Travel insurance policies offer a plethora of benefits for those who are traveling. From medical benefits for unexpected injuries or illness or coverage for lost baggage or a canceled flight, travel insurance can give you peace of mind and protect you financially during your trip.
When planning any trip, especially abroad, it is highly recommended to consider some form of a travel insurance policy that will cover you if you find yourself in a medical emergency or travel blunder. However, is travel medical insurance for everyone? While having a travel insurance plan can never hurt, there may be a few instances where you may not need travel insurance.
Reasons You May Not Need Travel Insurance
Even though travel insurance is an excellent choice for the average traveler, there are some reasons to consider that may help you make a decision on whether or not a travel insurance policy is right for you.
You Have a Comprehensive Global Health Insurance Policy
If you have a global health insurance or a domestic health insurance plan that offers international protection, you may not need travel medical insurance if it covers both trip and travel expenses worldwide. To check if your current health insurance offers this type of coverage, contact your health insurance company.
However, one thing to keep in mind is that although some domestic health care plans do offer international coverage, some policies may only cover health-related expenses and may not offer benefits such as emergency medical evacuation or repatriation of remains. Additionally, the worldwide coverage offered may be limited in terms of policy maximum or other benefits. In this case, you may find it beneficial to still purchase a secondary travel medical insurance plan for your specific travel dates to ensure that you have proper medical or trip expenses coverage.
Your Plane Tickets Are Fully Refundable
When booking your flight for your trip, check the airline’s policy and the type of tickets offered. Your plane ticket may be fully refundable for certain interruptions or cancellations, or you may have the opportunity to purchase a more expensive ticket that offers a full refund. Typically, most airlines don’t offer a full monetary refund for cancellations or missed connecting flights, but allow you to reuse the funds to rebook another flight within a certain time period.
With trip insurance, you can receive a monetary benefit for nonrefundable trip-related costs rather than just an airline credit. Common trip insurance benefits include missed connections, trip interruption, and baggage loss. If you are worried about any nonrefundable trip-related expenses, then trip insurance is a great option to give you peace of mind and reduce the risk of not protecting your trip costs.
Your Credit Card Offers Adequate Travel Insurance Benefits
If you have a credit card that offers travel insurance benefits that satisfy your travel needs, then you may not need to purchase a travel insurance plan. Some credit cards offer trip insurance related to missed connections, lost baggage, and more. Additionally, some credit cards may also offer limited medical benefits while traveling for trips booked using that credit card.
While credit cards have travel benefits, they are usually very limited in nature and may not provide adequate coverage for a trip-related expense or medical emergency. In comparison to a third-party travel insurance plan, credit cards may also have lower claim limits, resulting in a smaller reimbursement in the event of a major unexpected event happening.
Ultimately, some credit cards may have a good protective layer of travel insurance, but before booking, double-check your credit card’s benefits to see what type of coverage is offered for your travels before booking, and if you are qualified for its coverage. If you are satisfied with the coverage your credit card offers, be sure to check the benefit maximums and exclusions to fully understand what exactly you can expect to be covered by your credit card company.
You Don't Need Financial Assistance
Lastly, if you are in a financial position where you can safely take the risk of losing travel-related expenses or paying out-of-pocket for your medical care, then you may not need a travel insurance plan. However, depending on where you are traveling to, it is important to fully understand just how much financial burden you may have to take on without an insurance policy.
While nonrefundable trip-related expenses are more straightforward as you understand the exact cost you may lose out on based on the real trip expenses, medical bills bring much more uncertainty. It is impossible to know whether or not you may be injured or become ill on a trip, and moreover, the severity of that injury or illness. Depending on the medical care you need in the event of an unexpected incident, your medical bills could be well over tens of thousands of dollars in the United States.
If you are in the financial position to pay for a quality travel insurance policy, you’ll do yourself a favor by protecting yourself against the unknown cost of medical expenses, even if you feel that you can safely take on the financial risk without coverage.
