Top 10 Reasons to Purchase Travel Insurance

Why Travel Insurance?
Top 10 Reasons to buy Travel Insurance

Travel Insurance may seem like an additional cost to the trip.

It makes sense that, after paying for all the trip costs like airfare, lodging, food, and activities, you would be reluctant to add any more costs to your trip budget. 

However, travel insurance may still be a wise investment, it can help you save money on unforeseen expenses be it medical-related costs or trip costs.

Travel protection becomes necessary during your international travel because your domestic health insurance policy won’t cover your medical costs overseas.

You can make the best decision regarding the type of coverage you require for your trip if you are aware of what to get and the advantages it can offer.

Make sure to include travel insurance when planning your next vacation.

In this article, we list the top 10 reasons to purchase travel insurance and more.

What is Travel Insurance?

Travel insurance is a form of insurance policy that you require whether you are traveling domestically or abroad. It reimburses you for travel expenses and any extra cash you may have spent on unforeseen events both before and during the trip.

In other words, it provides financial protection against risks related to travel, such as flight cancellations, lost baggage, and unexpected medical care expenses.

The majority of travel insurance companies provide a variety of policies with varying levels of affordability and cost. You can buy travel insurance for a single trip or two trips, or a whole year.  Both individual purchases and household coverage are available.

Knowing how travel insurance works will put more things into perspective.

Why Get Travel Insurance?

If something unexpected happens while you’re traveling abroad, having up-to-date and valid travel insurance can help protect you against any potential problems during your vacation, including lost luggage, flight cancellations, and medical emergencies.

When you’re on vacation, you never know what might occur. It’s unpleasant to consider the worst-case situation, but it’s always preferable to take precautions rather than regret them. That’s where travel insurance comes in; knowing that you’re protected in case of an emergency allows you to relax and enjoy your trip. Travel insurance is crucial for this reason.

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The Top 10 Reasons to Buy Travel Insurance:

10 Reasons to Get Travel Insurance

Medical Coverage

1. Accident / Injury Cover

If you are hurt during your travel abroad as a result of a covered incident, such as a fall or a vehicle crash, travel insurance covers the related financial expenses.

2. New Sickness / Illness Cover

In the event of a new sickness or illness, while you are abroad, travel insurance covers medical expenses and emergency assistance coverage.

3. Emergency Medical Evacuation

A medical emergency comes without warning. Expenses related to a medical emergency and evacuation can run into thousands of dollars. Emergency Medical Evacuation cover ensures you get the treatment you need at the nearest medical facility.

4. Pre-Existing Conditions (Acute Onset)

If you have pre-existing medical conditions and are worried about them during travel, a plan with coverage of the acute onset of a pre-existing condition can reduce emergency medical expenses due to the condition.

5. Accidental Death & Dismemberment (AD&D)

In case of the death of the insured person due to a reason covered in the policy, this benefit pays for a lump sum. The amounts can vary basis plans.

Travel Coverage

6. Trip Cancellation/Interruption Coverage:

If you must interrupt or cancel your vacation due to an unforeseeable event, travel insurance will reimburse expenses. Included in this is protection are cancellations against sudden illnesses, weather delays, natural disasters, accidents, job loss, etc.

7. Baggage Delays / Lost Luggage:

In case your luggage is lost or delayed by an airline, travel insurance can help pay for the expense of replacing items like clothing and toiletries. Baggage delay coverage and lost luggage are extremely helpful as baggage-related claims are far too common.

8. Political Evacuation Coverage:

This non-medical evacuation can cover all reasonable expenses incurred to evacuate to a safe place nearby. Some plans may offer natural disasters along with political or civil unrest while others may only offer political unrest.

9. Passport Lost / Stolen Coverage:

In case stolen passport or lost passport, this coverage helps you get a travel document/passport for you to continue your journey. There is usually a maximum limit up to which you get reimbursed for expenses incurred as a result.

10. 24/7 Global Assistance:

Travel insurance gives you access to round-the-clock worldwide assistance services, enabling you to seek aid with translation needs, missing passport assistance, and other urgent requirements. This could be really handy when you are in an emergency situation in a foreign land.

Other Reasons:

Rental Car Protection

Renting a car can be covered by travel insurance, saving you the high cost of the additional insurance offered by the car rental company. Do cross-check the policy for coverage available if you plan to get a rental car at your destination.

Extreme Sports Rider

If you plan to participate in extreme sports like Skiing etc. during your vacation there are travel insurance plans that offer add-ons to cover such activities.

CFAR: Cancel For Any Reason for Financial Protection

If you want to cancel your trip you should be able to. But if you cancel your trip you stand to lose the non-refundable trip costs.

You can buy CFAR (Cancel For Any Reason) Add-on cover to get the nonrefundable trip costs reimbursed for trip cancellation for any reason. The trip cancellation benefits in CFAR can get you reimbursed between 50% to 75% of non-refundable amounts of the trip costs.

