Why is travel insurance worth it, and do you really need it? That depends how you look at things: Travel can be expensive, and the rigors of the road can sometimes be a burden if, for example, your trip gets cancelled or derailed due to outside considerations (say weather or missed connections) or if you get sick on your trip.In both of these cases, travel insurance can help – but navigating its nuances and picking the right plan isn’t always a simple task. Luckily, we’re here to the rescue with everything you need to know to decide if travel insurance is worth it before you buy – and whether you really need it before you take that once in a lifetime trip:
Is travel insurance worth it? That’s the first question you need to ask yourself, and the answer is personal. It depends on your own level of risk.Ask yourself: How much money will you potentially lose if you have to cancel or amend your trip? What will happen if you get sick on that dream vacation?If you find that unforeseen circumstances may cost you a lot of money, time or aggravation, then travel insurance may be right for you.
Travel insurance primarily comes in two flavors: Trip cancellation and medical. Trip cancellation is to protect your investment of money in actual travel – and the cost of mishaps while traveling.Medical travel insurance is to supplement or cover things not covered by your regular medical insurance while traveling, say if you catch something unexpected overseas. Consider: Which, if any, makes sense based on your travel plans and the conditions that you’ll be traveling under.
Trip insurance starts with covering cancellations. Some travel insurance policies allow you to cancel for any reason, in which case you may be eligible to be refunded 75 to 80 percent of what you paid out to travel in the first place. Read the fine print to get a sense of what benefits are offered.
But many travel policies only cover “named perils.” That means, your trip cancellation will only be covered if your travels have been cancelled due to these very specific reasons, and every policy and every insurer have different perils listed. Again, research carefully which may be the best fit for you based on your needs.
Read the policies. Really. If something isn’t covered, then it’s not covered, and you’re out your money. Do your homework, and read what is covered, what isn’t covered, and ask family and friends what insurance they like to get recommendations. Likewise, scan online for reviews to see what people are saying – and be wary of ratings that come from less than several dozen people in total, so you know they’re likely coming from legitimate sources.
Decide if you need primary or secondary medical coverage. Primary replaces your regular insurance, with your regular insurance covering what the travel insurance doesn’t cover. Secondary does the opposite.Primary typically involves less paperwork, while secondary takes a while to get your balances paid out.
Some medical insurance policies cover evacuations, others cover pre-existing conditions, and some do both or neither. Do your research. Is travel insurance worth it, and do you really need it: Again – it’s an important question to ask here. You probably don’t need evacuation insurance if you’re headed to safe and stable territories, but if you’re on a trip somewhere exotic or prone to unrest, yeah, you may well need it. Determine what benefits you may need (keeping in mind possible worst-case scenarios, but also being reasonable about the likelihood of them actually happening) then research to make sure everything you need is covered.
A ‘pre-existing’ condition is anything that you’ve been treated for within the last three months. And a pre-existing condition may disqualify you from signing up for certain travel insurance policies or reaping their benefits. If you have a pre-existing condition, your best bet is to get a waiver, if you can; if not, scrutinize what you’ve been treated for by your regular doctor.
Determine whether you need insurance for just one trip or an annual policy. If you travel frequently, an annual policy might be better for your wallet than per-trip coverage from a cost standpoint.
Take advantage of discounts by purchasing travel insurance as soon as you book your trip, and be sure to create paper and digital copies of policies to take with you while traveling. Make sure you have what you need in terms of coverage, and make sure you have the necessary information on-hand if you need it in case of an emergency.
So is travel insurance worth it, and do you really need it? Again, it all depends on where you’re heading, when, and under what circumstances. But with a little help from the above hints, tips, and insights, you should be well along your way to making a smart decision.
Jeanette Hurt is the award-winning writer and author of eight culinary and
drink books, including The Cheeses of California: A Culinary Travel Guide, which received the 2010 Mark Twain Award for Best Travel Book, and The Complete Idiot’s Guide to Wine and Food Pairing. She's written for TheKitchn.com, Four Seasons Magazine, Wine Enthusiast, Entrepreneur.com, and dozens more publications.
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