Travel is never cheap, especially if you are flying to a destination far from home. For these and many other reasons, prudent consumers tend to pay the travel fees before heading to the airport.
With a travel insurance plan, you can ensure that you can recover damages if your trip is canceled or postponed for reasons beyond your control. You can also purchase a “Cancellation for Any Reason” policy, which allows you to cancel your trip at any time.
According to the travel insurance comparison website Squaremouth, the average insured trip costs about $5,453. Travel premiums averaged $252. Perhaps you plan to spend much more money on your dream vacation, or you can take an extended weekend vacation for much less.Typically, travel insurance costs 5-6% of the cost of a trip.
What does travel insurance cover?
Travel insurance covers a number of risks associated with travel, from flight cancellations to lost luggage to medical emergencies. The dollar amount of coverage depends on the policy you purchase and where and when you purchased it. Most travel insurance providers offer a number of different policies that have high or low coverage and a corresponding high or low price.
Pay for sufficient health insurance.
Travel credit cards are quite useful for providing benefits such as trip cancellation/interruption insurance and luggage delay insurance, but they are notoriously bad at providing health insurance. If you’re going to a destination where you can’t apply for health insurance, such as traveling abroad, that’s a big problem.
However, with travel insurance, you can get insurance that offers a much higher limit on medical expenses. If you are hospitalized for an illness or fracture while traveling, it won’t take you long to pay for major medical expenses, but you can protect yourself with appropriate travel insurance, including medical expenses.
Travel insurance is a must. Most of us can’t afford to lose our vacation investment.
Let’s say you pay $7,000 to sail around the Mediterranean on a once-in-a-lifetime luxury cruise on your 25th wedding anniversary. The day before you set sail, your mother had a serious fall and was eventually hospitalized. If you call the cruise company and explain what happened, they’ll feel sorry for you. But you won’t get your money back. Company rules state that if you cancel your reservation within 14 days of departure, you won’t get your money back.
Here are the reasons travel insurance is important. If you have travel insurance with trip cancellation benefits, you can get a refund for pre-paid non-refundable travel expenses if you need to cancel for insurance reasons. This may include serious illness or injury to the insured, travel companion or family member, death of the insured traveler, travel companion or family member, natural disasters or other events that make the destination uninhabitable.
Someone gets sick or injured.
This can be the most common reason for disrupting your vacation. If you or your traveling companion gets sick right before your scheduled trip and has to cancel, you could lose the full cost of your trip. Or, if you have an emergency during your trip and need to return home early, in many cases a refund may not be possible. That’s where travel insurance comes in handy.
Travel insurance is mandatory. Emergencies abroad can be really expensive.
Consider this scenario. While traveling in Argentina, a truck gets a rental car, resulting in a broken leg and other serious injuries. When you arrive at the hospital, summon the power to take out your health insurance card. The staff only shook their heads. The cost of treatment must be paid up front. And medical expenses quickly reach tens of thousands of dollars. If you need medical transportation, the cost can run as high as $200,000 or more, depending on the country you are in and your proximity to the nearest hospital.
“Many foreign medical facilities and health care providers require prepaid cash payments and do not accept U.S. insurance plans,” the U.S. State Department said. Health insurance does not cover outside the United States.
If a hurricane or winter storm closes the airport for several days to prevent you from getting to the resort you’re going to, you could lose airfare, round-trip costs and even the expenses you paid to the resort. Signing up for travel insurance when you book your trip can help you get reimbursed for these expenses.
When don’t I need travel insurance?
Travel insurance is generally not required unless you earn a large non-refundable travel deposit or your destination is covered by health insurance.
For example, travel insurance may not be required if you are traveling cheaply within the country. If you go on an extended weekend vacation and stay with friends, planning to see shows and go shopping, you won’t incur many prepaid and non-refundable expenses. And if you get sick or hurt while traveling, you can cover your medical expenses with U.S. health insurance. In this case, travel insurance may not be required.
Also, if your credit card benefits include travel insurance, you may not need travel insurance. Before planning your trip, it is wise to contact your credit card company to confirm your travel insurance.
Also, some luggage insurance is secondary insurance, so you must take out airline or homeowner’s insurance first. If you have supplemental luggage insurance, you can opt out of luggage insurance, but you can take advantage of direct flights without taking a lot of expensive items with you.