Is Travel Insurance Worth It?

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When it comes to buying insurance, you always kind of hope that you never have to use it. Then when the day finally comes, and you need it, you can rest easily knowing the peace of mind in having insurance was worth the cost… or was it? We are going to take a look at the many facets of travel insurance and figure out if it is something travelers should shell out their hard earned money for.

What is Travel Insurance?

What travel insurance is insurance that is intended to cover medical expenses, financial default of travel suppliers, and other losses incurred while traveling, either within one’s own country, or internationally. This basically means that you can be financially covered if your trip needs to be cancelled for one reason or another, you’re injured, or some of your belongings are lost.

The policies and providers are all over the map. You may be able to purchase travel insurance through your travel company, homeowners insurance, credit cards, your own medical insurance provider and the list goes on. Then it comes down to picking a policy that fits your needs.

Is Travel Insurance Worth The Price?

As much as I hate this phrase, I have to say it: It depends. The Better Business Bureau has a helpful article that lays out three types of insurance policies that may be beneficial. That list includes travel cancellation/Interruption coverage, baggage loss, and emergency medical evacuation. Although these may be recommended, you may not need to purchase one or any of them.

So, let me explain…

Travel Cancellation

For most, your trip will not be cancelled for one reason or another. Frequent travelers could spend thousands on travel insurance they never need. If your trip’s bills include mostly airfare and hotel stays, than you could probably do without this insurance. Most airfare can be changed for around $150 and you may lose a deposit on one night at a hotel. For all-inclusive prepaid ‘trip of a lifetime’ sort of trips, purchasing this insurance is probably a wise investment.

This type of insurance would be wise if you have someone in your life that is in poor health and you would need to cancel your trip if the worst were to happen. This would also apply to any travelers in your party with a pre existing medical condition that would cause the trip to be cancelled or cut short.

Baggage Loss

The BBB recommends this insurance for travelers carrying more than $2,500 worth of valuables. So, if you are bringing along expensive camera equipment, electronics and other valuable items could be a good reason to invest in this coverage.

Emergency Medical Evacuation

Emergency medical evacuation plans are always a good idea when you are booking adventure trips or will be in an area without modern medical facilities. In the event that you should require emergency medical attention, you would be evacuated to an acceptable medical facility.

Before buying this from a third party, check with your medical provider to see if they already or will cover you while you are traveling. If you used a credit card to book your trip, you may also be covered for emergency evacuation.

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Getting Covered

If you want coverage, there are a few recommended companies such as CSA and Travel Guard, both with an A+ Better Business Bureau rating. To get a wide range of policies and be able to compare each of them in plain english, you may concider heading over to http://www.insuremytrip.com/.

As this is a timeshare blog, many of our readers own a timeshare. One company that is recommended by the Timeshare Users Group, or TUG, is VacationGuard. This company offers protection against loss of timeshare use for eligible reasons. The cost for annual coverage starts at $129 and includes reimbursement of maintenance fees and, if applicable, exchange fees up to the limits of the policy. Policies also include some trip delay, baggage, medical and other coverage.

Read the Fine Print

Before you select a policy and shell out hundreds of dollars for insurance, it would behoove you to read the fine print.

Insurance policies have numerous exclusions and conditions that would prevent them from paying out to you. Most companies have several types of policies so check out the fine print on each policy you request.

Some companies no longer insure against the bankruptcy of your travel provider. Others won’t pay for selected type of activities on your trip which the insurer deems to be dangerous. This can sometimes include such seemingly simple activities as bike riding. Even pre existing medical conditions or visits would be grounds to not be covered under certain policies.

 

A Final Word

So, if you are considering travel insurance, do your due diligence to read and understand any policy that you are purchasing and know exactly what you will be covered for and what exclusions are within the policy. Selling Timeshares, Inc. has no affiliation with any of the companies mentioned within. This article has been written with the purposes to inform readers about travel insurance policy within the scope of our own opinion.