For many Americans planning a summer trip after the COVID-19 sank the holiday season for the past two years, there is still a key financial question: Should I buy travel insurance?
Consider a family of four living in Cleveland, Ohio, who must fly to Fort Lauderdale, Florida. embark on a cruise destined for the Caribbean. Without travel insurance, if your flight is delayed or canceled and the ship is lost, you will normally be subject to the cost of the cruise and other paid activities.
“Your boat won’t be saved, so having cruise cost insurance will be a good use. Without it, you’ll get out of your pocket,” said Scott Keyes, founder of Scott’s Cheap Flights, a flight deals site. tell CBS MoneyWatch.
Undoubtedly, insurance can relieve stress by providing the assurance that a family or person will not be financially stuck if their trip is interrupted for various reasons.
“For a lot of people, it’s money well spent if they can provide you with a happier vacation. At the end of the day, the holidays are supposed to take away your anxieties,” Keyes said.
For international travel, financial stakes can be especially high.
“I can’t think of a trip abroad for which I wouldn’t recommend it, because there’s a good chance something’s going wrong,” said Michael Giusti, an analyst at InsuranceQuotes.com.
“I used to think it was a waste”
Loosen pandemic restrictions, including the removal of a requirement that travelers show proof of a negative test to re-enter the U.S., they are also fueling the demand for international travel, which is often costly and may require complex arrangements. However, persistent concerns surround it COVID-19[feminine] they also make traveling abroad financially risky for people without coverage.
Even experienced travelers who previously avoided travel insurance now say the equation is different.
“I used to think it was a waste and a bit of a scam and almost no one used it,” said Kathleen Bangs, an aviation expert for Flight Aware flight tracking website. “Now if a family goes to Disney World or Europe, I’d recommend it.”
One of the reasons insurance may be wise this summer is the rising cost of airline tickets. Domestic airfare prices up 47% only since January, according to Adobe data. Air fares have also increased by 30% compared to May 2019, before the pandemic.
Meanwhile, airline staff shortages, reduced carrier capacity and COVID-19 infections among airline workers have led to cancellations and flight delays, increasing the risk of travel disruptions. .
Don’t just check the box
Before you take out any travel insurance, you know what it covers. Experts advise not to sign up for flight protection plans that are offered as a supplement when paying for airline and long distance aggregator websites.
“Don’t click ‘yes’ on insurance when you buy your flight,” said Keyes of Scott’s Cheap Flights. “Typically, because it’s right there and it’s convenient, it won’t be as sturdy or cover so many things, and you don’t always know who you’re buying it from.”
Such policies may be limited and only cover trips that are canceled due to an unforeseen illness or injury that prevents the covered person from traveling.
Know what is already covered
Find out what your existing health and car insurance already covers before you buy additional coverage. And remember, under U.S. federal law, consumers are entitled to full refund of ticket costs if a flight is canceled or significantly delayed.
Also check out the protections your credit card may offer. Credit card issuers will generally require you to pay for your flight or hotel with your card in order to receive a refund if your trip goes wrong.
“Many cards automatically offer some travel protection. Specific provisions range from a hotel refund, taxis, food or clothing if a flight is delayed and you lose a connection,” Keyes said. “You don’t want to pay for things you’re already insured for.”
Compare plans
Research before you buy travel insurance. Experts rely on websites such as World Nomads, InsureMyTrip, Square Mouth and Battle Face, and allow you to compare plans and coverage, as well as select add-ons such as “cancel for any reason” insurance.
How much should you spend?
The more you cover your travel insurance policy, the more it will cost. Travel coverage policies typically cost between 3% and 8% of the cost of the trip. “Cancel for any reason” insurance usually costs more.
For added peace of mind, add a payback day before, say, a cruise ship is scheduled, experts say.
“Giving yourself an extra day is also a form of insurance. Leave it a day in advance, fill out your schedule in case something goes wrong,” said Zach Griff, a travel expert for The Points Guy, a site that helps Consumers to Maximize Their Credit Card and air rewards. “Canceling insurance for any reason can be very expensive, so these are ways to minimize that cost.”
Do I also need health insurance?
Before you travel, find out if you are covered by out-of-state or overseas medical expenses according to your existing health care plan. If you make a generous out-of-network profit, you may have enough coverage. Additional health insurance may be helpful if you become ill or have an accident while traveling.
“It’s something to think about. It might help you, depending on how good your current health insurance is,” Giusti said of InsuranceQuotes.
“Some people think they can go to a foreign country with their health insurance card and get coverage, but that’s not always the case,” Bangs of FlightAware said. “Talk to your healthcare provider and find out what your coverage is if you travel abroad.”
Without travel medical insurance, the International Association of Passenger Medical Assistance (IAMAT) warns that “you may be responsible for the full cost of all expenses related to an unexpected event, accident, or medical emergency abroad.”
Medjet Assist, a medical evacuation insurance provider, will transport you to a chosen hospital in your home country for only $ 99 for a short trip.
“You absolutely need to have medical evacuation insurance,” CBS News travel editor Peter Greenberg said. “If you get sick or injured outside the United States, it’s worth stabilizing medically wherever you are and taking you home to a medical center and the doctor of your choice.”
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