Why Buy Travel Insurance?

Millions of people decide to travel every year for business and for pleasure. Only a small percentage of those people decide to purchase travel insurance, partially because most people aren’t aware of the option or don’t know how travel insurance works. There are several good reasons to look into insurance, particularly when taking a long business trip, an international vacation or any other potentially high-cost trip.

Trip Cancellation

The basic purpose of a standard travel insurance policy (with trip cancellation coverage) is to reimburse travelers for their insured pre-paid and non-refundable trip costs if they have to cancel their trip due to a covered reason. The covered reasons vary by provider and plan, but depending on the plan, these might include:

  • Accidental injury, sickness, or death of you, a traveling companion or a family member
  • Weather events that cause cancellations in travel plans or a cessation of service
  • Mandatory evacuation ordered by local authorities at your destination due to hurricane or other natural disaster
  • Strike that causes complete cessation of travel services of your carrier
  • Bankruptcy and/or default of your travel supplier
  • Terrorist attacks that occur in your destination city
  • You or your traveling companion are terminated, or laid off from employment

This type of travel insurance has become quite popular over the years with leisure travelers given the high cost of vacations. Businesses often take out travel insurance policies on their employees, as they’re aware of the potentially high cost of a trip cancellation as compared to the relatively low cost of trip cancellation insurance coverage. This type of coverage can also allow for better peace of mind. Most insurance companies that offer trip cancellation coverage are very easy to work with and will answer cancellation claims within a few days, so out-of-pocket expenses are minimal.

Emergency Medical Coverage

Many travel insurance plans also have medical coverage for emergency medical expenses incurred while traveling. This is particularly important for international travelers, as standard health insurance plans sometimes won’t cover medical bills from another country. A reliable travel insurance plan with medical coverage will take care of medical care and related costs, including the sometimes expensive cost of transporting a patient back home if it includes an emergency medical evacuation benefit. These costs can easily climb into the tens or even hundreds of thousands of dollars, so protective insurance coverage is absolutely essential. Frequent international travelers, students and other travelers who have a fairly high chance of contracting an illness or getting injured in a foreign country should certainly carry travel insurance with emergency medical expense coverage. It’s also important to note that travel health insurance covers domestic as well as international hospitalization and treatment costs, and for people with managed care health insurance, it can be helpful protection during domestic trips as well.


Travel insurance is inexpensive, as the risks of a single trip or vacation are fairly low. When travelers compare rates online before purchasing a travel insurance policy, costs are kept even lower. This is one of the best reasons to buy trip cancellation insurance, travel health insurance and other types of trip insurance coverage. The costs of each policy are extremely low when compared to the potential risks of a canceled trip, an illness or other unexpected event. Buying travel insurance allows for smart risk management and peace of mind on any type of trip at a fairly low price.

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