Is getting travel insurance a good idea?
 

I have been to Europe 4 times and I have never purchased travel insurance. I am considering it now.

I have gotten a quote of $351.00 for 2 people with Travel Guard Insurance.
(thank you Ira for the insuremytrip.com recommendation)

I dont mind paying the money if it is neccesary.

Your thoughts?

There's no way to tell if it's necessary--it's only necessary if something happens and you need to make a claim, but there's no way to predict that. Travel insurance, like all other insurance, is about risk tolerance. Look at what it covers, what your potential losses are, and whether you are willing to take that chance. For example, if you paid $1000 for nonrefundable tickets and have to cancel the trip, some people would rather take the chance of losing the $1000 and not pay for insurance, while others would not be able to afford a loss of $1000 and would want to buy the insurance to protect themsleves.

You have to add up all of your non-refundable costs in the event you have to cancel last minute (airline tickets, potential hotel deposits, etc.), see how much that comes to and decide if you can afford to lose that or want to buy insurance to protect yourself. If your non-refundable costs are, for example, $750 and the insurance costs $351, you have potentially saved $400 by spending an extra $351. If you bought expensive non-refundable plane tickets, and spent $3,000, it may be worth it to pay $351 to protect against that kind of loss.

Always get full medical insurance especially if you are leaning towards the aches & pains stage! (like me).
I also insure everything else for peace of mind - holidays are expensive and I want to relax and enjoy mine.

<b>Read the exclusions carefully</b> as some policies don't necessarily cover some pre-existing medical conditions immediately.

Know what is and is not covered and the circumstances to include what constitutes a &quot;valid&quot; reason for cancellations, etc.

Yopu'll need to elaborate why you think it might be &quot;necessary&quot; for this trip, when it wasn't for other previous trips...

... need to protect yourself from the unanticipated costs of...

1. trip cancellation or delays?

2. illness or injury? (are you on Medicare? or have inadequate insurance for similar expenses at home?)

3. the need for medical evacuation? (a very rare occurrence - - there are very few conditions that can't be treated in Europe)

What destination(s) will you be visiting this trip?

I have been abroad 25 trips and have never seriously contemplated (throwing money away on) travel (trip cancellation) insurance or medical evacuation insurance. Until I am over 65 years old, I can't foresee wanting to change that.

Best wishes,

Rex

I was certainly glad that I bought travel insurance for my last trip when my 41 year old travelling companion suffered a broken leg 23 days before departure. Travel Guard paid off all our non-refundable expenses and now we're going to use that money for a longer trip next summer. I'm definitely a believer in trip cancellation insurance.

As others have stated, it depends on how much you are paying for your trip vs how much tolerance you have for loss.
If you have a trip of a lifetime with thousands $$ paid (or any other trip with lots $$ upfront and non-refundable), it may make sense to spend a few hundred for the insurance.

If you are thinking of trip delay or baggage loss in response to recent events, the amount you get reimbursed vs the cost may not really be worthwhile. Often times if there is a mass disruption, the airlines will step in to help.
Read the exclusionary clauses carefully. Some policies specifically EXCLUDE acts of terrorism and bankrupt agencies/airlines.
Pre-exisitng conditions can be waived if you buy TI within a certain time period after initial trip deposit. Again, read the fine print.

I almost always get annual medical insurance because I tend to do adventure travel with a real risk of injury. My regular health insurance has a high deductible so the TI covers this and covers any evacuation that may be needed.

Also my parents are getting older and health declining. So I get TI in case I have to cancel for THEIR health needs.

Absolutely! Even a minor injury can cause havoc with your plans if it involves impaired mobility.

I never used to buy it because I had to travel on a tight budget. However, now that my father is 90 years old, I never know when I might have to cancel at the last minute, so have been buying the insurance the last couple of years.

Hi Janda,

We didn't buy travel insurance until we got up into our late 60's.

We are mainly interested in evacuation insurance.

You might want to look at
http://www.worldtravelcenter.com/eng...amp;baseline=1

We found a plan for as low as $141.

I just bought last-minute insurance for my trip in about 10 days. No trip cancellation, just need baggage/misconnection, etc ($200-$1,500) plus medical ($25K) and evacuation ($300K).

The cost for the 7 day trip through accessamerica.com? <b>$24</b>. Twenty-four bucks! With flight delays and lost baggage so common these days, I can rest a lot easier by just paying under $4 a day.

