Whether you’re planning a luxurious honeymoon on a tropical island, a quick retreat to a national park or an exclusive overseas cruise, travel insurance is a smart investment that can help safeguard your hard-earned dollars invested in travel and unexpected expenses related to your health or belongings. Yet there are a few misconceptions that prevent even the most seasoned travelers from purchasing it. So, let’s clear up the confusion and debunk four of the most common myths about travel insurance.
Myth #1: Nothing bad will happen to me, so the expense of travel insurance isn’t worth it.
From lost baggage and flight delays to traffic accidents, illness and serious injuries, things don’t always go smoothly even during a well-planned trip. And unfortunately, good luck doesn’t protect you from the unforeseen. So, when deciding if travel insurance is right for you, consider the cost of your trip relative to the nominal cost to help protect it with travel insurance. Are you willing to roll the dice and pay for an unexpected cost? Sometimes, a relatively small investment can have a huge impact on limiting the downside of unexpected expenses during your travels, and just as importantly, your peace of mind.
Myth #2: Trip cancellation is the only benefit of buying travel insurance.
You’ve just boarded your plane and you’re ready to embark on your dream vacation. Nothing can go wrong because your travels have already begun, right? Wrong! There are still risks even once you’ve departed for your destination. Many people purchase travel insurance for its trip cancellation benefits. In fact, according to a recent survey from AAA, nearly 70% of travelers say this is most important to them when considering travel insurance. But there are so many other reasons to consider travel protection. For example, if your flight is delayed due to a weather mishap, some plans may include benefits to help offset meals, lodging or transportation expenses you may incur. Other plans can include trip interruption benefits that can kick in if you’re forced to go home early for reasons that might include the death of a family member or getting sick during your trip.
Myth #3: My credit card benefits will cover me.
While some credit cards include travel insurance benefits that can help pay for out-of-pocket costs in certain situations, it’s important to understand that coverage differs from card to card. Many no-fee credit cards don’t have travel insurance benefits and some cards that include a material level of benefits charge an annual fee. If you’re relying on your card, be sure to read the terms and conditions of your benefits carefully.
Myth #4: My health insurance coverage travels with me overseas.
Health issues can crop up at the most inopportune times, and they certainly don’t know borders or boundaries. That’s why it’s crucial to have a clear understanding of what your health insurance will or won’t cover when you’re abroad. Depending on your domestic healthcare provider and plan, medical coverage for international travel can vary quite a bit. Some plans offer partial coverage while others offer none at all. Although some countries with universal healthcare may help you with minor needs, if you have a serious injury or need a medical evacuation, they likely won’t pay for your trip home. And for older travelers, keep in mind that Medicare only works in the United States, so if you’re venturing overseas, you’ll want to explore options for supplementary coverage.
The Aon Travel Takeaway? “Every vacation has its own nuances to consider, but these are a few misconceptions we see when it comes to travelers’ understanding of travel insurance,” says Beth Godlin, president of the Aon Affinity Travel Practice. “If you’re new to travel insurance or aren’t sure if it’s worth it, contact a provider. They can help answer questions to assist in understanding the policy and if it fits the needs of your specific situation.”