Buzz
While planning a vacation, organizing activities and selecting restaurants for each evening can be an exciting part of the journey, there's another crucial yet often less enjoyable task: deciding whether to buy travel insurance.
The dilemma of whether or not to purchase travel insurance is a timeless question that remains unanswered, always leaving room for uncertainty and complexity.
In a recent report, Democratic Senator Edward J. Markey (Mass.) revealed that airlines and online travel agencies might be misleading travelers into buying policies that don't actually provide the coverage they're supposed to. The report highlights that these companies earn undisclosed commissions on every policy sold, sometimes adding up to 7.5 percent to the cost of a flight.
According to the Washington Post, here's how airlines and booking websites are being deceptive:
The report also highlights that United Airlines offers a policy to cover electronic devices such as laptops, but it only reimburses $500 for the first lost bag, $250 for additional bags, and up to $500 total for all items. Furthermore, the policy requires the original receipt for reimbursement if an item worth over $150 is lost. The report also points out that some policies make it difficult to file a successful claim if a flight is canceled or delayed due to illness or injury. One traveler filed a complaint with the Better Business Bureau after purchasing a $65 policy for a Puerto Rico trip that was canceled due to hurricanes, and the policy paid out nothing.
This is not ideal. Experts suggest that niche coverage, such as policies for lost luggage, is often not worth the cost. As Sen. Markey's report indicates, these businesses rarely pay out or make it extremely difficult to receive compensation. Additionally, if you're only traveling short distances, like from New York to Michigan, insurance may not be necessary.
However, if you're traveling with valuable items, it could make sense to purchase a policy specifically for lost or damaged goods, as Phil Sylvester, chief content officer at World Nomads, explains to U.S. News:
For trips involving tech equipment, Sylvester recommends ensuring that the policy covers the value of your gear, both in terms of maximum and minimum amounts. He also advises paying close attention to policy wording, as insurance providers may define benefits differently, and urges travelers to reach out for clarification if the terms are unclear.
You can use a site like InsureMyTrip to compare different policies.
It’s a good idea to consider travel insurance if you're heading to a remote destination, engaging in high-risk activities, visiting an area vulnerable to hurricanes during peak season, or spending a large sum on your trip. If you're traveling internationally, don't forget to look into medical coverage. Opt for a comprehensive plan that covers cancellations, delays, lost baggage, emergency evacuations, and health issues. Typically, expect to spend around $165, though it varies depending on your trip's cost.
Before you travel abroad, review your insurance policy to ensure it covers everything you may need. Call your provider and confirm whether the activities you plan to do will be covered in case something goes wrong. And as we mentioned earlier:
Keep your insurance card with you at all times in your wallet.
Carry a list of any medications you are currently taking.
Ensure you have an ample supply of your medications. You might be able to ask your doctor for a “vacation override” to pick up your prescription early.
Be sure to understand what your insurance covers and verify if there are any in-network facilities at your travel destination.
Check if your doctor offers telehealth services, such as a video consultation.
You may also have some coverage through your credit card, especially if it's a travel card with an annual fee. However, be sure to review the fine print.
For instance, the Chase Sapphire Preferred offers up to $10,000 in reimbursement “if your trip is canceled or shortened due to sickness, severe weather, or other covered events,” along with trip delay reimbursement of up to $500 per ticket “if your common carrier travel is delayed by over 12 hours or requires an overnight stay.” Citi also provides cancellation protection.
Review the fine print of all your policies and consider your trip details. If you’re just flying in or taking a road trip around the U.S., insurance may not be necessary. But if you're planning an international trip or an expensive getaway, it’s worth investing in coverage.
