Why you should or probably shouldn't buy travel insurance: What you need to know

Why you should or probably shouldn't buy travel insurance: What you need to know

You’ve booked your flight, packed your bags, and printed your boarding pass. But wait — do you really need travel insurance?

We all look forward to vacations, whether they’re relaxing beach getaways or action-packed adventures. But before you get too excited, there’s one question that’s often overlooked: do you need travel insurance? Some people swear by it, while others consider it an unnecessary expense. In this post, we’ll break down the facts, address common myths, and share real-life examples to help you decide if travel insurance is worth it.

I.Is Travel Insurance Really Necessary?

Let’s cut to the chase: Do you really need travel insurance, or is it just another way for companies to get your money?

Travel insurance covers unexpected situations like trip cancellations, medical emergencies, lost luggage, and flight delays. If you’re going abroad or spending a lot of money on your trip,it can be a lifesaver. For example, a cancelled flight, a missed connection, or even a medical emergency abroad could cost you a lot without insurance.

Real-life example: Greg had his dream trip to Italy booked for months, but just days before departure, he got sick and had to cancel. Without insurance, he would’ve lost the $3,000 he’d already spent. Thankfully, he had insurance,and it covered the full cost of his trip.

But, if you’re going on a short getaway or you’ve booked flexible flights, insurance might not be necessary. The key is knowing what’s covered and whether it’s worth the cost.

II. The “I’m Young and Healthy” Myth

Many people think, “I’m young and healthy, so I don’t need travel insurance.” While it’s true that younger travelers tend to have fewer health issues, health isn’t the only thing you should worry about. Travel insurance also covers things like trip cancellations, lost luggage, and flight delays—all of which can happen to anyone.

Emma,a 25-year-old solo traveler, decided not to buy travel insurance and opted to backpack through Europe. Two days into her trip, her luggage was lost. Without insurance, she had to pay out of pocket for new clothes, toiletries and gear.

Even if you’re fit and healthy, unexpected things like natural disasters, political unrest, or even flight delays can throw a wrench in your plans. If you don’t have insurance, it could cost you a lot more than the price of the policy.

III.Cancel for Any Reason (CFAR) Insurance: Is It Worth It?

Now let's talk about Cancel for Any Reason (CFAR) insurance. This is an add-on option that allows you to cancel your trip for almost any reason, not just the typical reasons like illness or family emergencies. Sounds like a dream,right? But is it worth the extra cost?

CFAR insurance can be expensive, often adding 40% or more to your basic travel insurance. While it sounds like a safety net, it only refunds a portion of your trip costs—usually between 50% and 75%. In addition, you usually need to cancel at least 48 hours before departure.

Real-life example: Sarah and John booked a luxury vacation to Bali, but had to cancel due to a family emergency. Thanks to CFAR coverage, they got back a portion of their costs, which helped ease the financial blow. However, they still had to absorb some expenses.

For many, CFAR insurance might be overkill, especially for more flexible trips. But if you're booking a non-refundable vacation with a lot of uncertainty, it could be worth considering.

IV.How Much Does Travel Insurance Actually Cost?

How much should you expect to pay for travel insurance? On average, it’ll cost about 4-10% of your total trip cost. For a $2,000 trip, that means anywhere between $80 and $200 for basic coverage. If you’re looking for a more comprehensive plan, including CFAR or coverage for activities like scuba diving, the price will go up.

In 2024, the cost of travel insurance increased by 10% due to rising medical costs and flight delays.But it’s still a smart idea to factor this into your trip budget, especially if your destination presents any extra risks.

So Compare multiple insurance providers and policies before committing. Look for plans that match your needs—like emergency medical coverage, trip cancellations, and lost baggage.

V.When Is Travel Insurance Worth It?

Now that you know the basics, when should you actually buy travel insurance?

Here’s when you might want to get it:

1：You’re traveling internationally or to a destination where medical care could be expensive.

2：You’ve booked non-refundable flights, hotels, or tours.

3：You’re going on a long journey with tight flight connections or uncertain weather.

Here’s when you might skip it:

1：You’re going on a short, domestic trip with refundable bookings.

2：You can afford to absorb the cost of a cancelled trip or emergency.

3：Your credit card already offers travel protection for some things.

VI.Travel Insurance Summary

So is travel insurance a necessity or just extra baggage? The bottom line is, in some cases, travel insurance can be a lifesaver.ons, but it’s not always necessary. The key is assessing the risks involved in your trip, considering potential costs, and knowing what you’re comfortable with.

If you’re traveling to a high-risk destination, have expensive non-refundable bookings, or just want peace of mind, travel insurance might be worth the investment. But if you’re going on a quick trip with flexible plans, you might decide to skip it and save your cash.

Remember, whether or not you buy insurance, make sure to pack your sunscreen, your charger, and a good attitude—because sometimes, the unexpected is part of the adventure!