Is Travel Insurance Worth It? Breaking Down the Pros and Cons

While traveling around the world is a beautiful privilege, sometimes things go wrong. That's where travel insurance often comes in handy for all types of travelers. However, is travel insurance actually worth it? Well, it depends on a lot of factors, including your providers and the type of trip you're going on.

Keep on reading and I’ll take you through everything you need to know to work out if travel insurance is worth it for you.

Consider Medical Events

One of the best reasons to get travel insurance is to cover you in case of a medical emergency. Of course, you don't want to think about having an accident overseas, but it can happen.

Medical bills, especially in the U.S. and Caribbean, can be expensive out of pocket, so having travel insurance can help mitigate this cost. It also helps cover any surgery or pharmaceutical costs along the way, which we don't often budget for in our search for the best vacation deals.

There are also options for repatriation and medical transportation if something serious happens, and it costs more to get you home. This is a huge help as specialized medical transport is extremely expensive and often requires a medical professional to travel with you in an emergency as well.

If you have any pre-existing conditions, travel insurance is definitely worth it, in case something goes wrong. Different plans have different tiers of coverage, so check before you buy.

You also have to tell the insurance company of any pre-existing condition, no matter how small, as this might void your policy if they find out.

Trouble in the Skies

Many people get travel insurance to cover them in case their flight is cancelled. However, airline deal enthusiasts and frequent fliers know that airlines offer the best experience when it comes to quicker, cheaper refunds, better compensation packages, and flexible rebooking options.

In most cases, you'll often get your money back for a cancelled flight automatically and be left to book alternate routes. Of course, this can be expensive depending on the difference in price from your original itinerary, but there are airline compensation schemes that can be useful without insurance.

I've had flights delayed, cancelled, and an airline go bust while I was away, and I've never used travel insurance to get the money back or compensation. Instead, I’ve gone directly to the airlines, been persistent with customer service agents, and gotten my money back without any excess payments.

Rough Roads Ahead

If your family’s just found a deal on a rental car and thinking of packing everyone in for a nice road trip, travel insurance is a huge blessing. With children, more things can go wrong. Ensuring that everyone stays safe and has all their gear intact is important on the road.

When you're traveling as a family, there are more bags, more people, and more little details that can go wrong. Travel insurance helps to cover these incidents that increase exponentially with children and other family members in tow!

Worth It on Sporting Trips?

If you’re going hiking, climbing, biking, kayaking, or any ski sports, I’d highly recommend travel insurance. These activities are much riskier than a relaxing day on the beach, so there's a higher chance of injury. You're also more likely to be traveling with specialist gear, which can be expensive to replace if your bags get lost or stolen.

Most travel insurance policies will cover certain activities like hiking under 4000m or climbing with ropes, however, ski sports are often an added extra. Check the list of sports carefully before you travel to make sure you're covered.

Securing Your Devices

When you're on a work trip or you want to travel with laptops, tablets, or camera gear, insurance is definitely warranted. Whether through damage or theft, electronics can often get affected when we travel, and gadget travel insurance helps to cover the cost of a replacement.

If you're heading somewhere super touristy with a reputation for pickpockets, make sure to get this kind of travel insurance. Given that our phones typically have our credit or debit cards, check-in and flight apps, and more travel necessities, being able to get a replacement quickly is absolutely crucial.

Again, different policies cover different levels of gear, and you need to be honest about the cost of your electronic items. If you have fancy lenses that you travel with, don't forget to factor them into your policy as well!

Strength in Numbers

If you're joining an organized tour or small group travel experience, it's often a prerequisite that you have travel insurance. You'll normally have to show proof of it to the tour leader when you arrive.

It depends on the kind of tour for what kind of insurance you'll need. If your itinerary’s more active, make sure you get sport-specific or adventure coverage, whereas if it's more of a series of city breaks, consider upping your gear and electronic coverage.

So Is Travel Insurance Worth It?

So, the big question is whether or not travel insurance is worth it. It's completely dependent on your travel style, activities, and your aversion to risk. Of course, it's not mandatory except on certain organized tours, but it can save you a lot of money if something goes wrong.

One way to mitigate costs is to get annual coverage. This works out to be a lot cheaper than single-trip coverage and means you don't have to worry about remembering insurance for each vacation. You can also see if your house insurance includes basic travel insurance, as many providers include this as an added perk.

Overall, if you're going somewhere direct with an airline, you can get your money back directly, without using insurance providers. However, when it comes to medical, electronics, or sports gear, travel insurance may be a lifesaver in a pinch!