Planning a big vacation? Are you wondering if you need travel insurance?
And if you do need travel insurance, are you wondering where to start??? I can help!
I am a frequent traveler and a licensed health insurance broker. I know that insurance isn't the fun part of your trip and I hope you won't need it. The best insurance policy is the one you never use.
And honestly, you don't need travel insurance for every trip. You are probably OK without travel insurance on a typical family road trip.
But if something goes wrong on an expensive, international trip… you will be grateful for every penny you ever spent on travel insurance. It could save you thousands of dollars in lost travel expenses like airfare, hotel, luggage, tour, or cruise expenses. Or it might keep a medical emergency from becoming a financial disaster.
Here's what you get with travel insurance, when to buy it, how to buy it, and more.
What is travel insurance?
Travel insurance covers many of the common problems that travelers encounter. This could include unexpected cancellations, travel delays, lost luggage, illness, or injury.
Some countries require you to have travel insurance. Travelers from the United States can find requirements for every country at travel.state.gov.
For expensive, international trips, travel insurance is essential. I buy travel insurance when I am:
- planning an expensive trip where we could lose a lot of money if we cancel
- traveling beyond the reach of my health insurance
- needing peace of mind
Just days before our first trip to Europe, my husband was diagnosed with strep throat and my grandma was hospitalized with a broken hip. I was SO worried that we would have to cancel our dream trip. Thankfully, everything worked out and we had a great time, but I was glad we had travel insurance.
Missing a big trip is hard enough. If you'll also lose thousands of dollars because you didn't have travel insurance, that's heartbreaking. Travel insurance can cover your financial losses, which will help you plan that trip again.
Travel insurance is probably your only health insurance outside your home country. Travel insurance can help cover the costs of medical treatment and or an urgent flight home if you become ill or injured.
You can buy single-trip or annual travel insurance. Single-trip insurance will work well for most families.
What does travel insurance cover?
Travel insurance can cover a long list of potential problems. The more it covers, the more you will probably pay. Compare options and choose the coverage that is the best fit for your family.
Common items covered by travel insurance include:
- Cancellation due to factors beyond your control, such as weather, illness, job loss, or jury duty
- Cancellation for any reason
- Travel delays
- Missed connections
- Replacement for lost or stolen luggage and personal items
- A tour provider takes your money and then goes out of business
- Medical care for illness or injury
- Medical evacuation
- And more
Look for insurance you already have
Your credit card might offer some coverage for cancellation, delays, or lost luggage. This is common with travel rewards credit cards. It's usually listed among the card's benefits.
Your current health insurance may cover you for urgent and emergency care inside your home country. Look for information on your health insurer's website. If your doctor offers online appointments, this is also a good option when you are traveling.
Find out what coverage you already have. For many family vacations, it might be enough.
How much does insurance cost?
The cost of travel insurance depends on how much your trip costs, how many people are insured, the length of your trip, and how much coverage you need.
The insurance policy I chose for our last trip cost about $250. That was for mid-range cancellation, delay, and medical coverage for a family of four on a two-week trip to Japan, with a trip cost of $8,000.
When you consider the cost of your trip for insurance, don't insure your entire budget. You don't need to insure expenses (like food) that won't happen if you cancel.
Add up the non-refundable expenses that you will actually lose if you have to cancel at the last minute. This may include airfare, hotel, cruise, transportation, or tour expenses.
When to buy travel insurance
Cancellation coverage begins as soon as you buy travel insurance, so it's a good idea to buy as soon as you have an idea of how much your non-refundable expenses will be.
Some policies give you extra benefits for buying right after your first trip payment. But generally, the cost of travel insurance doesn't change as you get closer to the trip. I usually buy travel insurance 2-3 months before the trip.
You may not be able to get coverage if you wait until the last minute to buy travel insurance – particularly if a risk is known and a claim is likely.
For example, many travel insurance policies have last-minute exclusions for weather. If you are going to Cancun, Mexico and a hurricane is forecast, you will probably be fine if you already bought travel insurance that covered weather disruptions. But if you try to buy insurance after you know about the hurricane, you probably will NOT be covered for hurricane-related problems.
At the beginning of the COVID-19 pandemic, travel insurance companies paid a lot of claims for trips disrupted by the pandemic. Then they set up pandemic exclusions for new policies. They did not cover cancellation, medical, etc for COVID-related problems. If you chose to book a trip during the pandemic or didn't buy insurance early enough, travel insurance was not going to cover you for pandemic problems because it was a known risk.
Now that vaccinations are widely available and most destinations have re-opened, your travel insurance policy will probably cover you if you get COVID-19. Read the policy details to find out.
So, don't wait to buy travel insurance. Get coverage as soon as you know how much you need.
Where to buy travel insurance
There are many reputable travel insurance companies and it's easy to buy a travel insurance policy online without an agent.
I use Squaremouth.com. Squaremouth is a travel insurance hub where you can compare policies from dozens of reputable travel insurance providers.
For our trip to Japan, I input our basic information, trip cost, and dates. Then I checked the boxes for the specific coverages that were essential to me – like cancellation and medical.
That gave me a list of policies ranging from $200-600. I chose policies that looked like a good fit for us and compared them side-by-side. After looking at the details, I chose the one that hit the sweet spot between coverage and cost for me.
It took me longer to choose a policy on Squaremouth because there were many options from many insurers. But after reviewing a variety of plans and insurers side-by-side, I felt confident that I knew all my options and had chosen a good one.
Conclusion
You don't need travel insurance for every trip. But when you are planning an expensive trip that would be hard to cancel or an international trip where you won't have health insurance coverage, I highly recommend it.
Travel insurance can help pay your expenses when your trip is canceled or delayed. It can help you replace lost or stolen luggage. It can help pay your bills if you need medical treatment during your vacation.
Life is unpredictable, but insurance can give you peace of mind.
I hope that our experience helps your family to plan a great vacation! If you have a question or experience to share, please use the Comments below.
Happy travels!
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