Dear Travellious,
I've been hearing more and more about travel insurance lately, but I'm not quite sure what it is or if it might be useful. Could you clue me in?
Chuck, from Idaho
Chuck,
Travel insurance is insurance aimed at covering unexpected expenses or losses during a trip. Rates will vary, but the consensus among providers is that insurance will run you from 5-7 percent of your trip costs. Depending on the coverage, plans can cover things like medical expenses, non-refundable cancellations, and other unplanned craziness. Some companies will even rescue you in the event of war, terrorism, or natural disasters. Medical coverage depends on the company you pick, the plan you pick, as well as any pre-existing conditions you may have. Basically, it's provided to make you feel more secure that you won't lose money or get stranded if something horrible (or even simply inconvenient, like getting your luggage delayed) happens.
On a personal note, we've never even considered travel insurance on our many trips abroad. We don't tend to plan everything before we leave and try to stay flexible in case something bad does happen. We've made it through transit strikes, hotels (seemingly) being closed, missed trains, and all sorts of other calamities, without any outside assistance. Travel insurance just seems like a ripoff for us, given our good health and flexible traveling style. However, if you tend to travel to expensive resorts in Florida, in late-summer, with your grandparents, travel insurance might make more sense. But if you're a capable traveler, I'd recommend you skip it and rely on your brains and instincts instead.
What's your opinion on travel insurance? Travel essential or waste of money? Let us know in the comments below.
Resources:
- Squaremouth - Travel insurance comparison site
- Travel Guard - AIG's travel insurance
- CSA Travel Protection
As the director of michigan state university's summer study abroad program in london one year, i was REALLY glad that our students had the ISIC card, and the insurance that went along with it. you never know what is going to happen. for myself, i've always just checked with my health insurance and added a short rider for medical emergencies. great article!
Every time I've gone to Lebanon for business travel insurance was always built in to the cost of the trip, but it was never very much and didn't seem to raise the cost significantly. When I last went to Beirut (Christmas 2007) I did intentionally purchase travel insurance. InsureMyTrip.com seemed to be a good place to start and I chose Seven Corners as the insurance provider. Here is a rundown of my coverage:
Coverage Information, 2 wks (per person)
--------------------------------------
Trip Cancellation: $ 1,500
Trip Interruption: $ 2,250
Travel Baggage: $ 1,000
Baggage Delay: $ 200
Travel Delay: $ 500
Accidental Death
24 Hour: $ 10,000
Common Carrier: $ 25,000
Flight: Included in Common Carrier
Medical: $ 50,000
Dental: 750 Incl. in Medical
Emergency Evacuation: $ 250,000
My premium was $54 for all that and if I remember correctly I didn't have a co-pay. Going to a place like Beirut I wanted to just cover the cost of airfare and incidentals if the trip were cancelled or severely delayed somehow.
I am not arguing with Austin on his selection of companies, but with AIG's recent problems I am not sure I would approach them for insurance needs. Just remember to look for the ratings (A, A+, etc...) as you would for auto, home, or other forms of insurance. I tend to agree with Austin about using travel insurance (good health and flexible travel habits...mostly), but you have to look at your particular travel needs and how much it would "hurt you" if the trip fell apart and you were out a substantial amount of money. For me $54, about 3.6% of what I was actually insuring (cost of airfare), was a good safety net in case something happened politically while in Lebanon. I also had some pretty tight connections and wanted the assurance of having my backside covered.
Overall I wouldn't call insurance a must-have for travel and in my opinion you just have to weigh the benefits and costs.
Linda and I have been travelling full-time since February 2006. We don't normally have travel insurance but we do take out short term policies for a few reasons:
a) It's mandated by a job contract
b) We're going into an area known for high crime rates
c) We're going into an area where we don't have all the necessary vaccinations
d) We're doing a long-haul flight or three back to back
e) I'd also get insurance travelling in the USA or Japan because of their ridiculous medical systems.
Since we're not based at "home" and we're not returning to "home" for any given trip it's difficult to find valid travel insurance. Most travel insurance only covers "home to home" trips: be careful and read the small print. We have found World Nomads to actually insure these open-ended trips...and no-one else. Any ideas?
Interesting discussion. I would probably lean on the side of getting no insurance, but then I'm half-Dutch... stinginess is second nature! Craig's advice about specific situations when travel insurance is a good idea is well worth taking into account. The main thing is to be aware of the risks of wherever you're going. If you're visiting a high-class resort 100 miles away, maybe you should think twice before taking out travel insurance.
Eric