The Case For Travel Insurance

I don’t get extended warranties. I don’t get the rental car insurance from the rental company, and I do not insure my beloved Luna Belle dog. But, Boo Boo, I absolutely have travel insurance. 

So many things companies try to sell us are not necessarily worth it, whether it is an extended warranty on something, or add-ons and upgrades to a product you are already committed to buying. In many cases, companies make the bulk of their money from the upgrades they can sell us in addition to the purchase price (I’m looking at you, car industry!!!). It is up to us to be informed and educated consumers, so that we can make our own decisions about what things are valuable to us.

“Let the buyer beware” isn’t just an old Greek platitude: It is really important for us, particularly when we are dropping big money on a vacation! There are certainly many things that can go wrong before, during or even after our vacation that will tarnish the experience.

So…should we buy travel insurance?

I am not a travel or insurance professional, and always encourage you to do your own research and make your own decisions based on your discussions with professionals. This is just my blog, my experiences and my opinions—I don’t claim to be an expert on this stuff!

The Very Varying Costs

Have you shopped around for car insurance or life insurance lately? If you haven’t, I will tell you the experts recommend that you do some comparison shopping for car and home insurance on a regular basis. That is because the amount you are quoted can be wildly different among companies and over time. We changed our car insurance two years ago, dropping our premiums in half—yes half—and all I could do was kick myself for not shopping around much, much sooner. Life insurance can be similar, as well, since many of the risk factors they take into consideration can change as you age—usually working against you, I might add. 

Travel insurance is the same thing. It’s also just as confusing.

Depending on what you are trying to insure, who you are trying to insure, and the length of time you are looking for insurance, the costs can vary wildly, making it all the more important for you to do your homework on this topic. 

Many travel providers—travel agents, cruise companies, etc—will offer you different policies with different premiums and coverages. It’s up to you to sift through all of the alternatives and make the best decision for your situation. While the easiest and most convenient way to buy travel insurance is definitely through your travel provider, that doesn’t necessarily make it the best…or the cheapest…option out there.

Like everything related to your life as a traveler, you need to spend some time and effort to make sure you are getting exactly what you want, and need. 

The Different Things You Can Insure

Through individual or comprehensive plans, you can cover most aspects of travel. The most important thing with any insurance policy is that you fully and completely read your travel insurance policy. It might be lengthy, wordy and hard to understand, but it is imperative that you understand what you are paying for. 

Some of the most common things that can go wrong, and the most common things we think of as travelers, will be covered by a good travel insurance policy. Examples include:

• Lost or delayed luggage
• Delayed or canceled flights
• Missing excursions or events due to outside forces
• Missing a trip due to death or illness of loved one
• Medical expenses and emergencies outside of your personal insurance
• Evacuations from foreign lands for medical reasons

What Isn’t Covered By Anybody

There are absolutely some things that are not covered by any travel insurance policy I’ve looked at, and they are, relatively, logical:

• Foreseeable occurrences, like inadequate documentation (bring that passport, Boo Boo)
• Natural disasters
• Traveling against governmental suggestions 
• Dangerous activities you voluntarily undertake
• Inclement weather

What’s Your “Break Even” Point?

I have absolutely no idea what your risk tolerance might be. I don’t know what would propel you to purchase travel insurance for your upcoming trip. But I’ve got a pretty good idea…

• Something happened to somebody somewhere. Many people are convinced to purchase insurance as a result of a very positive—or very negative—situation someone in their life encountered on vacation. Whether your cousin was fully reimbursed for an airlift flight from a cruise ship, or your neighbor lost thousands on a last-minute cancellation of a Europe trip due to a family death, chances are someone’s experience is what is making you think about insurance. 
• You’re worried about losing a fortune on a trip. Maybe you have an ailing parent, or you are traveling the Caribbean during hurricane season, but something has convinced you that this trip might not actually happen. You scheduled everything to the best of your ability, but if something happens between now and your first day of vacation, you might need that extra mental insurance that comes from having a policy that will cover you.
• You’ve lost travel money before. It’s like being a reformed smoker—once you see the light, you can’t ever go back to the way you were before. At some point, your lost luggage or missed flight connection resulted in your inconvenience and, possibly, economic loss. You’ve learned your lesson, in other words. 

Consider What Could Go Wrong

I fully expect my entire life to work seamlessly on auto-pilot, with nothing untoward happening and nothing surprising me with inconvenience or financial loss. That’s what I expect…

The reality is that many things can—and do—go wrong on a daily basis. If you refer back to my European adventure last summer, you can see what happens when a strike by baggage handlers in London can upend the most carefully planned trip in history. 

Sometimes, Boo Boo, shit just happens. Ask Forest Gump.

It surprised me to learn that the most common use of travel insurance policies was  medical emergencies. Frankly, I assumed that most claims stem from lost or delayed flights and baggage issues.  We did, however, have significant concerns about Pop’s health during the last several cruises, so I freely admit that it was on my mind. 

Pop had significant medical issues, which is why that was my main concern, and apparently that is what happens most frequently. Smaller claims for luggage, hotels and missed flights are probably quite common, but certainly don’t have the same financial impact that a foreign hospitalization or unexpected medical flight home would have.

That’s why you insure all of it, my friend. Because we make plans…and God laughs.

How Deep Are Your Travel Pockets?

I’ve taken many trips without travel insurance, and my losses have been extremely small and manageable for me; I’ve lost “first night deposit” on hotels more than once, and had to make do without my luggage overnight more than once; I’ve slept in an airport after a canceled flight because I couldn’t afford a hotel, and worn that underwear two days in a row while touring a theme park until my luggage caught up to me.

But not anymore. I’m 58 (and an important half) now, and Sweet Husband is the same age. We are far more likely to encounter inconvenient situations—medical or otherwise—and far less tolerant of changes in our schedule. 

I’m just too old for this shit, Boo Boo.

And, let’s be honest, so are you.

Buying An Annual Policy

I’ve got a few cruises scheduled this year, and insurance for the cruise alone is running from $50 to $130 per person. Not bad for a few thousand dollars worth of cruise. However, that is cruise only—not my travel, airfare or baggage that can be lost. Last summer, our European cruise that included airfare would have cost me approximately $280 per person—again pretty reasonable for what we were spending.

But I’ve got three cruises this year. Not including everything else 2024 has in store for us. Maybe that’s you, too. I really hope it is. 

When you add up the costs of individually insuring each leg of each trip, you might find it prohibitively expensive. It would also be cumbersome sifting through different insurance policies for different trips.

You can, you know, buy an annual travel policy for about $500 per person.

What Do You Have, Pat?

I bought an annual policy.  Last year was the first year I purchased the policy…and I didn’t need it. Despite all the problems in Europe, British Airlines took care of everything to my satisfaction. 

I strongly suggest, if you have more than one trip planned in the next 365 days, that you look into annual travel insurance. While it doesn’t seem like I’ve needed it, it certainly gives me considerable peace of mind with all of the various modes of travel I do. It’s a “one-stop shop” for all of my trips, and I don’t need to keep them informed of my schedule. 

Consider it for your future travel—so you can relax and enjoy your well-earned vacations!

THANK YOU FOR READING THIS FAR!!!

Thank you for reading all about travel insurance!

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