We have used travel insurance twice now, within a year apart. It never used to be, but lately my motto is &quot;expect the unexpected&quot;!

We used Travelex through insuremytrip.com on both occasions, and promptly received refunds! This last time, it cost us $130, but we got $1260.00, back, and the time before, $70, received $1450 back. Well worth it for us!!!

Speaking from a standpoint of someone who works in the industry, insurance, for the most part, isn't worth getting. That's one way insurance companies make money (you pay in, insurance companies only pay out if you make a claim. They bank on you paying more than the total of all your claims).

However, on that odd occasion in 7 years that you do have an accident, the bills can be fairly hefty and you may face potential financial ruin.

It's all about risk.

to answer a few questions...

I will be spend 4-5K for my trip. I am 51. I do not have any major health issues. My sister has severe arthritis. She is mobile only because of her medication Arava. We will not be checking luggage..We will be going to Italy and Holland.

My sister is going to Europe with me for the first time and she is concerned that with all the problems with flight cancelations and terrorism she thought I should ask you guys if it is needed.

This will be my 5th trip to Europe. I never felt the need before.

With regard to cancellation insurance, how much you are spending, per se, is not the issue. The issue is how much is non-refundable if you have to cancel the trip for a covered reason (and mere worry about terrorist attacks is not one of those reasons).

If you are buying non-refundable airline tickets, and aren't a frequent flier on that airline, that is a big consideration. Often times, you can exchange the tickets for a fee, but you have to be able to exchange them for a ticket that you want, and that isn't always easy.

With regard to lodging, are you paying landlords in advance, purchasing pre-paid rooms through Priceline, or some other non-refundable method? If not, and you are instead merely booking conventional hotel rooms with a credit card guarnatee and 24 hour cancellation policy, then that doesn't point in favor of trip cancellation insurance.

The bottom line is: how much money will you have paid BEFORE you leave, and for which refunds will either be difficult or impossible? If it's not a large amount, then cancellation insurance is probably not for you.

I bought trip cancellation insurance, and was able to use it when my mother was unexpectedly hospitalized during a time in which I'd planned to go away. The policy covered the eventuality of the hospitalization of a family member, even if that person was not scheduled to accompany you on the trip. By doing so, I saved a lot of $$$, was able to take the trip about a month later when my mom was doing better and in a nursing home, and am darned glad I spent the cash to buy it!

BC

Don't leave home without it

I posted this yesterday with no acknowledgments and repeat it here.

Page D1 of the WSJ of August 22 has an excellent article on travel insurance with the title &quot;The Exclusions and Illusions of Travel Insurance&quot;.

They give two websites,
totaltravelinsurance.com and squaremouth.com, for comparing policies.

Sometimes WSJ articles are available on the web to non-subscribers. You can try this. Good luck.

http://tinyurl.co.uk/4h4j

Alas, it doesn't work: one must subscribe.

Though airline tickets can usually be rebooked (for a fee), then only if you've prepaid other expenses - hotels, transfers, tours, etc. - do you have to insure for cancellations/interruption.

However, when it comes to medical or medical evacuation, this is a small premium based on prepaid costs. Medical and evacuation is worthy of anyone traveling regardless their age. A young person can and break a leg leaving the Bateau Mouche... happened to a friend, who then needed two airline seats for homebound flight. The insurance covered this as well the hospital costs.

I no longer leave home without at least the medical and evacuation.

Medical, yes! Certainly! Flu, food poisoning, broken bones - can happen to anybody!

As for travel insurance... maybe I'll be kicking myself one day for not buying it. Who knows!

I am getting a quote of $61.00 at accessamerica.com

That is a very reasonable amount for peace of mind. I am going for it...

Thanks to all for your advice.

I am my Mother's primary care giver, so I always buy insurance incase I need to cancel or return early while traveling. I usually get Travelex insurance through insuremytrip.com as well and pay no more than $100 which covers me and whom ever is traveling with me i.e. friends. It refunds me 150% for trip interruption, 100% for trip cancellations, delays, emergencies medical, lost baggage etc. I don't leave home without it. $100 is piece of mind.
Clea

I,m sorry the reference to the WSJ article didn't work but most libraries subscribe and I hope you have at least one friend who does.

