If you are a regular traveller, there is a high chance you know the importance of travel insurance. But is it worth it? In fact, if you haven’t considered it yet, insurance brands must have targeted you with ads, convincing you to sign up for one.
Thus, you wonder if it is worth undertaking one. This is particularly worth contemplating, considering that you already have insurance policies covering everything from your automobile to health and your life.
In this article, we examine travel insurance and whether it is something you should shell out your funds for.
What Travel Insurance Means
Travel Insurance typically provides financial cover for unforeseen incidents that may occur while travelling, both locally and internationally. When you embark on any journey, there are chances that circumstances may materialize that you did not plan for beforehand.
Unfortunately, these events may have negative implications for your finances in most cases. But you don’t have to fret, as a travel insurance policy will provide the necessary buffer to the impact of those happenings.
Types of Travel Insurance
There are several forms of travel insurance packages sold by insurance firms, so it becomes difficult to put them under a category. However, we will simplify things for you by classifying them into two:
- Trip Cancellation and Interruption Insurance
Having to cancel an already booked trip due to unplanned developments is a familiar experience for most people. However, when this happens, the chances of getting a refund from the airline are slim. This is where your insurance company can step in.
Similarly, issues might arise necessitating that you discontinue a trip that you have already embarked upon. This will also have financial implications as the hotels, airlines, and other brands you’ve pre-booked will find it difficult to issue a refund. Again, the travel insurance provides respite here.
Other scenarios covered here include lost packages during travel.
- Comprehensive Travel Insurance
Comprehensive travel insurance includes all the above in addition to medical emergencies, evacuations, disability, family emergencies, loss of income, personal liability, accidental deaths and more resulting from a trip.
It is important that you note that the specific items covered in a comprehensive travel insurance policy will differ based on the insurance provider.
Is Travel Insurance Worth It?
Whether you need travel insurance will depend on your preferences and what you prioritize. For example, are you a long-distance traveller? Do you want your medical expenses catered for during your trips?
In this section, we discuss instances where travel insurance may not be necessary and scenarios in which they are essential.
When You Should Not Consider Taking up Travel Insurance
Taking up travel insurance may not be necessary for specific instances, especially:
- If you are travelling locally within your country
If your travels are limited to your home country, travel insurance may not be a priority. First, local trips are usually less expensive, and cancellations and other unforeseen circumstances wouldn’t cost you dearly.
Then, other insurance types, such as medical and third-party insurance that you might have signed up for, will suffice when unplanned developments arise.
- When taking a flight
Most airlines offer refunds whenever you miss flights, effectively eliminating the need for you to take on a travel insurance policy to get financial compensation.
- If you can get some of the offerings elsewhere
Getting some of the benefits offered by travel insurance through other means should make you reconsider signing up for one. For instance, your credit card may offer refunds for travel interruptions or cancellations and baggage protection.
When you should Consider Travel Insurance
Travel insurance offers broad financial buffers against events that may occur during travels. Outlined below are reasons why you should consider a travel health insurance package and the benefits you get to derive thereof:
- Medical Emergencies
Suppose there is a singular factor that should warrant your taking up a travel insurance policy. In that case, it is protection against incidental medical complications. Enrolling in a medical insurance cover is quite essential, especially if you frequently embark on international travels.
Although they are never planned, medical complications often arise, some of which may require more complicated medical procedures such as emergency surgery or evacuations. Medical costs without insurance cover in several countries like Canada can be exorbitant. As a result, paying out of your pocket can severely harm your finances. However, a travel insurance contract with medical coverage can fix this.
- Protection During Travel Interruptions/Delays
When preparing for your trip, it is customary to plan your travel finances beforehand. However, events do materialize to interrupt or delay your travel, thereby derailing your financial plans.
For instance, government regulations in the country you’re visiting may warrant that you undergo quarantine due to the COVID-19 pandemic. Similarly, flights can get cancelled for considerable periods. Unfortunately, you might not have factored this in your financial preparations for the journey. A travel insurance agreement can provide the necessary cover in instances such as these.
- Personal Property
A respectable number of travel insurance packages provide cover for the valuables you take on a trip. As such, in the case of theft or losses that were not due to negligence, you should get a replacement from the insurance firm.
All you need to do is specify the items such as a camera, laptop, and expensive clothing before embarking on the trip.
- Personal Liability
While you absolutely do not plan for such, it does happen that you become unwittingly responsible for the damage of another person’s property during the trip. Sadly, legal and financial liabilities may ensue as a result of this.
Your insurance package may cover these instances, relieving you of the financial setbacks that would have emerged.
Some Points to Note When Pursuing Travel Insurance
You must pay attention to some details when undertaking a travel insurance package. These include:
- Go for providers with a wide range of offerings
You can’t envisage all the possible unfriendly scenarios before a trip. This is why you should go for a package that offers comprehensive cover. Most importantly, ensure that there is a buffer for medical emergencies and personal liability as they can have a significant strain on your finances.
- Read the fine print
Don’t make assumptions as to what your insurance firm provides. Instead, read the policy to know what covers to expect to avoid getting stranded.
- Shop around for the best offers
Conduct ample research to get as many offerings as possible before making a final choice. Ensure your provider has got positive reviews and offers the best services regarding responsiveness, customer service and compensations.
Before enrolling for it, it is important to ask if travel insurance is worth it since it involves considerable financial repercussions. Some instances may justify you not taking on travel insurance, while other circumstances may make travel insurance indispensable. In the end, what factors more is the kind of trip you plan to make.
Should you decide to sign up for one, ensure that you’re aware of the important points to note; and travel insurance experts at Insurance Direct Canada can help give you personalized advice and quotes that meet your criteria.
Check out our reviews on top insurance companies for further reference: ivari review, Sun Life review, Foresters Financial review, National Bank Insurance review.