Do You Need Travel Insurance? And How it Saved Me $900
I have never purchased travel insurance until I started solo traveling and it was a necessary requirement during COVID to travel to Costa Rica. I thought what everyone thinks “oh I won’t need it” “it’s just an extra expense” “nothing will happen to me”. On my solo trips, I got into a habit of buying it each time. And wow am I glad I did because it saved me about $900!
WHAT HAPPENED?
My long-awaited Iceland trip had finally arrived and I was at the airport, ready to go. Everything seemed to be on time, until it wasn't. The flight, originally scheduled for 6:30 PM, kept having delays. At midnight, the gate agent mentioned they were working on an update, but the pilots were nearing their time out. I just knew it would be cancelled.
I began frantically calling my rental car company, realizing I wouldn't make it on time to pick up the car and would be considered a “no-show”. Unfortunately, they advised me to cancel and rebook due to the short notice. The time change also made it challenging to contact my hotels. At 1:30 AM, the flight was officially canceled, rebooking us for the next night. We had to retrieve our luggage from baggage claim and try again tomorrow.
So, I went back to the drawing board, attempting to salvage as much of my trip as possible. I made new car rental and hotel reservations, canceling the ones I would miss. Despite my pleas for a refund, I was met with a firm "against their policy." I just kept thinking it’s okay, I bought travel insurance, that’s what it’s for.
When I got back from my trip, I filed a claim with Allianz Insurance. I had previously reviewed my policy knowing that when a flight is delayed by 24 hours, an automatic $200 refund is provided. So I gathered all necessary documentation: proof of flight cancellation, itinerary, additional reservations, canceled bookings, etc. and held my breath.
After submitting the claim, it took approximately 2 weeks for them to review and refund me. Thankfully, they covered all the canceled reservations and additional expenses, and it was direct deposit. Even with the admin, it saved me around $900 in extra expenses. Not to mention, I had a calmness when things were going wrong knowing that I had travel insurance and could potentially re-coup the funds. Now I buy travel insurance for every single trip and actually, the next trip after Iceland, I got the flu and couldn’t make that one either.
So, yes you should buy the travel insurance.
WHAT IS TRAVEL INSURANCE?
Travel insurance is essentially a financial safety net for any unpredictable situations that are always a risk with travel. It provides coverage for unexpected events like trip cancellations, delays, medical emergencies, lost baggage, rental car damage, and more.
HOW DOES TRAVEL INSURANCE WORK?
When you purchase a travel insurance policy, you pay a premium to the insurance company. In exchange, the insurer promises to reimburse you for covered losses or expenses during your trip, provided they fall within the terms and conditions of the policy.
Choosing the Right Policy: There are different types of travel insurance policies, including trip cancellation/interruption, medical, baggage, and comprehensive coverage. There are also policies that cover a single trip, annual trips, domestic, and international.
Purchasing the Policy: You can buy travel insurance from various sources, it will usually cost anywhere from 4-12% of your total trip cost. You will choose the dates the trip covers and the cost of your trip. Make sure to read the policy carefully and understand what is covered and what is not.
Making a Claim: If an unexpected event occurs during your trip, such as a medical emergency or delays (I talk about my experience below), you initiate a claim. This usually involves submitting documentation of the incident.
Receiving Compensation: Once your claim is approved, you'll receive compensation, either as a reimbursement or a direct payment to cover your losses.
Exclusions and Limitations: Keep in mind that not everything will be covered, and there may be limits on coverage, so it's essential to thoroughly understand the terms and conditions of your policy.
WHERE DO I BUY TRAVEL INSURANCE?
There are a few different companies that offer travel insurance. The "best" travel insurance company may vary depending on your specific needs, experiences, and preferences.
Allianz Global Assistance: Allianz is a globally recognized name in travel insurance. They have a solid reputation for customer service and claims processing. This is personally my favorite. I have had really great experiences with them.
World Nomads: World Nomads is a favorite among backpackers and adventure travelers.
Travelex Insurance Services: Travelex is known for their competitive pricing.
AIG Travel: AIG offers a variety of options for everything from basic coverage to high-end protection. They have a robust network of assistance services.
InsureMyTrip: InsureMyTrip is an online platform that allows you to compare multiple travel insurance policies from different providers, helping you find the best plan for your needs.
Buy the travel insurance, if anything it will give you piece of mind.DO I NEED A RESERVATION?