Peace of Mind

The knowledge that you are protected in case of emergency while traveling gives you peace of mind. So that you can relax and enjoy your vacation. You don’t need to stress about unforeseen expenses that can cut short your holidays.

What is Not Covered by Travel Insurance?

There are a few things that are either not included or may only be offered for an additional cost.

The usual exclusions include epidemics and pandemics. Following the COVID-19 pandemic, it was added to the travel insurance company’s additional protection options or covered under the coverage as any other sickness or illness.

Pre-existing conditions may not be covered.  If you want your travel insurance plan to pay for any pre-existing conditions that worsen while you’re away, you’ll need to get a pre-existing conditions exclusion waiver which may be offered by some Trip Insurance plans.

Travel Insurance may not cover the following:

  • Travel to high-risk destinations
  • If the trip is affected by terrorism, pandemics, earthquakes, or civil unrest
  • High-risk activities like scuba diving, water rafting, rock climbing
  • Winter sports, adventure sports
  • Damaged brought on by deliberate misconduct
  • Costly or luxurious items like laptops, cameras, jewelry, watches
  • These are most likely to cost more than the single-item limit allowed by your policy
  • Mental illness and psychological disorders
  • Elective abortion services (including those resulting from rape) or medications like weight loss pills that are not prescribed by a licensed physician for medical use
  • If you are above 65 and suffer from a medical issue (you will need specialist insurance)
  • Medical tourism
  • Cosmetic surgery (except when medically required)
  • Any pre-existing medical conditions you had before your trip
  • Any illness or injury that you had before your vacation that required medical attention.

Not every travel insurance policy excludes or offers the features listed above; some may be offered as paid add-ons. For coverage information, always check the policy document. If in doubt contact your travel insurance provider before buying travel insurance and get your questions/doubts clarified.

Additional Coverages Offered

Some travel insurance policies provide add-on coverage for additional costs; typically marketed as a package, it covers several types of coverages like:

  • Trip Cancellation coverage
  • Trip Interruption coverage
  • Trip Delay coverage
  • Baggage Loss coverage
  • Flight Accident coverage
  • Accidental Death coverage
  • Repatriation of Remains
  • Medical expenses and emergency evacuation coverage
  • Coverage for lost or stolen travel documents
  • Coverage for additional living expenses-Cover for loss, theft, or damage to personal belongings, Cover for loss of cash
  • Coverage for 24/7 emergency services like helping with cash wires, rebooking delayed flights, and replacing missing passports

When is Travel Insurance Worth it?

Consider protecting your vacation investment & unforeseen medical situation-related expenses by buying travel insurance if:

  • Your trip cost is significantly higher than you can afford to lose
  • You are undertaking international travel
  • You are visiting a remote place with few close medical services
  • You are visiting a country where natural disasters are common
  • There are several pre-paid, non-refundable tours, day trips, and activities that you have scheduled
  • You have multiple destinations or connecting flights during your trip
  • When going abroad, you want to be reimbursed for COVID-related cancellations and medical problems.

When is Travel Insurance not Necessary?

There are some situations in which insurance is not required:

  • If you’re not paying large non-refundable trip deposits or if your health insurance would cover you abroad, you don’t need travel insurance. For instance, you might not require travel insurance if you’re going on an inexpensive domestic trip. 
  • If you have travel insurance coverage available through your credit card. It is a good idea to check with your credit card provider for credit card benefits before making travel arrangements so you are aware of any available travel coverage.
  • If you have secondary baggage insurance, have a direct flight, and aren’t packing a lot of valuable items.
  • You don’t foresee any medical emergency during your travel and for an emergency situation, you have it covered through your health insurance card.

When is the Best Time to Get Travel Insurance?

The best time to buy travel insurance is after finalizing your vacation plans.  You can choose to get a travel medical insurance policy, which is made to cover medical expenses. Or choose a trip insurance policy that will pay for your travel-related expenses. The benefits of these two insurance options often overlap.

If you living in the United States and are a Costco member you can explore options from Costco Travel and if you have a AAA membership you can explore options from AAA Travel Insurance.

From Where To Purchase Travel Insurance?

There are several travel insurance providers and various ways to purchase travel insurance:

  • Using a travel insurance marketplace or a travel insurance comparison website to find your perfect coverage is a good option
  • The other option is to get a quote by visiting the website of a specific travel insurance company
  • A travel agent or insurance agent is another provider of your policy

Each of the options has advantages and disadvantages. If you purchased travel insurance policies but did not compare them to other plans you can miss out on the best plan for your needs.

If you relied on your tour operator and bought a standard plan they offered then you may need to look for supplemental coverage for things not offered in that plan.

Comparing plans is essential before you narrow down a plan for you and your travel companion or family member.

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If you have purchased travel insurance then you can relax knowing you are covered if something unforeseen occurs on your upcoming vacation.

Always make sure you read the fine print before buying insurance. Buy coverage that meets your needs and select a policy that offers the coverage you require. If your travel companion or a family member is visiting the same place with a different return itinerary then buy the coverage separately.

Travel safe!