Travel insurance may sound like another type of insurance you don't really need, similar to extended warranties and rental car insurance. In reality, though, investing in travel insurance may prove to be well worth the spend. Let's take a look at 5 compelling reasons why you may want to get travel insurance before your trip.
Consider Travel Insurance for These 4 Reasons
- Lost baggage
In 2013, airlines mishandled 21.8 million bags, or 6.96% of baggage per 1,000 passengers according to SITA, an aviation communications and technology company that tracks baggage performance each year. Losing your belongings is not only stressful, but it also takes a toll on your time and finances. Furthermore, if an airline misplaces your luggage, you aren’t always guaranteed full compensation for the contents of your bag. With travel insurance, covered individuals will receive payouts for each item lost, including clothing, electronics and any other valuable items. - Stolen passport
Having your passport stolen in another country can be incredibly nerve-racking. As ABC News reported, a number of passports have been stolen in recent years and sold on the black market. In fact, intelligence officials state that 80,000 blank passports have been stolen from 36 countries in recent years.
A stolen passport must be reported immediately to protect yourself against identity theft. But when you’re in another country, you may not know where to turn for help. If you have travel insurance, you can contact your provider for help with making a claim quickly. Plus, your fees for replacing your passport can be compensated. - Cancelled flight
Mechanical failures, traffic control problems and inclement weather, have all been known to cancel flights. During the Blizzard of 2015, between February 21st and March 6th of this year, there was a reported 23,433 flight cancellations. The good news is, most airlines can re-book you for the earliest flight possible at no additional charge, according to USA.gov. However, if you find another airline to take you, that could cost you additional fees.
With travel insurance, travelers are eligible for refunds for cancellations on prepaid and nonrefundable trips. Most plans also provide help with missed connections and cover trip costs if a storm is affecting the travel destination. - Retiring soon?
For adults over 55, travel insurance can provide medical coverage while you’re on the road. This will help cover medical expenses and locate doctors, hospitals and healthcare facilities should you become ill or injured while traveling overseas. Keep in mind, since travel insurance only covers you while traveling, it’s not meant to be a permanent health insurance plan.