How to Decide If Travel Insurance Is Necessary For Your Trip
Even if you have one or more of the reasons above for not necessarily needing travel insurance, it is still important to weigh your options and understand the value of having a trip or travel insurance plan over traveling unprotected.
At the end of the day, a travel insurance plan will likely cost you a fraction of what medical bills will cost you if you seek medical care abroad uninsured. From most policyholder's experiences, even if you don’t end up filing claims on your travel insurance policy, the value of knowing that you have protection can give you the ultimate peace of mind during your travels.
The extreme financial risk of travel-related expenses as opposed to a comparatively small initial premium payment makes travel insurance a favorable choice for most travelers. To weigh your risks versus your costs, you can calculate your travel insurance quote here.
Find the Best Travel Insurance Coverage For Your Trip
While looking for the best travel insurance for your trip, exploring and comparing third-party travel insurance plans to the coverage you may already have gives you a better perspective on what other kinds of insurance options are out there. If you need help deciding what kind of coverage is best for your trip, don’t hesitate to contact our Customer Success Team who can help guide you.
Frequently Asked Questions (FAQs)
What are the factors that play a role in the cost of a travel insurance plan?
The price of trip insurance can vary based on factors like your trip cost, length, age, destination, and any optional add-ons. While adding travel insurance costs about 4% to 10% of your initial trip cost, it can be a small amount to your travel budget that can help protect you from major losses if your plans change unexpectedly.
What are the benefits of a third-party travel insurance plan?
Travel insurance can provide coverage before, during, and after your trip. A strong travel insurance plan includes the following benefits:
- Trip Cancellation
- Trip Interruption
- Trip Delay
- Missed Flight Connections
- Emergency Medical Evacuation
- Accident and Sickness
- And many more
Can I buy trip insurance at the last minute if I accidentally forgot to buy it in advance?
While you might find last-minute travel insurance, it is not ideal or recommended because of the potential lack of coverage. The options may also be limited or even more expensive. It is best to purchase travel insurance days before you leave to ensure better and stronger coverage.
What is considered a prepaid, nonrefundable trip expense?
A prepaid, nonrefundable trip expense is anything you paid for in advance for your trip that you cannot get a refund for if you have to cancel or interrupt your trip. This can include the following:
- Flight costs
- Prearranged transportation
- Hotel or stay accommodations
- Event tickets
- Tours
- Cruise costs
Do travel insurance plans have an age limit?
Typically, some plans cap at age 99, but the higher it goes in age, the more premiums may increase. Imagine you are an 80-year-old trying to get a trip insurance plan. You might face reduced medical benefits and trip duration. If you are a senior over 65, you should look into plans that are more specialized for your needs and purchase trip insurance as soon as possible to complete the pre-existing medical condition waiver.
If I am on Medicare, can it cover me on international trips if I get sick or injured?
Medicare usually provides little to no coverage when it comes to trips abroad, forcing you to pay out-of-pocket for medical expenses in case an unforeseen event were to happen while traveling. However, a travel insurance plan with strong medical coverage can be a great backup for individuals on Medicare. Not only can you be protected medically, but you can also protect the investment you made for your trip.
What if I am going on a cruise and my cruise line offers insurance, should I get that?
While cruise line insurance may seem convenient, it is important to do your research before opting for the recommended insurance that cruise lines offer at checkout. Third-party travel insurance can often provide more comprehensive benefits and coverage compared to what the cruise line offers. For example, third-party policies often include essential benefits like medical coverage, emergency medical evacuation, and cash reimbursement, which may be heavily limited or excluded in cruise line protection plans.
If I don’t want to insure everything, am I allowed to insure just part of my trip?
Yes, you can insure any expenses you wish to protect on your policy. All you need to do is enter specifically the amount you want coverage for. For example, if your hotel costs $900 and your flight costs $200, and your primary concern is the cost of your hotel, you can just enter $900 in the cost that the quote tool will ask for. From there, the insurance options you will get will be specialized to a $900 coverage protection.
However, there are certain insurance providers and plans that require you to disclose the full cost of your trip, so it’s good to take a look at your policy details or call your insurance company to understand what their requirements are.
