- Travel insurance can be complicated, but it’s worth it if you have travel expenses that insurance would cover.
- You may not need travel insurance if you’re going on a self-drive holiday and staying somewhere where accommodation is free.
- If you are leaving the country, you will probably need travel insurance.
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If you’re planning on traveling anywhere this summer, you’re probably thinking about getting travel insurance.
Kingsley Hopkins, meanwhile, is traveling to Portugal and Iceland with his girlfriend and wants to make sure he’s covered in the event of a medical emergency, trip interruption or volcanic eruption, he said.
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But getting the right travel insurance can be tricky. There’s no one-size-fits-all policy, and Hopkins, an associate editor at a book publishing house in New York, spent a lot of time thinking about how to protect his summer vacation.
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Chances are you do too.
Why Finding the Right Travel Insurance is So Hard
Most polls suggest this summer will be a record for travel. How much of a record will it be? Demand is so high that some airlines fear they will run out of planes. It is busy.
At the same time, danger and uncertainty lurk everywhere: wars in Europe and the Middle East, natural disasters like hurricanes, and maybe a volcano or two. It’s no wonder people are thinking seriously about insurance.
Older travelers are especially concerned. And they are right, said PK Rao, CEO of INF Visitor Care. Complaints from travelers over 50 increase during the summer months.
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“According to our claims data, medical emergencies tend to increase during the summer, especially for those traveling and participating in outdoor activities,” he said.
But there are many choices, including credit card coverage, medical evacuation membership programs, and stand-alone travel insurance. Which should you buy?
You need peace of mind
But don’t start buying travel insurance as a reflex this summer. Instead, seek peace of mind, knowing that if something goes wrong, you’ll be taken care of.
“Knowing you’re protected against unexpected travel incidents – like delays, lost baggage and even medical emergencies – can make traveling much more enjoyable,” said Daniel Durazo, spokesperson for Allianz Partners USA.
There are several ways to get the peace of mind you need. And there are times when you can safely do without travel insurance.
This is when you don’t need insurance
Here are the times when you can avoid buying travel insurance, according to experts:
- If you already have coverage. “You may already have travel coverage through your benefits at work, your credit card, or group benefits through an organization,” said Jiten Puri, CEO of PolicyAdvisor.com. If so, there’s no need to purchase additional coverage. You’re all set.
- If you are not traveling far. If you’re going on a car vacation and staying somewhere that offers free accommodations, like a relative’s couch, there’s not much to insure. “If you already have health insurance, it can cover you for domestic travel, so you don’t need to think about health insurance coverage,” said Joe Cronin, CEO of International Citizens Insurance.
- If your trip is not insurable. Traditional travel insurance covers conventional trips with prepaid, non-refundable items like airfare and hotel stays. You may already be covered by your medical insurance or the trip may not be insurable.
So think carefully before saying “yes” to optional travel insurance that your online travel agency may offer you when booking a trip. You may not need it.
Here’s When You Need Travel Insurance
But most travelers should consider purchasing travel insurance this summer. Here are some times when you need extra coverage:
- If you have travel expenses, the insurance will cover these costs. “If you have a lot of prepaid, nonrefundable expenses, it’s a good idea to get travel insurance,” said Lauren Gumport, a spokesperson for Faye Travel Insurance. “That includes things like flights, hotel rooms, tickets and activities.” The more conventional your vacation, the more likely travel insurance will cover almost every aspect of your summer vacation.
- If you leave the country. “Your regular medical insurance may not cover your country’s borders,” said John Rose, ALTOUR’s chief risk and security officer. Additionally, many countries require travel insurance to enter their territory. These include Bermuda, Qatar, Sri Lanka and some European countries.
- If you can’t afford to lose your trip. “When considering travel insurance for your summer trip, evaluate whether you can afford to lose your vacation investment due to unforeseen circumstances such as illness, weather disruptions or emergencies,” says Robert Gallagher, president of the U.S. Travel Insurance Association (USTIA). “Can you afford the financial risk if you miss your cruise departure due to covered flight delays? What if you have to cut your trip short due to illness?”
One of the most common mistakes travelers make is assuming their credit card will cover them. For example, I discovered that my credit card only covered my rental car as a secondary insurance policy, making it completely useless when I rented a car in Tampa recently. I had to purchase a standalone policy from Allianz to cover the vehicle.
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How One Traveler Secured His Summer Vacation
So how did Hopkins handle his travel insurance needs? As I mentioned, it’s complicated.
Hopkins said he always buys travel insurance before he goes on a trip, “but the amount and what I cover varies,” he explained.
He decided that for peace of mind, he needed to spend a few extra dollars: He made fully refundable flight and hotel reservations, just in case something went wrong. That would save him a lengthy claim with his travel insurance company or credit card.
But he still needed at least $50,000 in medical coverage with emergency evacuation because of his busy schedule.
“We’re going to do a lot of hiking in Iceland,” he said. “And you never know.”
Earlier this year, he decided to buy an annual Medjet Horizon package, a subscription that would allow him to travel from a hospital in Portugal or Iceland to a hospital at home, in case something happened.
To be sure, Hopkins went to TravelInsurance.com to find an affordable travel insurance policy. He found coverage from Trawick International that covers up to $50,000 in medical expenses and up to $200,000 in evacuation expenses.
“I’ve heard good things about them,” he said. “I hope we don’t need them anymore.”
How can I insure my trips?
I’m on the road about 360 days a year, so I’m always thinking about peace of mind. I currently use a Wells Fargo credit card with lots of travel benefits, and I have long-term insurance policies through Faye and Cigna, which work pretty well. I’m also a long-time member of Medjet Horizon. If I rent a car, I turn to Allianz for my primary coverage.
I know, it’s a plot peace of mind.
But I’ve also had challenges and had to use many of these benefits. Medjet got me home during the pandemic. Cigna covered me after a serious skiing accident in Switzerland. My old Allianz policy covered my medical expenses when I had to see a doctor in Santa Fe, New Mexico, a few years ago.
As I always say, when it comes to having enough insurance, prevention is better than cure.
Christopher Elliott is an author, consumer advocate, and journalist. He founded Elliott Advocacy, a nonprofit organization that helps solve consumer problems. He publishes Elliott Confidential, a travel newsletter, and Elliott Report, a customer service news site. If you need help with a consumer problem, you can contact him here or email him at chris@elliott.org.
