How Millennial Travelers Can Help Protect Their Travel Investment

A recent report shows that Millennials are the most likely age group to spend the most on vacation, with one out of every three Millennials indicating they are willing to spend more than $5,000 on their next trip.

With increased spending on travel, it is important that Millennials – and all travelers – understand the importance of travel insurance when it comes to helping protect their investments.

How Travel Insurance Can Help Protect Millennials (And All Other Travelers)

For Millennials (and all travelers) it is important to know what travel insurance is, what coverages it can provide, and why it is important.

Travel insurance is a type of coverage that helps protect you if your vacation or business travel plans change. It also may provide medical coverage for emergencies that occur outside of your network.

There are a number of travel insurance coverages that are important to know as you compare plans and look for the one that best fits your needs. Keep in mind, that as travel plans may change, so may your coverage needs. A road trip to a nearby city may warrant different coverage than an international adventure trip.

The benefits and features outlined below vary from plan to plan. You can click on each listing for a more detailed description of each travel insurance feature, including exclusions and limits.

• Trip Cancellation: If you can’t go on your trip due to an unexpected reason
• Trip Interruption: If you’re already on your trip and need to return home for an unexpected reason
• Emergency Accident & Sickness Medical Expense: For medical emergencies that may occur when traveling
• Emergency Dental Expense: For dental emergencies that may occur when traveling
• Medical Evacuation: In an emergency, provides transportation to a medical facility that can provide appropriate care
• Security Evacuation: Assistance in the event of natural disaster, civil uprising, military coup, or political unrest
• Baggage & Personal Effects Coverage: If your baggage is lost, stolen, damaged, or delayed
• Accidental Death & Dismemberment: Coverage in the event of death or loss of limb and/or sight; available in both regular AD&D coverage as well as Common Carrier Air Only Coverage
• Repatriation of Remains: If a tragedy occurs, covers the return of your remains to your home
• Sports Coverage: Coverage for a number of specific activities such as parachuting or SCUBA diving
• Flight Insurance: Covers any number of incidents that may happen when traveling by air
• Cancel for Any Reason: An optional upgrade that allows you to cancel your trip for a reason not covered by other travel insurance plans, up to 48 hours before departure
• Collision Damage Waiver: Coverage for renting a vehicle
• Cancel for Work Reasons: If you need to cancel your trip in order to meet certain requirements placed upon you by your place of employment.

Coverage for Home-Sharing and Ride-Sharing

The way we travel has changed greatly – and for the better – in the last few years. Home-sharing sites such as Airbnb has made it possible to find unique, affordable lodging around the world, and ride-sharing companies like Uber and Lyft has made getting from point A to point B in a new place seamless. But these changes have raised the question: how are they covered under your travel insurance plan?

Travel Insurance Coverages with Home-Sharing

When it comes to travel insurance, staying in an Airbnb is really no different than a hotel. Basically, staying at Airbnb lodging as opposed to a chain hotel should not affect any part of a traveler’s travel insurance policy. Travelers should still be entitled to the same benefits (assuming the exemptions in a policy’s explanation of benefits are adhered to).

For example, say your traveler has to cancel their Airbnb reservation. The way Airbnb works is the later a renter cancels, the less money the renter is refunded. However, assuming the cancellation is a covered reason as outlined by the travel insurance policy’s explanation of benefits, the traveler should be refunded any of the money not refunded by Airbnb. If an Airbnb host cancels on a traveler, the traveler receives a full refund from Airbnb within their outlined terms (and not from your travel insurance provider).

Travel Insurance Coverages with Ride-Sharing

There is one important thing to note when it comes to Uber and other ridesharing services: they are not considered common carriers by many travel insurance policies.

A common carrier is defined as any land, sea, or air conveyance operating under a valid license for the transportation of passengers for hire, not including taxicabs or rented, leased, or privately owned motor vehicles.

Just like an Airbnb is not a hotel, Uber’s are undoubtedly not taxis. However, they definitely are privately-owned motor vehicles. Each Uber driver owns their individual vehicle, meaning the service cannot be covered as a common carrier.

So what does that mean for a traveler’s insurance policy?

As always, it is best for travelers to closely read their description of coverage. But in general, missed connections or any other travel delays directly caused by Uber or other ridesharing services may not be covered under most policies. Other things such as damaged luggage or cancellations due to a hypothetical Uber driver strike may not also be covered.

Travel Insurance & Smartphones

We love traveling, we love our smartphones, and we love traveling with our smartphones. But what happens if your smartphone is stolen or damaged while you travel?

If your smartphone is lost/damaged by a common carrier such as your airline or is stolen, you may be eligible for coverage under your travel insurance policy.

For baggage and personal effects coverage, it is important to check the benefit limits and exclusion listed in the policy before purchase travel insurance. Often, for items such as smartphones, there is a maximum limit that travel insurance providers will pay out if it is lost or stolen, and without a receipt, you may not receive full retail price for the phone.

Coverage for Adventurous Activities

We often like to get a little adventurous when we travel, partaking in activities with a little risk that we wouldn’t necessarily do at home.

With Arch RoamRight plans, and many other travel insurance plans, some activities require an upgrade in order to be eligible for coverage in case something goes wrong during that activity.

Under Arch RoamRight plans, these sports are considered adventure sports and require the Hazardous Sports Upgrade in order to be eligible for coverage for claimable events that happen while participating in these activities:

• Bungee jumping
• Caving/Spelunking
• Hang gliding
• Ice climbing (where ropes or guides are normally used, up to 15,000 feet)
• Mountaineering (where ropes or guides are normally used, up to 15,000 feet)
• Parachuting
• Paragliding/Parapenting
• Rock climbing (where ropes or guides are normally used, up to 15,000 feet)
• SCUBA diving (involving underwater breathing apparatus – OR – if PADI or NAUI certified, to depths below 130 feet)
• Skydiving

This list is not inclusive. If you do not see the sport you are planning to participate in listed in any of these lists, please contact our customer service team at 855-762-6744.

For a list of activities that are covered under the standard Arch RoamRight plans, as well as activities that are never covered under our plans, read our blog on our adventure sports coverage.

Note: Available plans and coverages may have changed since this blog was published.