Safeguarding Your Dream Getaway:

Why Travel Insurance is Critical to Your Peace of Mind

You have been looking forward to your dream vacation since you booked it last year, and your departure date is almost here! After spending so much time planning, you can finally pack your suitcase, but there is one thing you need to remember to bring— an airtight travel insurance policy. Even though insurance seems dull compared to the images of you relaxing in your luxury overwater bungalow, it’s crucial. 

No matter how extravagant or low budget your trip may be, many things outside your control could turn your dream vacation into a nightmare faster than you can say, “Hurricane Beryl.” This week’s outage by tech company Crowd Strike, which grounded hundreds of planes and stranded thousands of travelers, brought the unpredictability of travel to light once again.

Many consider travel insurance an afterthought and question its value when evaluating the additional cost. As a travel advisor, I have witnessed firsthand what can happen when you travel without it, and I can assure you that you will love the peace of mind having this backup plan in place will give you.  

What is travel insurance, and why should you buy it?

When considering travel insurance, it’s important to understand how it can protect you and why it’s a valuable investment. Travel insurance typically covers cancellations, medical expenses, evacuations, losses, or delays and offers 24/7 assistance. While some may believe their credit card provides sufficient coverage, it often falls far short of meeting travelers’ needs.

Below are the top four reasons why you should consider purchasing travel insurance for your upcoming vacation:

Reason #1: Protection from cancellation or delays

Many people only associate travel insurance with trip cancellations, assuming they won’t need it if they’re determined to go on the trip regardless of circumstances. However, travel can be unpredictable, with situations such as hurricanes, unexpected illness of a family member, work commitments, airline strikes, or other uncontrollable events. If you have made pre-paid and non-refundable payments for your trip, you could risk losing them without travel insurance. In the event of a covered delay, causing you to miss the departure of your cruise or tour, travel insurance can cover reasonable transportation expenses to rejoin your trip or reach your destination. It can also reimburse you for essential items until you find your lost baggage. If a situation requires you to return home early, travel insurance can reimburse you for the unused part of your trip and any additional expenses for a last-minute flight home.

Reason #2: Medical emergencies overseas can be costly.

If you have a medical emergency while traveling abroad, it can lead to a significant financial burden. Statistics indicate that thirty to fifty percent of travelers, whether domestically or internationally, will fall ill or suffer an injury during their trip, meaning that almost one out of every two travelers will experience some health issue. However, many people are surprised to learn that their medical insurance is only valid in the U.S. Travel insurance can provide peace of mind, especially for travel outside the United States, where many hospitals demand upfront cash payments in the thousands before treatment begins. 

For example, a news story reported that a man from Georgia experienced diabetic shock while on a Carnival cruise. The hospital required him to pay his $14,000 bill in full before allowing him to leave. Since the man had no insurance and the hospital declined his offer to pay in installments, donors, including movie mogul Tyler Perry, stepped in to settle the bill. Not everyone can count on a famous actor to come to their aid, so having the right travel insurance policy would have made a difference. 

Travel insurance can also help you find a pharmacy to purchase a new prescription if your medication is lost or stolen.

Reason #3: Around-the-clock Phone Assistance Worldwide

Think of it as a crucial support system in the event of unforeseen circumstances such as medical emergencies, lost passports, stolen baggage, or flight cancellations. Every travel insurance company offers 24/7 support for these situations. Some even have concierge services to help you arrange dining reservations and other non-insurance-related things.

Reason #4: Protection Against Supplier Default

The recent collapse of Thomas Cook, a travel company that had been in business for 178 years, highlighted the issue of stranded travelers. It’s a good idea to select a travel insurance policy that guarantees reservation coverage in case the company you booked with goes out of business. Be sure to carefully check that the company and policy you choose provide this coverage to avoid any unexpected issues during your travels.

Reason #5: Lost or Stolen Passport

Passport problems during your travel: Trip interruption protection might cover costs resulting from trip interruption due to a lost or stolen passport during your trip. Reimbursable expenses include rescheduling your flight, extended hotel stays, and the like.

Choose An Insurance Company and Policy Carefully

When choosing a travel insurance policy and company, it’s crucial to evaluate your options carefully. Not all travel insurers and policies offer the same level of protection. Some policies will cover your hospital bills upfront, while others may require paying first and applying for reimbursement later. While it may be tempting to opt for the travel protection plan the cruise line or tour operator offers, it’s essential to consider whose best interests they truly serve. In the event of trip cancellation, some plans may only offer travel credits for future bookings rather than providing cash reimbursements. It’s important to note that supplier insurance typically does not cover any arrangements that are booked independently from your cruise or tour, such as flights or additional tours. A third-party plan is usually better, often providing more extensive coverage and flexible cancellation options.

What’s the Bottom line?

I firmly believe in protecting your vacations, so much so that I require all my clients to secure travel insurance or sign a waiver if they choose not to. Your travel advisor can assist you in finding the right insurance company and policy that fits your needs.

Nobody wants to think about something going wrong while on a trip, but accidents and emergencies can occur. Comprehensive travel insurance for your next trip is essential – it’s more affordable than you might think. Isn’t protecting your dream vacation worth the minimal cost of travel insurance? Your peace of mind and financial well-being are undoubtedly worth the investment!