Is Travel Insurance Necessary?

No one likes to pay extra for a vacation … and no one likes to lose funds on a vacation either.

The good news is that you may not have to lose funds if things go awry while traveling. You can purchase travel protection insurance. There are several good travel insurance companies available and the amount of coverage and pricing varies.

Travel insurance is one of those things that, much like car insurance, no one wants it – until they need it, then they’re happy they have it.


As a travel professional we are required by the seller of travel laws to offer clients travel protection/insurance. This is why with any travel purchase, even online with the airlines, rental cars, etc. you will always be offered insurance to protect your trip.

There are many stories of those who refused travel insurance and lost funds spent on their trip when they had to cancel or something went wrong while traveling. And, there are stories of those who purchased travel insurance and were very thankful they had it when things went askew. And, there are stories of those who didn’t purchase travel insurance and they didn’t need it because nothing of detriment occurred. What a relief!

Before you decline trip insurance consider the following…

Wise travelers recognize the important need to protect their trip investment, health, and personal belongings. The following information will show just how Travel Protection Coverage can help prevent almost any potential loss, but you need to ask yourself if you can afford to have any of these costs out of pocket should something happen:

1) Trip Cancellation/Interruption reimburses your non-refundable payments or deposits up to the amount of coverage selected, for example:

  • Cancellation penalties (which can be up to 100%) due to an injury, illness or death of you, a traveling companion or family member.
  • Bankruptcy or default of an airline, cruise line or tour operator.
  • The unused portion of your trip if your trip is interrupted.

2) Emergency medical expense coverage pays up to the amount selected for:

  • On-the-spot hospital deposits and payments required by hospitals for your admittance.
  • Personal health insurance deductibles and co-payments. Many health insurance policies don’t cover out of country co-payments.
  • Costly medical transportation which can save you thousands of dollars.

3) Many tour operations and cruise line insurance programs do not provide the following coverage:

  • Bankruptcy or default protection.
  • The ability to cancel your trip (for coverage reasons) up to the time of departure.
  • Trip interruption coverage once you have departed.
  • Medical coverage.
  • 24-Hour Hotline assistance for travel and medical emergencies.


If you DO need to cancel then here are some Tips for Dealing With Trip Cancellation and for Dealing With Trip Interruption from Allianz Global Insurance.

How to Help Protect Your Trip During Hurricane Season from our friends at Travel Insured.
10 Reasons Why Travel Insurance is a Pretty Smart Idea from AIG’s Travel Guard Insurance.

Until next time…