour U.S. citizenship and your identity when you reenter the United States. For many land or sea trips this means you can travel using the new U.S. passport card instead of the normal passport book.  Read more about U.S. passport requirements.

    What about your children?  Some countries have instituted requirements to help prevent child abductions and may require travelers to present proof of relationship to the children and evidence of consent from any non-accompanying parent(s).  Visit our child abduction country information pages for information about your destination.

    When does your passport expire? Some countries require that a traveler’s passport be valid for at least six months beyond the dates of the trip. Contact the embassy of your foreign destination for more information. Foreign embassy and consulate contact information can also be found in our Country Specific Information pages.

  • Are You Prepared for an Emergency?

    Make sure you have the contact information for the nearest U.S. Embassy or Consulate where you are going. Consular duty personnel are available for emergency assistance 24 hours a day, 7 days a week, at U.S. embassies, consulates, and consular agencies overseas and in Washington, D.C. Contact information for U.S. embassies, consulates, and consular agencies overseas may be found in our Country Specific Information pages. If your family needs to reach you because of an emergency at home or if they are worried about your welfare, they should call the Office of Overseas Citizens Services in Washington, D.C. at 1-888-407-4747 (during business hours) or 202-647-5225 (after hours). The State Department will relay the message to the consular officers in the country where you are.  The consular officers will then try to locate you, pass on any urgent messages, and, if you wish, report back to your family in accordance with the Privacy Act.

    You can read more about what the Department of State can and can’t do for you in an emergency here.

  • Do You Plan to Drive Overseas?

    If you plan to drive overseas, you may need to obtain an International Driving Permit (IDP). Many countries do not recognize U.S. driver’s licenses, and it is illegal to drive without a valid license and insurance in most places. You should check with the Embassy of the country where you plan to travel, to find out more about the driver’s license and car insurance requirements. Foreign embassy and consulate contact information can also be found on the Country Specific Information for each country.

    If you will be residing overseas for an extended time, it is a good idea to obtain a local driver’s license as soon as possible, since an IDPs is not always valid for your entire length of a stay abroad, and often is only valid if presented in conjunction with a valid U.S. or local license. To renew a U.S. driver’s license while abroad, contact the Department of Motor Vehicles in your home state.

    For more information, please review our page on Driving Abroad.

  • Pack Smart!

    • Pack light so you can move more quickly and have a free hand when you need it.
    • Carry a minimum number of valuables and plan places to conceal them.
    • Use covered luggage tags to avoid casual observation of your identity and nationality.
    • Avoid packing IDs, tickets and other vital documents in backpacks or other locations you won’t be able to see at all times.

  • Do You Have Photocopies of Your Itinerary and Travel Documents?

    Make two photocopies of all your travel documents in case of emergency or if your documents are lost or stolen. Leave one copy with a friend or relative at home. It is always a great idea to let at least one person know exactly where you will be staying and how to contact you in an emergency. Carry the other copy with you stored separately from the originals. Documents to make copies of include:

    • Passport ID page
    • Foreign visa (if applicable)
    • Itinerary
    • Hotel confirmation
    • Airline ticket
    • Driver’s license
    • Credit cards brought on the trip
    • Traveler’s check serial numbers

Your Safety

  • Prepare to Handle Money Overseas

    • Check and understand the exchange rate before you travel.
    • Before you leave, notify your bank, credit card company, or other financial institutions that you are going overseas.
    • Avoid carrying cash and consider using traveler’s checks or major credit cards instead (but make sure they are accepted at your destination before departing on your trip).
    • Change traveler’s checks only as you need them.
    • Do not flash large amounts of money when paying a bill.

  • Learn about local laws and customs

    While traveling, you are subject to the local laws even if you are a U.S. Citizen. Foreign laws and legal systems can be vastly different from our own and it is very important to know what’s legal and what’s not. If you break local laws while abroad, your U.S. passport won’t help you avoid arrest or prosecution, and the U.S. Embassy cannot get you out of jail.

Your Health

  • Do You Need Any New Vaccinations?

