Is travel Insurance worth it

Is travel Insurance worth it

Although the odds that a natural disaster or medical emergency are going to damper on your vacation, some travellers prefer to be insured just in case, so they can have some peace of mind. The two main types of travel insurance are international and domestic.

Those who never travel with insurance will tell you: “Oh it doesn't matter if you lose your bags, just travel light with stuff you can afford to replace” or “Medical bills in South East Asia are pretty cheap if you get need to get over Bali belly” or “Travel insurance companies will just tell you the horror stories to get you to buy insurance”.

The last one is probably true. “We absolutely want you to know we've had to deal with thousands of emergencies and evacuations over the years. We want you to know that without travel insurance, an emergency evacuation can cost in excess of USD$100,000”

Although in most cases you won't experience the nightmare of being serious ill or injured in a foreign country, in the rare case it happens it can really hurt you financially. The last thing you want is not having the support or financial means by which to get treated and flown home. In the event of that happening, travel insurance is worth it. It protects your life and your pocket.

If you think of travel insurance, it is actually a legal contract that describes what it covers. There are 5 key parts of travel insurance.

First of all, there is medical emergencies and evacuation. This is the main reason to buy travel insurance. For instance, hospital costs in the USA can approach 10,000 per day, while emergency transport home for treatment can exceed $100,000. Read this details on the contract carefully, particularly the areas of cover for emergency evacuation, limits on medical expenses and cover for emergency dental work. Also note the general exclusions.

The trip cancellation covers you for costs if by chance you can't go on your trip for some unforeseen reason such as illness, accident or a death of a close relative. So you obviously don't need this cover if you are booking your trip one week before since the chances that something might happen are minimal. Also, read the description of coverage relevant to you since not all travel insurance plans cover cancellation.

Another section that your travel insurance covers is baggage and personal belongings. While most people buy travel insurance to be covered for the loss of personal belongings in particular, this is actually the least important. Most things can be replaced, but that's not the case with your health. Even though you might insure your belongings, if it gets stolen, the coverage might be denied if you didn't look after it. For instance, any irresponsible care of your camera like leaving it in a shared room at a hostel, or in your car overnight and it's stolen, they won't reimburse you. You can specify the valuables you carry to cover them, including laptops. As a contract, check carefully for the limits on this cover and exclusions, especially when it comes to cash, high value items and sporting equipment.

Insurance might cover your personal liability if you accidentally cause damage and are accountable for it. Insurance can cover your liability and legal expenses. But not always so you need to check.

Coming home early and resuming your trip. You need to check this part also, because if you cut your trip short, you might not be entitled to a refund, even if the trip was for one month and you went paid for 12.