Travel Insurance: Don’t Leave Home Without It

When I was purchasing my home, the closing was delayed because of a trip someone had taken years earlier. The previous owner had traveled to New Zealand, became seriously ill, was hospitalized, and required a nurse to accompany him on the flight home. The hospital placed a lien on his house, and my closing was delayed as a result.

I do not know whether he had travel insurance. But I know what happened without it.

Travel insurance is one of the most overlooked parts of planning a trip — and one of the most important. Medical costs abroad can be staggering. A hospitalization, an emergency evacuation, or a medically supervised flight home can run into tens of thousands of dollars. Your regular health insurance may provide little or no coverage outside the United States.

Many people assume they are covered because they booked their trip on a credit card. In most cases, credit card travel benefits cover trip cancellation or accidental death — not medical expenses or emergency evacuation. It is worth reading the fine print carefully before assuming you are protected.

Another common misconception involves tour operators that advertise trip cancellation protection. In many cases, what they are offering is not a refund — it is a credit toward a future trip. That is very different from getting your money back. Before you book, ask specifically whether cancellation results in a cash refund or a credit.

Travel insurance plans vary widely in what they cover and at what cost. There are policies for trip cancellation, medical coverage, emergency evacuation, lost baggage, and more. Some cover a single trip; others cover an entire year of travel. The right plan depends on where you are going, how long you will be away, and what you have already invested in the trip.

As a travel advisor, I recommend travel insurance to every client, for every trip. The cost is modest compared to what you stand to lose — financially and otherwise — if something goes wrong far from home.