Travel insurance - is it worth it?
Travel is the ultimate thing on many people's wish lists. There are so many must-see destinations, more people traveling, and there is so much opportunity to see the world.
Hotel and resorts reservation prices are going up and the same goes with air fare – increasing costs, and the fees to change a flight could sometimes cost as much as the original flight itself. Vacations have achieved a whole new level of expensive.
Yes, travel is already expensive - without the extra cost of travel insurance. Still, increasingly more people have insurance against travel-related losses. Why, and is it worth the cost?
Not every trip needs travel insurance. However, it can be tricky to determine which trip needs insurance coverage and which does not, more so as coverage is mostly designed for unplanned interruptions.
As a rule of thumb, every trip into which you’ve invested significant amount needs insurance.
What happens when someone in the family gets sick and you have to move your trip by a few days? Or, you have an emergency and cannot make it at all anymore? A no-show could easily become a loss, but if you have travel insurance, it could soften the hit on your pocket.
Another major coverage offered by travel insurance agencies is health. Ever visited a new country only to react badly to the climate? It could also be that you come down with a new sickness during your trip and you have to cancel a part of your vacation. It is also worth noting that the quality of medical care in some countries can be different from what you are used to at home. In cases of forced medical evacuation, travel insurance can help pay for those unexpected medical costs.
A “default” protection offered by travel insurance is the trip cancellation insurance.
Usually, a multitude of reasons may be included, from health to natural disasters. Other conditions for filing a claim could be cases of lost baggage, identity theft, or lost travel documents.
You’ll have to be wary of conditions that could make you lose out on certain benefits. For instance, most insurers give better coverage and waive off exclusions if you buy the insurance almost immediately after you pay for your trip. Likewise, knowledge of an impending disaster or diagnosis of a health condition that could lead to a termination of your vacation could remove some benefits of your travel insurance.
Is travel insurance worth it?
I might consider travel insurance irrelevant if the cost of my trip (or the loss from a cancellation) is very minimal. I might also consider it irrelevant when the vacation is rather short. However, while travel insurance could cost as much as 10-20% of the entire trip cost, the peace of mind that comes with knowing that you are covered in case of emergencies is priceless.
NOTE: This post is for informational purposes only and we do not guarantee trip insurance coverage and policies.