Many people question the need for travel protection / travel insurance. Here are some of the reasons that some people use to refuse purchasing this highly recommended option.
I don’t need travel insurance. We don’t plan to cancel our trip.
No one ever plans to cancel a trip. We can’t predict the unforeseen, and the insurance will help cover certain unexpected events. I have had clients that purchased a Mediterranean Cruise with four nights pre cruise in Rome. She needed emergency surgery just a few weeks prior to departure. They were in the 100% penalty phase which means they would have lost everything except the prepaid gratuities and the taxes and fees. Luckily they had purchased travel protection so they were covered. I also had clients that were on a bucket list trip to Ireland and Scotland. She ended up with a blood clot while in Ireland and couldn’t fly for four weeks. They had travel protection and I was able to get them on a ferry, a train, a Transatlantic cruise and a train to their home.
We’re going no matter what.
You may assume you will travel no matter the circumstances, but if there is a sudden death of a close family member or you have an unexpected illness or injury, you will unlikely be able to make the trip. It is important to remember that life events may happen that could impact your ability to take the planned trip. There are also events that could occur outside of your control that could affect your trip, such as a hurricane or the cruise line or travel supplier going bankrupt before your scheduled trip. It doesn’t matter how much you want to go – if the ship doesn’t show up, you aren’t going.
My primary health insurance will cover me.
Many travelers don’t realize that domestic health insurance may not cover you while abroad. Some insurance plans may not even cover if they are in the U.S., but out of network. Third party single trip plans offer primary medical coverage while on their trip, which will help cover emergency medical expenses.
I don’t have any pre-existing conditions, so I don’t need the waiver.
The pre-existing condition exclusion waiver (pre-ex waiver) applies to non-traveling family members as well. Not everyone shares health updates with their parents, siblings and other family members every time they visit a doctor or have a change in their medication. Without the pre-ex waiver in place, an illness of a non-traveling family member may not be covered for Trip Cancellation if it is determined to be a pre-existing condition which is typically excluded under the policy. *Remember, the pre-ex waiver is only available when purchased within 14 or 21 days of initial deposit depending on the plan you choose.
I have coverage through my credit card.
Benefits offered by credit card companies are generally not as broad and vary amongst credit card companies. Often credit card coverage only applies to the cardholder, not to family members or even authorized users. Some may even deny coverage if the entire trip was not booked with the card, while others may only offer assistance without reimbursement for missed services or out of pocket expenses. Locate the insurance policy for your credit card and compare it to third party coverage. Often, the two don’t compare.
I want to use supplier coverage.
There can be benefits to supplier coverage – the premium is often lower (especially if you are older) and sometimes the supplier includes a Cancel for Any Reason benefit for either a credit or money back. However, the benefits in supplier coverage are often reduced and medical coverage is secondary, meaning you need to submit medical expenses to your domestic health insurance first, even if you know the claim will be denied. Also, suppliers will only cover the travel arrangements booked through them and they can’t cover their own bankruptcy. If you insist on supplier coverage, I recommend pairing it with a third party On Trip plan for increased post departure benefits while on their trip. These On Trip plans are very inexpensive plans as they do not cover cancellation. You enter your trip cost as “0” to purchase an On Trip plan.
Insurance is too confusing. There are too many options.
Nine times out of ten, the third party Pro Plus plan has more than enough coverage for the average traveler. If you want Cancel for Any Reason, you can move up to the CancelFlex plan. Or, if you decide they don’t need all of the coverage the Pro Plus plan offers, you can move down to the basic Pro plan or On Trip Plus with post departure benefits.
Insurance is too expensive. I can find it cheaper online.
There are travel insurance aggregator sites that will find the cheapest insurance option available, but often you get what you pay for. You can log on to any travel site and find the cheapest flight and hotel combo, but that’s not why your using a travel agent. Travel insurance is an additional service that I offer you from a reputable company that I know and trust. If you are wary about putting out all of the insurance money up front when they haven’t even paid for your entire trip yet, you can Insure As You Go. This allows you to just insure the initial deposit you’ve paid so far and lock in those time sensitive benefits such as the pre-ex waiver, and then as you make additional payments toward the trip, you can modify your insured trip cost and make additional premium payments as well. It’s like creating a payment plan for your coverage so you are only insured for what you’ve paid.
Insurance doesn’t work.
Travel Insurance can’t cover every possible scenario. A covered event must be listed in the policy and filed claims must be supported by appropriate documentation. What is your alternative? Do you have a plan to cover unexpected medical costs while traveling? Most facilities and services will require payment up front. Are you comfortable forfeiting your total trip cost if you have to cancel while in full penalty? Insurance can’t cover everything, but without it you won’t have coverage for anything.
What Do I Suggest?
The third party company I use for my personal travel is Arch Roam Right. To auto generate option, enter your state, travel dates, deposit date and trip cost in this link.
