Top 10 Travel Insurance Myths

This post may contain affiliate links, meaning we may receive a commission if you click a link, at no cost to you. Please read our Terms of Service for more information.

KEY POINTS

• Your government medical insurance, employer group benefits, and credit card coverages typically require supplement travel insurance for your financial protection

• The travel insurance industry is competitive – we are confident you will be able to find a customized policy that fits your unique needs and your budget

• Specialty coverage is available including pre-existing condition waivers and cancel for any reason

Embarking on any type of travel can be an exciting experience, yet sorting through the intricacies of travel insurance may seem like a tedious task that often gets relegated to the lowest priority on your To-Do List.

Misguided assumptions may jeopardize your trip, cherished memories, and well-being.

We unveil the top 10 misconceptions about travel insurance. Whether you're a seasoned traveler or new to the globe-trotting scene, it's time to dispel these myths and discover the genuine value of travel insurance.

Let’s jump in …

Top 10 Travel Insurance Myths

① “Travel insurance is only for international trips.”

Insurance for travel holds equal importance whether you're journeying within your own country or venturing internationally. It safeguards against unexpected occurrences like trip cancellations, interruptions, delays, missed connections, personal belongings, pets, and medical emergencies, irrespective of your destination, be it abroad or within your homeland.

② “I don't need travel insurance; my health insurance covers me abroad.”

You might commonly believe that your regular health insurance adequately covers you when traveling internationally. In reality, health insurance often has limitations, and it may not extend beyond borders.

The risk of unforeseen medical emergencies can translate to substantial medical bills, ensuing litigation, and personal bankruptcy in extreme circumstances.

③ “Travel insurance is too expensive.”

The belief that travel insurance comes with a hefty price tag may deter you from considering it as an essential part of trip planning. Contrary to this myth, there are affordable options available that offer basic coverage for common travel-related risks.

We use 5% of your non-refundable trip costs as a rule-of-thumb when initially budgeting for travel insurance. This amount will fluctuate based on age, health profile, destination, coverages selected, coverage limits, and more.

④ “Travel insurance covers everything.”

While the notion that travel insurance is an all-encompassing shield against every conceivable setback is enticing, it's essential to dispel this myth. Travel insurance policies have specific terms, conditions, and exclusions.

Some medical conditions are specifically prohibited, as are some activities. Some policies may provide varying degrees of coverage for such conditions and activities via a tiered policy or optional upgrades.

It is crucial to thoroughly review the policy terms and conditions before purchasing to ensure that you understand the limitations and exclusions.

⑤ “I can buy travel insurance anytime, even during my trip.”

You may be able to purchase travel insurance after your trip commences; however, there are several reasons why you should reconsider this approach.

Some policies offer early purchase discounts or added risk coverages. Moreover, purchasing travel insurance earlier often extends coverage periods, providing longer protection for aspects like trip cancellation.

You will want to consider policies that offer pre-existing condition waivers if you have an existing medical condition. Such waivers must be acquired within a specified time frame that varies by policy.

⑥ “All travel insurance policies are the same.”

The travel insurance industry is very competitive and that translates into a wide array of consumer choice. You will find comprehensive policies with multiple tiers and various optional upgrades that allow you to tailor your policy to your unique needs.

You can also access coverage specific type policies. Medical only / focused policies are very common and often provide above average market coverage limit options. Similarly, you can purchase adventure travel and extreme sports specialty policies to cover the higher risk activities associated with this type of travel.

Keep an eye open for highly sought after coverages including cancel for any reason, cancel for interruption, cancel for work, pre-existing condition waivers, and the adventure travel and extreme sports coverage noted above.

⑦ “My credit card includes travel insurance, so I'm already covered.”

Many top credit card companies offer travel insurance with benefits like trip cancellation, and baggage reimbursement. However, these policies often have limitations and exclusions that require supplemental coverage from a dedicated travel insurance agency.

Credit card policies may lack valuable coverage like pre-existing condition waivers, adventure sports, cancel for any reason, cancel for interruption, cancel for work, medical evacuation, and more.

Opting for a credit card with travel insurance might not be a worthwhile investment if you still must purchase supplementary coverage.

⑧ “Travel insurance covers any reason for trip cancellation.”

Traditional travel cancellation insurance typically comes with a set of specific covered reasons for trip cancellation outlined in the policy. These reasons may include unexpected events such as illness, injury, death of a family member, natural disasters, or job loss.

However, it's important to note that standard travel insurance does not allow cancellation for any reason at the policyholder's discretion. Exclusions and limitations are clearly defined, and the insurance provider will only honor claims that fall within the specified criteria.

On the other hand, some travel insurance providers offer a more flexible option known as cancel for any reason coverage. With this coverage you have the liberty to cancel your trip for virtually any reason, offering a higher degree of flexibility and control. It may often come with higher premiums, but it can be a valuable choice for your peace of mind.

⑨ “I'm young and healthy, so I don't need travel insurance.”

Irrespective of age, unforeseen medical expenses may arise from accidents such as slips, falls, or sports-related injuries, necessitating immediate medical attention. Additionally, unexpected illnesses like food poisoning or infections can result in unanticipated healthcare costs during travel. The extensive range of potential medical emergencies is vast and underscores the importance for travelers of all ages to secure travel insurance before embarking on their journeys.

⑩ “I'm not doing any extreme activities, so I don't need insurance.”

Travel insurance covers much more than just extreme activities. There is a plethora of other medical risks that you need to consider like illnesses, surgery, dental emergencies, hospitalizations, medical evacuations, pre-existing conditions, and more.

Medical coverage is only one aspect of travel insurance. You should also consider trip protection coverage related to cancellations, interruptions, missed connections, delays, lost or delayed baggage, pet care and more.

FINAL THOUGHTS

Travel insurance is essential for both domestic and international trips, offering affordable options tailored to your needs and providing crucial protection against unforeseen events and financial risks, including medical emergencies.

It is critical to understand that your current government health insurance, your employer sponsored group benefits, and the coverage provided by your credit card are unlikely to match the coverage offered by the leading travel insurance providers.

We invite you to read our reviews on 12 of the industry’s leading travel insurance providers. We trust these reviews will guide you to a tailored insurance policy that fits your needs and your wallet.