Travel Insurance and Why You Need It
Travel has resumed with decreasing COVID numbers. Most of us wait in excitement as a planned vacation nears. Oftentimes we overlook some of the most important yet not-so-obvious questions.
What happens if you get hurt abroad? Does your health insurance cover doctor visits and medical emergencies abroad? What if you can’t get a refund for trip?
These seem like questions we should know the answers to, yet many Americans traveling abroad are clueless in these situations.
Why? To keep it simple, most people aren’t planning or thinking about an emergency when a planning a vacation. In fact, we’re thinking about the best case scenario —a pina colada on a beach somewhere, not the worst case scenario. Yet, emergencies can occur wherever we go.
[Additional Read: 6 Vaccination to Consider Before Resuming Travel]
Imagine getting injured or hurt while in another country. You’ve being rushed to a local hospital just to find out they don’t accept your insurance or that you have to pay thousands out of pocket for a necessary medical procedure.
What happens if you don’t have all that cash readily available? Some health plans don’t cover doctors visits or even emergencies abroad. Why not have a travel-abroad emergency plan for an emergency?This is where travel insurance comes in handy.
While each policy and company is different ,here’s a general list of features a good travel policy should cover.
Trip Cancellation - Reimburses prepaid / non-refundable expenses if you need to cancel your trip due to a covered reason.
Epidemic Clause - covers certain losses related to COVID-19
Emergency Medical - provides benefits for losses due to covered medical reasons (covered is is considered a sudden, unexpected illness or injury medical that will cause serious harm if not treated)
Emergency Transportation - ambulance, in some cases airlifting
Baggage Loss or Damage
Baggage Delay - covers essential items that are purchased in the interm
Travel Delay - expenses associated with delayed flights
Rental Car Damage / Theft Coverage
Travel Accident Coverage - cash payment for covered losses due to death as a result of a travel accident.
24-Hr Hotline Assistance - hotline available for all kinds of travel emergencies
It’s important to note that travel insurance is available annually and per trip. Below are two examples of both.
Per Trip: Below is an example of what a 6-day trip to Mexico would cost for a 33-year-old who spent $2500 (flight and hotel) on the trip. It would cost $132.00 for six days of coverage.
Annually: Below is example of what each trip would cost for a 33-year-old who got an annual policy. Included are some benefits and coverage amounts for a basic policy. (These benefits also apply to the per-trip policy mentioned above).
Please note all quotes are posted in the photos in this post are from Allianz Travel Insurance. I do not get paid to endorse Allianz Travel Insurance, nor do I own a policy with them. I’m providing information based on my own research using their online quoting tool.
To learn more about the benefits of travel insurance I encourage you to compare 2-3 policies to before buying a policy. A great tool to use is Travel Insurance which allows you to compare multiple policies at a time. Check out there comparison tool here.
Is travel insurance worth it? What does it cover? Let’s explore a few reasons why travel insurance is an absolute necessity for globe trotters.