Summer is upon us. It’s the time of year when people start planning their vacations, and one common question we get asked is, “Should I purchase travel insurance?” Our answer is usually “it depends” since every trip is different and every client situation is unique. Some are comforted having a robust policy in case anything goes wrong while others prefer to save money for their upcoming trip by skipping insurance all together. Here are some things to consider when deciding if travel insurance is right for you.
What Does Travel Insurance Cover?
Before determining whether or not you need travel insurance, it helps to know what it is and what it covers. Travel insurance comes in many shapes and sizes. At its core, travel insurance protects you from something going wrong while you are traveling. It can include things like trip cancellation, interruption, accident protection, medical coverage, baggage loss, trip delay, and travel assistance. Another feature that has become more popular since the pandemic is the cancel for any reason option. While costly, it could be worth it if something comes up last minute like a family obligation or a sickness that prevents you from taking your trip. You can buy an all-inclusive policy which includes all of these features or you can design your own if you don’t need all of them.
Many travel policies are designed for one-time trips meant to protect you on specific dates to a specific destination. That being said, some providers do offer multi-trip and annual plans as well. If you plan on doing a lot of international travel in a given year, you might want to look into getting an annual plan to save some money rather than getting a policy for each trip.
Things to Consider
- Evaluate the coverage you may already have in place (i.e. credit card protections, personal medical insurance, umbrella insurance).
- Calculate what your out-of-pocket cost would be if you were to incur a loss. Are you able to cancel flights, hotels, and transportation without a fee or are those expenses already paid for and non-refundable?
- Are you going to a popular destination with lots of back up options for flights and hotels, or it is more remote where you could become stranded if something goes wrong?
- What happens if you have an unexpected health emergency, or worse, need to be evacuated to receive care?
If it makes you anxious thinking about not getting your money back in situations like these, then travel insurance might be worth looking into.
Where Do I Buy Travel Insurance?
If interested in getting a quote for travel insurance, there are many resources available to you.
- Any knowledgeable travel agent, if you are using one, will be able to assist you.
- Compare quotes on your own by going to sites like www.insuremytrip.com or www.squaremouth.com.
- Sites like Allianz Travel Insurance, American Express Travel, and Faye offer the ability to sign up for a policy directly with that company.
- For unique trips like an African Safari, niche sites like Visitors Coverage also exist.
Most sites allow you to select from suggested policies based on criteria you enter for the quote and provide an option to customize coverage based on criteria most important to you. With so many providers out there, you want to make sure that if you are going to get travel insurance, you get the coverage that makes the most sense for you. From the location of your trip to potential medical surprises, it’s a good idea to outline your top concerns to determine which coverage best suits the needs of you and your family.
When Should I Purchase Travel Insurance?
Once you’ve booked your flight, cruise, hotel, car, etc., you’ll know your total pre-paid trip costs. Knowing this figure can help you think through the considerations outlined above and will allow you to get a more accurate quote. Each insurance company has different timeframes that you’ll need to purchase your coverage by. In general, the closer you get to your trip the fewer coverage options you will have. Be sure to keep an eye on the window you have to purchase a policy. You don’t want the policy to be void because you waited too long to purchase coverage.
In the end, make sure you understand the terms and conditions of any policy you apply for so if something unplanned happens you know what you are covered for and what you aren’t.
Wishing you many happy adventures!
*Heritage Financial is not affiliated with any resources provided in this article.