    Vaccinations Are Required for Entry to Some Countries

    Some countries require foreign visitors to carry an International Certificate of Vaccination (aka Yellow Card) or other proof that they have had certain inoculations or medical tests before entering or transiting their country.  Before you travel, check the Country Specific Informationand contact the foreign embassy of the country to be visited or transited through for currenty entry requirements.

    Health Experts Recommend Vaccinations for Travel to Some Countries

    The U.S. Centers for Disease Control (CDC) and the World Health Organization (WHO) can provide you their recommendations for vaccinations and other travel health precautions for your trip abroad.

  • Does Your Health Insurance Cover You Outside the U.S.?

    Learn what medical services your health insurance will cover overseas.  Although some health insurance companies will pay “customary and reasonable” hospital costs abroad, very few will pay for a medical evacuation back to the U.S., which can easily cost over $10,000, depending on your condition and location. Whether your insurance is valid overseas or not, you may be required to pay for care when you receive it.

    If your insurance policy does not cover you abroad, consider purchasing a short-term policy that does.  Many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas including emergency services such as medical evacuations.

NOTE: Social Security and Medicare do not provide coverage outside of the U.S.

Learn More

  • Are You Taking Any Prescriptions or Other Medications?

    If you take prescription medication:

    • Pack enough to last your entire trip, including some extra in case you are unexpectedly delayed.
    • Carry your medications in their original labeled containers, and pack them in your carry-on bag since checked baggage is occasionally lost or delayed.
    • Ask your pharmacy or physician for the generic equivalent name of your prescriptions in case you need to purchase additional medication abroad.
    • Get a letter from your physician in case you are questioned about  your carry-on

    Source: U.S. Department of State, “Traveler’s Checklist” http://travel.state.gov/ website. Accessed November 28, 2015. http://travel.state.gov/content/passports/english/go/checklist.html

    © Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

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Road Safety Overseas

People_MapPaintedFaceOver one million people are killed in road accidents worldwide every year. Hundreds of U.S. citizens are among those killed and injured in road accidents.  Many of these victims are bystanders or pedestrians. No matter where you are in the world, wearing a seat belt is critical; please protect yourself and buckle-up at all times both while abroad and in the United States.

We strongly encourage you to read about road safety in your destination country before you go there.  There is a Road Safety section in every Country Information page.  It is important to understand the rules of the road in your destination so that you can make plans for safe transportation.

Please keep the following road safety and security factors in mind when preparing for your trip, depending on your specific destination:

  • Potential Hazards and Dangerous Road Conditions:
    • Bad weather
    • Seasonal driving hazards
    • Driving at night
    • Driving in isolated areas
    • Livestock or obstacles in the road
    • Difficult terrain
    • Road markings and signs
    • Stoplights and traffic signals
    • Lighting
    • Narrow roads
    • Crash barriers
    • Local roads you should avoid
  • Be Prepared
    • Carry spare tires
    • Carry extra fuel
    • Check the availability of roadside assistance
    • Check which documents are required for operating a vehicle
  • Consider Local Laws and Driving Culture
    • Speed limits
    • Traffic signals
    • Honking
    • Flashing your lights when passing
    • Yielding to pedestrians
    • Yielding to cyclists
    • Aggressive driving
    • Unlicensed or inexperienced drivers
    • Driving age
    • Prohibition of mobile phone usage while driving
    • Drinking and driving
    • Emergency response (ambulances)
    • Local emergency service numbers (local 911 equivalent)
    • Possible police corrupt activities
  • Vehicle Safety Considerations
    • Availability of seat belts for each passenger
    • Required safety inspections
    • Overloaded vehicles

Additional Resources:

Road Safety and Security

The Overseas Security Advisory Council provides information about personal security and safety while traveling abroad.

In addition, the Association for Safe International Road Travel (ASIRT)provides information for American families and business travelers about driving overseas.Reporting and Resources on International Road Safety

U.S. Government Links

Road Safety Statistics / Databases / Resources

Source: U.S. Department of State, “Road Safety Overseas” http://travel.state.gov/ website. Accessed November 28, 2015. http://travel.state.gov/content/passports/english/go/safety/road.html

© Copyright 2016. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.