When planning your next trip, you might consider the idea of travel insurance. In light of many unexpected events over the past two years, it makes sense that you would want to protect yourself at any turn possible. Travel insurance will allow you to book trips and travel with peace of mind.

What is travel insurance?

Travel insurance protects you against travel-related risks in a few different ways.

Flight Cancellations

When you buy travel insurance, you’re protected by the financial implications of any cancellations related to your travel. In 2020, over twenty airline companies halted operations completely, resulting in canceled flights all over the world, Statista reports.

Lost Luggage

There’s nothing worse than getting to your destination after a long day of travel, just to find that you don’t have your personal belongings. Depending on what you travel with, these items might not be easily replaceable. Travel insurance policies offer coverage in the event your baggage is lost in transit. It is probably wise, however, to make some sort of documentation of the contents of your luggage if you want to be sure everything is accounted for.

Medical Emergencies

When making travel arrangements, you might not typically think of what you’ll do in the worst-case scenario. However, it’s important to be aware that travel insurance can protect you from certain medical emergencies and cover medical bills.

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Covered Events

If you’re thinking about buying travel insurance, you want to be sure that you understand the fine print. One of the worst things you can do is carry on thinking something is going to be covered by a policy you’ve paid for, only to discover it doesn’t qualify. Much like other types of insurance, traveler’s insurance considers unforeseen events as valid for coverage. However, it often comes down to a minor detail when discerning what makes something “foreseeable” or not.

For example, something like a hurricane or snowstorm might be considered unforeseen only under certain conditions. If you bought the travel insurance before anything was mentioned about the storm, it might be considered unforeseen. However, if there is enough evidence to show that you should have been aware of impending weather conditions, you might not be covered for cancellations. Other circumstances that might prevent you from getting on a flight could be missing paperwork. If you forgot something like an ID or passport, you won’t be getting past security, and likely won’t see a refund either. If you need to cancel a flight because of something that is entirely within your control, a basic travel insurance plan isn’t right for you.

Luckily, for those who prefer to have coverage no matter what, most travel insurance plans have options that will allow you to cancel your travel without explanation, under any circumstances, even the day of travel. So, if you find that your life is often unpredictable, with schedules changing often, something like this might be worth the extra cost.

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Covid-19 Coverage

When the pandemic first hit, travel companies worldwide were completely unprepared. Many people had flights canceled and never saw their money back, other people had to struggle to find their way home. At the time, travel insurance policies were not written to cover things like pandemics. It’s possible that pandemics were even considered non-covered events.

Today, although we are still dealing with the pandemic, it isn’t something one would consider unexpected anymore. So, make sure you check the fine print of any policy you purchase. The last thing you want is to be stuck in another country unable to return, and not have any type of financial support. If you test positive for Covid-19 and have to quarantine, you’ll want to be covered for any related expenses. So it’s probably best to look for a plan that includes Covid-19 coverage, as well as cancel under any circumstances.

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Keep your information close

If you choose to buy a travel insurance policy, you’ll want to always keep all relevant information available to you. If at any point you run into an issue during your trip, you can call the insurance provider and verify covered expenses. Sometimes, they might be willing to cover your expenses upfront, which helps you avoid any long waiting times for reimbursement.

When it comes to transportation after certain unforeseen travel events, your insurance provider will often be able to make arrangements for you. If you are uncertain, it’s always best to call your provider before making any big decisions or payments.

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What does travel insurance cost?

As can be expected, the cost of travel insurance is relative to the trip itself. The more expensive the trip, the more it’ll cost to cover each person. According to Business Insider, the average price for insurance was $111 in 2020. Aside from the cost of your trip, travel companies will consider your age and other factors to determine the most reasonable cost for your coverage. If you consider how much money you would lose if you had to cancel without any refund, even $150 might not sound so bad.

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When should you buy travel insurance?

To make sure you’re covered right away, the best time to purchase travel insurance is as soon as you start making purchases for your trip. If you decide to expand on your original plan, just make sure that your insurance covers the most accurate value of your trip. You don’t want to end up in a situation where a cancellation can’t be covered because you forgot you changed your accommodations at the last minute. Once you finalize everything, make sure your insurance policy reflects that.

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Do people end up needing it?

According to research, up to 30 percent of travelers who purchase some type of insurance end up filing a claim. Whether it’s something as innocuous as a missing suitcase, or as serious as a medical emergency, one-third of people are using the policies that they once considered optional.

It’s easy to think about these things as optional when you aren’t expecting anything to come between you and your plans, but depending on your individual needs and how much you stand to lose if your trip doesn’t go according to plan.

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The Bottom Line—is travel insurance worth it?

In short, travel insurance is worth it if what you stand to lose far outweighs the cost of coverage. If you find that your travel costs aren’t far off the cost of travel insurance, it might be worth risking the loss. For example, there’s no point in buying insurance for a $60 flight to Las Vegas. If it gets canceled, you might be out 60 dollars, but chances are the travel insurance isn’t worth the cost, unless you’re able to get it for an especially low rate.

Overall, the data is in favor of protecting yourself against unforeseen events pertaining to travel. Most of the time, people don’t have a free place to stay at their destination, so your insurance will help cover any loss incurred by those bookings too. Pretty much every single part of the travel process is covered by insurance. When you buy a policy, you can travel worry-free and focus on taking in your experiences and being present. If you’re the type of person who likes to have their ducks in a row and control what they can, travel insurance is a helpful tool to guarantee your peace of mind.

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