To buy travel insurance or not to buy travel insurance, that is the question. Whenever you purchase plane tickets, cruise tickets, or book a hotel, it’s usually the question you’re asked.
You’ll get several email reminders telling you; your trip is not protected. You’ll also get several opportunities to purchase insurance before your trip.
Many budget travelers usually skip it. Travel insurance is often thought of as an unnecessary add-on like extended warranties and generally considered not worth it.
Okay, why should I buy it?
Travel insurance covers most of the things that could go wrong on your trip, such as medical emergencies, trip cancellation, lost passports, lost luggage, etc.
Weight the pros and cons of travel insurance, and how much you would be set back financially if something terrible happened. For example, if you fall ill while traveling abroad and your health insurance doesn’t cover medical emergencies outside of your country. Or how about when a large portion of your trip is non-refundable, and you suddenly need to cancel due to a family member’s illness. How much would you lose in these scenarios without insurance?
How much does it cost?
Its estimated that comprehensive travel insurance coverage will cost about 5-10% of your trip’s cost. You can get it from several sources: The airline or cruise line directly, or even a third-party travel insurance carrier. Third-party insurance companies will have several policy options varying in price and coverage. Be sure you understand what you’re getting before you purchase.
What does it cover?
Travel Insurance usually kicks in when you have a loss for a covered reason. These reasons typically include health and weather-related issues. But each policy varies, so be sure to review the covered losses section. When a covered loss occurs, you can expect your policy to cover;
- Travel Cancellation/interruption – this type reimburses you for non-refundable travel cost if your trip is canceled or severely delayed due to natural disaster, illness, or if your carrier goes out of business.
- Baggage and personal item coverage – if your luggage is lost, delayed, or stolen, the insurance will pay you for replacing your gear.
- Medical – this type covers doctor visits, ambulance rides, hospital stays, and prescription medication. It may also include the cost of evacuation to get you back home during a medical emergency.
- Rental car issues – if you opted for the rental car coverage when you bought your travel insurance policy, you may be eligible for coverage for damage to the rental vehicle.
- Accidental death or dismemberment – If someone dies or suffers a life-altering accident (such as losing eyesight or a lost limb), this insurance feature may payout depending on the policy you purchased.
- Cancel for Any Reason: If you need to cancel for a reason not covered, CFAR insurance will reimburse you 70-80% of our trip cost. The great thing about cancel for any reason insurance is just that; you can cancel for just about any reason. Some insurance companies won’t even ask you why you’re canceling.
Sounds great why aren’t more travelers using insurance?
Like any other type of insurance, buying travel insurance is a toss-up. You don’t want to regret not buying it, but you also don’t want to pay for something you don’t need.
What else do I need to know?
Be sure to look into the terms and conditions before purchasing, because you may find a long list of limitations and exclusions that render the insurance policy void. Many travelers found this out when they had to cancel their trips due to the COVID-19 pandemic. Pandemics are excluded from most travel insurance policies.
Here’s the bottom line. Travel insurance can save you from significant financial losses in the case of the unexpected. Be sure to check the fine print and choose your policy wisely. And enjoy your vacay knowing you’re covered.