The Best Laid Plans... Trip Insurance - Yay or Nay?
Mar 19th, 2011, 08:10 AM
#2
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We have been getting it the last several trips we've taken to Europe from US, at least trip cancellation insurance because we have older parents who are not in the best of health and the flights are expensive if you have to change them. Plus my health insurance is does not cover me out of the US. Depends on the cost of your trip also.
www.insuremytrip.com
www.insuremytrip.com
Mar 19th, 2011, 08:26 AM
#3
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Look at this way, the insurance company is in business of making money. In order for them to make money, you (on average) have to lose money by purchasing it.
The only situations that I can see why trip insurance might be a good idea are:
1) Cancellation insurance - If you have a strong reason to believe you are going to need to use it (and assuming that the insurance company can't use whatever that reason is to deny your claim). In other words, that you are NOT an average purchaser.
2) The costs if the worst case scenario happens are simply prohibitive. The is closer to the reason insurance came into existence in the first place. You accept that on average it is going to cost you money, but are protected against a potentially ruinous loss.
The problem with 2), is that almost never applies to trip cancellation.
For the record, I never buy trip cancellation insurance, and always pickup sufficient health coverage (paying particular to see that repatriation home is covered)
The only situations that I can see why trip insurance might be a good idea are:
1) Cancellation insurance - If you have a strong reason to believe you are going to need to use it (and assuming that the insurance company can't use whatever that reason is to deny your claim). In other words, that you are NOT an average purchaser.
2) The costs if the worst case scenario happens are simply prohibitive. The is closer to the reason insurance came into existence in the first place. You accept that on average it is going to cost you money, but are protected against a potentially ruinous loss.
The problem with 2), is that almost never applies to trip cancellation.
For the record, I never buy trip cancellation insurance, and always pickup sufficient health coverage (paying particular to see that repatriation home is covered)
Mar 19th, 2011, 08:45 AM
#4
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A zero-band policy (i.e., with no trip cancellation insurance) is very inexpensive. You might want to consider insuring for $500 each in cancellation coverage - still very economical, and it does provide some trip cancellation, trip delay, and trip interruption protections. Travelex is a very good company to use in my experience: http://tinyurl.com/26nrckf
Mar 19th, 2011, 08:52 AM
#5
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Hi Kim, I have traveled often to Europe in the past 15 years. Only recently have I taken out trip insurance. Last July I was a few days into a tour of Britain when I fell (clear day, straight sidewalk in the morning - who knows?) and broke my left wrist. Made it to Edinburgh that day, told I needed surgery so headed back to Boston the next day.
The trip insurance covered the days I missed on the tour plus my rerouted flight. Obviously, I was able to make it home - British Air even put me in first class when the attendant saw my cast. But my major concern would be the possibility of having a serious accident or health event in a foreign country. The cost of a med-flight from abroad would be astronomical.
We all have to weight the pros and cons. Good luck!
The trip insurance covered the days I missed on the tour plus my rerouted flight. Obviously, I was able to make it home - British Air even put me in first class when the attendant saw my cast. But my major concern would be the possibility of having a serious accident or health event in a foreign country. The cost of a med-flight from abroad would be astronomical.
We all have to weight the pros and cons. Good luck!
Mar 19th, 2011, 09:09 AM
#6
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I'm always intruiged by this question and the different attitudes in other countries. Here in the UK, few people would risk going on holiday overseas without some form of travel insurance. As frequent travellers we have annual policies which costs just over £100 for the two of us with no excess (deductable) and covers us for delays/cancellations, medical treatment, loss/damage to personal possessions and money etc etc.
Unexpected things often happen when you travel. Over the past 15 years I've successfully claimed for 1 cancellation, 1 curtailment, 1 lost luggage and 1 delayed departure. It's a definite no-brainer. Is it really that much more expensive where you live?
Unexpected things often happen when you travel. Over the past 15 years I've successfully claimed for 1 cancellation, 1 curtailment, 1 lost luggage and 1 delayed departure. It's a definite no-brainer. Is it really that much more expensive where you live?
Mar 19th, 2011, 09:24 AM
#7
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Gordon, I have not traveled abroad in 20 years, and that was a semester abroad in England, so all the arrangements were made for me. I know next to nothing about it, and that's why I'm asking. 
