Should we buy travel insurance? Is travel insurance worth it? well, the answer is everyone’s favorite answer, it depends and I know that sounds like a cop-out but it really depends on a couple of different things: first is the type of travel you have booked. Did you book travel that already has some cancellation protections? built-in like a refundable airline ticket or a hotel reservation that is refundable until the last 24 hours or so or maybe you’re on the opposite end and have already passed the final payment date. On a cruise vacation and have basically paid for your entire trip well in advance. second is your individual tolerance for risk what are you willing to pay to protect against some uncertainty leading up to your vacation. but perhaps most important in the buying decision is understanding what travel insurance will cost and what type of coverage you’re actually getting in return?
let’s take a closer look at that; We dig in the details of travel so the next time you go exploring you can go a little bit better informed. today we’re digging into the timeless centuries-old question Is travel insurance worth it? and, should I buy travel insurance for my upcoming vacation? and before we dig in, if you have experience with travel insurance good or bad, feel free to comment down below and share that with others. That matter comments about anything travel-related comments both benefit your fellow travelers and also help this site’s reader.
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so I don’t know about you but when planning a travel kind of in the back of my mind. I’ve always wondered about travel insurance worth it? and spoiler alert I have never actually done so but I’ve yet to encounter a major disruption during personal travel for which I could use travel insurance. now maybe that is a red flag in a mistake because I generally am risk-averse and I really don’t like kind of living on the edge with uncertainty but rather than trying to walk you through an introspective assessment on your level of comfort with risk and in lieu of trying to explain the industry as a whole which I probably cannot do .
Worth Travel Insurance Lesson
A lot of people often overlook, when booking their travel trips and as travel insurance one of my friends actually came on this trip to Dubai and when I saw him at the airport we were having a conversation. I don’t want to give too much information away but he recently let me know that he was in a really bad accident about two or three months ago.
Where a few of his friends passed away and his other friends were in the hospital for a while. He let me know that no one had travel insurance. so in order for them to actually leave the country, they had to raise about $40,000 to cover their medical expenses. I think a lot of people when thinking about travel insurance they think that it’s just to get a refund back on if you can’t make your trip and that is not the case traveling insurance depending on what company you go with but for the most part they all cover a series of things that may happen while you’re on the trip. The number one reason I feel like people should get. it is God forbid that you do have a medical situation on one of your trips and you need medicine or you need treatment you can’t leave the country unless you pay those bills now thank goodness that my friend and his friends were able to fundraise the money but if they would have just paid roughly 50 to $100 for travel insurance that would never have happened.
The cost of travel Insurance
First, we’ll look at offerings available via Expedia: when booking a package vacation or a cruise. Second, we’ll look at options available through an airline. in this case, American Airlines and lastly, we’ll look at annual travel insurance packages.
Now the first option for $69 per person is: what Expedia calls a vacation waiver, which is basically a way to purchase the flexibility to change plans and have expedited reimburse. the fees associated with changes but does not protect against cancellations or any changes in fare or price it is not really trip insurance per se and instead is a reimbursement for any you may run into now in terms of the details you get one change prior to the trip start for each individual trip. component Expedia will waive their own change or cancellation fees.they will then return any refundable portion of your travel and most important to note airline refunds will be returned in the form of credits, which can be applied against new flights but the vacation waiver does not protect against increases in price. so if you pay for your airline tickets well in advance and got a pretty good deal, you’re likely to face a significant increase in fare. when you’re booking if you make a last-minute change and lastly, the vacation waiver does not cover unchangeable flights so if you bought a basic economy fare which cannot be changed or canceled even for a fee that would not be covered under Expedia’s vacation waiver now for an extra forty or fifty bucks.
Expedia offers a more robust insurance product for packaged vacations that includes the vacation waiver plus cancellation protections. Under certain conditions, this is a more traditional kind of insurance like product which is offered by AIG through Expedia and therefore as a note. it may be subject to change depending on where you live as different states have different insurance laws. now this product includes the benefits of the vacation waiver but also offers up to one hundred thousand dollars of coverage for trip cancellation or interruption but only for covered reasons and don’t forget that part the covered reasons include being injured or too sick to travel. jury duty a court subpoena job loss terrorism which is interesting traffic accidents and others and also baked into this package is a trip delay, in baggage delay reimbursement along with $5,000 of coverage for medical expenses and $1,000 for lost or stolen items. so this is a more robust option that offers more traditional insurance for things that may go wrong. now Expedia also offers a similar product specifically for cruise vacations. it does not include however coverage to make changes but does offer cancellation protection similar to the product being offered on packaged vacations. you can receive up to $100,000 for cover cancellations but interestingly it appears the list of covered reasons is not quite as exhaustive as the previous example. it does, however, offer more compensation for flight delays up to $1,300 offers more coverage for medical emergencies up to ten grand and does reimburse. also for lost items, so to summarize Expedia offers two primary options one to basically reimburse change fees and help you earn airline credits in.
