Travel insurance is a critical way for your clients to protect their trips in case of the unexpected -- but did you know it is also one of the most profitable travel products for you to sell as an advisor? Some of our suppliers' insurance products are commissionable at almost 30%. Read on to learn how you can offer your clients protection, while also increasing your sales.

You must offer travel insurance on all bookings as a best practice. If you do not offer travel insurance and do not have written proof that you offered travel insurance and your clients declined it, you may be financially responsible for the full cost of your clients' trip in the event of a cancellation.

Travel insurance licensing has to be navigated very carefully in the United States because regulations differ from state to state.

Travel insurance provides valuable financial protection against a wide range of unforeseen situations that can happen before or during a trip. Many people do not realize that travel insurance provided by a credit card used to pay for a trip is not always sufficient coverage in the event that they have to cancel the trip. Additionally, the medical coverage limits may also be too low. Most of the time, United States health insurance does not work in foreign countries. If a client gets sick or injures himself while on vacation and does not have travel insurance, it can be financially devastating.

To get a quote for your client, you will need to have the following information:
  1. State of residence 
  2. Travel states 
  3. Travelers’ ages or dates of birth
  4.  Trip cost per person (air, cruise, tour—anything that is prepaid and nonrefundable). If air is not included in the package, we do not recommend quoting insurance on air because it is not often worth it, as clients will receive airline credits or cash back. If you have questions case by case, please reach out 
  5. Deposit date (first day they made a payment towards the trip)
  6. Destination
You can help your clients find the right plan by understanding what their major concerns are for travel protection (cancellation, job-related, weather).

For most trips (aside from cruises) we offer our clients one of two options for travel insurance: Travel Insured and TripMate (VAX).  Please read on for additional detail regarding both options.

Remember that suppliers are constantly changing their insurance policies, and it is up to you to stay up-to-date on changes.

Selling insurance

Travel Insured

Travel Insured is our preferred provider for travel insurance. When quoting Travel Insured, there are several different options for coverage. 

Key points to note when selling travel insurance: 
  • You are not a licensed insurance agent, therefore you are not legally permitted to advise on coverage or recommend coverage. Always refer the client to the policy terms and direct questions to the insurance provider
  • Insurance must be offered for every trip, and it is time sensitive. It is important to send the insurance quote as soon as your client pays the trip deposit
  • Document the offering of insurance coverage. If a client declines coverage, always get their decision in writing, and keep a copy for your records. If you are using VCRM, this is done in one simple step
  • Cancel for any reason coverage can only be added to trip within a specific timeframe depending upon the carrier. For Travel Insured, this is 14 or 21 days from deposit depending on the policy
  • Even if your clients are not purchasing cancel for any reason insurance, it is important that you offer it immediately because pre-existing medical conditions are only covered if the policy is purchased within a short window from the time the trip is booked
  • Always advise clients that the insurance purchase is not refundable
  • Do not ever guarantee to a client that they will be refunded if they purchase travel insurance. You can instead tell them that they can submit a claim for reimbursement. 

We have worked with Travel Insured on a standard message to include with all of your quotes. Please see our resource library for the standardized blurb for Travel Insured. 

Click here to complete the Travel Insured training

TripMate

When booking through VAX, TripMate is an easy add-on, and an inexpensive way for clients to protect their trip. However, Travel Insured is our preferred insurance partner, even when booking in VAX, and you should try to use their coverage whenever possible.

There are two different insurance options available through ALG.
  • Travel Protection Plus - Full Travel Voucher: This option gives the client a travel voucher (less the cost of the insurance) to be used by the ticketed passenger within 13 months of the original date of travel
  • Travel Protection Plus - Full Cash Refund: This option gives the client a full refund back to the original form of payment (less the cost of the insurance)

Cancel for any reason coverage can only be added to trip within a specific timeframe depending upon the carrier. For TripMate (ALG), this is within 7 days of deposit and must be before final payment.

Click here to review policy information and details