Mar 19th, 2011, 09:32 AM
#8
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After having a VERY unanticipated medical issue arise and force cancellation of our trip last Sept, and having bought trip insurance which we then utilized to the tune of $ 7000, I will now buy for major trips. But it depends on your circumstances and the cost of the trip, what the parameters of your airfare cancellation policies are, whether you could reschule within the allotted time frame, the costs, etc, etc.
Mar 19th, 2011, 10:04 AM
#10
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I don't normally purchase insurance except when I travel on a tour. Airline tickets can be reused for up to one year (with a change fee) and hotels and car rental are cancellable w/o penalty.
As I get older I am rethinking the insurance option to cover repatriation/medevac insurance.
BTW - I'd love to know how 2 (or more?) people can travel for 2 weeks for $2,500. What are your secrets?
As I get older I am rethinking the insurance option to cover repatriation/medevac insurance.
BTW - I'd love to know how 2 (or more?) people can travel for 2 weeks for $2,500. What are your secrets?
Mar 19th, 2011, 10:13 AM
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Kimmerstravels - I hope you don't think I was criticising you, that was not my intent. Based on my own personal experience, I'd always take out a travel insurance policy. But you'll likely find a large anti-insurance lobby here on this forum that will advise you against it. I'm just curious why.
Mar 19th, 2011, 10:16 AM
#13
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kimmerstravels, it sounds like an amazing trip. Good for you! With regards to travel insurance, I am afraid you have to spend the time to read the very fine print for each insurance policy you are considering to see what they do cover and what they don't. Insurance lawyers are very good at drafting various exclusion clauses. That said, it still might be worth it, considering the cost of your trip.
Mar 19th, 2011, 10:24 AM
#14
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I think it's mainly a personal decision as to how risk-averse you are, as well as what your normal health insurance covers. I think some people don't recommend it because they don't think it is cost-effective. I never used to buy it for several reasons, but the two big ones are that my health insurance covered me abroad and because I rarely prepay anything. So why would I need trip insurance in such cases? I think it's silly to buy insurance to cover the change fee on an airline ticket, for example. I never buy tickets that are totally lost if I didn't fly, they always are applicable to another ticket with a change fee. Now I guess if you bought some that were totally lost money if you didn't fly (like through a consolidator or something), that would be a reason, and definitely if you didn't have health insurance that covered you abroad.
If you don't fall into either one of those categories, I think for most younger, healthy people, the odds that you are going to incur some horrific event that will mean you need to be repatriated in some expensive flight are very slim. So for me, that risk is worth the roll of the dice. I'm not indigent, I could actually pay such a cost if it ever happened, which I don't think it ever will.
I'm of the mind that insurance is meant to cover extensive, unexpected costs that you cannot easily pay yourself. That would not include an airline ticket change fee, a lost piece of luggage, etc.
Now I also think it depends where you are going, also. I would buy insurance for countries that are less-developed, with poorer medical care and lots of things. I would buy if if I were going to Morocco, for example, or lots of other places in Africa, the Mideast, Latin America, etc. To go to France? no
If you don't fall into either one of those categories, I think for most younger, healthy people, the odds that you are going to incur some horrific event that will mean you need to be repatriated in some expensive flight are very slim. So for me, that risk is worth the roll of the dice. I'm not indigent, I could actually pay such a cost if it ever happened, which I don't think it ever will.
I'm of the mind that insurance is meant to cover extensive, unexpected costs that you cannot easily pay yourself. That would not include an airline ticket change fee, a lost piece of luggage, etc.
Now I also think it depends where you are going, also. I would buy insurance for countries that are less-developed, with poorer medical care and lots of things. I would buy if if I were going to Morocco, for example, or lots of other places in Africa, the Mideast, Latin America, etc. To go to France? no
Mar 19th, 2011, 10:27 AM
#15
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We never do it - and have not needed it in more than 70 trips to europe. But - we have health insurance that covers us worldwide - and if we have to cancel we know we can use the tickets at a later time. Also - all we pay for in advance is air - everything else is reserved but not paid for- and can easily be cancelled.
I would definitely get travel insurance if
1) my health insurance wasn;t good outside the US
2) I had any sort of chronic health problem
3) I would have a problem rescheduling a trip
4) you have something paid for - like a tour or a cruise
5) you have a family situation that makes change a greater possibility
I would definitely get travel insurance if
1) my health insurance wasn;t good outside the US
2) I had any sort of chronic health problem
3) I would have a problem rescheduling a trip
4) you have something paid for - like a tour or a cruise
5) you have a family situation that makes change a greater possibility
Mar 19th, 2011, 10:47 AM
#16
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Thanks, everyone. Very helpful advice.
