January 8th, 2023 at 09:21 am
Why Travel Insurance Is More Important with Rising Travel Prices
Inflation affected hotels, airlines, vehicle rentals, petrol, and restaurants in 2022.
Gas and accommodation prices are affecting summer plans as US travelers drive due to canceled flights. As a result, even the wanderlust pandemic road trippers who once delighted in lengthy RV journeys are cutting back on their outings.
Let’s look at how escalating costs affect your vacation budget and which travel insurance solutions are ideal.
How Much It Really Costs to Travel
Even if you didn’t travel far in 2022, prices at hotels, airlines, car rentals, gas stations, and restaurants may go up a lot.
Hotels
Hotels cut services and struggled to fill rooms during the outbreak. Thus, accommodation prices fell to 2013 levels in 2020.
In Summer 2021, accommodation prices rose approximately 50%. Unfortunately, hotel prices remain high to fulfill demand and recover pandemic revenue.
High prices don’t always mean a 5-star experience. Most US hotels lack housekeeping and room service more than any other amenities.
Airlines
Covid-19 limitations have slowed business and family travel and practically eliminated foreign travel, affecting the airline sector.
Airline tickets dropped due to low demand during the pandemic, which lowered fuel prices, and problems hiring pilots and maintenance.
After a few years, travel resumes and airlines still face canceled flights, employee shortages, and increased fuel costs. Thus, in the second quarter of 2022, plane tickets cost 20% higher than in 2019.
Car Rentals
When flying to a vacation spot, renting a car used to be the norm. Just like with other travel services, prices went up when more people wanted to use them. And the price was even more shocking than buying plane tickets.
Car rental fees are approximately 70% higher than in May 2019. Gas prices may make you reconsider your destination transportation.
Uber, Lyft, public transportation, and transit van shuttles may be cheaper for larger groups.
Fuel
61% of Americans plan summer vacations around petrol prices, according to the Washington Post. Gas prices now outweigh coronavirus travel fears (under 30%).
Gas was over $4.50 per gallon in May 2022. (national average). Gas will be a bigger portion of your vacation spending this year, whether you rent or drive.
Restaurants
You might think you’re paying more at a restaurant when you’re traveling because food costs more. The Bureau of Labor Statistics says that the cost of food at the wholesale level has gone up by 17% in the last year.
The price of food is a part of how much your check costs as a whole, but the business you’re supporting is also dealing with rising costs for staff, rent, and utilities.
Budgeting Your Next Trip
Even though you can’t stop prices from going up, there are a few things you can do to save the most money on your trip in 2023.
Book asap. You can save more money on travel accommodations if you book them as soon as possible. Also, the sooner you start your research, the more choices you may have about where to stay, when to fly, what size rental car to get, and other things.
Book as late as possible. If you are flexible with your travel dates, you can save a lot of money. Booking at the last minute can be just as cheap as booking ahead of time.
Choose less traveled destinations. This is the year to think outside the box, since people will be going to the beach and the mountains. Try going to a less touristy place, like an Airbnb instead of a hotel, or traveling in the winter instead of the summer.
Travel by car. Even with increasing fuel prices, driving saves time and money. Avoid flight cancellations, security waits, and vehicle rentals. Driving to your vacation destination can create spontaneous memories you would have missed.
Travel insurance. With the escalating expense of vacations, travel insurance will reimburse you if you need to cancel your trip for a covered reason, have medical or extreme weather concerns, lose or delay your luggage, and more.
Protect your money: Why travel insurance is important in uncertain times
Trip insurance is more vital than ever due to increased travel expenditures. For peace of mind and travel emergency reimbursement, budget 5-6% of your trip costs.
Trip Cancellation
Trip cancellation insurance can protect you if you have to cancel your trip because of something you didn’t plan for. If you cancel for a reason that is covered by the policy, these types of policies will reimburse you for costs you have already paid, lost, or can’t get back.
Depending on your policy, you may be covered until the time and date you leave. Usually, trip cancellation insurance is included in a full travel insurance policy.
Coverage:
- Unexpected medical ailment or significant injury that prevents you or travel partners from traveling (must have proof from a licensed physician)
- The death of you or your traveling companion, including a close family member who is not traveling with you.
- Extreme weather that precludes travel
- Unexpected natural calamities at home or on vacation
- Jury duty or court-ordered subpoenas
- Terrorism in your destination city
- Tour operator/carrier bankruptcy
Trip Interruption
Trip interruption insurance begins once you leave. It covers missing part of your vacation due to a covered reason and returning home.
Coverage:
- Hotel, travel home, and other non-refundable expenses
- New flight tickets, transportation to the airport or hotel, hotel reservation (while waiting for a flight home), and meals to arrive home early due to an unforeseen event.
All policies have boundaries. Some policies cover 100-150% of your original trip, while others cover 200%.
Delay
If your trip is delayed for a covered reason, trip delay insurance covers a fixed sum. Most travel insurance policies have Trip Delay restrictions. For instance, you must meet hour delay restrictions and have a covered reason for the delay.
Your hotel, missed excursions, and extra transportation costs due to the delay will be reimbursed up to the maximum daily amount if your claim is approved.
Coverage for Medical Emergencies
Emergency medical coverage covers trip-related illnesses, injuries, and accidents. Acute medical concerns need rapid treatment.
Costs typically covered:
- Ambulance services
- Hospital stay, X-rays, CT Scan, MRI Lab expenses
- Surgery
- Pharmaceutics
- Dental emergencies
- Pre-existing conditions may not be covered without a waiver before your trip.
Lost Bags
Carrying valuables? If your holiday luggage is lost, damaged, or stolen, baggage loss insurance will cover the cost up to policy limits.
Add baggage loss insurance if you travel with laptops, cameras, or designer jewelry, but check your policy’s maximum payout amount.
Shop for Travel Insurance
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