Is Travel Insurance Worth It? An Inside Look from an Avid Traveler

No one plans for something to go wrong on vacation, but you don’t want to be caught in an emergency situation with no options. Travel insurance can give you the backup you need.

Let’s take a look at if travel insurance is worth it, what it covers, and some of real life experiences examples from my travels.

Disclosure: Some of the links below may be affiliate links. At no additional cost to you, I may earn a small commission if you make a purchase.

Do I Need Travel Insurance?

If only it were as easy as a yes or no. Unfortunately, the answer is complex. Travel insurance can cover a lot of different elements of a trip – not just medical emergencies or flight cancellations. Because of this, in most instances, you do need travel insurance. However, there are a couple instances where you can typically skip it.

When to Skip Travel Insurance

There are a couple of scenarios where travel insurance is simply not worth it. And to be clear, we are talking overarching travel insurance, not the insurance plans the airlines try to pawn off on you as you book your flight. (Those are rarely worth buying.)

1. If you live in the US and are traveling in the US. Chances are that your medical insurance – if you have it – will cover any medical emergencies, and you home/renter or car insurance would cover most of your other potential emergencies. Under rare circumstances, they might even cover emergencies abroad. Look into it prior to purchasing travel insurance.

2. If your credit card offers it. Some credit cards offer decent travel insurance options, particularly for things like trip cancellation. That being said, there are still a few other things that travel insurance will cover that your credit card might not. Read the fine print carefully and ask questions.

When You Should Definitely Buy Travel Insurance

Similarly, there are a couple instances where you should not second guess it. In these instances travel insurance is absolutely worth it and a necessity.

1. If you are an adrenaline junkie or like extreme sports. Most of your more traditional insurance policies will not cover things that would be considered you putting yourself in high risk situations. This could include scuba diving, skydiving, mountaineering, etc. Once again, read the fine print on any existing policies, but adventures like these tend to not be covered and require additional insurance.

2. You have no other insurance in place. For example, if you live in the US and quit your job to travel, this most likely means your medical insurance is gone – due to it typically being connected to your job. If you are traveling long term, you may also have no home or renter’s insurance to cover your belongings. You will definitely want to buy travel insurance in this circumstance!

What does Travel Insurance Cover?

As with any insurance policy, you should carefully read all of the terms and conditions to know what it includes. If you don’t understand what you are reading, ask for clarification. You need to know what you’re covered for and what you’re not before you purchase it, and definitely before you start traveling with it!

The only thing worse than traveling without travel insurance is traveling with travel insurance that does not actually cover your needs!

Here are 5 of the most common things that travel insurance covers.

1. Medical Emergencies & Evacuation

Heaven forbid you need to be evacuated from an emergency situation or you end up injured abroad and need immediate attention. This is a very typical reason to buy travel insurance. It can help you easily avoid thousands of dollars in medical bills.

Personally, I have been on a remote island in Fiji when my friend became seriously ill with salmonella. We had to head to Australia for medical attention. Or there was the time my roommate on Mount Everest had to be helicoptered off the mountain when she came down with dysentery.

These types of things are not uncommon, and they are expensive! Make sure you are covered in case of an emergency. Particularly if you are doing extreme sports. Some travel insurance providers even offer varying tiers for adrenaline junkies. Read your policy and see what you are covered for and what you’re not.

2. Trip Cancellation

Life happens. If something comes up like an illness, accident, or death of a close relative, you may need to cancel your trip. While not all travel insurance covers cancellation, its good to know what you’re covered for. Read it carefully. It may also require you to have purchased your travel insurance prior to booking your outbound flight.

3. Baggage and Personal Belongings

While all belongings can be replaced, you don’t want to be stranded without your bags, particularly if you cannot afford to replace it! I’ve met people who set their bag down for a moment, and it disappeared. Or, I personally have been mugged at knifepoint on a busy road in Ipanema, Brazil. Or what about the time my hostel in Tofino on Vancouver Island, Canada caught on fire?! No matter how careful you are, things happen that you cannot avoid.

