Facts about Travel Insurance: What It Is and Who Should Get It?

When you plan a trip, you might be wondering, “Should I buy travel insurance? Is it worth the cost?”

Here’s your answer: Everyone should buy travel insurance. Every day people go on trips that are affected by unfortunate events, so it’s best to always be prepared. However, some travelers—as a result of their lack of interest in or knowledge of travel insurance—don’t even realize what it is and what kind of protection it provides.

We put together this guide to get you all the facts you need.

What Is Travel Insurance?

Travel insurance is a type of insurance in which people are offered protection while traveling. Such plans include trip cancellations or interruptions due to illness, weather, or any other conflicts, such as jury duty—as well as lost luggage and medical coverage. Travelers with insurance will be reimbursed if any issues arise before or during their trip.

You’ll be thankful you have it if a family member gets sick right before a trip, and you need to cancel, or if you get injured during a physical activity at a resort. 

Types of Travel Insurance

There are several types of travel insurance plans available:

  • Trip Cancellation and Interruption
  • Travel Medical
  • Baggage Delay
  • Accidental Death and Dismemberment
  • Medical Evacuation
  • Flight Delay or Cancellation
  • The Cancel for Any Reason

Policies tend to vary in regards to domestic and international coverage, as well as coverage for single or multiple trips. Further, every plan doesn’t offer the same exact benefits, so it’s best to do your research to see which plan offers you the best combination of benefits for each trip you go on.

What Can Happen If You Don’t Have Travel Insurance?

I am sure there are clients who may wonder why their travel advisor ask them are they sure they do not want travel insurance. Travel Advisors know the benefits of having travel insurance and the downfalls of not having travel insurance. Therefore, they want to educate their clients on the benefits of getting insurance that some clients deem as “an unnecessary extra charge”. I tell my clients that although Travel Insurance is not required, it is highly recommended.

Recently, I had a client who booked a cruise with travel insurance an a client who booked a hotel room without travel insurance. The client who booked with travel insurance was able to cancel their 2020 cruise with no charge. That client booked a new cruise for 2021. The client who booked with no insurance was given a supplier credit for the amount of the hotel stay. That client actually wanted a refund. I explained to them that because they did not get the travel insurance (they signed the insurance waiver), they would only be able to get the supplier credit. Their money will not be refunded.

Who Should Buy Travel Insurance?

It doesn’t matter if you’re going on a business trip, a family vacation with the kids, grandkids, or just by yourself. Everyone should buy travel insurance because unforeseen events could take place.

According to the U.S. Travel Association release in 2014, “One in six Americans (17%) say their travel plans have been impacted by medical conditions, natural disasters including severe weather; or mechanical or carrier-caused problems.” 

However, 22% of people from this survey had travel insurance while the rest did not. The U.S. Travel Association also points out that most people are happy that they invested in travel insurance, with a satisfaction rate of 85%. Although more people are purchasing travel insurance when they go on a trip, as also reported by the U.S. Travel Association, there is still a large number of people who choose not to.

These facts about travel insurance prove that many travelers have to deal with unexpected events both before and during a trip. Why take the chance of not being prepared, especially when other people who have done the same are happy they did?

For more information or to book your next trip, go to journey2elation.com.