When booking a trip, one of the last things on my mind is a medical emergency or unexpected delay. After all, I'm busy packing and dreaming about sipping tiki cocktails with my toes in the warm beach sand. I've been traveling overseas for 25 years, but it wasn't until I booked a trip to country No. 41 that I learned a valuable lesson before stepping on the plane.
I booked a dream vacation to Costa Rica in 2014. A week before the trip, I became ill. I could not travel and lost the $1,300 I had prepaid for airfare and accommodations. I vowed never to travel without travel insurance again.
I'm not alone. Between 2020 and 2022, U.S. travelers spent nearly $4.27 billion on all types of travel protection. I have purchased travel insurance for every trip in the decade since I lost all my money on a vacation I didn't get to take. Thanks to travel insurance, I have traveled to 20 countries on four continents and saved $10,000-plus in expenses related to trip delays, trip interruptions, and medical expenses. Here's why I always buy travel insurance.
Travel insurance is actually cheap.
When I first purchased travel insurance, I started small by paying for trip protection à la carte. When booking plane tickets or accommodations. I just checked the box at checkout to add trip protection.
After a couple of years, I traveled more, and I found it cheaper to buy an insurance policy that covered an entire trip. For example, for a nine-day cruise in December 2021, I paid $79 for Allianz Travel Insurance's OneTrip Prime. This policy covered my post-cruise accommodations and meals when my travel companion was diagnosed with COVID-19 during the cruise.
Some policies are priced according to the length and cost of the trip, and the coverage desired. According to a Forbes Advisor analysis of travel insurance rates, travel insurance costs are 4 percent to 6 percent of the trip value. For a $5,000 trip, insurance rates could range from $131 for a basic policy to $291 for a premium policy.
I travel about three to four months each year, so I buy an annual plan, which is a better value than purchasing insurance trip by trip. My current plan, Allianz's AllTrips Executive, covers $10,000 and costs $784.
It only takes a few minutes to get insured.
It takes less than 10 minutes to buy a trip policy or annual plan. You just need to provide basic information like your state and address. If you purchase travel protection for airfare or accommodations, you click the box to add trip protection when checking out. Within minutes, you receive an email outlining the policy details for each person traveling.
I'm protected before my trip starts.
Once I purchase my insurance, I'm covered even before I pack my bags. Last fall, I planned a cruise but had to cancel due to illness. While getting reimbursed for my $1,224 nonrefundable cruise fare will take a few weeks, I don't have to stress about losing my travel investment.
I'm protected from exorbitant and unforeseen healthcare expenses.
If you get injured or sick while traveling, the price of medical treatment and getting back home can add up quickly. Most U.S. health insurance plans, including Medicare, usually do not cover your medical expenses on cruise ships or overseas.
I've been on more than 25 cruises; at least five of them had medical emergencies that required the evacuation of passengers from each ship, which can wind up being at least $20,000 for transport from the Caribbean to Florida. This is just for transportation and doesn't include the cost of medical care and returning home. According to the Federal Reserve's Survey of Consumer Finances, this conservative estimate exceeds the median amount of money that most U.S. bank account holders have saved up, which is $8,000. I definitely wouldn't be able to pay out of pocket for a medevac service, and thankfully, with travel insurance, I likely don't have to worry about this.
Insurance allows me to extend my trip if something goes wrong.
During a trip to Singapore last year, I caught a severe cold and developed an ear infection, so I couldn't fly home on my planned departure date. My travel insurance covered my urgent care bills, my visit to an ENT doctor, and my prescription medication. It also covered additional nights at the hotel, flight change fees, meals, toiletries, and clothing.
My expenses are usually reimbursed if there is a travel delay.
In August 2021, I attended a wedding in Denver and purchased Allianz Trip Protector Insurance through JetBlue when purchasing my plane ticket. The insurance price was $33.28, and my plane ticket was $493.10. When my return flight was canceled due to Hurricane Henri, I stayed in Denver for three extra nights and incurred $1,284.97 in expenses. Allianz paid $1,189.65.
This was my first time filing a travel insurance claim. It was straightforward and covered hotel, meals, toiletries and clothing.
I can get help while on the road.
Whether I need to find the details of the nearest hospital or pharmacy or make arrangements to get my travel companion or myself home, help is just a phone call or a few clicks away.
Filing a claim is quick, and you can start the process on your trip.
When I need to file a claim, I typically contact the insurance company while traveling and then follow up with receipts and documentation when I get home. While gathering documentation, including tickets, receipts, and proof of travel interruption or delay, can be tedious, the actual claims process is easy.
Filing a claim involves completing an online form and uploading the documentation as attachments. If I know I need to file a claim, I either get an envelope and put all the receipts in it, or I photograph all the documents and receipts as I receive them, keeping all the originals in a safe place.
The policies do pay—and you will get your money back.
Out of the dozens of trips I've taken in the last decade, I've had to file two claims for weather-related delays, two for travel delays or interruptions caused by my traveling companions' illnesses, and two for my own illnesses.
Sometimes, I think about the $784 I spent on travel insurance this year and how I could have gone on a nice trip with that money. Then, I remind myself: you never know what might happen during your travels. I'd rather purchase travel insurance and never need it than lose money again or risk a financial disaster that could prevent me from traveling for years.