There are two parts - medical insurance and trip insurance. If you don't already have medical coverage (our work policy covers us abroad) then you definitely need the first.

As for trip insurance (flights, hotels etc.), if you plan on taking several trips over a lifetime, you might want to consider 'self-insuring.' I estimate I've saved us over $1400.00 in premiums over the last few trips when I haven't bothered to buy trip insurance. I now have that amount 'banked' against any cancellation fees, ticket change fees etc. incurred in respect of any future trip.

In my own personal case, I thought through all the possible scenarios and realized that the most crucial decisions would have to be made in the first 48 hours or so following any incident involving a family member. If abroad, it is unlikely I'd be able to get home in 48 hours, even on an urgent basis. (This reflects, in part, where we live and where we tend to travel.) I might still want to return home, and reasonably soon, but I would take the time to arrange things to minimize any additional costs involved in returning early.

I also tend to arrange trips to minimize risk - for example, we stay overnight in London in between our transatlantic flight and any continental legs. This minimizes the risk of missed connections, not to mention reduces stress. I also tend to book hotels with reasonably generous cancellation policies, so that I'd have time to cancel most of them without penalty.

There is, of course, the risk that the incident would occur in the last few days prior to departure. However, I have decided to bite the bullet and assume the costs of rescheduling a trip. The kind of incident that would see me cancel completely, i.e. not even reschedule, is, mercifully, rare. Not to be blunt, but each of us can only die once.

But these sorts of decisions are greatly influenced by an individual's personal circumstances, and yours might be very different from mine. I wish you luck in your decision.

Just read the fine print on any medical evacuation insurance you purchase. Most policies will only &quot;evacuate&quot; you to the nearest medical facility capable of taking care of your problem. In Europe this is a short ambulance ride in 99% of the cases. They usually list it as something like the &quot;Nearest medical facility or one near your home.&quot; However when you get into the fine print, the only time they would evacuate to one near your home is if it is also the nearest to where you are injured or become ill.

There is also specialized evacuation insurance that guarantees to transport you to a medical facility near your home--with a few exceptions. This type would be an additional cost to the regular travel medical insurance.

I don't have details but my friend's flight out of the US was delayed due to airport 'backlog' the day following the security changes. She declined the airline offer to reroute thru another area of Europe, and opted to stay overnight in Philly. The insurer agreed they would cover the cost of the hotel for that night, any penalties from the Italy hotel for missing the first night, and for the cost of the toiletries that she had to buy for the overnight since everything was checked in.
So.. that was worth the ins.premium...

We have purchased travel insurance for over 20 cruises and tours, and never had a claim until Oct. 2005, which was denied based on incorrect informaton, and after numerous letters, still denied. I suspicion they believe I will give up the claim if they deny my claim long enough.
Be very careful whom you purchase travel insurance from. This isn't the only invalid denial I've heard of. This seems to be a systematic problem in the travel insurance industry.

The Pittsburgh Post-Gazette went (? angf got permission to go?) around the copyright of the WSJ

http://www.post-gazette.com/pg/06236/715443-37.stm

Here are the first two paragraphs:

=================================

The exclusions and illusions of travel insurance
Thursday, August 24, 2006

By Scott McCartney, The Wall Street Journal


Terrorism scares and hurricane warnings have spurred an increase in sales of travel insurance, but there's a catch: Most policies offer only very limited protection, if any, should you want to cancel a trip because you're afraid to go.

Worried about subway bombings or liquid-explosive plots? That probably won't be covered. Thinking a hurricane 1,000 miles away could hit your favorite beach? It probably isn't covered, either. Afraid that a Northwest Airlines strike could keep you from taking your daughter to college? Sorry, but buying travel insurance now won't help.

=================================

Good posting, Rex.

It is not unusual to see articles from major publications such as the WSJ, NYT, LA Times, etc. reprinted with attributes. The source receives royalties.

I located this using Google's Blogsearch... while a few days' wait may be involved, I have virtually always been able to find &quot;restricted articles&quot; (mostly looking for editorials on &quot;TimesSelect&quot; at www.nytimes.com for example).

of course, PPG is not a blog site...

...the site where I found the citation is a bit of a mystery to me, and doesn't seem like a typical blog site:

http://platinumx.com/insurance/2980/...h-post-gazette

I can't even figure out who compiles the citations listed on this site...