While we all love to talk about destinations and the fun side of travel, it’s time for an important conversation about travel insurance. First, my disclaimer that I am not an insurance agent. I am a travel associate who offers travel protection. For specific information about coverage, I refer clients back to the insurance company, as I won’t get into the legalities of interpretering insurance and want to leave that to the professionals!
People seem to come in one of four camps when it comes to the insurance conversation:
“Isn’t it a gimmick – a way to make us pay more?”
Do you consider your auto or homeowners insurance to be a gimmick? Year after year, I pay premiums to protect my two most expensive worldly possessions. I have made one auto claim in 10+ years. Does that mean my coverage was a gimmick? Absolutely not. YES, to purchase insurance, I pay more for my travel – 10-15% in most cases. And yet, I know if I need to cancel for a covered reason (generally health/injury/death of myself, a co-traveler, or family member), I will receive a refund for my nonrefundable expenses and have a chance for a “do-over” for my travels. Additionally, the policy I choose also offers emergency medical coverage during travel, as well as coverage for delays and interruptions during travel, lost luggage, and more. Is my peace of mind worth the price of a policy? Absolutely.
“I bought it once and they didn’t pay out.”
If you had a policy and did not get payment on a claim, I understand it leaving a bad taste in your mouth and I would feel the same way. Travel insurance, like all insurance, is extremely specific. Are insurance companies excited about paying out? Absolutely not. Are they required to pay out based on the policy and situation? Absolutely. Does it takes work? Absolutely. Will you want to pull your hair out when you may submit the same documents multiple times? Absolutely. Will I help you through this process? ABSOLUTELY.
“My credit card offers coverage.”
Fantastic! My Chase Sapphire card also has some coverage. For smaller trips, this may be enough. Evaluate your trip and the coverage your particular card has and determine what is right for you. (Affiliate link for Chase. If you apply for the card and are approved, I receive bonus miles.)
“Absolutely – we won’t travel without it.”
These clients have seen insurance work and understand its importance.
Let me introduce you to a few of my clients who have had to file claims.
One recent couple who planned a big cruise overseas. The wife said she had a gut feeling she needed to buy insurance. Fast forward to a month before travel when the wife called me and tearfully told me to cancel their cruise. Her husband had received a difficult diagnosis and would not be able to travel. As they were processing difficult news and the loss of a long-awaited dream cruise, they were grateful they had made the purchase and they just received word that they are receiving back every bit of their non-refundable charges.
After Covid re-opened cruising, another couple took an anticipated 11-day cruise to Alaska in 2022. The first few days at sea were enjoyable. They visited their first port, and at the end of the day, came down with “cold symptoms” that ended up being a solid case of Covid for both of them. They were now quarantined to their cruise cabin, ruining the next seven days of cruising. Upon their return to the home port, they could not fly back home due to Covid rules with the airlines, so had to rent a one-way car rental and drive home. Not only did their travel protection reimburse for the car rental, but it also reimbursed them for the portion of the cruise that they were quarantined.
My last example to share includes a couple who were flying home from their travels. As their first plane was delayed, they missed their connecting flight home. Airlines normally will put you up in a hotel except this was weather related and not covered by the airline. Thankfully they had travel insurance. I arranged for a hotel in their connecting city, and their shuttle driver took them through a drive-through to pick up some dinner en route to the hotel. (This was before Door Dash days.) They flew home the next day, filed a claim, and had their hotel and dinner reimbursed in a short period of time.
My reasons for buying it are simple. I have people who depend on me on a regular basis. If something happens to them, I need to be able to be at their side. If it means cancelling a trip, so be it. But it’s comforting to know that I would have the chance for a “do-over” after filing a claim. (And really, at 58, something could happen to ME, too!) There are also policies that include “cancel for any reason” coverage. These policies are significantly more expensive and most of my clients are not inclined to cancel without a covered reason, so I don’t find them to be the best value.
John Lennon said it best – Life is what happens when you’re making other plans. Stuff happens. (Even Forrest Gump knew that.) Make sure you are prepared by protecting your travel investment.
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