When planning a travel itinerary, most people consider the best parts. It’s fun to book a hotel with a gorgeous view or sign up for excursions that will take your breath away.
What we don’t plan for are the unforeseen issues that can interrupt our travels, from cancellations to medical emergencies.
Every aspect of travel is expensive, with costs rising in every detail. Yet it’s those unanticipated expenses that can add up if you need to cancel a trip or get injured or ill while traveling.
Should you consider travel insurance?
How much does travel insurance cost?
Like other forms of insurance, travel insurance is designed to protect your vacation investment in the unlikely event things go wrong. The cost varies by the type of plan you choose and the company providing it. Should you invest in travel insurance? It depends on the details of your trip.
What does travel insurance cover?
Travel insurance works like other insurance policies. It provides coverage against all travel-related expenses, including lost bags and medical emergencies. The coverage depends on your policy and who you buy it from. Travel insurance companies often have several policies, so it’s important to read the contract carefully.
Whether you need insurance for one trip or are looking for year-long coverage, there’s a plan available for you. Some of the major components include:
- Trip cancellation – Larger trips are often planned months in advance. You can’t anticipate events such as accidents or illnesses that take place close to your trip, causing you to cancel your plans at the last minute. Not all insurance plans offer trip cancellation, so it’s essential to read the policy closely. In most cases, you’ll have to sign up for trip cancellation options when booking.
- Medical emergencies – Depending on your location, medical costs can quickly escalate into the thousands. If you need transport home for treatment, tack on additional charges.
- Baggage delay or loss – Losing personal belongings at any time on the road can be frustrating. While most travel insurance plans won’t cover careless behavior, some will protect personal assets against loss or theft. Again, checking the full description of coverage will help you understand what is covered. When possible, specify big-ticket items such as cameras and computers for better protection.
What’s excluded from travel insurance policies?
While each company will have its own set of rules for exclusions, most travel insurances policies won’t cover the following:
- Pre-existing medical conditions – If you have a record of a condition before you leave on your trip, there’s a chance your travel insurance policy won’t cover any claims that center around that condition.
- Risky behavior – Planning on paragliding, bungee jumping or scuba diving? Check your travel policy first. Many policies won’t cover expenses it deems as coming from risky behavior. Other exclusions that may apply refer to visiting places where war or acts of terrorism are possible.
Some policies provide total flexibility to cancel your trip at any time. They are referred to as Cancel For Any Reason (CFAR) plans and are usually treated as an add-on. How much you’ll receive in compensation depends on timing and your policy.
When might travel insurance be unnecessary?
Travel insurance adds extra expense to a trip. Depending on the situation, it may not be worth the added cost.
Travel insurance is designed to benefit you in two circumstances: cancellations and medical emergencies.
When you book your travel arrangements with certain companies, you may be able to cancel them without penalty. If that’s the case, trip insurance may not be necessary.
If you have a US insurance policy and you’re traveling within the US, you probably have adequate coverage for severe injury or illness.
When could travel insurance be worth the cost?
Travel insurance is designed to protect your investment and your health.
Travel insurance might be a good idea if your travel fees are high and you can’t cancel without incurring a penalty.
If you are traveling to a place where emergencies are possible, such as hurricanes in the Caribbean, having extra protection will ensure you can cancel at the last minute.
Most people never anticipate getting sick or hurt while on vacation, yet as many as one in five travelers have an injury or sickness while on the road. Without a travel insurance policy in place, you might have to pay those expenses out of pocket.
Finalizing your travel insurance
Travel insurance is built for two main reasons. If you want protection for cancellations and medical emergencies, a travel insurance policy may be the perfect solution.
It’s often the right choice if you’re planning an expensive vacation with nonrefundable tickets. International travelers who need medical coverage should also buy a policy.
Then if you face an emergency, you’ll be grateful you’re covered.