DO WE REALLY NEED TRIP INSURANCE?

I am frequently asked this question, as clients are planning their vacations. Since it increases the total trip cost by as much as ten percent, it might seem like an expense that you could eliminate. If I were not already a firm believer in travel insurance, an experience three years ago would definitely convince me.

We were in Seville, Spain for a travel conference and about to fly to Paris to get on a barge cruise, when nearly all the flights in Europe were grounded due to large amounts of volcanic ash from Iceland blocking the airways. We only got as far as Madrid before the chaos of European travelers trying to get home after spring break trapped us. After many wasted hours of standing in lines to try to get on trains or buses going to France, we had to admit defeat.

It was a week before we were able to fly home from Madrid. Our barge trip was non-refundable, our Madrid hotel was an additional trip interruption expense, and the long distance calls back to the States to arrange a new return flight from Madrid amounted to several hundred dollars. We were extremely relieved when our travel insurance covered these expenses and reimbursed us for over $8000 of non-refundable costs.

So what does trip insurance actually cover? A good policy will reimburse you for all of the insured non-refundable costs of your vacation, if you have to cancel for illness or other covered reason. It will also pay a specified amount, depending on the policy, for trip delays or emergencies that require you to interrupt your trip.

While on your vacation, travel insurance provides you with primary medical coverage for any illnesses or accidents. Although most people have health insurance within the country, anyone insured under Medicare does not have coverage when traveling outside the country. Insurance could save you a great deal of money, if you needed to be hospitalized in a foreign country, and also guarantees that you will receive immediate treatment.

The question then becomes, can you really afford not to have trip insurance when you are traveling outside the country?

What would your answer be?