Travel insurance is about 5 to 10 percent of your trip cost. Some are saying that it is worth the investment for its potential to help reimburse you. One can spend hundreds of thousands of dollars to cover travel-related expenses like accidents, emergencies, lost/delayed baggage, bad weather, delays, and trip cancellations. Others argue the chances of you using it is slim to none.
A common misunderstanding with what travel insurance cover relates to medical expenses. Medical emergency costs associated with an illness or injury during your flight or problems with the airline are covered with travel insurance. However, health insurance is for unexpected medical issues for all types of medical assistance in the destination country. The travel insurance with the airlines should be secondary to a regular health insurer. While traveling, especially during a pandemic or someone with underlying health problems, one should consider getting health insurance for the country you are visiting. Plans can be tailored to your budget and of course the terms are all different. Be sure to read the fine print! Health insurance is usually required for longer stays in another country but also highly recommended for short term vacations.
Travel insurance to cover airline related expenses and medical emergencies are dependent on passenger's existing plans with credit card companies or flight carriers. Know your rights as a passenger and as a card holder. So, when should you pay for the extra insurance? When you are traveling out of the country. It is generally recommended to opt out of trip insurance for short trips within the U.S. because it is less of an investment. You should also consider buying the extra insurance when your card does not offer it. Some credit cards actually offer it as a benefit and have the built-in trip insurance that can reimburse up to $10,000 per person. You should buy it if you are taking a cruise. Cruises tend to match all the points that the insurance is covering: the high risk, big payments, and international travel.
Knowing your rights as a passenger is important, not just considering insurance. If your flight is cancelled, you’re generally entitled to have the next available seat on the next available flight going to your destination. Therefore, the insurance is not necessary. It should not be used as a cancellation policy, because you wind up losing more money.
Travel Insurance is like any other insurance in the sense that it is offered for protection in case of emergencies. It is up to individuals to choose whether or not to take it.
Have you used travel insurance? What was your experience - worth it or not?