Most of us aren’t in a position to pay for expensive vacations all at once. Using a travel agency and paying in installments can be a great way to eventually take that dream vacation. When you initially decide on your vacation plan, your travel agent will help you determine what kind of payments you need to make in order to have the trip fully paid for before you leave. Generally speaking, you will determine where you are going to go and when at the very beginning of the process.

The downside to this is that life has a way of happening, and often takes unexpected turns. It might seem like a great idea today to spend two weeks in Paris a year and a half from now, but there are plenty of things that can wrong between now and then. Job loss or career change could make the payments unaffordable. Or, illness within the family could make the trip impossible. Cousin Susie might decide your vacation is a perfect time for her wedding. And in many cases, the money that you have paid towards your vacation is non-refundable.

That’s where travel insurance comes in. By investing a small amount up front, you ensure yourself that you will be able to get your money back if something should happen which precludes you from traveling at the set time. Since this often includes a good deal of money, it’s often worth the investment. Be aware that there are several types of policies, which can be tailored to your specific needs.

Of course, no one can decide for us whether or not we should take our coverage for any given trip. But consider this: if the vacation is expensive enough you have to pay for it in installments, it probably represents enough value to be worth insuring. Also, if you are traveling overseas, check your major medical coverage to see if it will cover you while you travel. If not, you will definitely want to take out a travel insurance policy to cover medical issues which may arise while you are abroad. Travel insurance is usually quite affordable anyway, as long as you tailor the policy to meet your actual insurance needs.

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Think, for example, about those family vacations you’re going to be taking this year. Sure, you might choose to hop on a plane and zoom off to wherever it is you’re going, but you might not. You might load everyone up in the SUV (today’s version of the family favorite station wagon from so many years ago) and just drive wherever you want to go.

Thanks to all of that technology, driving is much more safe than it was just 30 years ago. Here are a handful of the most helpful and useful safety technologies to come out in the past couple of decades:

• Bluetooth. Using a Bluetooth headset with your cell phone greatly increases your driving safety. While hands free calling can lead to distractions, the fact of the matter is that it’s much safer to make a call without pushing all of those numbers and to not be holding a phone in your hand while you call.
• GPS. Voice commands now let you get directions to where you want to be. The days of trying to unfold a map and lay it over the top of your steering wheel while cruising down the Interstate are gone. Yes, a GPS unit can be distracting if you need to fiddle with a bunch of buttons, but overall it has improved safety.
• Blind spot detection. Everyone’s familiar with GPS and Bluetooth, but this is one technology you might not be aware of. This kind of system will sound an alert when you drift out of your lane unintentionally. These systems were once available only on high-end vehicles, but we’re starting to see them in midpriced cars.
• Driver alert systems. Luxury cars from Mercedes-Benz and Lexus now offer a system that will monitor the driver for alertness. They will sound an alarm to let the driver know that it might be time for a rest.
• Active cruise control. This technology, which is often used with auto-braking technology, will monitor the road around you and help to lower your cruise speed when the car in front of you slows down.

Photo via Jimmy_Joe

Many travelers, particularly those traveling overseas, have obvious concerns about the H1N1 virus, commonly referred to as the swine flu. In particular, will their travel insurance cover them if they become infected with the swine flu, either before they leave or while they are away?

Luckily, most travel insurers are treating the swine flu like any other type of illness or medical condition. In other words, travelers with the swine flu will not be denied coverage through their travel insurance company.

There are three common scenarios that may take place that would allow you to obtain benefits from your travel insurance:

1. You feel sick a day or two before you leave for your trip. In this case, you would seek the advice of a physician who would be able to confirm your illness. You can then simply contact your travel insurance company and provide them with proof of your illness so that you can be reimbursed for the cost of your trip.
2. You begin to feel under the weather, although you decide to continue with your travel plans. However, upon boarding the plane an airline employee stops you from boarding the plane because he/she suspects you have the swine flu. In order to make a claim on your travel insurance policy, you must contact a doctor who will be able to diagnose you and then provide proof to the travel insurer. The only exception to this would be an individual who takes out a travel insurance policy after the swine flu has already begun to manifest itself.
3. You come down with the swine flu while on vacation. In this case, your travel insurance company should cover any and all expenses associated with your illness, including medical expenses, a hospital stay and medical treatment. If you are traveling overseas, you will need to remain abroad until you fully recover from the disease. Therefore, you should be covered for your cancelled flight and any additional accommodations and related expenses you might incur as a result of your extended stay.

As always, contact your travel insurance company’s 24-hour emergency hotline in the event of a sudden illness, and carefully read all of the terms and conditions associated with your travel insurance policy before embarking on a holiday.

Travel insurance is usually a must-have for travelers, as it is designed to protect them against unseen or unexpected circumstances that may arise before, during or even after a trip.

However, it is important to understand that travel insurance policies are not all encompassing, and the coverage varies widely between insurers. Therefore, it is vital that you carefully read and understand the terms and conditions of your travel insurance policy before accepting it.

There are a number of factors that most travel insurance policies will not cover, or factors that have strict limitations or terms:

Trip Cancellation

You have an important meeting at work that you absolutely must attend, so you can simply use the cancellation feature of your travel insurance policy to reimburse you for the cost of your trip, right?

Wrong.

It is important to carefully read the many exclusions of your travel insurance’s cancellation policy so that you won’t be caught paying for a trip that you can’t use. Most travel insurance cancellation policies allow travelers to cancel their trip due to their injury or illness, or an injury, illness or death of a closely connected person. Cancelling a trip because it simply isn’t a convenient time does not qualify for a reimbursement through a travel insurance policy.

Trip Reduction

You may be able to file a claim with your travel insurer for at least a partial reimbursement due to your injury or illness or an injury, illness or death of a closely connected person. However, the insurer must first determine if: (a) it is a medically necessary condition and (b) if it was a pre-existing condition. For example if an insurer believes that you suffered from the condition before embarking on your trip, then your claim may be denied.

Medical Expenses

If you incur medical expenses while traveling that are either a direct result of an illness or personal accident, you may be eligible for reimbursement of your medical costs. However, coverage for medical expenses can be tricky, particularly if the travel insurance company believes that your medical condition was pre-existing or if your injury was a result of a hazardous activity. In other words, if you plan on taking an adventure holiday, ask questions about what will and will not be covered under your travel insurance policy.

Luggage

Lost or stolen luggage is a common travel insurance reimbursement claim. However, many travel insurance companies will deny your claim if they believe that you left your luggage unattended or in your vehicle. Many travel insurers will also expect you to provide any receipts or police reports to substantiate your claim.