Many travelers struggle with the decision whether or not to add travel insurance to their trip. You can expect to pay approximately 5-10% of the total nonrefundable trip cost for the peace of mind. Adding insurance to a vacation that costs $3,000 dollars will cost you anywhere from $150 to as much as $300. A hefty price. To make matters more complicated, not all travel insurance is the same. Some insurance only covers an injury or illness prior to travel, while others also cover the cost of most medical care if you get sick or injured during the trip. You have to do your homework and read the fine print. If you read reviews on people who tried to recover their money after making a claim, you’ll undoubtedly read a lot of horror stories. Some of the problem stems from the buyer who failed to do their homework and some on the insurance company who is reluctant to pay out a claim. Is travel insurance worth it? The short answers is…it depends.
I have purchased travel insurance on several occasions over the past few years, but that is only a small percentage of the time. I usually opt not to add the insurance. That’s just my personal choice after carefully considering several different factors. Every vacation or travel purchase is different. I hate the idea of throwing away a few hundred dollars unnecessarily, but I really would regret not having the insurance if a family member is unable to travel, and I end up losing thousands of dollars. Here are a few factors that you should consider when deciding whether or not to add the insurance.
The Age and General Health of the Travelers
Are you traveling with anyone who is elderly or prone to illness or injury? If you are traveling with your parents who are prone to falls or have chronic medical issues, you may want the insurance. Are you traveling with children? What are their ages? Are you willing to leave them with someone if they cannot travel or is the entire trip called off?
How Many People Are in Your Travel Party?
If a trip involves just my wife and I (who are generally in good health and rarely get seriously sick) I almost never get insurance. I take my chances and rely on the premium credit card I used to pay for the trip for some benefits. Oh, yeah. Some premium credit cards offer a limited amount of travel protection for unforeseen events. But, that discussion warrants a post to itself.
If I travel with my two kids, that adds an element of complexity. Although, they are both young adults, they are both physically active and one of them gets sick more than average. Sure most people can travel with a common cold, but is that nagging cough on its way to become a chest infection the night before a transatlantic flight?
The bottom line is that the more people in your travel party, the greater the chance of at least one person having an issue which would prevent them from traveling. As the number of people in your party increases, so should your willingness to add travel insurance to your trip.
The Details of Your Itinerary
Sometimes I book just a simple flight, and sometimes a flight and hotel. Many of my trips involve several flights in different countries, numerous hotels, and more than one car rental. As each booking gets more complicated, the cost of the trip gets more expensive, the chance of an unforeseen circumstance increases, and therefore, I am more likely to add insurance. A last minute change to a flight may cost a couple hundred dollars, but the need to completely revamp several flights and hotels due to an illness/injury can cost thousands–a lot more than a good insurance package.
How Are You Obtaining the Insurance?
However you chose to book your trip, whether it be online with an airline or through a travel website like Orbitz or Expedia, you will likely be offered travel insurance on, or just before, the payment screen. If you choose not to purchase the insurance when you make the booking, you generally cannot add it afterwards. Once your trip is booked, travel insurance can only be added by purchasing it directly from a travel insurance company.
If I decide to insure my trip, I will buy the insurance at the time of booking and not afterwards. I have status with some airline groups and a long term relationship with some travel websites. I find that the odds are more advantageous for things to go in my favor if I purchase the insurance at the time of booking. The airlines and travel websites want to keep your business and will be more likely to work with your circumstance.
Bottom Line
Traveling always involves risks. The idea would be to give your trip some real thought and consider all the relevant factors. The decision on whether or not to buy trip insurance should stand out. Sometimes the cost can be very expensive. In those instances, the price should just be considered the cost of doing business as if the trip insurance was mandatory. Don’t dwell on your decision no matter what you decide. You should start to enjoy the trip from the very moment you book it. In the meantime, keep your fingers crossed.
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