Travel Insurance Worth It
Travel insurance gets a bad rap, with many travelers viewing it as an upsell that’s so complicated and full of fine print that it’s virtually worthless. But in these unpredictable times, the insurance industry has responded to demand with new policies and added benefits, making travel insurance plans more attractive than ever.
But is it really worth it? This isn’t a simple question, and it all depends on the kind of trip you’re planning. For instance, sunbathing on a beach in Thailand or hiking the Inca Trail to Machu Picchu are likely once-in-a-lifetime experiences that aren’t easily or cheaply rescheduled. They’re also big investments that could be decimated by the smallest setback.
If you’re spending thousands of dollars on a trip, and especially if you’ve committed to nonrefundable travel expenses like airfare, hotels, meals and tours, then a good policy might be well worth the cost. Most standard plans provide reimbursements for canceled and interrupted trips, as well as lost or delayed luggage. Many even cover medical expenses and evacuations, though not all coverage is equal.
Is Travel Insurance Worth It?
One of the biggest factors to consider is whether your health or credit card provider offers you secondary coverage for travel-related incidents. If it does, a travel insurance policy may not be necessary for most trips. Another factor is pre-existing conditions, which most insurers will not cover (unless they occurred during a “look-back period” that typically lasts six months).
Other common exclusions are things like the COVID-19 pandemic and other known global events, which won’t be covered by most insurance policies. Predicted natural disasters and weather events are also not usually covered, but some companies offer supplemental travel insurance that covers those expenses.
For most people, the answer to the question of whether travel insurance is worth it is a personal one. Some people can’t afford to have their vacations ruined, or they don’t want to risk putting such a large amount of money on the line. Others have excellent credit and a robust savings account, and they might be able to rebook and recoup their costs if something goes wrong with their travels.
If you’re considering a policy, check the fine print carefully to make sure that it meets your specific trip needs. Also, look for a company with a solid reputation and good financial ratings, which speaks to their stability and likelihood of being around in the long term.
If you’re unsure about whether travel insurance is right for you, reach out to an expert. Many companies can help you determine your exact risks, recommend a plan and provide a quote for it. From there, you can decide if the peace of mind is worth the premium.