The Top 10 Reasons to Buy Travel Insurance
There are many reasons to buy travel insurance, but the type of financial risk you are taking with the investment is a common factor.
Before shedding out the cash for the coverage, examine your health, homeowners or renters insurance policy, as well as your credit card coverage, to determine if the extra expense is warranted.
Poor Health
If your health is poor, a travel insurance policy may be a wise decision, especially if you are traveling on an extended vacation or to a country with limited health care services. Pre-existing conditions may cost you more than a typical travel insurance policy, depending on the length of the trip, your age and the health issue.
Affordability
A typical travel insurance plan costs roughly 4 to 6 percent of your total vacation cost, according to the website Travel and Leisure. If you can afford the peace of mind, the expense may be worth your while, particularly if you are investing a great deal of money on a once-in-a-lifetime vacation. Some credit card companies even offer an annual fee to cover any trips taken during the year.
Hurricane Season Trips
Whether you’re taking a cruise or a flight, you may want to consider insurance if you are traveling in the midst of hurricane season. However, you are only covered for a hurricane-related cancellation if the storm is named after you purchased your policy.
Uninsured Travelers
Travelers without health care, homeowners, renters and even credit-card related insurance should consider buying travel insurance for added peace of mind. If you are already insured, check the fine print of each insurance policy to determine your travel coverage.
Medicare Recipients
Medicare health insurance recipients should consider travel insurance because they are not covered for medical problems while travelling outside of the United States. However, most Medigap plans will cover you.
Expensive Luggage
Most travel insurance companies offer an a la carte option for luggage-related problems only, which may be a good idea if you invested a great deal of money in a luggage set, or if you’ve packed expensive equipment such as golf clubs, scuba equipment or your favorite surfboard.
No-Cancellation Policy
If your hotel or rental car has a no-cancellation policy, travel insurance will cover your lost expenses if you need to cancel unexpectedly. Some companies will even charge you a cancellation fee on top of the room or car charges, which can be recouped with your travel insurance.
Extreme Vacations
The more risk you assume on your travel, the more likely an insurance policy may help you. For example, if you are making a trip to Spain to run with the bulls or skiing a remote glacier in Switzerland, travel insurance may really come in handy.
Job-Related Unpredictability
If your job is unpredictable, travel insurance with a cancel-for-any-reason or job-loss policy will automatically refund your trip if you lose your job or have an unexpected work-related scheduling conflict.
Fear of Flying
Nervous travelers may want to pick up a “cancel-for-any-reason” policy if they have changed their minds in the past about travel. While a no-questions-asked cancellation policy costs more, you won’t be out any money if you change your mind at the last minute.
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