Q&A: How travel insurance offers peace of mind during the holiday season
CEO Chris Carnicelli shares his thoughts on the benefits of travel insurance during the holiday season.
Thanksgiving is just days away, and it’s sure to be a busy one — especially if you plan to travel. According to AAA, more than 55 million travelers will be traveling 50 miles or more away from home this Thanksgiving — an additional 1.6 million more people than last year.
As stressful as traveling during the holidays can be, it can get easier with travel insurance. Rather than worry about travel delays and flight cancelations, travelers can just focus on the destination by opting for coverage during this busy season. In our Q&A below, Chris Carnicelli, CEO of Generali Global Assitance, shares his thoughts on the benefits of travel insurance during the holiday season. This interview has been edited for clarity and conciseness.
PC360: What do general travel insurance plans offer? What is typically an add-on that needs to be purchased in addition to the general travel insurance coverage?
Chris Carnicelli: Most general travel insurance plans offer coverage for a traveler’s prepaid, nonrefundable arrangements if they have to cancel or interrupt their trip due to a covered reason. Other coverages are also often included, such as medical coverages, coverages for lost, damaged or delayed luggage, and coverage for out-of-pocket expenses like meals and overnight lodging during extended travel delays.
During the holidays, many travelers may be interested in adding Rental Car Damage coverage to their travel insurance. This coverage can help travelers with expenses for damage to their rental car vehicle from collision, theft, vandalism, natural disasters or any other cause beyond their control while en route.
PC360: Does travel insurance vary considerably depending on the mode of transportation? If so, how?
Carnicelli: Most travel insurance plans are suited for a wide variety of travel. Whether travelers are getting to their destination by car, train or plane, travel insurance can provide coverage for the prepaid, nonrefundable arrangements — in case they have to cancel or interrupt their plans because of a covered reason.
That said, some travelers may be more interested in particular coverages based on the type of trip they’re taking. For instance, medical coverage is crucial for cruise travelers, whereas travelers who are flying may be looking for travel delay and trip interruption coverages for potential flight delays during the busy holiday season.
PC360: What are some best practices travelers should keep in mind as airports and roadways can and will get busier?
Carnicelli: Drive safely, be patient and be prepared. Travelers may be able to avoid some of the seasonal chaos by showing up early and trying smaller airports, but ultimately crowds are an inevitable reality during the holidays, so travelers should plan on longer wait times and potential delays. Travel insurance can help provide the peace of mind that even if plans don’t go perfectly, travelers can have some safeguards in place. For example, if a traveler gets stuck at an airport because of a storm, travel insurance can help give them the backing they need to get back on track.
PC360: What should travelers know about what isn’t covered under travel insurance?
Carnicelli: While most plans include coverage for flight cancelations and delays due to inclement weather, mechanical breakdown of the scheduled aircraft, or organized labor strikes that affect public transportation, travel insurance cannot cover all events that might happen. For instance, canceling a trip out of fear that something may happen or not getting through security on time and missing a flight are not typically covered reasons for cancelation under a travel insurance plan. If a traveler arrives at the airport late, coverage may not be available unless the late arrival is because of a covered event.
PC360: If travelers purchase additional coverage, what are they typically getting with this kind of coverage?
Carnicelli: These coverages combined are designed to help with additional airfare, meals and hotel costs, as well as the traveler’s unused land or water arrangements — such as tours or cruises.
NU: How does a travel insurance policy that is purchased vary from ones that certain credit card companies offer with select cards? Is there a significant difference between what is covered?
Carnicelli: Generally speaking, most credit card coverage is more limited than a travel insurance plan that you would purchase from a travel insurance provider. For instance, only a small fraction of credit cards offer coverage for trip cancelation if travelers are unable to go on their trip because of a covered reason. Credit cards that include this coverage tend to cover fewer reasons for cancelation than most travel insurance plans, and many credit cards cap their benefit limits at lower amounts.
Credit cards have other limitations, as well. They often do not have the same level of medical coverage or emergency medical transportation coverage as travel insurance and are likely to only cover the cardholder. If travelers are concerned about coverage for pre-existing medical conditions, they shouldn’t count on their credit card.
PC360: Is there anything else you’d like to emphasize to our readers as the holiday season approaches?
Carnicelli: If travelers hope for the best and prepare for the unexpected, then they‘re setting themselves up to have a more pleasurable experience altogether. That way, if something does happen during their holiday travel, they‘ll be more prepared for it. It’s also good to consider travel insurance and carry a copy of the policy. Then travelers will have their description of coverage handy if something unforeseen like a flight delay or cancellation occurs.
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