Travel insurance is essential because it safeguards you against potential disruptions that might end up ruining your trip. Contrary to popular belief, you do not need travel insurance only when travelling abroad. Anything can go wrong even on a simple local trip.
Whether you are a solo traveller or travelling with the whole family, life is full of uncertainties. Sure, you can try your best to be alert and remain careful, but travel insurance protects you against potential risks related to your luggage, health, or important documents.
Also read: What type of Travel Insurance will you need?
While most travellers consider travel insurance as an unnecessary expense, it is essential to safeguard yourself against all possible risks. If you do not have proper coverage, you have a lot to lose if something goes wrong on your trip.
Here are more reasons why you need travel insurance.
1. Your Vacation Is an Investment
You have been saving up for a once-in-a-lifetime trip aboard a luxury cruise. Like most travel expenses, if an emergency occurs that may hold you back from travelling on the scheduled dates, you will lose your savings.
However, if you have travel insurance, you may get reimbursed for prepaid and non-refundable travel costs.
Unlike most travel agencies where you lose your money if you cancel the trip within 14 days of travel, travel insurance allows you to cancel the trip anytime and offers refunds if you cancel for covered reasons.
Covered reasons may include illness, injury, death of a family member, or natural disasters among others.
2. Medical Emergencies
If you have a medical emergency while overseas, it can be really expensive to pay for treatment out of pocket.
According to the U.S. State Department, most foreign medical facilities and health care providers require payment upfront and in cash before treatment. Your Medicare card will not work outside the U.S.
A simple accident can result in thousands of dollars in expenses especially if you need medical evacuation but are not close to a hospital. However, if you have travel insurance and opt for medical benefits, you are covered against any injuries or illnesses you suffer while on your trip.
Your travel insurance can pay for medical transportation, the cost of getting your home after treatment, dental, and other medical costs. Some travel insurance companies even offer advance payment for covered medical costs at the healthcare facility so you can get prompt treatment.
If you are still on the fence about travel insurance, consider the cost associated with having a medical emergency overseas.
3. Required by the U.S. State Department
If you run into any problems while travelling overseas, you will most likely contact the U.S. embassy for help. While the embassy can help you out to an extent, its powers are limited compared to your travel insurance.
The embassy may be able to help you if you have lost your passport, find legal and medical assistance, contact family and friends back home, and even connect you with local police and other useful resources.
However, the embassy will not pay for medical care, provide transportation, or take care of any financial losses you suffer while travelling.
The U.S. The State Department recommends that you carry travel insurance that includes emergency medical benefits, coverage for emergency medical transportation, and other unexpected expenses such as lost luggage and last-minute trip cancellation.
4. Accidental Death or Flight Accidents
We all hope to travel safely and arrive at our destination at the planned time. However, accidents do happen. When you purchase travel insurance, your family might get compensation in the event of serious injury or even death during travel.
If you have a life insurance policy, travel insurance benefits are an extra resource for you and your family. This additional money can be used to cover funeral costs and even make your life more comfortable if you have suffered a serious injury.
Some companies only offer this benefit as part of your travel insurance coverage for use in aircraft accidents. They also have limits on how much money can be given as compensation which includes healthcare benefits.
5. Travel Insurance Is Affordable
When planning a trip, most people want to save as much money as possible. This means doing away with unnecessary expenses. The cost of travel insurance can deter many people who are already spending thousands on luxury hotels and flights.
However, travel insurance has become more affordable as more companies venture into offering this valuable service. In fact, it is not unusual to find a company offering multiple coverage options so you can find one that fits your budget.
Affordable travel insurance options include key protections such as travel delay, trip interruption, and trip cancellation among others. This means that your travel insurance is cost-effective and, if you need to take more than one trip throughout the year, you remain covered for all your trips.
If you are planning a trip, we recommend shopping around for a quote from different companies and choosing an option that is within your budget.
If you are not sure about your policy, most insurers offer you a 10-day window to ask for a refund or change your policy as long as you have not travelled within that period. If you have travelled or initiated a claim, your premiums are non-refundable.
Why You Should Buy Travel Insurance
The truth is, for most people, travel insurance can be an extra cost that is difficult to justify. After all, most travellers save up for years to afford that luxury cruise. If you are travelling on a budget, travel insurance does not rank high on the list of priorities.
Also read: Factors That Affect Your Car Insurance Cost
However, the cost of travel insurance is a fraction of what you stand to lose if something goes wrong on your trip. If you have to cancel your trip at the last minute because of a personal emergency, you stand to lose thousands of dollars as most travel companies do not offer full refunds.
Travel insurance protects you in multiple scenarios and gives you peace of mind knowing that you are covered against many risks that you face when travelling. Get in touch with your insurance provider to find out more about travel insurance as you prepare for your next trip.