Do I need travel insurance?
Travel insurance, like any insurance, is there to help us with life's unexpected curveballs. We hope we never have to use it, but it’s there for our piece of mind. You may not realize it, but travel insurance is extremely valuable. My job is to read the fine print so you don’t have to. I know exactly what you’re covered for and when. Understanding coverage may change your mind about whether or not you need travel insurance!
What does travel insurance cover?
When you book your travel insurance with me, Fora (my host agency) has a great partnership with Faye. Faye provides travel insurance and comparable if not better rates as your AAA, Allianz, or TravelGuard. We also work with Arch Roamlight, but I’ll use Faye as an example here.
I‘m planning a honeymoon for a couple going to Belize, so I ran a quote for them with Faye. Their trip will be valued at around $5,000 for 8 days. Their quote from Faye was about $297. Here’s what they get:
Faye
Travel insurance in our plans is underwritten by United States Fire Insurance Company, which is A-rated by A.M. Best of 2021 (Faye website).
Trip cancellation due to health reasons
If they get COVID-19, into an accident, or fall ill while abroad; expenses will be covered as well if they need to leave early or stay longer. This could be anything from a sprained ankle on a hike, to a jellyfish sting in the ocean, to contracting a virus.
Trip Cancellation for other covered reasons (there are about 20, including a family member’s illness back home, for example).
Trip interruption or delay
If they have to unexpectedly change how long they stay for your trip (they’ll reimburse 150%, or $7,500); if they’re stranded somewhere for reasons out of their control, this couple will get $300/day up to $4,500, and a flight delay is an extra $200. You’re thinking, why would I be stranded somewhere? Natural disasters, strikes, political unrest, government shutdowns, you name it! We hope these events don’t occur, but if they do, you’ll be happy you’re covered.
Trip inconvenience - a fantastic feature - basically means if anything inconveniences them unexpectedly, $200 reimbursement per inconvenience capped at $600. Maybe their snorkel tour guide had to cancel the tour? Maybe there is a local strike keeping them from their hotel? Situations like these are labeled as ‘inconveniences’.
Did this couple miss the trip connection? This happens so often! Many connections are less than an hour to begin with; combine that with the first flight arriving late, and they may miss the next flight through no fault of their own. In this case, they would be awarded $200 if the delay is 3 hours or more.
Non-medical emergency evacuation awards them up to $100,000 as well.
Their stuff is damaged or lost
If their baggage is lost or damaged, they can get up to $2,000 (limited to $150 per item). If it’s delayed, they can get $300.
Lost or damaged sporting/professional equipment. Maybe their skis got messed up on the way, or the SCUBA gear got lost. They have up to $2,000 coming their way.
Passport or credit cards - $50 per item.
More baggage delay goodies! If bags are delayed, they get $200 - 300 depending on how long the delay is and whether or not the airline sends them a receipt
More goodies
If this couple were traveling with a fuzzy friend, for an extra $25 they can get up to $2,500 in veterinarian expenses and $250 to put the furry friend in a kennel if the trip gets extended.
Rental car damage or theft - up to $50,000 for an extra $8 per day per car.
For an extra $83.58, this couple could add cancel for any reason so at this point, they have to go by the covered reasons! They would be free to cancel for anything reason. (separate example: Let’s say you’re going on a trip with a friend you had a falling out with. You can just decide, this trip isn’t the move anymore, and get your money back!)
Adventure and extreme sports coverage if this couple hurts themselves bungee jumping, white water rafting, or BMXing abroad for an extra $111.
An extra $17 will get them vacation rental coverage if they drunkenly punch a hole in the wall or break the jacuzzi. Faye will pay up to $3,000 in repair or replacement costs so the rental people don’t yell at them.
So do I need it or not?
It’s simple - all effective travel agents make sure their clients know what could happen in cases where they don’t opt for travel insurance. The choice is ultimately yours, but travel insurance is for you if you are:
The kind of person who would rather pay for peace of mind and convenience
A cautious person normally
Traveling to a new place
Traveling with a group or more than just you
Traveling with kids and/or pets
You may choose to not get travel insurance if you are
Traveling alone and willing to pay a lot of money if something goes wrong
Looking to save money and prefer to deal with situations as they arise
There are too many things life could throw at us. If you noticed, the travel insurance is about $300 which is already less or the same than many of the reimbursements Faye pays out should something happen (worth it in my opinion). If the trip goes smoothly - amazing! That’s what we wanted. Worst case scenario you paid an extra $300 for the piece of mind to enjoy yourself and let the insurance handle any mishaps for you.
Plan your next trip with me so you too can enjoy peace of mind.