Travel Insurance: Is It Worth It? What You Need to Know Before Your Next Trip
Why Travel Insurance Matters
One of the first things that pops up when you Google "travel insurance" is "Is travel insurance a scam?" The truth is, it may feel unnecessary . . . until you need it. Travel insurance is a complete waste of money until something unexpected happens before or during your trip and then you are oh so glad you purchased it.
If you're planning a vacation, here are key factors to consider when purchasing travel insurance.
Purchase Travel Insurance Early for Maximum Benefits
Most travel insurance companies follow the 14-day rule, policies purchased within 14 days of your first trip deposit often include coverage for pre-existing conditions. Waiting too long to buy a policy could mean losing out on critical coverage.
Understanding Pre-Existing Conditions Coverage
Even if you are in perfect health, pre-existing conditions coverage can apply to family members who are not traveling with you. For example, if a close relative has been ill and their condition worsens before your trip, forcing you to cancel, your insurance policy may reimburse you but only if pre-existing conditions are covered.
Always Read the Fine Print
Travel insurance policies can be 30+ pages long, detailing definitions, benefits, and exclusions. Since policies vary, take advantage of the 15-day free look period (offered by many insurers) to review the details and ask an agent any questions. You can likely get a refund in that window without penalty.
Key Exclusions to Watch For
If you're an adventurous traveler, pay close attention to activity exclusions. Many policies cover standard skiing but may exclude off-piste skiing, scuba diving beyond certain depths, or extreme sports. Some insurers offer a Adventure Sports Bundle - a cost-effective add-on for activities like skiing, mountain climbing, or bungee jumping. This is an inexpensive addition that may come in very handy if you need search and rescue services also.
Another common exclusion? Loss of belongings due to intoxication. If you're over the legal limit when you lose something, your claim might be denied.
Compare Plan Options Carefully
When getting a quote, you’ll typically see plan tiers like Essential, Preferred, and Deluxe. Each tier offers increasing coverage, so consider factors like:
Trip cost & destination: Can you afford to lose your investment if you need to cancel?
Medical coverage: Is $15,000 enough for a medical emergency abroad?
Medical evacuation & rental car coverage: Some policies offer these as add-ons.
Should You Get an Annual Travel Insurance Plan?
If you travel frequently, an annual travel insurance policy may be a cost-effective solution. Some key features of annual travel insurance are that emergency medical coverage is provided on a per-person, per-trip basis. So, if you are unlucky enough to have medical emergencies on two different trips during the year, they would both be covered by your annual insurance policy. Another benefit is that pre-existing conditions are covered for the year. Also, if you are older than 65, the cost of annual insurance is not affected by your age like single trip insurance is. Additionally, your annual insurance policy can include rental car coverage. One notable limitation of annual insurance is that many have a limit on coverage for cancellations. There is often a maximum dollar limit per policy year. Ultimately, annual travel insurance is worth exploring if you plan to go on more than 2 trips in a year. The annual executive plan is a great option for people who travel often for business. Reach out to me to compare prices of single trip insurance vs. annual travel insurance.
Is Travel Insurance Worth It?
Before deciding, ask yourself:
How much money am I willing to lose if I have to cancel my trip?
What would I do if I had a medical emergency overseas?
Life is unpredictable, and travel insurance provides peace of mind. If you’re planning a trip, use the quote link below to compare different plan costs and find the right policy for you.
Get an Allianz Insurance Quote
