Students studying abroad, international businesspeople, holiday makers, families vacationing to DisneyWorld, cruise-goers. What do these people have in common? They could all use travel insurance. There are as many reasons to buy travel insurance as there are to travel. So what are some of the top reasons to buy travel insurance? Here’s our top ten list.
1. Travel Plans Change
From time to time, we might need to cancel our travel plans. Basic trip insurance covers costs related to cancellations, interruptions, and delays that are beyond your control. If, for example, there’s inclement weather in your destination, you’ll be able to recover up to 100% of your trip costs.
However, if your trip insurance includes Cancel For Any Reason (CFAR) coverage, you have the freedom to cancel your plans for any reason and still recoup a wide range of prepaid, nonrefundable travel expenses like rental deposits and reimbursement for unused event tickets.
CFAR is one of the best coverage options for people traveling because it allows you to book your travel plans well in advance and still cancel later on if you get cold feet and no longer feel comfortable traveling. CFAR allows you to reduce the financial impact, up to 75% of your trip expenses, of cancelling your trip.
2. It’s Cost Effective
Travel insurance plans likely not as expensive as you might think. Although certain variables can impact the cost of your plan, you’ll find that a suitable travel medical insurance costs around $300 dollars and trip insurance generally costs around $200.
3. Your Domestic Healthcare Won’t Cover You Abroad
If you’re traveling outside of your home country, your domestic healthcare won’t cover you should you incur an injury or contract an illness and need medical care. This means that you’ll be paying out of pocket for any medical help you obtain while abroad. If you’re traveling to a country like the U.S., where healthcare costs are high, you could be faced with crushing medical debt. Travel medical insurance can ensure that you get the care you need and minimize your financial responsibility.
4. Your 24/7 Travel Advocate
Most travel insurance policies come with 24/7 emergency assistance. So whether you need help navigating urgently needed medical care, need help tracking lost luggage, or need translation services while abroad, you’ll always have an expert’s help.
5. Accidents Can Happen Anywhere
Unfortunately, no matter how much or how carefully you plan your travels, accidents can and do happen. This doesn’t mean that travelers should be scared or anxious about traveling, but it does mean you should be as prepared as possible. This is why buying travel insurance with benefits like rental car coverage, flight accident protections, and emergency medical evacuation is smart. If you’re planning on engaging in higher risk activities like mountaineering, scuba diving or snorkeling, it’s even more important that you find travel insurance with adventure sports coverage.
6. Lost Luggage Can Ruin Your Vacation
Frequent travelers know all too well that luggage mishaps happen. When you arrive at your destination countries, your bags might not be there waiting for you. They could be delayed, damaged or even lost. If you have trip insurance, you’ll be covered for expenses related to retrieving your luggage or buying necessary replacement items such as toiletries and clothing.
7. Missed Connections Are More Common Than You’d Think
We all know that things don’t always go as planned. This is especially true when it comes to pandemic travel. If your flight is delayed, interrupted, or cancelled, it might prevent you from catching a connecting flight. If you have trip insurance, the costs related to missed connections may be reimbursed. The benefits don’t just stop with missed flights. If you have cruise-specific travel insurance and you miss your port departure, any costs related to getting you to the next port of call so you can reunite with your cruise may be covered.
8. Passports Get Lost or Stolen
Passports are very valuable. When you travel abroad, you may be vulnerable to passport theft. This is especially true for U.S. and Japanese citizens, as American and Japan passports are among the most sought after by thieves. To guard against this, keep your passport close to your person so it’s more difficult for criminals to steal. There’s also always a chance that you might lose your passport. If you have trip insurance, costs related to obtaining a replacement passport are covered.
9. Flight Delays or Cancellations Cost Travelers Money
A flight delay or cancellation can derail your whole trip itinerary. Even when the flight delay or cancellation is beyond your control, such as when an airline cancels the flight, you’re still responsible for any prepaid accommodation or event expenses. Trip insurance can help with these kinds of setbacks.
Imagine while you are at the airport waiting for your flight to Chicago, when the flight attendant announces that your flight will have to be cancelled due to severe weather conditions. Trip insurance is a key player in this situation, offering up to 100% reimbursement for your prepaid, nonrefundable trip costs for a covered reason like severe weather that would otherwise be lost.
10. Travel Insurance May Be Mandatory
Consequently, some countries may require travel insurance. For example, the Schengen Area comprises many countries in Europe. If you are traveling to one of these countries and you are not a U.S. citizen or a traveler from visa-exempt countries, your visa requires you to get travel medical insurance.
