Why travel insurance has become a necessity for vacations

Travel Daily News

26-05-2025

Travel insurance can be used to cover a variety of possible problems, from serious issues like the cost of medical care if you become unwell to minor inconveniences like delayed or lost luggage.
No one heads off on vacation expecting something to go wrong, but this can happen. Whether you lose your luggage, become unwell during your vacation, or a flight gets cancelled, these issues can ruin the entire trip. In some cases, it might even cause you financial losses, and this can turn a bad situation into an absolute nightmare.
But this is where travel insurance comes in. Travel insurance is one way to protect yourself if any of these issues, or other common vacation problems, occur. It is wise to do your research before purchasing a travel insurance policy, and this post shares the most necessary information.
What is Travel Insurance?
There are numerous different types of insurance. Travel insurance is a type of insurance policy that is designed to protect an individual from financial losses that can occur when on vacation. This type of insurance coverage is recommended if you are travelling internationally, and it should be purchased before you head off.
Travel insurance can be used to cover a variety of possible problems, from serious issues like the cost of medical care if you become unwell to minor inconveniences like delayed or lost luggage.
How to Select the Right Travel Insurance Policy for You
Although there might be a belief that any travel insurance policy will do, this is not the case. Instead, you must find a policy that suits your needs and preferences. To find the plan that is suitable for you, you must complete a comparison of travel insurance policies to find the one that provides the best value.
However, there are a number of factors to consider when you decide which travel insurance policy is the one for you. Firstly, you should look at your personal circumstances, like age and pre-existing health conditions, before choosing an insurance policy. Both your age, especially if you are over 65, and pre-existing medical conditions can impact what coverage is available to you and the likelihood of claims being denied.
You must also think about the destination(s) you will be visiting and any activities you might participate in when selecting a travel insurance policy. The risks can vary depending on the country you travel to, with some locations having higher healthcare costs, such as Switzerland, and more disease outbreaks. Similarly, if you plan on participating in sports that are considered extreme like white water rafting, you might need additional coverage.
Three of the Most Common Situations That Can Be Helped by Travel Insurance
As briefly touched upon previously, there is a range of issues that can cause an individual to make an insurance claim while travelling. The three situations outlined below are some of the most common you might experience.
Cancelled Trips
A lot of money can be lost if a trip is cancelled and you do not have any travel insurance. Trip cancellations can happen unexpectedly, whether it is due to a natural disaster or the travel company has gone into financial default. Without insurance, you are unlikely to get a refund on accommodation or flights you have booked for a vacation.
It is also worth noting that the right travel insurance policy could reimburse you if you need to cancel your vacation due to a family emergency, illness, or injury.
Accidents and Illness
With more than half of the Americans surveyed reporting that they have experienced an upset stomach while abroad, it is not unthinkable that you might fall unwell on vacation. This can be a tough situation to deal with when you are in an unfamiliar area, especially if you are unsure if you can access the country's healthcare system.
As medical care can be expensive in different countries, you might also avoid seeking care to prevent paying costly bills. Thankfully, travel insurance can help. A good-quality travel insurance policy can cover the costs of hospitalization and medical treatments you might require. Other expenses, like surgery, could be included, too.
Lost or Stolen Baggage
Bags and suitcases can be delayed, lost, or stolen at any point during a vacation. When this happens, you might need to buy essential items that will see you through the remainder of your trip. This is unlikely to help reduce the stress you have felt during this experience, but your chosen policy might reimburse you for these purchases and any lost valuables.
To conclude, travel insurance is clearly a necessity for anyone vacationing overseas or in a foreign country. This type of insurance coverage can protect you from unexpected costs in a number of situations, such as sudden illness and trip cancellations. If the latter occurs, for example, and the trip is costly, then you won't be out of pocket.
With the information provided in this post, you will be better prepared to purchase a suitable insurance policy when you next travel.
Photo by Ilnur Kalimullin on Unsplash