Travel Insurance – What’s Best & Why You Should Have It
At this point in your life, you’ve heard of Covid-19, or we at least assume you have. If you haven’t, then traveling probably isn’t for you. But if you have AND you are curious about traveling, then travel insurance is something you need to consider.
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What is travel insurance?
Essentially there are two forms of travel insurance, and we’ll get into both here in detail. To give you an overview, one is medical insurance you pay for while traveling. The other is what we’ll call “trip insurance” if your trip gets disrupted due to something serious or out of your control. This ranges from flight cancellations, lost luggage, missing a hotel or car reservation, or other possibilities. Often, these two go hand in hand, and when you purchase trip insurance, you get some form of medical insurance. Let’s dig into what these are, what they usually cover, and where you can buy them.
Trip Insurance
Trip insurance is probably more common as more people are likely to experience travel disruptions than medical ones. Most companies (though each company will differ) will offer services for most of the following basic issues that might arise as you embark on your adventure.
Cancellations, Delays, and Rebookings
Many tickets you purchase for travel may be non-refundable through the airline or booking site. This is where insurance comes in. Insurance companies, as they do in your everyday life, have a list of possible reasons that your canceling a trip might fall under. Should that happen, the idea is you’ll get all or some of your money back. This also includes interruptions (again, they usually need to fall under a covered category), where you might be entitled to a refund or help with rebooking. This isn’t just for flights but can include trains, cars, hotels, and more.
Each company is going to have different plans with different limits. For example, one might have a $1,000 trip delay coverage policy, while another might only cover $500. Which plan and coverage you choose is up to you.
Baggage & Luggage
Most travel insurance plans will also help you if there is a luggage disruption. If your bags are lost, damaged, delayed, or stolen, your insurance will help. This can be a handy feature given the current pandemic and general chaos when flying.
Lost or delayed bags can ruin a trip. Imagine you’re headed to a wedding, maybe you’re even in the wedding party, and wouldn’t you know it, your bags show up two days after the wedding. Well, trip insurance can help with that. A common component of most trip insurance programs is helping you deal with or find lost luggage or reimbursing for lost luggage. Remember, however, that each company will be different, so be sure to read the terms of your insurance.
Rental Car Protection
Driving a rental car can be nerve-wracking at the best of times. Everyone has heard horror stories of a rental car company nickel and dime someone (or usually far more than a nickel or dime) over a minor scratch that may or may not have (but definitely was) there when you rented the car. Maybe the person checking the car missed it; perhaps you did. Either way, they’re charging you for it, and the amount they want to charge is far more than the cost to fix it. This (and, of course, actual accidents and collisions) is where your trip insurance’s car rental protection comes in. They’ll help cover the costs for primary collision and damage. This is a real relief when you might be parked only to return and find a giant scratch on the car.
Conclusion
You may want to skip travel insurance, but at an affordable cost, it can help you save major headaches later on. You can help assure peace of mind and sanity by purchasing travel insurance, especially if dealing with a 3rd-party broker. These brokers are often less inclined to offer refunds or help reschedule than dealing directly with airlines or hotels.
Medical Travel Insurance
Usually lumped in with trip insurance, medical travel insurance is the one type of insurance you don’t want to need but will be happiest when you do. Medical insurance includes coverage for emergencies (not elective procedures) and, perhaps most importantly, depending on where you are, evacuation to another location, possibly one with better medical care.
So what is it?
What is medical travel insurance, and what does it include? Most medical travel insurance is going to cover at least these two items:
- Emergencies
- Evacuation
An emergency is just that, an emergency. You might be hiking in China or jumping off a boat in the south of France; you never know when something might come up. A trip to the doctor or emergency can easily run thousands of dollars. When you have coverage for these emergencies, it brings enormous peace of mind. knowing you’re covered is a huge piece of mind. These include surgeries, ambulances, prescription medicines, etc. Many insurances also cover pre-existing conditions, provided you purchase that coverage with enough time.
An evacuation is when the coverage you need might not be available locally. You may be on a small island in the British Virgin Islands or backpacking in the Andes. Your injury or illness might warrant more care than is locally available, and this is where evacuation comes in. Medical insurance will cover an evacuation to a suitable location (provided that you’re healthy enough to make the journey) to a place with better (and more extensive) care.
Conclusion
If you’re anything like us, especially as you get older, the possibility of something happening on vacation is lurking in the back of your mind. Medical insurance can guarantee that should the worst happen, you’re covered. For the cost, it’s a worthwhile item to have in your back pocket when traveling.
Different Options & Recommendations
There are some prominent companies in the world of Travel Insurance. Here are some we have used and recommend, some we have not but have strong reviews.
SafetyWing
SafetyWing (Nomad Insurance) is a cross between travel insurance and full-on medical coverage. Unlike travel insurance, with SafetyWing, you can get coverage for up to 1 year as long as you are under the age of 69. It is not, however, full medical coverage and only covers certain costs in your home country. We have used this insurance before, but note we have never needed to file a claim.
*Please note that we are a SafetyWing Affiliate. Should you use our link to purchase insurance, we may earn a small commission. It helps keep our site running!*
Allianz
Allianz is a common company to see offering travel insurance when you purchase your tickets. They help cover your basics, such as canceled or delayed flights, missing luggage, sickness, etc. Usually, all for the price of less than $100 (depending on the length of your trip). They also offer comprehensive worldwide health insurance.
InsureMyTrip
Unlike others on this list, Insure My Trip simply offers a comparison tool for insurance for traveling and moving abroad. you can search by evacuation, Schengen, comprehensive, and more. It’s been mentioned in the New York Times, Washington Post, and more. We have not used it personally, but it comes highly recommended.
Medjet
Medjet specializes in evacuation and does not offer plans but rather memberships that allow for different options. With Medjet, you can get covered for evacuation by air to the United States, and it includes services such as shipping of mortal remains and medical cash advances (depending on the plan).
This is not a comprehensive list of all the possible options you have for travel insurance. Shop around and find the plan and prices that work best for you. NomadicMatt offers more detailed looks into some of these companies.
Final Thoughts
For many of you, clicking no on the travel insurance has become a habit, but if you’ve just purchased an $800 flight to your dream location, is spending an extra $25 really breaking your bank? We liken it to purchasing a $1200 phone and skipping the $50 case to protect it. Travel insurance is affordable, and we absolutely recommend purchasing it. Do your research on different plans and companies, however, as each company has many plans with different coverages. Purchase and enjoy your trip with a little piece of mind! You can also learn more about comprehensive medical insurance if you are planning to move abroad permanently.