6 Reasons Travel Insurance Is a Good Idea for Money-Savvy Globetrotters

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Travel has long been a top priority for many people across all demographics and age groups — but there is no denying that travel can become expensive. In fact, a “lack of money” was cited as the number one reason why many people aren’t going to travel in 2023.

Of course, money-savvy globetrotters have long been able to find ways to see the world on a tight budget. But even for these individuals, cost concerns can be a serious issue. With travel insurance more readily available than ever before, investing in coverage for your next trip can offer much-needed peace of mind.

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1. Medical Coverage

One of the biggest financial concerns that comes with overseas travel is the potential for a medical emergency. This is especially true of situations that might require that you get transported back to the United States for treatment due to a lack of local medical supplies and equipment — or even doctors.

According to USA Today, medical evacuations can cost as much as $225,000 from locations like Asia, Australia and the Middle East. Even medical evacuations from closer areas like Mexico and the Caribbean can range from $15,000 to $25,000. With travel insurance, these and other emergency expenses are covered.

2. Trip Protection for Interruptions and Cancellations

Sometimes, unexpected incidents can keep you from even getting to your trip in the first place. Or you might find your trip getting cut short unexpectedly. There are a surprising number of common scenarios that could result in a trip cancellation where your travel provider won’t provide a refund.

Illness, a travel provider going bankrupt or natural disasters are all reasons why you might have to cancel or interrupt your trip. Depending on the reservation policy with your airlines, hotels or booked activities, you may not qualify for a refund.

With travel insurance, however, you can get refunded up to 100% for non-refundable trip costs. You may even get coverage for additional transportation expenses that result from having to come home early.

3. Protect Your Stuff

The U.S. Bureau of Transportation estimates that 1.99 million bags were lost, damaged, stolen or delayed in 2021 — and that only accounts for domestic flights. Having your items lost or stolen is more than just an inconvenience.

It can also become a major travel expense. Travelers who find themselves needing to replace clothing, toiletries and electronic equipment can easily find themselves spending several thousand dollars more than anticipated out of pocket.

When travel insurance provides coverage for lost or damaged belongings, you can mitigate the financial impact of this inconvenience. Many insurance providers even provide coverage for baggage delays — such as sending you cash via a digital wallet when you might have to purchase extra items while waiting for your lost luggage to arrive.

4. Personalized Assistance

As travel insurance offerings have expanded, one of the most important benefits of purchasing this coverage is the potential for 24/7 assistance for addressing your specific travel needs. This could include assistance in locating a doctor or pharmacy near you when experiencing an illness.

This timely assistance can easily help you avoid additional expenses and disruptions to your trip. For example, by receiving quality medical care in a timely manner, you can prevent more serious complications that could require costlier and more extensive care, or canceling other reservations. When striving to keep travel expenses in check, this assistance can make a significant difference.

“Aside from helping provide coverage for travel disruptions, one of our goals is to act as more of a concierge on your behalf,” says Elad Schaffer, Co-Founder & CEO of Faye Travel Insurance. “This can even include helping you find the best local restaurants to dine at or tours to book during your trip.

Our support staff is available around the clock to provide travel tips and advice, as well as help in emergencies. Easy access through our app’s interface makes it easy to get the help you need, no matter where you might be located.”

5. Add-Ons for Any Traveler

Every traveler is unique. Even among budget-savvy travelers, plans and travel needs can vary wildly. Some people plan to rent a car on their trip, while others rely on public transportation. Some people bring their pets along for their adventure.

Some stick to the beaten path, while others participate in adventure activities with a higher risk of injury, such as bungee jumping or skydiving. For these reasons, many travel insurance providers offer add-ons that you can supplement your base travel insurance policy with.

Though this does add on to the cost of your policy, customizing your travel insurance based on your unique travel needs ensures that you are financially prepared for any issue that could add to your trip expenses, protecting you from unexpected fees.

If your dog gets sick, veterinary care coverage can help you save on those costs. If you accidentally damage your vacation rental property, travel insurance can cover costs you might have to pay for repairs.

6. Managing Inconveniences

Travel insurance doesn’t just help you save money for major disruptions or emergencies. As just one example, the top 10 airports in the world for travel delays (primarily located in Europe) all saw over one-third of all flights delayed in summer 2022.

Even a single flight delay can add to your travel expenses, such as needing to buy an extra meal at the airport or adjust your hotel reservation.

Travel insurance can offer assistance for many of these common inconveniences as well. Even if the costs seem minimal compared to something like a medical emergency, these expenses can add up quicker than you might expect. With travel insurance, you can keep these minor money issues in check so that you’ll have more left in your budget for the things you want to do.

Protect Your Trip - And Your Budget

Even the best-planned trips can experience unexpected setbacks — and without travel insurance, such incidents can severely disrupt your plans. By protecting yourself with travel insurance, you can prepare for your next trip with confidence that your finances are secure, no matter what happens.