If you plan on traveling soon, it may be worthwhile to consider travel insurance to protect the financial aspect of your trip. Going on a trip can be pricey sometimes, and the last thing you need is an event where you can’t go on your trip anymore. Even though the financial investment may matter, securing travel insurance can also ease your mind and give you confidence knowing that you have all of these trip benefits accessible to you.
Need help reviewing plans or have general questions about travel insurance? Our team of licensed travel insurance experts can help you get the answers.
Frequently Asked Questions (FAQs)
What is considered a “covered reason” for trip cancellation coverage?
Reasons for cancellations that may be covered by your trip insurance can include:
- Family or travel companion illness or death
- Damage to your house due to a natural disaster, such as a flood, fire or earthquake
- Complete cessation of travel services due to strike
- Terror strike in your destination country
- You or your companion are affected by a job termination or a layoff
- Inclement weather
- You or your travel companion becomes pregnant and is not allowed to travel during pregnancy
- You or your travel companion is summoned to appear in court, including jury duty
However, it is recommended to review your specific policy documents for any limits and exclusions for trip cancellation.
Why isn’t my credit card coverage enough for when I want to travel?
While credit card’s travel protection seems sufficient, dedicated travel insurance delivers broader coverage for around 4-10% of your trip cost. This modest investment provides protection that credit cards typically can’t match, including:
- Trip cancellation coverage for a much wider range of scenarios beyond the standard reasons (including documented traffic accidents, strikes, pregnancy complications, or even divorce)
- Higher medical coverage limits (up to $500,000 or more) for international emergencies
- Coverage for adventure activities and sports equipment
- Reimbursement for frequent flyer points if you need to cancel
- Rental car protection that would cost more if purchased directly
- 24/7 travel assistance services for emergencies, translations, lost luggage help, and medical referrals
While purchasing separate travel insurance may seem like an additional step and expense, this small investment can truly be a lifesaver when unexpected travel disruptions occur.
How late is too late to buy travel insurance?
Typically, the latest you can buy travel insurance is 24 hours before your departure date. However, you may miss out on time-specific, optional add-ons such as IFAR and pre-existing condition waivers, which typically have a window of 14-21 days to purchase after your initial trip payment. If you decide to purchase travel insurance just before your departure date, the coverage options will likely be limited.
Are pre-existing conditions ever covered by travel insurance?
Many trip insurance policies provide a pre-existing conditions waiver, which typically needs to be added within 14-21 days of your initial trip deposit. To get a pre-existing conditions waiver, you must do the following:
- Purchase the policy soon after making your first trip payment
- Insure the full cost of the trip including your prepaid, nonrefundable expenses
- Be medically stable at the time of purchase
With the waiver in place, your policy may cover your trip cancellations, interruptions, or delays related to your pre-existing medical condition, which would otherwise be excluded from your policy without the waiver.
If my flight is delayed overnight, will travel insurance reimburse for an extra hotel stay and meals, or just a refund of the flight cost?
Most comprehensive travel insurance plans can reimburse you for expenses during significant flight delays, including:
- Hotel accommodations for overnight delays
- Meal expenses during extended waits
- Essential toiletries and clothing if needed
- Transportation costs to and from the airport/hotel
It is important to remember that many trip insurance policies define a “significant delay” differently. Some policies may say 5 hours, while others might say 6 hours or even more than that. Always check your specific plan’s details regarding delay duration requirements and reimbursements.
If I get sick or injured abroad, will travel insurance cover hospital bills or evacuation back home?
If you happen to get sick or injured abroad, travel insurance can cover your hospital bills, including your lab work, hospital stays, and prescribed medications. Additionally, if you need to be medically evacuated and want to go back home, travel insurance may provide emergency medical evacuation back to your home country if medically necessary.
Will I be covered if my travel companion cancels, but I still decide to go?
If your travel companion cancels for a covered reason and you still decide to go, many policies may reimburse you “single supplement” costs, or the extra charges when double-occupancy rate becomes single occupancy. Oftentimes if you book a double-occupancy hotel room for example, the per-person rate is often lower. However, if your travel companion cancels, you might face an increased hotel charge for a now single-occupancy room. However, most travel insurance policies can cover the difference in cost.
Can I buy travel insurance after a natural disaster is already forecasted for my destination?
The majority of the time, once a natural disaster has been forecasted for your destination, a travel insurance plan purchased at that time will not cover cancellations related to that natural disaster. Travel insurance is often designed to cover “unforeseen events,” so since the natural disaster was already forecasted, it would not be a covered reason. If you are planning a trip, it is best to get travel insurance as soon as possible after your initial trip deposit, that way you can be covered in case a natural disaster occurs.
