Why You Should (or Shouldn’t) Get Travel Insurance

When planning a trip, whether it’s a quick weekend getaway or an elaborate vacation abroad, most people focus on destinations, flights, and accommodation. What often gets overlooked is an important aspect of travel—insurance. As Elad Schaffer, Co-founder and CEO of Faye Travel Insurance, notes, “If something goes wrong when you’re traveling, it can not only be incredibly stressful, it can have a monumental impact on your bank account.” This sentiment echoes the increasing awareness of the need for travel insurance as more people recognize its value in protecting their trips.

Travel Insurance on the Rise

Since the onset of the COVID-19 pandemic, there has been a surge in the number of travelers purchasing travel insurance. According to a report by the US Travel Insurance Association (USTIA), there was a 67% increase in the purchase of travel insurance from 2020 to 2022. This upward trend stems from a heightened concern for potential travel disruptions, health risks, and the changing landscape of global travel. In fact, in 2023, the USTIA reported that 56% of leisure travelers in the US opted for travel insurance, reflecting a significant shift from pre-pandemic norms.

This rise in interest speaks volumes about the changing priorities of modern travelers. With uncertainty around every corner, from potential trip cancellations to unexpected illnesses, people are no longer viewing travel insurance as an optional add-on but as a necessity.

What is Travel Insurance?

At its core, travel insurance provides financial protection and assistance in case of unforeseen circumstances during your trip. Schaffer explains, “Travel insurance typically covers a variety of risks, such as emergency medical expenses, trip cancellation, delays, baggage loss, and much more.” Coverage can differ based on the provider, but the primary goal remains the same: to ensure peace of mind when the unexpected happens.

Why is Travel Insurance Important?

Imagine being stranded due to a hurricane or falling ill while in a foreign country with no access to English-speaking medical professionals. Travel insurance can alleviate these stresses. Here are a few key scenarios where travel insurance proves invaluable, according to Schaffer:

• Natural disasters: If a storm escalates into a hurricane, causing cancellations and travel disruptions, insurance can help reimburse you for canceled flights and accommodations.
• Medical emergencies abroad: In the event of a severe illness or injury, travel insurance often covers emergency medical evacuations, connecting you with telemedicine services or local healthcare providers.
• Pet care: For those traveling with pets, add-ons such as pet care coverage can reimburse you for vet bills, as Schaffer notes with the example of a traveler whose dog suffered an eye infection upon arrival.

The importance of travel insurance extends beyond individual travelers. Group trips, destination weddings, and even family vacations can benefit from comprehensive coverage. “It’s all about peace of mind,” says Schaffer. Without it, travelers risk facing significant out-of-pocket expenses that could turn a dream vacation into a financial burden.

Types of Travel Insurance

Travel insurance is not a one-size-fits-all product. Different types of coverage cater to various needs, and it’s crucial to select a plan that aligns with your travel plans. Schaffer elaborates: “Coverage by provider varies, but newer options include whole-trip travel insurance, which provides comprehensive coverage for your trip, your health, and your belongings. This contrasts with legacy providers, which often offer medical-only or trip-cancellation-only coverage.”

Here’s a breakdown of common types of travel insurance:

1. Trip Cancellation/Interruption Insurance: This type covers non-refundable trip costs if your plans are canceled or interrupted due to illness, weather, or other unforeseen circumstances.

1. Medical Insurance: If you fall ill or get injured during your trip, this coverage helps with medical expenses, including hospital stays and doctor visits.
2. Baggage and Personal Belongings: Covers the loss, damage, or theft of your luggage and personal items during the trip.
3. Emergency Medical Evacuation: This covers the cost of transportation to a qualified medical facility if you are seriously ill or injured in a location that cannot provide the necessary care.
4. Cancel for Any Reason (CFAR): This is an add-on to standard insurance that allows you to cancel your trip for any reason, typically offering a partial reimbursement.
5. Pet Care Add-ons: As Schaffer mentioned, some policies now include pet-specific coverage, which helps cover medical expenses for pets traveling with you.

Choosing the Right Policy

For travelers seeking the most basic level of insurance, Schaffer recommends opting for whole-trip travel insurance, which covers pre-paid, non-refundable trip costs. However, he cautions travelers against over-insuring: “If you increase your estimated total trip cost, the cost of your policy increases, and there’s no need to be over-insured.”

Frequent travelers may also explore annual travel insurance policies, which cover multiple trips over a year. While these plans can be convenient, it’s essential to consider whether you’ll be taking enough trips to justify the cost and whether the coverage meets your specific needs for each journey.

Purchasing Travel Insurance: A Step-by-Step Guide

The process of buying travel insurance has become simpler with advancements in technology. As Schaffer points out, “With most providers, you can easily purchase a policy online or via an app.” Here’s a general guide:

1. Select a Provider: Do your research to find a travel insurance provider that offers the right coverage for your trip. Review customer feedback on sites like Trustpilot to gauge the level of support.
2. Choose Your Plan: Decide on the level of coverage you need, whether it’s whole-trip, medical-only, or another option. Add-ons like CFAR, rental car coverage, or extreme sports coverage can be included based on your activities.
3. Answer Basic Questions: Most providers will ask for basic details, including your destination, age, and total trip cost.
4. Purchase: Once you’ve selected your coverage, purchasing online or through an app typically takes just a few minutes.

Filing a Claim: What to Expect

If something goes wrong on your trip, filing a claim can be a straightforward process. Depending on the incident, travelers may need to upload receipts, medical reports, or other documentation. After approval, the reimbursement can be quickly sent to your phone’s wallet, ensuring that the process is as painless as possible.

Expert Tips for Buying and Using Travel Insurance

When purchasing travel insurance, Schaffer recommends doing so within 14 days of your initial trip deposit to unlock full coverage benefits, such as CFAR add-ons. He also suggests practical tips like photographing your packed items in case of lost luggage and obtaining a Property Irregularity Report (PIR) from airlines immediately if your baggage is missing.

Finally, Schaffer notes that post-pandemic, more modern providers are focusing on concierge services that go beyond emergency assistance. These include advice on what tours to book or even where the closest ATM is, making them invaluable for travelers who seek ongoing support during their trips.

To Buy or Not to Buy

Travel insurance is no longer just an afterthought—it’s a critical element of travel planning that can protect you from financial loss and stressful situations. Whether you’re a frequent flyer or an occasional traveler, selecting the right coverage can make all the difference in ensuring that your journey is as smooth and enjoyable as possible.

As Schaffer puts it, “You want to make sure you have peace of mind, as well as financial protection if the you-know-what hits the fan.” With the right travel insurance policy in place, that peace of mind is well within reach.

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