A popular question travelers often ask our travel agents is - Why buy travel insurance? Travel insurance is widely undervalued and often times travelers will opt out of the purchase because they don’t feel prepared to make the decision.
Americans spent $1.9 billion on travel insurance in 2012, according to a survey done by the U.S. Travel Insurance Association. Gregory Karp from the Chicago Tribune says, “That’s up nearly 50% from five years ago.” You can read more on Karp's take on travel insurance here.
Despite such a large increase in the industry, many travelers are still asking - why buy travel insurance?
For some, the answer is simple - they don’t have a trip to lose. But many travelers see trip protection as a product for trip cancellation and aren’t thinking about many of the other risks associated with travel.
In this post, we’re going to go over six reasons travelers buy insurance, and there are some you probably haven't thought of.
1. Statistically 17% of travelers have their trips impacted
According to a survey completed by UStiA, 17% of travelers have their travel plans impacted. A trip often depends heavily on outside sources that are not within our control. Whether you are flying, cruising or both, often times your plans are impacted unexpectedly. It can cause you lose on your travel investment.
The average income per person annually is $20,194, according to the Bureau of Labor Statistics. With room & board averaging around 10K annually, that doesn’t give your average American much wiggle room for travel. For the average person, losing their travel investment is not something you can afford.
2. Other countries may deny medical treatment
One thing people often forget, is their health insurance may not be global. This is especially true if you are on Medicare. You first want to check if your health insurance covers you abroad, but even if they do, will they provide the hospital or facility a statement saying they will promise to pay like travel insurance will do?
3. Medical and emergency evacuation can cost 50K+
What do you thin happens when someone becomes sick or injured on a cruise ship and the condition is too severe for the doctor on board to treat? A medevac lands on the ship, and transports the patient to the nearest, most qualified medical facility. It is rare you will see a medical evacuation cost less than $30,000.
Medical Evacuation is not the only coverage to be considered, there is also Non-Medical Emergency Evacuation in times of political unrest or natural disasters. Having coverage and being able to get out when the conditions are dangerous is a way to ensure your own happiness
4. Prescriptions aren’t easy to replace while abroad
Many travelers have lost their prescriptions or have had their prescriptions stolen while traveling abroad. Not only are prescriptions sometimes difficult to replace without an original script, but it may be difficult to find a pharmacy that carries your prescription.
For 10 Tips on Traveling With Prescriptions you can read this article here.
5. Because acts of terrorism and political unrest are something we are all susceptible to
Egypt, Yemen, Tibet, Syria. They are all locations where tourism once flourished. Now, they are areas plagued by civil war, terrorism and civil rights issues. Political unrest can happen overnight, and being able to get out can be a matter of life and death.
6. Knowing you’re not alone is a comforting feeling
Traveling with companions is a great feeling. But knowing you and even your group have someone to rely on if the unexpected happens is a great feeling.
