Travel Insurance: Is it worth it?

You decide to take a trip and when you put down your deposit, you are asked if you want to purchase insurance. Your immediate reaction is probably, "Of course I don’t need insurance...I AM GOING ON THIS TRIP!" At the time you make a deposit, insurance probably is not necessary because the deposit is most likely refundable until the final payment is due. However, if it is not, you may want to insure just the deposit, so that if you do cancel before final payment you will lose double digits, not triple digits.

More Than Your Deposit

Most people think that insurance is a way for the travel company or agency to make more money. It is true...they will make more money, but consider this. Do you have children, elderly parents, someone close that has been ill? If something were to happen to any of these people, would it keep you from taking your scheduled vacation? Of course none of us think we will get sick, but it happens. Last year, I had to cancel a cruise because my husband got shingles. And guess what? I had insurance and got ALL of my money back.

More Than a Canceled Trip

But, insurance is not just about canceling your trip. A few years ago, I had a client that booked a tour to Ireland. They were meeting their group on a specific day in Dublin. The night before the meeting, they were scheduled to fly out of Philadelphia to Dublin. The flight had mechanical difficulty and was cancelled. The soonest they could arrive in Dublin was the day after the group was meeting. Fortunately, the client had insurance. We got her booked the next day, put up in a hotel, and fed ... all with no cost to her. Insurance covered everything. I know you think the airline might have stepped up, but unfortunately that doesn't always happen and you just can't count on the airlines. Instead of sitting in an airport for 24 hours, they were able to spend some quality time together. Also, they were reimbursed for a day of their tour in Ireland because they could not make it in time through no fault of their own.

More Than Delays

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Did you know that insurance covers lost baggage? If you get to your destination and your bags don’t, you can collect a pre-determined sum to buy clothing and necessities to get you through until your luggage shows up.

More Than Lost Baggage

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Probably THE MOST important reason to purchase travel insurance is the medical coverage.

If you are traveling outside of the U.S., chances are that your medical insurance will not cover you

Medical horror stories abound, such as this one: a woman suffered a heart attach while attending a destination wedding in Mexico. She ended up in the hospital for about a week. The cost was a staggering $60,000. The Mexican authorities would not let her leave the country until the bill was paid. She had a charity page on the internet asking people to help her.

Anyone could break a bone or have an accident at any time—why take the chance? Also, in the case with the woman in Mexico...if she had been on a cruise, they might have had to air lift her off of the ship to the nearest hospital. Travel insurance covers that.

The older you are, the more expensive it is. However, the peace of mind is worth the cost. Also, not all travel insurance is equal. Know what you are purchasing: most policies will not cover a work emergency as a reason to miss your trip. With that being said, if a work emergency could be a problem for you, guess what? There's a travel apolicy that will cover it.

Also, you don’t have to insure every aspect of your travel. For example, most hotels will let you cancel before arrival. Airlines, however, are unforgiving. Once you buy the ticket, there are no changes or refunds without more money changing hands, so covering air tickets is most important. Consider covering your cruise or your guided tour(s) as well, as you will lose that money should something happen.

Travel insurance exists to protect you and your investment. What do you really need? That's why you have a travel professional. Talk with your travel professional if you have questions about insurance.

All at ease now? Great! Let's book your next trip!

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