When you’re taking a trip, you want to make sure you spend your money wisely – on things that are important to you. That may be splurging for first-class, a room upgrade, a gourmet dinner or something else that you want to purchase on that fabulous vacation you bought. But is it wise to pass on travel insurance?
You might ask yourself if travel insurance is worth the cost. After all, you wouldn’t have booked your vacation unless you were definitely planning on going. If you’re detailed oriented, you may have planned each detail of your trip. You assume nothing could go wrong. You may want to think again and consider purchasing trip insurance.
We asked our underwriters to give us the breakdown of the number of claims filed against travel insurance policies for each type of loss. One in six travelers file a claim against their travel insurance. That is higher than any other personal insurance you can buy.
You may believe you have adequate coverage from other sources. Chances are you don’t. For example, your credit card coverage will only cover what you purchased with that specific credit card. Cancelation coverage and trip interruption coverage will be different from a travel insurance policy. For example, your credit card will probably not cover pre-existing medical conditions.
If you think your medical insurance will cover you, check your policy. Travel insurance has no deductible – your medical insurance probably does. If you get sick or injured during a vacation, the last thing you want to do is pay for even part of your medial bills. Many policies do not cover you outside of the US, and some policies don’t offer coverage out of provider area. For example, Medicare doesn’t cover you out of the US.
Even if your insurance does cover you, if probably won’t cover medical evacuation. If you have to be transferred to a facility that can handle a medical issue or injury, it can cost over $100,000. That’s more than most people can afford or are willing to pay.
Nobody plans a trip they don’t plan to take, particularly if some of the deposits are nonrefundable. But things happen. People get sick, people die, things go crazy at work and you can’t get away. Are you willing to risk that trip deposit because you think nothing will happen to you or a family member or a traveling companion?
Most travel insurance buyer are in their 50’s to 70’s. They worry about a sick parent, and having to cancel a trip to take care of them. Or they are concerned that their own health issues will stop them from going. There is a far greater risk for younger travelers. They have more chance of being hurt when traveling because they tend to be more active. In addition, young families have more risk of having to cancel a trip because one of their children gets sick or hurt.
If you are traveling within the US, and don’t have a large amount invested in deposits for your trip, you may not need travel insurance. But, if you’re traveling abroad or don’t want to lose those precious vacation dollars, you should probably protect yourself and buy trip insurance.