Many travelers don’t even think to buy travel insurance at all. Others think it’s an unnecessary expense, unless they’re taking an expensive trip to a foreign country. However, most travel insurance policies have been built to provide comprehensive coverage, and offer a variety of benefits that can be useful for travelers taking all sorts of trip types.
Squaremouth insures hundreds of thousands of travelers each year, helping every traveler find the best policy for their trip for the lowest possible price. Based on our experience speaking with customers and our travel insurance expertise, there are four primary reasons travelers buy travel insurance.
The Four Main Reasons Travelers Buy Travel Insurance
So you don’t lose the money invested in a trip
The main reason most travelers buy travel insurance is for the Trip Cancellation benefits. Trip Cancellation-style travel insurance policies can refund your prepaid and non-refundable trip expenses if you are unable to travel due to a covered reason, such as an illness or injury, inclement weather, or a terrorist attack, among others. Policies with Trip Cancellation typically cost between 5% and 10% of your total trip cost, but can reimburse 100% if you need to cancel.
In addition to Trip Cancellation coverage, these policies also include Trip Interruption benefits. Trip Interruption provides the same coverage as Trip Cancellation, however coverage begins after you have left home for your trip. If you need to cut your trip short, you can be refunded for all unused portions of your trip, as well as the additional transportation expenses you incur to return home.
So you aren’t stuck paying high medical bills in the event of an emergency
Most primary health insurance policies either don’t offer overseas coverage, or if they do, the coverage is limited. Travel insurance policies, on the other hand, can provide coverage in multiple destinations worldwide. Most policies include two medical benefits: Emergency Medical and Medical Evacuation.
Emergency Medical can reimburse the expenses you incur if you get sick or injured during your trip, such as the services of a physician, ambulance services, hospital fees, and more. Medical Evacuation is designed to arrange and cover your transportation to the nearest adequate hospital in the event of a medical emergency.
In case your trip is delayed and you need a place to stay
In addition to cancellation and medical benefits, travel insurance policies typically include benefits for travel delays. If your trip is delayed by at least 3-12 hours, the Travel Delay benefit can cover the cost of meals and accommodations during the delay. If the delay also causes you to miss a portion of your trip or cruise, the Missed Connection benefit can catch you up to your itinerary.
In case your luggage is damaged or lost
Travel insurance policies also have built-in benefits in case something happens to your luggage during your trip. This includes coverage to purchase new clothes, toiletries and other essential items if your luggage is delayed, as well as reimbursement for items that are damaged or lost outright.