Travel Insurance: Students Need it, Parents Want It

Travel insurance is a must-have for students planning a trip, and a safety net for their parents. While most students and young travelers think they are invincible, parents usually know that the unexpected – a medical emergency, a lost passport or luggage, a delayed trip, an accident – can ruin the most meticulously planned trip.

Whether it’s for summer vacation, spring break, or study abroad, the best way to protect against unforeseen catastrophes is with student travel insurance, advises the US Travel Insurance Association.

Organized Trips

Younger students usually travel on organized group trips. In fact the Student & Youth Travel Association (SYTA) estimates that, in 2005, nearly 25 million students took an organized group tour. What if the unthinkable happens on an organized group trip? Possible scenarios are:

Student A must interrupt his trip because an immediate family member becomes seriously ill;
Student B gets sick on tour, but the tour must stick to its agenda and leave her behind;
Student C’s flight is delayed and his luggage is missing.

If a student becomes ill on tour and has to be hospitalized in a foreign country, the rest of the group must continue on with their itinerary. That’s where the 24-hour hotline included in many policies steps in, helping coordinate arrangements for treatment and other necessities. Student travel insurance policies typically provide coverage for medical emergencies away from home, including medical evacuation where needed (ground ambulance or airlifts to hospitals), and emergency reunion (covered expenses for one relative to travel to the student if he or she is hospitalized for a specified amount of time).

Other types of travel insurance policies available to students cover trip delays or interruption, and cancellation due to the student’s illness or that of an immediate family member. Trip cancellation or interruption covers non-reimbursable expenses such as travel costs, hotel, etc. due to illness, emergency or bad weather. Baggage delay or loss covers luggage delayed past a set time as well as stolen luggage or passports. Trip delay coverage pays for needed expenses such as hotel, dining, necessary phone calls, or transportation, up to a set daily amount when flights are delayed because of bad weather.

Semester Abroad and Independent Travel

Older students studying or visiting abroad for extended periods of time have their own needs. For example, most student visas and study abroad programs require international health insurance plans that meet or exceed U.S. government student visa requirements. These plans typically cover medical, dental, emergency medical evacuation and round-the-clock assistance. In most cases, student health insurance from the home country does not provide international coverage.

Many students abroad travel to more than one country and should therefore consider a plan that provides worldwide coverage. And if a student is going to be away for an extended period of time, like semester abroad, he or she should also consider an annual travel insurance policy which offers coverage for visits home during holidays or vacations.

Travel Reassurance

“Travel insurance is a must-have, especially if a student is on his or her own, backpacking through Europe or perhaps South America,” says Brad Finkle, UStiA president. “It’s also travel reassurance, connecting kids back home to their parents. The 24-hour hotline provided with most student travel insurance policies can help kids out of an unfamiliar situation or potentially dangerous spot when parents can’t be there. The emergency hotline can serve as an information center, relaying messages to concerned parents, providing referrals to other sources such as embassies, legal assistance, help with translations and even provide cash transfers in emergency situations.” .

Another consideration is purely economic, points out Finkle. “Many health insurance policies for college students are very basic. In some cases student travel insurance policies --especially travel medical policies -- can actually provide greater medical benefits at a lower price,” he says.

What to Know

Parents should inquire about travel insurance for their child, whether he or she is part of an organized group or program, or traveling independently. Student travel insurance policies are available from tour operators, accredited programs, through companies selling travel insurance, and over the Internet. Based on the level of coverage and length of stay, prices for student travel insurance policies are lower than most traditional travel insurance policies, and may also have reduced benefits. It’s therefore important to carefully check beforehand for possible limitations, advises Finkle.

About UStiA

UStiA promotes fairness, integrity and a commitment to excellence in the travel insurance industry. With a mission to educate the public on travel insurance while maintaining high industry standards, the UStiA is a non-profit association of insurance carriers and allied businesses involved in the development, administration and marketing of travel insurance and assistance. In 2004, UStiA member companies provided travel insurance policies to more than 17 million people, including students and young adults. For more information on UStiA visit www.ustia.com.

Back to Consumer Issues