When Does It Make Sense to Buy Travel Insurance?

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Travel insurance is almost always a smart buy. The cost of not having insurance can be huge, if anything major goes wrong on your trip.

But we’ll be honest: You might not need to insure every little trip you take. It all depends on the risks you face.

When you’re trying to decide whether you need travel insurance, we advise asking one simple question: What’s the worst that could happen? Knowing the worst-case scenario makes it easier to understand when insurance makes sense.

When you’re spending a lot on a non-refundable vacation, it makes sense to buy travel insurance.

Worst-case travel scenario: A last-minute emergency forces you to cancel, and you end up losing all the money you spent.

How travel insurance helps: Your plan can reimburse you for the lost trip costs, as long as you cancel for a covered reason.

When you’re planning a refundable vacation in the U.S., it might not make sense to buy travel insurance.

Worst-case travel scenario: You experience some minor travel snafus, such as a misplaced suitcase or a delayed flight.

How travel insurance helps: Travel insurance with baggage benefits and trip delay benefits can reimburse you for necessary items and/or services during a covered delay.

When you’re traveling internationally, it makes sense to buy travel insurance.

Worst-case travel scenario: You get seriously sick or injured on your trip, and you have to pay out of pocket for medical care.

How travel insurance helps: A plan with emergency medical benefits can protect you from huge medical bills.

When you have a pre-existing medical condition, it makes sense to buy travel insurance.

Worst-case travel scenario: A chronic illness or medical condition prevents you from going on your planned trip.

How travel insurance helps: Trip cancellation benefits may be able to reimburse your lost trip costs.

A lot of people don’t realize that travel insurance can cover losses caused by a pre-existing injury, illness, or medical condition. Certain Allianz Travel Insurance plans include pre-existing medical condition coverage, as long as you meet all the requirements:

• Your policy was purchased within the time frame specified in your plan (usually 14 days from the date of the first trip payment or deposit.)
• You are a U.S. resident.
• You’re medically able to travel on the day you purchase the plan. If you’re living with a chronic condition, or if you’ve recently had treatment for a medical condition, you may want to ask your doctor for written approval to travel.
• On the policy purchase date, you insure the full non-refundable cost of your trip—including trip arrangements that will become non-refundable or subject to cancellation penalties between the policy purchase date and the departure date. (If you incur additional non-refundable trip expenses after you purchase your policy, you must insure them within 14 days of their purchase.)

Written by Author Keith Lefkof: Ultimately, travel insurance is about peace of mind. By considering the potential risks and asking yourself what the worst-case scenario could be, you can make a confident, informed decision. Whether it’s a weekend getaway or a bucket-list adventure, being prepared means focusing on what matters most, enjoying the journey.