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Sep 12, 2019 • 5 min read
Picture this: You’re getting ready to embark on a dream vacation you’ve been planning for months, if not years. You scrimped and saved, putting down a large down payment – or even paying in full in advance. Suddenly, you get sick or injured, perhaps right before you leave or once you reach your destination. Or maybe a hurricane or volcano unexpectedly appears at the worst possible moment.
Does that mental image make you break out in a cold sweat? Does even the thought of it create discomfort as you finalize your plans, or haunt you while attempting to enjoy your trip?
If so, travel insurance may be essential for you. It can be an invaluable tool for peace of mind—whether you’ve invested a lot of money in a trip, have a pre-existing medical condition, or are making multiple stops where your luggage might get lost. However, there are times when travel insurance simply isn’t worth the hassle and expense. Conducting a little research may reveal that you’re already covered in ways you didn’t realize, or that you can find alternatives that serve the same purpose as a pricy policy.
When You Really Do Need Travel Insurance
When the Unknown Stresses You Out: If you’re concerned about things going wrong during your travels, relaxation may be unattainable. If this resonates with you, consider getting a policy for peace of mind. It will be worth every penny to know you have a safety net in case of illness, injury, bad weather, unexpected unrest, or luggage issues.
When You’re Traveling Internationally: Crossing a border can turn any medical issue into a significant concern. Even if you’re in perfect health, unexpected illnesses and injuries can strike anyone. Have you considered the cost of being air-lifted to a hospital from a remote location?
When You’ve Paid a Lot Upfront: Logically, the more money you invest in your travel plans, the more essential it is to protect that investment. Full-service vacations, including cruises, often require sizable upfront deposits and can be significantly disrupted by unforeseen circumstances.
When You’ve Got Expensive Gear: Your backpack or smartphone may be expensive enough, but what about that fancy DSLR camera you brought along? Be sure to read the fine print of any travel insurance policy to confirm there are no exclusions for high-value items.
When You Travel Frequently: Many travel insurance providers offer various policies for multi-destination trips, including backpacking adventures and extended travels. Don’t hesitate to shop around for the best deals.
When You Don’t Need Travel Insurance
When You Already Have Coverage: This might seem obvious, but you may have travel insurance without realizing it. Check the details of your travel rewards credit card; you might already be covered. Just make sure to review what is and isn’t included in your coverage.
When You Can Afford to Take the Loss: Travel insurance is typically designed to cover significant, non-refundable expenses that would leave a dent in your finances if the unexpected occurs. For a short or affordable domestic trip, the extra cost for travel insurance may not be justified.
When You Can Find Other Ways to Get Similar Benefits: With enough planning, you might discover alternatives that offer similar assurances without the additional expense. For example, many accommodations provide free cancellation policies up to the date of your stay, and airlines often have provisions if your flight is canceled or delayed.
When You’re Traveling Domestically: If you already have medical insurance or coverage within your own country, you likely won’t need an extra policy for domestic travel, especially if you’re not checking luggage and have the flexibility to cancel your accommodations on short notice.
What to Look For in Travel Insurance
Coverage for Your Destination: Ensure that your policy applies to your destination, particularly if visiting popular places just outside what is typically regarded as Europe, such as Morocco and Turkey.
Coverage for Your Activities: Going skiing, rock climbing, or diving? Make sure your insurance covers those activities. Carefully read the policy for any restrictions, such as exiting designated trails. It’s best to plan ahead to ensure coverage for everything you might do.
How Much Coverage Do You Need? Although the amounts may seem staggering, remember that this is for worst-case scenarios. Imagine the potential bill for medically repatriating you from another country—ever thought about that? High levels of coverage are particularly valuable if you’re traveling to the USA, where healthcare costs are exorbitant.
Keep Your Documents Handy: Travel with your insurance documents and carry a copy in your email. Also, store your insurer’s contact number in your phone for easy access.
Alcohol and Insurance Don’t Mix: Some policies become void if you’re under the influence of alcohol or drugs, so exercise caution while traveling.
Declare Pre-existing Conditions: Since travel insurance often functions as health insurance, costs can rise significantly upon reaching retirement age. To ensure it works as intended, disclose all pre-existing conditions; otherwise, your policy could be invalid.
