Travel Insurance

Travel Insurance and the Volcano

(THE NEW YORK TIMES) - If you bought travel insurance before drifting Icelandic volcanic ash started disrupting international flights, you might be wondering what travel expenses it will cover. Meanwhile, if you haven’t bought it yet, you may be wondering whether you want insurance for next year’s trip and whatever natural phenomenon could strand you then (or keep you stuck at home).

To provide some guidance, we turned to Jim Grace, the president of the US Travel Insurance Association and president of InsureMyTrip.com, a Web site that aggregates travel insurance offers.

According to Mr. Grace, the typical travel insurance policy is generally a bundle of different types of coverage. It might include coverage for medical evacuation, lost bags, reimbursement of certain costs related to trip cancellation prior to departure for unforeseen reasons, or interruption of a trip for the same unforeseen reasons. Among the unforeseen reasons: weather, injury, terrorism or bankruptcy of the travel provider. (See more about what travel insurance typically includes here and here.)

Generally, such a policy could cost 4 to 8 percent of a trip’s costs, depending on how much coverage you purchase. A 4 percent policy, for instance, would cover only about $500 for lost bags, while an 8 percent policy could cover up to $2,500.

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