The second option that adds true insurance for cancellations and emergencies, now I also looked at what airlines offer you when booking your flight only on their website, in this case, I initiate a booking for two people on American Airlines and now check out. I was prompted with an offering from the alliance that was priced at seventy-six dollars and ninety cents this product offered a maximum of only ten thousand dollars for trip cancellation and interruption again only for covered reasons.
This closely mirrored the covered reasons offered by AIG via Expedia this plan also reimburses up to three hundred dollars for delays over six hours which doesn’t feel super generous and also includes compensation up to five hundred dollars for lost or delayed baggage. Does cover medical expenses and also lost items so that coverage doesn’t feel quite as extensive but two people were covered for only basically seventy-seven dollars. generally, travel insurance worth a lot. Now shifting gears some, if you travel regularly throughout the year, there are other options available as an alternative to purchasing travel insurance for each trip you take. You can purchase annual travel insurance from a number of different companies and these plans will basically cover all of the trips you take in one year regardless of how many. That is now; there may be some variations depending on how long your travel is? And where you might be going? But these travel insurance options are a good alternative to a per-trip purchase and the different offerings out there may vary slightly and some may feel more like a traditional insurance product with deductibles or pre-existing conditions. But the purpose is to provide a bit of a safety net if you ran into a crisis while traveling and they appear to be a gear in most stores insuring against medical emergencies while traveling particularly overseas. I pulled two different options just to see what the benefits looked like and for around two hundred dollars annually. you can get trip interruption coverage of a few thousand dollars as well as trip cancellation coverage from Alliance. you also receive coverage for emergency medical expenses as well as emergency transportation. I did find it somewhat interesting! how the maximum coverage on these plans differ? but I’m not sure how many medical emergencies are going to come near $1,000,000 in cost but it’s also possible. I wasn’t reading the coverage right which is strange because I happen to work in the insurance business but that point aside. you can also receive reimbursement for a lost or delayed baggage which may, in fact, be the benefit. you are most likely to use over the course of many trips in a single year and this benefit may be worth the investment alone. I was frankly surprised with a little premium on these travel insurance plans may be worth it. Simply for the peace of mind. if you travel frequently if you don’t even use the other benefits. so given all those details what does all of this mean and my opinion travel insurance can make sense when you book moderately expensive prepaid non-refundable travel like a cruise for example or perhaps you were simply risk-averse and prefer to have some peace of mind. However, if you’re going to purchase travel insurance, make sure you read the fine print as a reminder for the last time cancellations are only covered for specific reasons on many or really all travel insurance policies. if you’re looking for the freedom to cancel for any reason, by yourself or fundable plane ticket or a book a hotel with a very generous cancellation policy, also make sure you understand the type of product you are buying like the example from Expedia their vacation waiver is very different than the more robust insurance offering, they offer through AIG. hopefully, this brief primer on travel insurance makes you feel a little better informed on the topic but if I just muddy the water a lot please let me know by commenting down below that is all we have for this show as usual.
So, what do you think, Is travel insurance worth it? You know travel insurance usually covers like I said medical but it also covers an array of other things such as if your luggage is lost or damaged. if you need your medicine or if you know your flight is delayed. I’m trying to actually, write a post on some of the benefits of having travel insurance and want to show, why it is worth to buy travel insurance. Please don’t overlook this vital part of your trip is to get travel insurance. I know personally, I don’t usually get it but from now on, I will not be traveling with that like I said God forbid. You have a medical issue there or you know if you lost your luggage last year in Spain, I had designer luggage that was broken at the airport and that was 500 dollars down the drain. if I had travel insurance it would have covered it. these are things that you really don’t think about until something happens. The ones that most people know about and honestly, it’s so cheap you can get insurance like I said there are a million different types but the cost of travel insurance from around 50 to 200 dollars and when you think about it, it could save you thousands of dollars.
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Hi, friend! My name is Balkrishna and I’ve been trekking in mountain region, basking on exotic beaches, and dabbling in new cultures since 2015. I work abroad and remotely to support my adventure travel addiction. Follow along if you’re interested in travel and want to know more about new culture, best deals and top places from all continents.