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Blog Post

Travel Insurance

February 20, 2022

To Purchase Or Not Purchase?

Should I or should I not purchase travel insurance? That is the popular question these days. Whenever you purchase plane tickets, cruise tickets, or book a hotel, you are usually asked if you want to purchase travel insurance.
Due to the purchase of travel insurance being an additional cost, many travelers usually opt out of it. It is often thought of as an unnecessary add-on like extended warranties and generally considered not worth it.

So, why should I purchase it?


Contrary to the belief of many, travel insurance covers more than trip cancellation. There are so many more benefits to purchasing it. Travel insurance covers most things that could go wrong on your trip, such as medical emergencies, trip cancellation, trip interruption, lost passports, lost luggage, etc. It is imperative to weigh the pros and cons of travel insurance and consider how much you would be set back financially if something terrible happened. 

An example is, if you were to get sick while traveling abroad and your private health insurance doesn’t cover medical emergencies outside of your country. Or how about when a large portion of your trip is non-refundable, and you suddenly need to cancel due to a family member's illness? How much would you lose in these scenarios without insurance?



How much does it cost?


It is estimated that comprehensive travel insurance coverage will cost about 5-10% of your trip’s cost. You can get it from several sources: The airline, cruise line or other travel supplier directly, or a third-party travel insurance carrier. Third-party insurance companies will have several policy options varying in price and coverage. Be sure you understand the offered policies in their entirety and choose the policy that best fits your needs.


What does it cover?


Generally, travel insurance is designed to protect you, your personal belongings and your trip investment. Depending on the plan you purchase and when you purchase it, travel Insurance can cover any of the below situations. It is important to speak with insurance carriers directly about what exactly is covered and what’s not.




● Travel Cancellation/interruption - you are reimbursed for non-refundable travel costs if your trip is canceled or severely delayed due to weather, natural disaster, illness, carrier issues, etc. 

● Baggage and personal item coverage – if your luggage is lost, delayed, or stolen, the insurance will reimburse you for replacing your items. 

● Medical - covers doctor visits, ambulance rides, hospital stays, and prescription medication. It may also include the cost of evacuation to get you back home during a medical emergency. 

● Rental car issues – if you opted for the rental car coverage when you bought your travel insurance policy, you may be eligible for coverage for damage to the rental vehicle.

● Accidental death or dismemberment – If someone dies from an accident or loses a body part or function of, you may receive a payout of benefits depending on the policy you purchased.

● Cancel for Any Reason – If you need to cancel for a reason not covered, you will need to purchase a Cancel for Any Reason plan, which will reimburse you 70-80% of our trip cost. The great thing about Cancel for Any Reason insurance is just that; you can cancel for just about any reason.


What else do I need to know?


Be sure to thoroughly read the Terms and Conditions before purchasing, because you may find a long list of limitations and exclusions that could void the insurance policy. Many travelers found this out when they had to cancel their trips due to the COVID-19 pandemic. Although pandemics are generally excluded from most travel insurance policies, some policies are now offering some levels of pandemic coverage. 

Here’s the bottom line. Travel insurance can save you from significant financial losses in the case of the unexpected. If the pandemic has taught us anything, it is, things happen, things change, and nothing is certain. Be sure to check the fine print and choose your policy wisely. Lastly, have peace of mind and enjoy your vacation knowing you’re covered.


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