Is Travel Insurance Worth the Cost?

When you’re planning a trip, you’re focused on where to stay, how to get there, and what to do while you’re there. But there’s another thing you may want to consider during the planning process: travel insurance.

If you’re booking a trip through a travel agency or cruise company, the agent booking your trip may recommend the insurance, but you may wonder: “Is it worth the cost?”

To determine if it’s worth the extra cash on top of your trip cost, here’s what travel insurance typically covers – and what it won’t.

Protection from cancellation or interruption
This is one of travelers’ main concerns when they’re booking a trip – if something happens beyond your control that prevents you from being able to take that trip. Weather, illness or injury, family tragedies and other issues can come up and cause you to cancel, postpone or interrupt your vacation.

Trip cancellation coverage will reimburse you for pre-paid, non-refundable expenses — such as plane tickets, cruise fare, tour packages, and hotel rooms — if you need to cancel your trip before you depart.

However, why you have to cancel determines whether travel insurance will cover the costs. If you decide to cancel the trip simply because you don’t want to go anymore, you’ll likely have to eat the costs associated with your trip — or at least the deposits — depending on how far in advance you cancel.

Some of the covered reasons to cancel your trip include:

• Hurricane or severe weather damages your destination or cancels your flight
• A terrorist incident in your destination
• Sickness, injury, or death of you, a family member, or a traveling companion
• Getting laid off from work or being required to work
• Being called for jury duty
• Bankruptcy of your travel supplier

If any of these events occur during your trip and require you to go home, trip interruption coverage, which is similar to cancellation coverage, will cover you for the lost portion of your trip and any additional expenses for the last-minute flight home.

Travel delay
Travel delay coverage may be just as important as cancellation or interruption – this coverage reimburses you for any additional expenses — including a meal or an extra night in a hotel — if your flight is delayed or cancelled,

If you miss a flight, it can throw off your trip itinerary – your travel insurance company should be able to reconfigure your travel logistics to put you back on track.

If your delayed or cancelled flight causes you to miss a cruise disembarkation, this coverage will also help you pay for transportation to get to the ship’s next port.

Medical or dental emergencies abroad

Although your medical and dental insurance should cover your emergencies within your home country, they often don’t extend past your borders, meaning your insurance company likely won’t pay for medical or dental services, leaving you with massive bills.

Travel insurance may cover the cost of emergency transportation and care if you suffer a medical emergency during your trip, possibly even evacuation by plane. Although a dental emergency may not be immediately life threatening, it can leave you in severe pain and discomfort during your trip – travel insurance may also cover fixing or addressing your dental emergency.

If you have a medical pre-existing condition, there’s the possibility it can act up at any time, including during your trip. However, many travel insurance policies won’t cover them unless you purchase a premium policy – ask your travel insurance provider about this type of coverage.

Lost bags or delayed bags, or delayed flights

It’s not as big of a problem if your bags getting lost, stolen or damaged, but it can be a real inconvenience and source of frustration – this coverage can reimburse you for your personal belongings. If your bags are delayed, you may receive money to buy essential items, such as toiletries, a change of clothes, or a swimsuit, until your bags arrive.

[Disclosure: Healthy Travel Blog is affiliated with HTH Worldwide, a travel health insurance provider.]

Photo from car-insur.us