Many travelers have a perception of travel insurance, viewing it as just an extra cost, not a travel essential—until something goes wrong. A hard lesson to learn that can end up costing tens of thousands of dollars should the unexpected happen.
Here are some of the most common travel insurance myths that cause many travelers to skip purchasing travel insurance—and the truth behind them:
Myth #1: “My credit card already covers everything.”
Many credit cards offer very limited travel benefits, often excluding medical expenses, emergency evacuation, or trip cancellations for illness and numerous other reasons. Coverage that may be provided might also be limited in scope and require that all trip expenses be transacted on that credit card to be eligible for any coverage. Those gaps can become very expensive—very fast.
Myth #2: “I don’t need insurance for domestic trips.”
Flight delays, non-refundable hotels, and medical emergencies happen at home too. Not to mention that cancelled trip to Disney and Hawaii for example can cost more than many international trips. Travel insurance for domestic trips can protect prepaid expenses no matter where you’re traveling.
Myth #3: “Travel insurance only helps if I cancel.”
Protecting the cost of a trip against cancellation is just one piece of the coverage. Trip Cancellation plans should be more accurately described as Comprehensive Trip Plans. Why? They also typically include coverage for medical expenses, trip interruption, lost baggage, travel delays, emergency evacuation (often the costliest risk of all) and many other benefits and services.
Myth #4: “I can buy it any time before my trip.”
While having an element of truth, waiting too long can mean losing valuable benefits like pre-existing condition coverage or the option to purchases Cancel For Any Reason (CFAR) coverage. Purchasing after a covered reason occurs such as an illness, loss of family member (whether traveling with you or not), or a weather event is announced for example, these events that have already manifested themselves can be excluded, timing matters.
Myth #5: “My health insurance will cover it.”
Many travelers believe their domestic health insurance or Medicare will cover them outside their home country; in most cases it does not. Hospitals and medical services can be expensive, and even should your health insurance provide some limited coverage for out-of-pocket medical expenses, co-pays, deductibles and out-of-network costs can be significant when traveling abroad. Travel insurance plans provide coverage for medical expenses, medical evacuation, repatriation, or even bring a hospital visitor to your bedside. Even if traveling domestically, emergency medical expense coverage can be helpful in reimbursing the out of network emergency medical expenses one may incur.
Myth #6: “I’ll never need it.”
We all see travel as fun and exciting but the unexpected does happen—missed connections, sudden illness, weather disruptions, and unexpected events happen every day. It doesn’t matter what age you are or where you may be traveling, travel insurance isn’t about whether you expect problems or not—it’s about protecting your investment, health and finances when the unexpected does happen.
Myth #7 “Do travel insurance offered by airlines, hotels and cruise lines cover the entire trip?”
When booking accommodations, a flight, or a cruise, the travel insurance offered during the checkout process will typically only cover that specific portion of the trip. While convenient, these options often result in limited benefits and coverage gaps because they rarely extend across your entire travel window or encompass all key benefits. In contrast, a comprehensive travel insurance plan allows you to cover your total trip costs—including accommodations, flights, cruises, and other prepaid expenses—from departure until your return. Comprehensive travel insurance also maintains emergency medical coverage throughout your entire journey, rather than just one segment. Additionally, these plans typically provide access to enhanced benefits with higher coverage limits and 24/7 travel assistance services to ensure you are fully protected.
The bottom line:
Travel insurance is an essential safety net that should be budgeted as part of every trip rather than viewed as an optional expense. Understanding these common misconceptions allows travelers to make more informed decisions and properly protect themselves. The cost of travel insurance is typically a fraction of your overall trip costs, bringing safety, security and peace of mind.. What plan is right for you?