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Money Know-How

Do I Really Need To Buy Travel Insurance?

Do I Really Need To Buy Travel Insurance?

Do I Really Need Travel Insurance?

Whether you are travelling to a different city, state or country, you’ll inevitably be asked if you want to buy travel insurance or not. For some, travel insurance is a necessity, while there are others who believe it is nothing but a waste of money. However, travel insurance can actually be a good idea in some cases. We have made a list of scenarios when spending on travel insurance can save you a lot of money.

1. Natural Disasters

You never know when an earthquake, hurricane or flood will hit. In case, you are at the receiving end of nature’s fury during your travel, travel insurance will refund money for your return ticket. Hurricanes and tornadoes occur frequently in the USA. So, if you are looking to purchase travel insurance before going there, the average cost of the same would be USD 148. On the other hand, in Japan, where earthquakes are quite common, the average cost of travel insurance is $76 to $354.66 (depending on the person’s age).

2. Loss Of Baggage

Baggage insurance is one of the most disputed types of travel insurance. Most people think that baggage insurance isn’t worth paying for, as in the case of any loss, it’s the airline that’s responsible for reimbursement. However, insurers around the world believe that in the case of baggage loss, the airline doesn’t reimburse as well as they should. Airlines accept liability for checked baggage but with a cap. In the US, this cap is lesser than the actual value of the baggage, or equivalent to USD 3,300. Cruise lines accept baggage at even lower caps. But when baggage insurance policies are taken, they provide secondary coverage between $1,500 and $3,000.

3. Medical Emergencies

Obviously, falling sick or breaking your leg was never a part of your itinerary. But there are different travel packages that cover your medical expenses in case of any medical emergency. Because travel medical insurance doesn’t include trip cancellation and other benefits, it’s quite reasonable. It costs the travellers somewhere around $40 to $80 to buy travel medical insurance for a relatively short overseas trip.

4. Trip Cancellation/Change Of Travel Plan

Trip cancellation is one of the most popular forms of travel insurance in the world. It covers travellers when they change their travel plan, cancel their non-refundable flight, or simply miss it. The average cost of trip cancellation travel insurance across the world is anywhere between 4% and 10% of the traveller’s total prepaid cost.

5. Terrorist Attack

A grim possibility to consider, but practical nonetheless. Depending on your native country, the travel insurance in the case of a terrorist attack covers hospitalization, medical expenses, expenses on treatment, and medical transportation to bring you home.

6. Lost Passport

Applying for a replacement passport could burn a hole in your pocket as it includes emergency passport fee, application fee, lost passport fee, and additional surcharges. Therefore, it’s important to consider the lost passport option too, while deciding to buy a travel insurance. It reimburses the fee required to obtain a replacement passport. However, this reimbursement is limited to a certain amount i.e. $50 to $100.

7. Emergency Travel

You may have to travel back home on account of an emergency – it could be a medical emergency, natural calamities, breaking out of a disease or war, etc. In case of emergency travel, the insurance policy reimburses expenses depending upon the situation. Also, there are coverage terms and conditions always mentioned in the policy, so it’s important that you read them carefully.

8. Theft

Burglary insurance while travelling covers your belongings against theft and even covers you in case your cash has been stolen. The reimbursement limit of travel burglary insurance plans is typically between $150 and $300. However, you can increase this limit by purchasing plans with higher limits.

To sum it up, travelling is one of the greatest joys of life. But even the perfectly planned trip could go awry due to unforeseen circumstances. However, with travel insurance covering your back, it is easy to keep your journey on track. Go with travel insurance before you fly and keep stress at bay as you make the most of your holidays.