Traveling involves many unknowns. Among booking vacation packages, airline flights, and navigating country-specific regulations, it’s easy to lose track of which parts of your trip are covered by insurance and the extent to which changes or cancellations are covered in the event you have to change or cancel plans. More than ever before, professional travel planners recommend you insure any trip costing more than a few thousand dollars total per person.
General travel insurance policies offer coverage for expenses such as flight delays and cancellations, lost bags, and minor medical emergencies. Policies can be purchased to cover a single trip, multiple trips, or up to a full year of travel, with prices to match the extent of coverage. NerdWallet published its list of top travel insurance providers in 2021, with World Nomads Explorer Plan taking its “Best-Of” Award. Unlike most other available insurance plans, World Nomads provides up to $35,000 in rental car damage coverage, as well as additional coverage for sports and activities deemed “risky,” such as rafting, rock climbing, or parachuting.
While the additional coverage may provide some peace of mind, it’s also important to note that travel insurance primarily only covers reservations and medical expenses while traveling. If your hotel or activity reservations can be cancelled without penalty, it may be worth reconsidering whether the cost of added travel insurance is necessary. Additionally, for travel within the U.S., added medical coverage may not be necessary if your U.S.-based health insurance plan covers out of network providers and emergency treatment. Outside of the U.S., doctors may not accept the same policies.
With mutating strains of COVID, extreme weather events, and natural disasters disrupting flight schedules and vacation arrangements, it may be worthwhile to add travel insurance to your next high-cost trip. For a weekend trip across the country, however, the minor risk may not justify the additional cost. For clients of TWC, these are just a few of the things we will help you to consider when working with you to plan your next trip or vacation.