Is Travel Insurance Worth It?
Category: Travel
November 6, 2024 — Here’s a situation you’ve probably found yourself in more than once. You’ve just spent a lot of money on a dream trip, and along the way, the company urges you to buy travel insurance. You think: If I get sick, miss my plane, or face some other conflict, will I lose everything? On the other hand, do you really want to pay hundreds of dollars for a travel insurance policy you’ll probably never need? It’s a tough call: risk versus reward.
What the Experts Say: Is Travel Insurance Worth It?
A lot depends on your situation. If you’re older or have a complex health condition, those could be good reasons to buy travel insurance. Similarly, if you have family members who might experience an emergency requiring your presence, that’s another reason to consider it. Where you’re going and what you’re planning to do are also big factors. For instance, if you’re embarking on an expensive, distant, or extended trip, it may make sense to buy coverage simply due to the financial investment. If your destination has limited healthcare options, medical evacuation insurance could be invaluable.
On the other hand, you could play the odds. If you think the chances are slim that you’ll need to cancel, why pay for insurance on a low-risk trip? Similarly, if the trip isn’t very costly, it may not seem worth insuring. In fact, your editor believes that self-insurance is the best option for most trips. He figures that if he takes many trips before ever needing insurance, he’ll likely come out ahead in the long run.
What Kind of Travel Insurance Should I Buy?
The basic type of travel insurance is trip cancellation or interruption coverage. If something comes up and you can’t make the trip, this insurance covers you. Another common type is medical insurance, typically included in most plans. This provides coverage for medical care while you’re out of the country (since Medicare doesn’t usually apply overseas). Medical evacuation insurance is also an option; it covers the high cost of being transported back to the U.S. for medical care, which can run into tens of thousands of dollars.
How Much Does Travel Insurance Cost?
The cost of trip insurance can vary greatly depending on the company you choose, how expensive or exotic your trip is, your age, any pre-existing conditions, and the type and amount of coverage. A very basic policy from Travelex might cost only $60 for trip cancellation (100% of trip cost up to $750) and trip interruption (150% of trip cost up to $1,125). Of course, most trips cost a lot more than these reimbursement levels. But the policy does include coverage for $50,000 of medical insurance, emergency evacuation and repatriation for $250,000, and reimbursement for a variety of other types of issues. More expensive plans will cover 100% of the trip expense, lost baggage, etc. For example, we received a quote for a high-coverage plan priced at $831 for a one-week trip costing $5,000.
Where Can You Buy Trip Insurance?
There are many options to buy trip insurance. Your tour provider, airline, or cruise line will often suggest one or more companies. They may urge you to buy it because, in the event of an issue, it makes life easier for them and you. By searching online, you’ll find many companies eager to provide you with a quote. Travelex is one we have used. Insuremytrip.com is also a great option, as it provides quotes from many different companies for all kinds of plans. Forbes has a comparison chart of various companies’ plans. Before you buy, compare quotes from several companies and carefully compare coverages so yoiu know what you are getting.
Are There Other Trip Insurance Options?
Besides self-insurance, one way to avoid paying for travel insurance is to book your trip with a credit card that provides basic travel insurance. Many credit cards offer this benefit, including the Chase Sapphire Preferred, American Express, and others. Check the fine print or call to verify what might be covered and/or excluded.
Bottom Line
Whether or not to buy trip insurance is a matter of personal preference and circumstances. If you think you’re at high risk of having to cancel a big trip, travel insurance is probably worth it. Before you buy a policy, compare several companies and carefully understand the coverages. Some people just feel better knowing they are covered. Note that sometimes it takes persistence to get a claim settled, so keep good records and don’t give up easily.
For further reading:
How to Choose the Best Travel Insurance
Comments? Do you buy travel insurance? Please share your thoughts and experiences below.
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