Benefits of Travel Insurance
Prior to the pandemic, many of us would forego travel insurance when going on vacation. And why not? Travelers in my generation are young, healthy, and we’d say “I’m going on that trip no matter what!”
But the times have changed; haven’t they? Well, not really. Yes, we are in a pandemic the likes of which most people alive today have never seen or experienced. But the chance of becoming ill before or during a trip has always been there. In recent memory alone there’s SARS, Zika, and the Swine Flu. All of which are still around and are serious enough to trump the “I’m going on that trip no matter what!” crowd. And there has always been the chance of accidents, hurricanes, and terrorist plots.
Have you given any thought to the myriad of reasons why having travel insurance CAN benefit you, and/or be worth the expense? There are many reasons that having travel insurance makes sense but the biggest reason is medical coverage – in case you don’t know, medical treatment is expensive!
Let’s take a look at some common reasons travelers DON’T obtain travel insurance:
- I won’t use it and therefore, is an unnecessary expense.
- If I or a member of my travel party, becomes ill, or is injured while on the trip, our health insurance will cover the expenses.
- I’m going on that trip no matter what!
- The trip was paid for with a credit card and I can use the credit company’s travel protection if needed.
- Travel insurance is complicated!
- Travel insurance is expensive!
These are valid reasons! But as your travel agents, we’d be doing you a disservice if we don’t explain why each of these is short-sighted or a straight-out myth. Let’s unpack each one and dig in a little deeper.
1. I won’t use it and therefore, is an unnecessary expense.
Is your car insurance an unnecessary expense? We have car insurance for protection of the unknown. It covers our vehicle, ourselves, as well as the liability of any damage or harm we may inadvertently cause to others. It is a worthwhile investment; for a few hundred dollars a month, you won’t have to pay tens of thousands should something happen. Travel insurance works the same way.
Let’s say you book your dream vacation. The day has arrived and you head to the airport. You receive a call from your sister saying mom was in a serious car accident while heading to her doctor’s appointment and is at the hospital. What do you do? You are worried about mom and want to be at her side but you invested a lot of money in this trip that you have waited for so long to enjoy. Of course mom is more important! So, you’re forced to cancel your trip.
-
- Without travel insurance, you just lost all the money you invested in your vacation with nothing to show for it. You will not receive a refund as travel cancellation policies are very strict.
-
- With travel insurance, you can be reimbursed for the prepaid, nonrefundable parts of the trip. The only caveat is that the cancellation must be for a covered reason; the example provide is typically a covered reason. However, you should always read the policy before purchasing.
Of course, this is a simple scenario. However, the point is to show the differences between having and not having travel insurance. In the long run, travel insurance may cost some money, but not much compared to the cost of the entire trip.
2. If I or a member of my travel party, becomes ill, or is injured while on the trip, our health insurance will cover the expenses.
Did you know that Medicare doesn’t cover any medical expenses outside the U.S.? Or that many foreign countries do not accept U.S health insurance plans? Any and all medical expenses will have to be paid out of pocket, and often at least a portion must be paid before any medical care is provided! What if you require a medical evacuation? Can you imagine how much a medical evacuation back to the United States costs?
Of course, this scenario is for international travel, but keep in mind, that if your trip is a cruise, once you leave the dock, you are traveling internationally. On the last cruise I took back in 2019, on our way back to New Jersey from the Caribbean, the ship had to be diverted to the Bahamas to drop someone off due to a medical emergency onboard. I certainly hope that person had travel insurance! (Additionally, the ship’s return was delayed by an entire day and everyone with flights for the original return date missed them – if they were non-refundable tickets; that money was lost if they didn’t have travel insurance.)
The best practice would be to speak with your health insurance provider well before travel to ensure you know what they cover and what they don’t. Then you’ll know what kind of travel Insurance you need, if any. The priority is to be covered in case something happens.
3. I’m going on that trip no matter what!
Can you tell the future? If yes, please call me – I’d like to know which stocks I should buy or next week’s Powerball numbers! The truth is you should expect the unexpected! Your trip is an investment, why not protect it?
4. The trip was paid for with a credit card and I can use the credit company’s travel protection if needed.
Oftentimes, credit card companies do offer travel protection. But they don’t tell of the restrictions or other caveats. Additionally, covered items may have low limits of coverage provided. Speak with your credit card company to review scenarios, what would be covered, and what the limits are.
5. Travel insurance is complicated!
This is where a travel advisor can be very helpful. Travel advisors can determine your needs and often, can fit travel insurance right into your budget. Certainly, you can research policies online, however, the language can be a bit overwhelming and may cause you to throw in the towel with the thought that if it’s this challenging to figure out, it must not be worth it. Again, a travel advisor can take that burden off your shoulders.
There are many options of travel insurance available. You can opt for a ‘Cancel for Any Reason’ policy, or door-to-door protection that covers you and your trip from the moment you leave your house until the moment you return home, or even the option to cover only certain parts of a trip. The decision is yours.
6. Travel insurance is expensive!
When compared to the overall cost of the trip, travel insurance is not expensive at all. There are many factors insurance companies use to price a travel policy – including but not limited to passenger age and the total cost of the portion of the trip being covered (or the entire trip if that is what’s being covered). A good rule of thumb is an insurance policy ranges between 4% and 10% of the trip cost. So for a $2,000 trip, insurance can cost as little as $80. A small price to pay to protect your $2,000 investment.
On the whole, travel insurance is protection for your investment of a vacation. If you never have to use it, that’s great! It’s one of those things that you buy in hopes you never have to use. Like a fire extinguisher. But if you need it, you’ll be HAPPY you have it! Having travel insurance offers peace of mind knowing that, should something happen, you are protected and covered.
