Travel insurance is one of the most frequently asked questions by readers. Spending money for insurance instead of vacation costs can be a difficult decision. Travel insurance is a good idea for those who are over 65 due to the chronic illnesses which can prevent travel or the risk of falling.
Travel Insurance for Families: Is it Worth It?
Travel insurance was not something I purchased when I started this website and I did not recommend it. In the past two years, I’ve changed my mind about travel insurance.
One of the passengers on a cruise in November last year became violently ill. He was transported to Nassau to receive treatment. United States health plans do not always cover expenses outside the country. Even if the medical insurance covers the illness it will not cover hotel costs for family members, or the transportation back to the United States.
On a cruise that took place in January, sadly, one of the passengers passed away. We like to believe we are invincible. It’s not something we want to think about, but it does happen. It can happen to young people. A dear lady that I know prepares to bury her son, who passed away suddenly two days earlier from a heartattack. The cost of transporting a loved-one back to the United States is not covered by your health, homeowners or automobile insurance. The cost to ship a loved one internationally is currently $3840, plus the price of a flight.
These are the worst-case scenarios, of course. A serious illness, injury, or death while on vacation can be devastating both financially and emotionally. Travel insurance is a must for international travel. I’ve been convinced to buy it a long time ago.
Do I need travel insurance for domestic travel?
Weather and other travel interruptions, such as canceled flights (or any other reason for a flight to be rescheduled), can have a serious impact on a vacation. Travel insurance can protect you from such interruptions. You can recover your losses if weather causes you to cancel your vacation, as hurricane Arthur caused during the 4th of July holiday in North Carolina when Outer Banks was forced to evacuate. Travel insurance will cover expenses that airlines won’t. This includes reimbursement for lost days.
Today, airlines are very good at losing baggage, sometimes permanently! Travel insurance reimburses you for personal and clothing items if you check luggage when flying, especially if there are connecting flights. We met a young woman on our Paris trip who was buying a new wardrobe along the Champs Elysees. Imagine bringing a new wardrobe back from Paris. There were limitations on what she could purchase, but it was still a lot!
Do you require travel insurance when traveling within the country? Only you can decide.
Consider the factors yourself:
- What is the risk I am willing to accept with my financial investment for this vacation? If our trip is cancelled, will I be willing to lose the money invested?
- Do the areas I visit tend to experience severe weather conditions during my travels (east and south coasts in hurricane season)
- Am I prone to running late?
- What is the age and general health status of your travel group?
- Is your car reliable if you are going on a roadtrip?
Understand what travel insurance does NOT cover
You can get travel insurance to cover you in the event of a sudden injury, illness or death that interferes with your plans. As the good folks at NBC News point out, travel insurance doesn’t cover all eventualities.
- Acts of war can cause a trip to be interrupted.
- Preexisting medical conditions
- Only on outbound flights, luggage is lost for less than 24 hour.
- Pets can die or get sick, whether they are at home or on vacation.
- Keys, money, tickets or credit cards are all considered valuables. All of these items are valuables and should be kept on you at all times. How could you prove a cash loss from an insurance perspective?
- Injury sustained during a sport adventure such as whitewater rafting or zip-lining. Travel with reputable companies to protect your safety.
- The fine print will tell you if pregnancy complications or childbirth is excluded.
- Mental breakdown or emotional illness.
- Travel interruption due to your spouse filing for divorce. This could easily be abused, just like #5. We don’t wish to go on the trip so we will file for divorce. After the funds have been reimbursed, we can withdraw. You get the idea.
- You are canceled by your tour operator. Travel insurance protects you when you have to cancel a trip. Booking travel with reputable companies that offer full refunds if they have to cancel is a good idea. If they fail, you are out of luck.
Alternatives to Travel Insurance
Even if I am cruising, I get travel insurance when I travel abroad. When traveling within the United States, I check to see if my reservations (airfare or hotel) will be refunded if they are cancelled. If my travel plans are interrupted, I check the benefits that my credit card provider offers (each card is different so make sure to look into the benefits before you travel). For longer trips, I also contact my health insurer to find out if they cover a certain area.
You have my answer — but I have not given an absolute. Sorry, but it’s not as simple as that. These guidelines should help!