Gordon - no worries. I didn't give out very much information, so your curiosity was valid
RainyDay - getting out the magnifying glasses now
Latedaytraveler - hope the arm is healing well.
Nytraveler (and everyone else) - thanks so much!
Gordon - no worries. I didn't give out very much information, so your curiosity was valid
RainyDay - getting out the magnifying glasses now
Latedaytraveler - hope the arm is healing well.
Nytraveler (and everyone else) - thanks so much!
Mar 19th, 2011, 01:39 PM
#17
Generally on trips to Europe that I throw together myself, I can usually cancel the hotel with no charge if I cancel 24+ hours in advance. And now if it's available I'll pay the $60 or whatever the airline charges for cancellation insurance. With older, somewhat infirm and frequently hospitalized parents, it's worth it to me to have it in the event I have to cancel.
More substantive trips like the one I took to Russia and the one I'm planning to take to China later this year, where I have to pay everything up front, I absolutely get the insurance, for the same reasons as above. I'm not as concerned about my health while away as I am the ability to stay home if needed without a financial penalty. If I'm paying $2000+ for a trip up front, there's no way I'm going to lose that money if my parents take a turn. It's only $100-200 to insure anyway....to me it's worth the piece of mind.
More substantive trips like the one I took to Russia and the one I'm planning to take to China later this year, where I have to pay everything up front, I absolutely get the insurance, for the same reasons as above. I'm not as concerned about my health while away as I am the ability to stay home if needed without a financial penalty. If I'm paying $2000+ for a trip up front, there's no way I'm going to lose that money if my parents take a turn. It's only $100-200 to insure anyway....to me it's worth the piece of mind.
Mar 19th, 2011, 01:45 PM
#18
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We also do not insure a trip in which we stay in hotels. We have an American Express medical policy so are not concerned with medical insurance.
If we stay in apartments we may insure the trip, depending on how much is at risk. I believe in any years of traveling, we've purchased 5 or fewer insurance policies.
If we stay in apartments we may insure the trip, depending on how much is at risk. I believe in any years of traveling, we've purchased 5 or fewer insurance policies.
Mar 19th, 2011, 01:55 PM
#19
My current medical insurance covers me for emergency treatment abroad, but I would not travel without medical evacuation insurance. I don't care how healthy you are, accidents happen, and if you're sent home on a stretcher, for instance, the cost can be really high.
I don't have to worry about elderly relatives, so I would only buy cancellation insurance if I were prepaying for a tour or cruise, which I seldom do. I did cancel the Tunisian leg of my current (six month) trip, but Tunisair refunded the tickets less 30 euros, and they were cheap enough I would have eaten the cost if necessary. I hadn't booked any hotels for that leg, so no problems there.
I don't have to worry about elderly relatives, so I would only buy cancellation insurance if I were prepaying for a tour or cruise, which I seldom do. I did cancel the Tunisian leg of my current (six month) trip, but Tunisair refunded the tickets less 30 euros, and they were cheap enough I would have eaten the cost if necessary. I hadn't booked any hotels for that leg, so no problems there.
Mar 19th, 2011, 03:00 PM
#20
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We have insured our last few trips due to the fact that we are getting older and sh*t happens. Plus, my MIL is 89 yrs old so one never knows.
Last year, my husband got very ill and we had to reschedule our European trip. We had invested over $1,000 for copayments in frequent flyer upgrades and there was a $250 per person airline change fee. While the airline did waive the cost to redeposit the miles for the upgrades, the copayments were non-refundable.
We had paid less than $100 per person for our travel insurance and were reimbursed $600 per person. This money came in very handy when we finally did take our trip 6 weeks later.
On the whole, we've probably broken even on what we've paid out for insurance and what we've actually had to claim but no one can predict the future and I definitely feel better having my non refundable expenses covered.
Last year, my husband got very ill and we had to reschedule our European trip. We had invested over $1,000 for copayments in frequent flyer upgrades and there was a $250 per person airline change fee. While the airline did waive the cost to redeposit the miles for the upgrades, the copayments were non-refundable.
We had paid less than $100 per person for our travel insurance and were reimbursed $600 per person. This money came in very handy when we finally did take our trip 6 weeks later.
On the whole, we've probably broken even on what we've paid out for insurance and what we've actually had to claim but no one can predict the future and I definitely feel better having my non refundable expenses covered.
