The cost of an international trip can rise quickly. After booking your flights and accommodation, there’s the inevitable sightseeing. Maybe a rental car. And of course meals. Add a traveling companion or family, and soon you’re talking about a serious financial commitment. Before long, you’re looking for ways to save money. Inevitably, the question arises— is travel insurance worth it? My answer to that question has changed over the years. In this article I summarize important things to know about travel insurance and list several reasons to buy trip insurance.
Travel Insurance May Be Required
Several countries require visitors to have trip insurance. Bermuda, Bhutan, Chile, Cuba, the Galápagos Islands (but not the rest of Ecuador), Iran, Jordan and Laos are among them. You’ll also need it in Myanmar, Nepal, Qatar, Saudi Arabia, Russia, Rwanda, the Seychelles, Sri Lanka, Turkey, the United Arab Emirates, and Ukraine. Even the Schengen countries— which include most of Europe— will require trip insurance if you stay more than 90 days, in which case you’ll also need a visa. Requirements change frequently, so be sure to confirm current regulations for each country you plan to visit.
Other Reasons to Buy Trip Insurance
But even if it’s not required at your destination, there may be several good reasons to buy trip insurance. For example, it’s especially worthwhile for nonrefundable airfare and lodging reservations, which are typically the most expensive parts of a trip. Nonrefundable tour bookings can also add up. With travel insurance, you’ll be reimbursed for those expenses if you’re unable to travel for a covered reason.
I think it’s also wise to have trip insurance if you plan to rent a vehicle, visit a remote or isolated location (including any island), or participate in an activity that could reasonably result in injury (e.g., water sports, hiking/climbing, ATV tours, etc.).
Rental Car Coverage
You may have international car rental coverage through your existing policy or credit card. But double check the terms and limits— you may get higher benefits from a travel insurance policy. And don’t rely exclusively on the insurance offered by the rental company without reading the fine print. My upcoming rental in the Caribbean offered insurance that covered injury and damage— except to the vehicle itself!
Medical Coverage
And even if your existing medical insurance provides coverage in other countries, the medical staff or hospital treating you may be unwilling to deal directly with an American insurance provider. (You could be expected to pay up front and seek reimbursement once you return home.) For seniors, some Medicare plans exclude foreign locales. An international travel policy with primary medical coverage can fill these gaps.
Medical Evacuation
If the necessary diagnostic equipment or treatment facilities aren’t available at your vacation destination, transportation to a suitable medical center could be extremely expensive. Think tens of thousands of dollars. That’s especially true if your condition is serious. In such instances, trip insurance with adequate medical evacuation coverage gives you peace of mind.
Extreme Sports and High-Risk Activities
Note that some travel insurance policies exclude coverage for “adventure sports”, for which each company has its own definition. Read the fine print carefully. However, an insurance provider called World Nomads does cover higher risk activities— check their website for more details.
Travel Insurance Coverage
Still not sure if travel insurance is worth it? There are a few more good reasons to insure your trip. An international travel policy typically compensates you for flight cancellations, missed connections, lost bags, and trip interruptions or cancellations (for covered reasons).
There’s even a special type of coverage called “Cancel For Any Reason” (CFAR). If purchased within a week or two of your initial travel booking, the CFAR add-on allows you to back out of the trip for virtually any reason and get 50-75% of your trip investment back.
Caveats When Buying Travel Insurance
There are a few more useful things to know about travel insurance. It’s important to compare travel insurance companies, and even the various plans offered by a single provider. They vary widely— your age, the destination, time until departure, and many other factors influence the price of the policy. And the fine print spells out what’s covered and— just as importantly— what’s not.
For example, many policies exclude medical coverage related to pre-existing conditions. And if your injury or auto mishap occurs while you’re under the influence of alcohol or other drugs, coverage is likely voided. As lengthy as it is, always read the fine print. And make sure you’re getting everything you need for the best price.
My Trip Insurance Choices
To date, I’ve bought travel insurance policies from Allianz, John Hancock, and Generali (twice). Each trip was 7-10 days long, and I paid roughly $120-160 per policy. Thankfully, I never had to file a claim, but knowing I was covered did give me peace of mind. Three of the trips were to remote islands where I rented a car. The fourth was to Iceland, where I took part in a lot of outdoor activities. (Update: I filed my first claim in May, after an airline left me stranded in Miami overnight. Here’s how it went.)
At the moment, I’m partial to Generali because of their very generous coverage for medical insurance and medical evacuation. The policies I purchased from them also included rental car coverage— I didn’t have to pay extra, as most carriers require. Generali even covered me for side trips to other nearby island nations with no additional cost.
(Disclosure: This post contains affiliate links. If you use these links to buy something, I may earn a commission at no additional cost to you.)
Travel Insurance Comparison Tools
That said, it’s always best to compare companies and individual policies. Personally, I prefer to use the comparison tool available at travelinsurance.com. Simply enter the requested details about your trip, and then look at side-by-side policy comparisons from multiple, top-rated companies. You can then do a more detailed comparison of the policies that appeal to you most.
A second, well-regarded comparison tool is squaremouth.com, but I found the policies listed there to be more expensive for similar coverage.
So Is Travel Insurance Worth It?
If you’re traveling outside the United States, I think the answer is very likely yes. Just knowing you’ll get your nonrefundable costs reimbursed in the event of a trip cancellation is good reason to buy trip insurance. (The coverage pays for itself twenty-fold or more in this instance.)
And peace of mind is priceless when traveling internationally. Knowing I’m covered for auto accidents, medical emergencies, lost bags, missed connections, and other mishaps lets me focus on having fun and dismiss the nagging “what if’s”. That alone is a great reason to buy travel insurance.
