August 9, 2020
AliExpress WW
Before you go, get acquainted with all the pros and cons of road insurance.

Before you go, get acquainted with all the pros and cons of road insurance.

AliExpress WW

It would seem that the endless nationwide localization of the pandemic has led to a large pent-up demand for travel.

AliExpress WW

Due to the fact that the second major weekend begins on weekends, people who want to celebrate Independence Day get in their cars and relax for car trips, which is much safer for many than air or cruise travel.

“After a few weeks at home, many Americans want a change of scenery,” said Giorgos Zakharia, CTO at Kayak.com. “But, despite the fact that international restrictions still apply and safety is paramount, road trips are now the most attractive for travelers from the United States.” Kayak found that searches for car rental on the weekend of July 4 were up 20% from last year.

Britney Castro, a staff certified financial planner for personal finance management site Mint.com, says most people haven’t spent a lot of money traveling this year.

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“Most have some kind of monthly travel budget, and I think that now they overestimate their goals and savings and say that now let’s spend this money on the trip,” she said.

Although the AAA did not release travel forecasts on July 4, it said Americans would make 700 million collective trips this summer, and 97% would travel. (Meanwhile, only 15 million people will fly, compared with 58 million a year ago.) The American Hotel and Hospitality Association, for its part, found that 72% of people planning a trip will have a rest over the next five years. by car for the night months. Of these, 75% expect to drive two or more hours.

All of these hours on the road can mean a lot of wear and tear – vehicles, timetables and the nature of travelers – and insurance companies take note when rolling out new travel plans specifically designed for road travelers or reminding R.V. and car owners about the practicality and danger of insurance policies. Here’s a look at what is being offered.

Peace of mind on the road

According to spokeswoman Casara Barto, domestic travel currently makes up the majority of all insured travel on Squaremouth.com’s online travel insurance market, compared with 12.3% in 2019. “As more people begin to travel domestically, car trips can become a more popular type of travel,” she said. “We definitely see a surge.”

Customers visiting a site offering policies from 31 insurance policy providers are increasingly asking for travel coverage. Historically, car vacations – unlike air flights or cruises – have not been insured, Barto said.

The rival InsureMyTrip.com website also predicts that more and more insurance providers will offer some type of travel coverage “as the industry adapts to travel restrictions and health reasons due to a pandemic,” according to spokeswoman Julie Loffredi.

Two travel insurers recently debuted plans designed for road travelers. Indianapolis-based Seven Corners has deployed ARMOR, which is suitable for trips of up to 30 days more than 100 miles from the insurer’s home in the United States, Canada, and Mexico.

The plan provides for emergency medical evacuation from remote locations such as national parks. Another important benefit is the return home of passengers, pets and / or vehicles in the event of a driver injury. An on-line search for a quote on an August trip to the United States by a single driver aged 45 showed a premium of $ 50.

In the meantime, Berkshire Hathaway Travel Protection has unveiled its first ExactCare Lite Indoor Use Only coverage plan, designed to travel at least 100 miles from policyholders’ homes and available in 40 states.

We always advise travelers to understand what exactly applies to politics and what does not, before making a purchase.

Megan Walch

Product Manager at InsureMyTrip.com

“We expect internal-only coverage plans to tend this summer and fall when travelers start exploring the open road again,” said Dean Seavley, president of Stevens Point, BHTP from Wisconsin. “While travelers remain cautious, the new BHTP travel product, ExactCare Lite, provides peace of mind for non-refundable deposits such as hotels and ride tickets, as well as emergency medical expenses and much more.”

By numbers

An online quote search on an August trip to the United States for one driver aged 45 brought a $ 19 bonus. ExactCare Lite coverage includes:

  • Cancellation of a trip, including for reasons related to work, up to $ 500 per person;
  • Interruption of a trip, including during an accident, up to 750 US dollars per person;
  • Up to $ 100,000 to cover medical evacuation;
  • Up to $ 10,000 to cover emergency medical expenses and death accidents;
  • 24/7 telephone or email assistance worldwide for travel and emergency services; and
  • Coverage per child aged 17 years or less per insured adult.

Travelers should carefully weigh the pros and cons before buying, warns Megan Walch, product manager at InsureMyTrip.com. “Despite the fact that an inexpensive travel insurance plan designed specifically for travel within the country is an attractive option, we always advise travelers to understand what exactly the policy covers and what is not before making a purchase,” she said.

If the trip is very expensive, entails severe cancellation penalties or travelers have concerns about the Covid-19 or weather events, they may instead consider the traditional “cancel for any reason,” Volch added.

Insure that RV

Barto at Squaremouth.com also warns that people who rent an RV or luxury car – rented or owned by them – for their road trip should also double-check the fine print in their new road travel policy.

“Often liability coverage is not included in travel insurance policies, and most travel insurance policies do not include RVs or exotic cars like Lamborghinis,” she said.

According to Paul Bender, CEO of American Adventure Insurance in Thousand Oaks, California, Camper and RV sales are skyrocketing. “It’s hard to keep inventory on the site,” he said. “I think people think,“ I can distance myself on my RV, or on my motorcycle, or on my boat, while I’m careful. ” This is a big deal. “

Castro from Mint.com, based in Los Angeles, said she noticed an increase in rental rates among customers and acquaintances. “I have not met anyone who wants to buy an RV,” she said. “But I know people who actually rent an RV and travel the Pacific coastal highway.”

Bender emphasizes that it is important that RV owners buy the right type of insurance. Just do not rive the RV Rider to the usual rules of a car, although it can be cheap. Good RV policy from a provider such as Progressive Corp. or Foremost Insurance Group, will include full damages, unlimited towing and so-called full-time coverage, which “is actually the cover of the homeowner who travels with you,” he said, and covers liability for injuries to guests and passengers.

Nowadays, when you want to be more conservative in your expenses, you just should not buy a ticket.

Nicole Beck

licensed insurance agent at TheZebra.com

Policies purchased through American Adventure Insurance also offer many of the same benefits as new travel plans from travel insurers. These include emergency expenses, pet injuries, and campsite liability.

“I am not an expert in these other [road trip] policies, but if they charge a premium for specialized coverage for 12 or 30 days of travel, and your RV or trailer is only insured by your [auto] politicians, go and pay this bonus, said Bender. “But you can transfer your RV policy to progressive or advanced and pay much less all year long and just have the same coverage all the time, whenever you go.” “

Watch your driving

Whatever coverage you buy, keep an eye on the road and keep an eye on the speedometer while on vacation, says Nicole Beck, a licensed insurance agent and communications director at TheZebra.com’s Comparison of Insurance Services website.

Every 12th US driver commits a traffic violation every year, and half of them receive tickets. Violators can see how their car insurance rates rise on average from 4.4% to 78.3% (or from 68 to 1212 US dollars) annually – usually for up to three years, and sometimes for a decade. You might be able to return home from vacation to experience higher car bonuses.

“Nowadays, when you want to save money, when you want to be more conservative in your expenses, you just should not buy a ticket,” Beck said. “The first decision is to just drive safely, obviously.”

A common mistake made by road travelers is breaking the rules for using a mobile phone. “This is probably a big question if you don’t know where you are going,” she said. “You’re messing with your GPS smartphone.” According to Zebra, this could lead to an increase in insurance premium by 23%.

Should a policeman notice that your seat belt has been fastened too? “If you don’t fasten your seat belt, you will pay $ 138 a year more,” Beck said.

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