Here’s How To Protect A Million-Dollar Trip

With a $60,000 price tag on a family birthday trip to the Mayan Riviera, LaDell Carter knew he couldn’t recommend any travel insurance to his clients.

Customized itineraries feature stays at five-star hotels, spa treatments, gourmet meals prepared by a private chef, and ample time on Mexico’s white-sand beaches.

Carter, Founder and Chief Travel Designer Royal Express Travelsdid his research, so when it came time to recommend travel insurance, he didn’t hesitate: he recommends starting with Red Dot Travel Protection.

For $2,400 (roughly 4 percent of the cost of the trip), a family of four gets upfront, non-refundable, and emergency medical, evacuation, and trip interruption coverage.

red dot cavalry policy Provides 30 covered reasons for cancellation and interruption, including business reasons and pets, medical evacuation to a home hospital of your choice, and $100,000 of coverage for major medical expenses.

Carter said the company processes claims quickly. “It gives you peace of mind during a custom vacation,” he says.

everyone wants peace of mind

These days, travelers want a little peace of mind. But that’s especially true for expensive vacations. Just last week, while I was in Auckland, New Zealand, I spoke to a travel agency who arranged a $1.2 million luxury golf vacation. I wonder how you would go about purchasing insurance for such an expensive trip.


  • What do you find in a luxury travel insurance policy?
  • What are the limitations of a travel insurance policy for an expensive trip?
  • How much will you pay for a luxury travel insurance policy?

Because you spend a lot of money on a trip, and if you have to cancel, you could lose a lot of money, so it’s important to get it right, says Tim Dodge, vice president of marketing Arch Roaming Right. So the dynamics are slightly different than regular travel insurance.

“Some budget plans only cover a certain amount of travel, while others will only provide vouchers for future travel if you need to cancel for covered reasons,” he says.

A custom plan for a more expensive vacation may cover more things, up to a higher limit.

Reality Check: Travel insurance, no matter how expensive, has important and often overlooked limitations. Simply throwing money at a travel insurance policy doesn’t mean you’ll get a claim. In fact, most of the policies I discuss in this article only cover “designated risks.”

So, before you buy high-end travel insurance, it’s important to understand what’s covered.

What Does a Reliable Luxury Travel Insurance Policy Cover?

A well-rounded travel insurance policy for your high-value vacation will cover the following:

  • Luxury travel insurance covers the same basic things as a regular policy, such as trip cancellation, medical emergencies, and lost or stolen luggage, but usually with more coverage.
  • The policy may also include specialized coverage for specific luxury items, such as villa rentals, yacht rentals and high-value personal items.
  • Many post-pandemic luxury travel insurance products also cover travel delays due to Covid-19, along with enhanced medical coverage and protection against travel interruptions caused by travel restrictions or quarantine requirements.

Travel insurance companies have also recently made some small changes to their luxury policies.

“For example, some insurance companies have begun to cover the loss and theft of expensive electronic items such as laptops and mobile phones,” notes Stan Sandberg, co-founder of the travel insurance website Travel Insurance Network.

What are the limitations of a typical luxury travel insurance plan?

Some travel insurance companies offer specialized luxury travel insurance. For example, Berkshire Hathaway Travel Protection (BHTP) offers a product called LuxuryCare designed to protect high-cost vacations.

Here are its contents:

  • Trip Cancellation Insurance: 100% of trip cost (up to $100,000 per person)
  • Trip Interruption Insurance: Up to 150% of the trip cost (up to $150,000 per person)
  • Trip delay insurance: up to $2,000 ($200 per person per day) (delays of five hours or more)
  • Delayed Baggage: Up to $200 for delays of 12 hours or more)
  • Emergency medical insurance: up to $100,000 per person

“Luxury travel insurance is designed for travelers looking for the extra coverage and services typically provided by standard travel insurance,” explains Carol Mueller, vice president of BHTP. Baggage delays, plus enhanced cancellation and interruption benefits , such as event cancellation, pregnancy, adoption and other covered reasons not usually covered by the base plan. “

Allianz Travel Insurance Offers One Trip Premier Products Allianz spokesman Daniel Durazo said cancellation coverage was up to $200,000 per person and emergency medical transportation coverage was up to $1 million. “This kind of coverage is suitable for families traveling to distant destinations such as New Zealand,” he said.

How Much Does Luxury Travel Insurance Cost?

Just like regular travel insurance, the price of a policy depends on a variety of factors.

Interestingly, the cost of luxury travel insurance can be lower as a percentage of the total travel cost than basic insurance.

“The cost of insurance for an expensive vacation can vary widely based on factors such as trip duration, destination, traveler age, and coverage limitations,” explains Rikin Shah, CEO Sure, an insurance website. “Premiums for luxury travel insurance typically range from 3% to 8% of the total travel cost.”

In comparison, regular travel insurance can cost a little more – 5% to 9% of the cost of the trip (again depending on your circumstances).

But generally, the more expensive your trip, the more your travel insurance will cost, says Olivia Bailey, assistant and medical management manager seven corners.

“Some plans may only cover travel up to a certain amount,” she added.

Laura Heidt, Insurance Division Manager Brownell Tourismwhich means you’ll pay more for the quality policy, which also includes “cancellation for any reason” coverage.

“On average, the price of a good insurance policy, which includes standard ’causes for cancellation’, good medical and other essential coverage, is about 10 to 12 percent of the travel cost,” she said. “If you’re going to lose a lot of money on a non-cancellable and non-refundable item, it’s well worth it.”

What You Need to Know About Luxury Travel Insurance

High-end travel insurance plans include higher coverage limits, such as $250,000 to $500,000 for medical care and higher limits for emergency medical evacuation, explains Narendra Khatri, Insubuy.

“But they can also include extra services that aren’t part of the cheaper plan,” he said.

For example, some offer search-and-rescue coverage, trip cancellation for any reason, and trip interruption for any reason, which aren’t included in the basic coverage of cheaper plans.

Another bonus: If you use frequent flyer rewards, some luxury vacation programs can help you get those rewards back into your account if your trip is canceled. Some policies also allow you to include kidnap and ransom coverage, which can give high-net-worth individuals extra peace of mind when traveling abroad, Khatri said.

When you’re buying a policy, think about the factors that are most important to you, advises Christina Tunnah, general manager of marketing and branding world nomads“Whether it’s emergency medical coverage, emergency evacuation and repatriation, trip cancellation, or non-insurance benefits like concierge services,” she adds.

One more thing: don’t be fooled by the labels. Luxury doesn’t always mean it’s better policy.

“While it is often packaged as luxury or luxury, there is actually no specific type of travel insurance, but rather five categories that make up comprehensive coverage. They are: Cancellation and Interruption, Medical Expenses, Emergency Evacuation, Loss or Delay, and 24 /7 aid,” said Joe Cronin, President International Citizens Insurance.

Shop around before buying

Buying luxury travel insurance for an expensive trip is a lot like buying a luxury car. There are many options, and many moving parts. Don’t get distracted by the bells and whistles — instead, focus on the basics and make sure you understand what you’re getting.

Pay special attention to the amount of insurance. John Rose, ALTOUR’s chief risk and safety officer, notes that most top insurers have a $150,000 policy maximum. “So a policy for luxury travel is exactly the same as any travel insurance product,” he added.

Comparison shopping is more important than ever when you’re dealing with investments of six figures or more.

“Travelers should consider their insurance needs and compare policies from multiple providers before deciding,” said Operations Director Pallavi Sadekar. Visitor Guardian Network.

This is great advice, whether you’re buying travel insurance for a quick summer trip or a round-the-world vacation.

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