Carefully read your travel insurance policy. Understand what it covers and what it does not. Does it account for your expensive camera and laptop? Typically you have some accountability for keeping your belongings safe, but if your backpack or purse goes missing even with your precautions, you will not be completely out of luck.

Depending what your gear is worth, you may also want to check what the limits are to ensure it gives you the coverage you need. This is true not just for technical gear, like camera equipment, but also for things like jewelry. Although generally its best to leave the expensive jewels at home.

Read more: What to Do When Your Purse is Stolen Abroad

4. Personal Liability

If you’re on the road and are involved in an accident, you may need coverage. Personal liability insurance can cover your liability and legal expenses. Carefully read the description of coverage and policy wording that is relevant to this.

This also can come up in places like Southeast Asia where you might be renting a motorbike. Do you need to have a motorbike or motorcycle license to be covered? It’s worth checking into before you end up trying to file a claim to find out you weren’t covered.

5. Coming Home Early & Resuming Your Trip

Let’s pretend you are on the road for a year or so and need to come home for a wedding or a job interview a few months in. Will your insurance policy continue to cover you when you return to your trip? Or will it be void because you came home?

It depends on the insurance policy. Read your travel insurance and ask the insurer to clarify if needed. Whenever possible, try to clarify over email to have a paper trail, just in case.

The Cost of Travel Insurance

As a frequent budget traveler, adding in the cost of travel insurance to your trip budget can be painful, but it really is a necessity. So how much does travel insurance cost?

It’s all over the place. Travel insurance can cost as little as a few dollars per day or it can be on the pricey side depending on a few factors:

• Where are you going?
• When are you traveling and for how long?
• Where are you from?
• How many people are traveling?
• How old are the travelers?

All of these questions factor into your custom quote and coverage.

The other thing to account for is what you need your insurance to cover and to what level of coverage. These will all be spelled out in the details of your insurance policy. Double check that your planned activities are covered, especially higher risk extreme sports and activities, like hang gliding or rock climbing.

Is Travel Insurance Worth It?

Yes, and no. As with all insurance, you hope to never need it. It’s “just in case”. That being said, when the time comes that you do need it, you will be kicking yourself if you haven’t purchased it. The ~$100 could save you thousands or even tens of thousands of dollars.

Why I Now Travel with Travel Insurance

I personally did not travel with travel insurance for years! Until I was mugged at knifepoint by a gang in Brazil. I managed to steal my stuff back from them (that’s a story for another time), but as I was running away down the street (thank you Ironman training!), I literally was listing all of the things in my purse that weren’t insured, including my camera and iPhone!

As my feet pounded the pavement, I was realizing that if and when they caught up to me, I would probably bleed to death in the streets. Alas, I am a travel insurance convert!

And to be clear, it was around sunset, on a busy road, and I was with a friend! It was just a wrong place/wrong time scenario. No amount of precautions could have stopped it, other than of course not traveling.

Stay safe on the road with 35 Critical Safety Tips for Solo Travelers

Travel Insurance Providers – Choose Wisely!

There are a lot of different travel insurance providers. I have personally always traveled with World Nomads Travel Insurance. They offer great coverage and are easily accessible online in case you have questions or need to file a claim.

What does World Nomads Cover?

World Nomads is a full service travel insurance provider. They offer two plans, a Standard Plan and an Explorer Plan for the more adventurous travelers. You can see the full coverage on the World Nomad’s website, but it includes:

• Emergency Accident & Sickness Medical Expense
• Repatriation of Remains
• Trip Cancellation, Interruption, or Delays
• Baggage & Personal Effects
• Baggage Delay (outward journey only)
• Rental Car Damage – where permissible
• Accidental Death & Dismemberment
• Generali Global Assistance 24-Hour Assistance Services
• Generali Global Assistance Non-Medical Emergency Transportation Services

Conclusion on the True Worth of Travel Insurance

So is travel insurance worth it? I would say yes. 100%. I have had enough travel instances where it has saved me, or my travel companions from some potential hefty bills. Not to mention that its just one less thing to worry about while you’re traveling!

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