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Travel Insurance: Is the Price Worth the Coverage?

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Are you planning a trip or vacation? You may want to consider the benefits of travel insurance. Depending on the details of your vacation, insurance may be an easy way to increase peace of mind while away and help you enjoy your time away more.

What’s Travel Insurance? Is it Worth the Cost?

Travel insurance is a type of coverage that offers a security blanket for two elements of your trip: medical expenses and reservation costs. A situation where that could be helpful is if you need to cancel your trip reservations. In this case, insurance will cover any penalties or costs in particular circumstances.

Before you invest in this form of coverage, find out if your reservations are cancellable without penalty. Another piece of information you should know is the type of health and medical coverages you already have. The decision to buy insurance for your vacation depends on where you are traveling to. For example, many travelers do not leave the country without having some form of insurance for their trip.

girl sitting on the ground with her luggage and clothing out on the ground

Advantages of Buying Coverages For Your Travels 

Some advantages to purchasing this coverage include the following:

  • Travel insurance provides security and supplemental coverage in case something goes wrong on your trip.
  • Insurance is the difference between access to medical assistance in an unfamiliar place or being made to wait until you have cash on-hand for treatment.
  • This often covers swift return transport when you are traveling out of the country if you become ill or injured. Emergency transport services often demand money before services are rendered without travel insurance coverage.
  • Some travel insurance carriers will cover the costs of canceling a trip to specific situations, like a death, for instance.
  • Travel insurance may cover the expense and hassle of lost luggage.
  • Coverage is easy to find and even travel agencies offer various policies. However, make sure to shop around to find the best price and terms for your money.

If you are traveling overseas or abroad, travel insurance may provide the health coverage you need that your personal policy does not. Some healthcare policies do not cover international medical treatment or hospitalization.

Breaking Down the Advantages

Sure, the peace of mind when away from home is compelling, but there are other pros of travel insurance to consider when and if you are contemplating coverage. Talk to a qualified insurance professional when planning your trip to determine if you are a good candidate for coverage while you are away.

Some travel insurance policies may seem pricey so review and consider what you are actually paying for. Do not forget that the peace of mind may be worth every dollar, even if you don’t use the insurance during your trip! When you invest thousands of dollars into a well-planned vacation, why would you want to risk a problem? Buy travel insurance!

However, always remember to visit and compare insurers’ quotes to find savings. Some savvy travelers compare quotes and coverage to save on premium costs up to 75%, in many cases.

Travel Insurance Exclusions

There are some scenarios that are travel insurance exclusions and that travelers need to know before they go with or without insurance coverage. So, what is excluded from your travel insurance policy?

  • Travel insurance won’t cover claims related to pre-existing medical conditions. You must meet certain criteria to qualify for coverage including general health condition at the time of booking.
  • Travel insurance typically does not cover you when you are participating in activities that are deemed dangerous by the carrier. Check your policy to determine coverage for injuries or costs when using alcohol or drugs, as these are usually exempt.
  • Make sure that the policy you purchase covers international travel or certain countries and destinations may be excluded from coverage.
  • Acts of war or terrorism are also circumstances that are not generally covered by a travel insurance policy.

For flexibility to postpone or cancel your travel plans, look for a travel insurance policy that includes and covers cancellation for any reason, often called CFAR.  This is an add-on feature that provides you with about 75% of your money back in the event of a cancellation. The CFAR doesn’t limit users to specific cancellation reasons, but instead offers you full protection.

Know the Disadvantages

As with anything, there are some drawbacks that prospective buyers should consider. Some disadvantages to travel insurance coverage include the following:

  • Shopping around to find the best prices and coverage for your trip and destination. This requires time and planning.
  • Insurance contracts can be lengthy and full of legal jargon. This could cause confusion and be time-consuming. Do you fully understand your contract? It’s important to understand the coverage fully before committing to a contract with an insurance carrier. Do not be afraid to ask for clarification as needed! This is your contract, make sure you understand it.
  • Travel insurance can be pricey in some situations. This is depending on your distinct destination or the activities you have planned there. Dangerous excursions or regions could exempt you from coverage.
  • Your policy doesn’t cover situations where you have changed your mind and want to change or postpone your trip. Most insurance carriers do not honor cancellations for personal reasons.
  • You are not covered if war breaks out.
  • Damage by customs is not covered under a travel insurance policy.
  • Self-induced illnesses are not covered by a travel insurance policy. Speaking with your insurance carrier when purchasing coverage is the best way to identify what qualifies as a self-induced illness.
  • Some emergency bug-outs due to terrorist activity may be covered by your insurer, but many are not. Despite these exceptions, it is crucial to purchase travel insurance when leaving the country for international travel.
  • Some travel insurance requires that you are reimbursed for costs. Meaning that there will likely be some cash out-of-pocket that you must spend in the event of a travel-related crisis.

a woman holding a briefcase, passport and luggage

Breaking Down the Disadvantages

The biggest disadvantage of travel insurance is simply the cost of purchasing a policy. Sometimes, travel insurance can be expensive, but it really depends on the coverage, carrier, and the specifics of your trip. When it is needed, travel insurance can be a true lifesaver and could potentially result in significant savings at some point.

As mentioned, there are exclusions to your travel insurance coverage that will not be covered by the policy or carrier. Exclusions to what is covered are another disadvantage to the purchase of travel insurance. Consider if you have any pre-existing conditions that could be exempt from coverage if you experience a setback, relapse, or related issue that is due to your underlying medical condition. Some insurance carriers will cover these on a case-by-case basis if the insured has been symptom free from their underlying condition for a designated period.

Talk to your insurance carrier to learn more and determine the specific exclusions of your travel insurance policy.

Understanding the Necessity For Purchasing

Are there times when it is not really necessary to buy travel insurance? Yes! there are two prime reasons to purchase. The first is to protect what you spend when a trip is canceled and coverage for medical crises. The second is to cover lost bags, delays, and other travel-related incidents.

If you have booked a trip that can be canceled at no-cost or penalty to you, some forms of the coverages are not warranted, such as trip interruption coverage. However, if the coverage you are considering includes insurance for medical emergencies, it may still be a prudent purchase for your trip.

If you have US-based health coverage, and you are not leaving the country, this form of insurance might not be necessary. Review your own personal insurance information to determine if you have the right kind of coverage before leaving home on a domestic trip or vacation.

A young woman dressed in stylish clothing walks with a suitcase on the sidewalk in an urban city.

So, What’s the Verdict? Is it Worth it?

Consider the many perks and peace of mind provided by travel insurance if you are going on a vacation. Chances are that you have spent good money on your trip!  If it is nonrefundable, then you should know that purchasing insurance for your vacation is important.  Many savvy travelers would not think of leaving the country without travel coverage, which is a good sign that it is well worth the cost. Ensure your vacation goes smoothly with the added reassurance offered by vacation insurance coverage. Request a free insurance quote today!

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