News: 2009 Press Release

With the cases of H1N1 flu (swine flu) increasing nationally and internationally, Commissioner Steve Poizner today warned Californians that not all travel insurance policies will fully reimburse trip cancellations due to the H1N1 flu outbreak.  "Cancel for any reason" policies are the only variety of travel insurance policies that will typically reimburse a policyholder for reasons pertaining to H1N1 flu.  While considering future vacation plans, Commissioner Poizner encourages Californians to also evaluate their needs for travel insurance.

"As Californians make and change their travel plans in light of the recent H1N1 flu outbreak, I encourage them to evaluate their individual needs for travel insurance," said Commissioner Poizner.  "Travelers should educate themselves on their travel insurance options, and decide which, if any, travel insurance product might be appropriate for them."

Travel insurance can protect against the loss of non-refundable travel costs, such as airfare, hotel and tour expenses. Other types of travel insurance offer protection against losses due to medical emergencies, damage to personal property, and even death.  Before buying travel insurance, consumers should check their existing insurance coverage because some aspects of their vacations may already be covered by life, health or homeowners policies. 

To find out more about travel insurance, including how a specific policy might cover a cancellation due to H1N1 flu concerns, consumers should ask a trusted travel agent for recommendations of travel insurance companies.  Below is some basic information about travel insurance. 

Major types of travel insurance include:

• Trip Cancellation - Reimburses you for pre-paid travel expenses if you are unable to take your trip because you or a family member becomes ill or dies.
• Travel Delay - Reimburses you for pre-paid expenses if you are unable to take your trip because of a travel delay, such as a flight delay or cancellation.
• Trip Interruption - Reimburses you for pre-paid expenses if your trip is cut short because you or a family member, become ill or die, or because of any other misfortune listed in policy. Covered reasons might include bad weather, airline strikes, terrorism, bankruptcy, jury duty, or fire or flood damage to your home.

Medical and Accidental Death Insurance:

• Medical or Health - Reimburses you for medical and emergency dental expenses that you have because of an illness or injury while you're traveling.
• Medical Evacuation - Provides emergency transportation to take you either to a hospital in the geographic region where you are or for transportation back to a hospital near your home.
• Air Flight Accident - Covers death or dismemberment during flight only.
• Common Carrier - Covers death or dismemberment while traveling on public transportation such as a plane, ferry, train, bus or taxi.
• Accidental Death - Covers death or dismemberment at any time during a trip.

Baggage and Rental Car Damage Insurance:

• Baggage Loss - Reimburses you for lost, stolen or damaged personal items. This usually does not cover personal items that may be lost or damaged by an airline. If you buy baggage insurance, be sure to review the policy for the list of property that would not be covered. Some of your property may exceed the limits allowed.
• Rental Car Damage - Reimburses you for damage or loss to a rental vehicle. If you have this coverage, you may decline the "collision damage waiver" rental car companies offer. This coverage does not provide liability protection.

Tips for purchasing travel insurance:

• Travel insurance is not for everyone. You should evaluate your own situation and talk to an agent or broker to determine whether or not travel insurance is appropriate for you. 
• Travel insurance polices are not all the same. If you do purchase travel insurance, be sure to review the policy, especially the list of covered reasons for canceling your trip. For example, a travel insurance policy may not reimburse you if you decide not to make a trip because a conference was canceled.
• Cruise and tour operators may offer cancellation waivers. Keep in mind that waivers are not insurance policies and are not regulated. Read all of the restrictions before you buy a cancellation waiver.
• Before you buy travel insurance, review the policies you already have. If you have life, health or homeowners insurance, you may not need to buy certain types of travel insurance. Read your policy and speak with your insurance company or agent to learn what personal property and medical coverage you have while you are traveling. Also, ask what insurance benefits you may have if you use a credit card to pay for the trip.