Why Travel Insurance is Important

Travel insurance needs to be part of your travel plan, and AAA Travel highly recommends you purchase travel insurance at the time you book and deposit your trip.

AAA offers comprehensive and competitively priced travel insurance designed to protect you against a variety of unforeseen occurrences. Of course, as with any insurance, certain restrictions and/or exclusions apply. Clients need to decide which coverage best meets your individual needs and concerns.

There are two sources of travel insurance available to you. One is purchased through AAA Travel and the other is available from the cruise or tour operator providing your accommodations. Carefully consider the details of both before you make your decision. Following are some of the coverages provided by each of these sources:

Insurance coverage is available from the cruise or tour operator providing your accommodations is often less expensive in cost, but this coverage will not protect your investment should they go out of business or declare bankruptcy and are not able to deliver your trip. AAA cannot provide a refund or replacement arrangements should the cruise or tour operator declare bankruptcy or cease operations.

AAA Travel offers a travel insurance plan underwritten by one of the world's most respected insurance companies, AIG. Sold under the name of BerkelyCare, it offers travel clients a comprehensive plan that includes coverage for trip cancellation, trip interruption/delay and medical and baggage protection, and supplier default (under certain conditions) as a result of business cessation. As with most policies, acts of war are not typically covered. Trip delay or disruption because of terrorist activity may be covered if the terrorism is occurring in a country that is part of your itinerary, although your cancellation of the trip because of nervousness about world events will not be covered. Additionally, for coverage to apply, the U.S. Department of State must have issued a travel warning stating that you should not travel in that country for a time period that would include your trip.

No travel insurance covers you for every unforeseen event. That's why it is necessary for you to determine which available plan best fits your individual needs.

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Published in the January/February 2002 issue of the AAA Traveler.