Travel Insurance: A Scam or Guaranteed Peace of Mind?

If you’re booking your next vacation, chances are you’ll be asked if you want to purchase travel insurance. Designed to protect your wallet from fees that come with any unexpected travel crisis, this insurance can oftentimes be a great idea. However, more often than not travel insurance can be both unnecessary and a waste of money, feeling like more of a scam than security. If you’re skeptical of purchasing travel insurance – like you should be of any type of insurance policy – here are some things to consider before you purchase.

Types of Travel Insurance

large_9267747559When deciding whether or not to purchase travel insurance, there’s a lot to sift through and define. To start, there are two main types of insurance: a. a trip cancellation policy and b. interruption insurance. A cancellation policy will refund your money for vacations you need to cancel shortly before the start of your trip. Interruption insurance will help get you a refund if your trip ends unexpectedly early, and will help to cover the cost of unexpected flights and hotels that may come along with an early end date. Many travel insurance policies also offer all-inclusive comprehensive packages, covering everything from lost luggage to identity theft and delayed flights. A final type of travel insurance policy is medical evacuation insurance, which will cover emergency flights, ambulance rides, etc. that will help you get to a trusted hospital for urgent medical care.

How Travel Insurance Keeps You Protected

While it is an added expense, travel insurance can give vacationers the peace of mind they need on their getaways. Ideal for travelers who have booked a very expensive trip far in advance, insurance can help achieve a nearly full refund if cancellation is necessary. Travel insurance is also helpful for vacationers who fear there may be an emergency at home – like an ailing family member or elderly parent – and may need to end their vacation early. In scenarios like these where there’s a high risk that your vacation will be compromised, an insurance policy can help booking a trip become less risky.

Why Travel Insurance Is a Scam

With any insurance policy, there’s always a catch, and travel insurance is no exception. When researching policies, read the fine print for “pre-existing conditions,” as this is the top reason that traveler’s claims are not fulfilled. This common clause often excludes individuals with certain medical conditions from receiving their claim, in the event that those with health issues have to cancel a trip or conclude it early. Also, many comprehensive claims simply cover way more than necessary, making the price of travel insurance overly high.

So, is it worth it?

At about 10 percent of the final cost of your vacation, travel insurance is something to research before purchasing. In many cases, the medical and life insurance and even your credit card identity fraud policies you already have are enough to cover you on your trip. Also keep in mind that if you participate in programs such as AAA, you may be afforded extra coverage benefits too, making travel insurance an unnecessary fee. For example, if you’re road-tripping within the states for a guided tour of San Francisco, your AAA card and medical insurance and credit card’s identity theft protection should be enough to keep you covered. However, if your travel plans include vacationing to a remote area in Vietnam during monsoon season, a comprehensive policy may be your best bet.

Travel is supposed to be a stress-free adventure, helping you leave your worries behind. For some travelers, getting an extra insurance policy can help ease the worry, while other vacationers think insurance is nothing but a drain on their souvenir fund. As the best way to decide if travel insurance is needed is through research, it’s important to do so to make the right choice for you, making your trip as carefree as possible. However, always keep in mind that wherever you go and whatever policy you choose, you’re on vacation, so relax and enjoy.

Images: featured image | infographic

Related Posts Plugin for WordPress, Blogger...
About Adrienne 29 Articles
Adrienne is a freelance writer and designer with an endless curiosity about technology, health, and traveling the world. She loves snail mail and taking roadtrips. You can get in touch with her by following @adrienneerin on Twitter or check out her design blog to see more of her work.