While traveling is a great opportunity for relaxation and exploration, it’s no secret that travel comes with many potential risks. From losing luggage to delayed flights to unexpected illness, a variety of things can quickly turn south while traveling. Because of this, many travel and insurance experts recommend travel insurance.
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If you can’t afford to lose any money that was invested in an extensive vacation, travel insurance may be a beneficial resource. Here are the reasons experts say consumers may need travel insurance.
Most domestic health insurance plans don’t cover you if you travel internationally. Therefore, if you get sick or injured, you will have to pay any medical expenses out of pocket.
“For serious conditions like broken bones or a heart attack, paying for hospitalization yourself might not be financially possible,” said Jeremy Murchland, president of Seven Corners Inc., a travel insurance provider.
Additionally, even if the country you’re traveling to has universal healthcare, this does not automatically mean you are eligible for free medical care.
“Those services are intended for citizens of that country, not tourists and visitors,” Murchland said. “Even though medical treatment may be less expensive than in the U.S., it’s best not to depend on the universal healthcare system as free treatment is not guaranteed.”
Furthermore, some countries require you to have travel insurance.
“For example, Cuba, Turkey, Thailand and the UAE all require travel insurance for certain visa types, but even if it isn’t required, having at least a basic travel insurance plan is always a smart idea, especially if you’re traveling with children,” said Erika Kullberg, attorney, personal finance expert and creator of Erika.com.
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Some travel insurance plans offer protection for preexisting health conditions as well as medical costs from sickness or injuries.
“While this is often a concern for older travelers, preexisting conditions coverage might be important to travelers of any age, particularly if they suffer from chronic pain and illness,” Murchland said.
Many factors, such as lost luggage and flight delays, can heavily impact both your travel plans and your finances. However, travel insurance often comes with trip protection benefits that can reimburse travelers for these exact situations.
“Losing baggage during transit is a nightmare, but a good travel insurance policy can provide compensation for lost, stolen or even delayed baggage items,” Kullberg said. “You can also be covered for any costs incurred due to travel delays, such as food and accommodation expenses.”
One never knows when unexpected events may require you to change or reschedule your travel plans. Travel insurance offers flexibility when it comes to accommodating these unprecedented situations.
“If you need to cancel at the last minute due to illness or emergency, you can be reimbursed for typically nonrefundable trip costs,” Kullberg said.
“Optional benefits like Cancel for Any Reason (CFAR) and Interruption for Any Reason (IFAR) give you added flexibility to change your plans and still have some of your trip expenses reimbursed, no matter the reason for that change,” Murchland said.
While the cost of travel insurance ultimately depends on many factors, such as the cost of your trip, investing in travel insurance may be pricey. However, this cost is still a lot lower than the money one may lose when they aren’t reimbursed for a canceled or rescheduled trip.
“In some instances, a $100 policy could save you thousands if you face a cancellation,” Murchland said.
Additionally, for those who like to travel stress-free, travel insurance may be a great benefit.
“Some travelers aren’t bothered at all by the unknown, while others get nervous about a long list of hypothetical things that could go wrong before or during vacation,” Murchland said. “If you fit into the group that tries to avoid risk, you’ll love travel insurance. Instead of stressing about all the what-ifs, you can travel with peace of mind knowing that your coverage will protect your money, health and belongings if the unexpected happens.”
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This article originally appeared on GOBankingRates.com: 4 Reasons That Buying Travel Insurance Will Save You in the Long Run
