As a travel agent, we are often asked, “Is travel insurance worth it?” Like so many things in life, the answer to this question depends on a lot of factors & is ultimately a personal choice that you as the traveler will have to decide.  However, there are some basic guiding principles that can help you determine if it’s right for you & the specific trips you’re taking.

As with most insurance, travel insurance is to help cover the unexpected.  No one expects to break their hip riding a bike around the Bahamas, but does it happen? Unfortunately, yes.  No one expects their otherwise healthy spouse to have a heart attack & die in the tulip fields of the Netherlands, but does it happen? Unfortunately, yes.  No one expects to have their luggage arrive four days late to their week-long vacation, but does it happen? Unfortunately, yes.  Life is unpredictable & sometimes just plain messy.  Consequently, a little bit of planning & research can go a long way to giving you peace of mind when you travel, so let’s talk about what you should be looking for.

First, as you explore travel insurance options, I would suggest that you look at the coverage you already have. You may be surprised what is already covered under the insurance & credit cards you already carry. For example, many car insurance companies will cover rental cars too. If that is the case, buying the extra insurance when you rent a car may be redundant. Additionally, a lot of major credit card companies have basic travel protection included if you use that card to pay for your trip. What are those details? Is it enough to cover the full cost of your trip? You may also be surprised what is considered “in” and “out” of network for your health insurance.  If you’re going to a neighboring state, it’s possible your medical needs would be covered. It is also not uncommon for any medical emergency to be covered by health insurance even if you are out of network, but still in the country. Point being, there are a lot of existing protections that may already cover what you need. Become informed on your existing policies so you do not waste money purchasing redundant coverage.

Second, consider how much money you are spending on your trip & how much of that is non-refundable. Would you feel comfortable losing that money if something came up that prevented you from going?  If the answer is no, then travel insurance is probably a good option.  This becomes especially relevant for international trips since they tend to be so much more expensive than domestic trips.  Additionally, consider if you broke your hip in the Bahamas, and you’ve already determined your normal insurance doesn’t cover anything out of the country, would you have enough money to pay for the care you’ll need and potentially the medivac helicopter home?  If the answer is no, then travel insurance is probably a good option. When you consider these types of things, ask yourself if you can afford NOT to buy travel insurance. Once again, if the answer is “no,” then travel insurance is probably a good idea.

Next, read the fine print in the travel insurance policy before committing to it. If you’ve done your research about what existing coverage you already have & you’ve determined you want the extra security of a travel insurance policy, make sure it actually covers what you’re hoping it covers.  Most travelers will buy a policy in conjunction with their airfare, hotel or cruise package. This is certainly not a bad option, but the plans tend to be pretty basic with several stipulations to qualify for reimbursement. Typically, these policies will cover delayed or cancelled flights, lost luggage & basic emergency medical. Is that enough? Only you can determine that. 

What you may not realize though is these built-in policies are not your only options. You can buy travel insurance on your own & quite often, even tailor it to exactly what you need & want.  Based on what you choose & the overall cost of your trip, those things will determine how much your travel insurance will cost.  You may not even have to look very far. It is not uncommon for employers to offer travel insurance through the same and/or partner companies of those that provide your existing insurance. My point is, you have options & can certainly receive the coverage you need if you do your research.

Finally, if you’re going to purchase travel insurance, do it well IN ADVANCE. If you purchase it in conjunction with a travel package, most often you will have until your final payment is made to add it, but after that final payment is made, you’re out of luck. If you’re buying it separate from your package, it is recommended that you purchase it within 10-15 days of booking your trip, or the prices may go up and/or the coverage will be limited. That being said, there are some options that allow for coverage to be purchased up until the day before you travel, but you will pay a pretty penny for it. Additionally, don’t think that you can buy it after a trip-cancelling event has already happened. They always ask for documentation with your claim, especially if it’s made soon after coverage is purchased, & if they feel you are trying to “work the system,” they will not pay out.  It’s really just best to do your research & purchase it well in advance of your actual trip.

No one likes to think about all the bad things that could happen, but as with so many things in life, if you plan for the worst, but expect the best, you’ll always be prepared & have peace of mind knowing you’re protected.  Ultimately, the only person who can decide if travel insurance is worth it, is you. Trust me when I say it’s worth doing your research so you can make informed decisions.