As you might expect, the answer to this one is ‘It depends.’ When someone asks us ‘Is travel insurance necessary?’ we feel a little twitch because the answer depends on a range of factors:
Travel insurance is like any other type of insurance – you buy it hoping not to need it.
The purpose of any insurance plan is to protect the insured from huge financial losses. After all, isn’t that why you buy homeowner’s or renter’s insurance? You have it but hope you won’t need it. If your home burns to the ground, most of us would be in a bind to pay for a new place to live, replace all our belongings, and have the money to rebuild without the help of insurance.
Travel insurance is the same – you buy it hoping you won’t need it but when you do, you want that coverage available to you to prevent significant financial losses in the event you have to cancel your trip, you lose your luggage, you miss your cruise departure, and more.
Without travel insurance to cover those unexpected – and often unpleasant – events, you’ll have to recover on your own and out of your own pocket.
There are a few situations when travel insurance is not necessary and many of us have taken trips like these:
So, is travel insurance necessary? We think it is for many – but certainly not all – trips and whether it’s worth it or not is really up to you, your personal situation, and that all-important factor – what happens on your trip. That last bit is entirely unpredictable and that’s what insurance was designed to protect you against.
Damian Tysdal is the founder of CoverTrip, and is a licensed agent for travel insurance (MA 1883287). He believes travel insurance should be easier to understand, and started the first travel insurance blog in 2006.