Debating Trip Insurance

https://community.ricksteves.com/travel-forum/covid19/head-about-to-burst-trying-to-understand-travel-insurance

Above is an extended discussion from a few days ago- the whole travel insurance industry is very difficult to navigate.

Good luck!

Even without COVID, trip insurance is a MUST. My brother was killed in a car wreck here in NC while we were in Italy. Without Trip Insurance, it would have cost us 1000s of dollars in lost hotel money, plus to fly home last minute from Italy to USA is VERY VERY VERY expensive. You could fall and break your ankle, your appendix could rupture (the day before you leave or while over there).

Any thing could happen right before you leave, or while there. Our good friends were supposed to go to Spain in October and one of them was in a wreck 2 days before leaving and tore his rotator cuff - they had to cancel last minute. Plus, if you get sick there - you want Medical Evacuation. For the 1000s of dollars you spend getting to Europe, the cost of Trip Insurance is nothing.

I'm not going to speak to your question - but I want everyone to know the benefit of Trip Insurance.

If you are lucky enough to have USAA, they offer amazing insurance at great prices. They use the company Travel Insured which is great if you can get it on your own if you don't have USAA. We've had to file many claims with our Trip Insurance over the years (death in the family, my appendix ruptured, our niece twisted her knee and tore a meniscus in Germany). It is VERY risky NOT to get it.

First, I bought trip insurance and evacuation insurance this year. I have done this on the odd occasion in the past, but this year I purchased a 12 month policy. The price was marginally more than the cost of an individual trip policy; and I make 3 to 4 trips a year.

So is it necessary or economically sound? I think its pretty subjective. Remember an insurance company makes money by beating the odds. That being said, the odds are if you consistently buy trip insurance it will cost you more than you would ever get back; except that one time when you are the exception to the rule. So, this is a convenience and metal security thing I guess.

The big question you need to answer for yourself is, Can you afford to shrug off an extra expense of $3000? If that wouldn't bother you then no, you may not need trip insurance. If it would bother you - economically or psychologically, then you should get the trip insurance.

For what it's worth, I collected on trip insurance just before the pandemic when my husband came down with Influenza and we decided to cut our trip short to go home earlier. It didn't ever occur to me that they might expect me to fly home by myself and leave my husband in a foreign country when he felt ill, disoriented and weak. And in fact, the insurance company paid for all of the extra expenses involved for both of us together changing plans.

I think insurance is a must, especially in case of catastrophic medical/evacuation expenses.
Generally the cost of the premium is driven by the reimbursement of the cost of the trip (because of cancellation). Since that is the more likely event that happens, insurers cover that risk by increasing the premium for that type of event. You can decrease that cost by underestimating the cost of the trip. For example if the cost of a canceled trip is an estimated $2500, you can lower the premium by decreasing the cost of the trip to, let's say down to $1500. It depends on how much you are willing to fork out of pocket if the trip gets canceled or your stay prolonged. For sure I would not go without insurance at all, because in case of major illness you would pay through the nose in medical/hospital costs and/or evacuation costs. If it's something minor, usually Italian hospitals let foreign tourists get away without paying (or paying only the copay an Italian would pay), but if it's a major surgery or something like that, they are supposed to ask you to pay.

Your question about the specifics of the Trawick policy you're looking at is really best answered by your carefully reviewing the policy terms. If it says it covers only one person per policy, then it would seem prudent to buy two. Or look for another company whose policy would cover both travelers.

I didn't generally buy trip insurance in the past but I do now because of the risks Covid presents. I've been lucky so far in all my travels but nobody's luck lasts forever. Keep in mind that you don't have to insure all you non-refundable trip costs, just the amount whose loss would be really painful. For example, with a $3000 trip you might choose to insure for $2000 and eat the $1000 if necessary.

Insurance covers what you pay for in advance and cannot get refunded. Read the policy carefully to make sure it covers all those expenses. It really isn't all that expensive when you consider the possible losses. Don't expect a quick payment though - for 2020 (the Covid cancellation) it took a full year to get reimbursed. I've used Travel Insured International for the past 16 trips and found them worthwhile.

Hi Vfinn,

I'm the person who started that thread linked in the first response.

Just want to say that Trawick has continued to fail to offer me a direct answer about whether the "self-isolation" required by France (Sorry, I'm not sure what Italy is calling it) after a positive test qualifies under Trawick's definition of "Quarantine" (which they say is a strict isolation mandated by the government).

They have also refused to answer the question of if a positive test from a pharmacist's (where I would be getting the test for the return trip) is enough documentation for a possible claim, or if I would need a positive test from a French physician (this is also in their tricky language).

I've also had a few other questions about vague clauses in their policy, but they only respond with quotes from their policies...not helpful.

So, for me, since their reps refuse to give any type of clear answer to my questions, it's not worth the risk of buying Trawick's policy if there is a risk they won't be covering it for the main reason I would purchase travel insurance for my upcoming trip (that reason being that dreaded return test results).

However, this doesn't mean I'm giving up on insurance altogether, because I'd rather spend about $60-75 (each) for the peace of mind I won't be out several thousand dollars for a fun-filled 10-day extension to my vacation.

I am currently looking at policies with Generali Insurance. However, this is going to be another case of pinpointing answers. They boast on their home page and many other pages about their wonderful COVID coverage, but under the exclusions they list a pandemic...which last I checked COVID was still classified as a pandemic.

This might just require a little clarification when i talk to a rep, because many insurance places are now classifying COVID as any other illness, but it's still wise to double check.

Also, I do believe their policies also cover the non-sick (negative test) person staying with the sick person (positive test), but again, that's something I'll want to clarify.

It's a lot of policy reading, a lot of contacting reps to make sure you're getting what you think you're getting, but I'd say, fi you go, insurance is worth it for as long as the US keeps up the policy of the return testing even for its vaccinated and boosted citizens.

(And yes, I know travel insurance is worth it for other reasons, but COVID and testing positive seems to be many travelers' main concern on the forums)

Thanks to all for your responses.

I am a USAA member so based on a post in this thread I connected with their travel insurance carrier, but because I live in Oregon they do not cover travel to a level 4 country. It's a state of Oregon insurance exclusion as were limitations on whether a quarantine would qualify for Trip Delay or Trip Interruption.

The devil is certainly in the details on this topic.......

here's a good overview

https://www.bloomberg.com/news/articles/2022-01-19/travel-insurance-explained-do-you-need-what-to-look-for-in-policy

Phred - unfortunately the link was behind a pay wall.

Insurance covers what you pay for in advance and cannot get refunded.

This is not true. Travel insurance may also cover extra expenses involved to cope with perils that are covered by the insurance. For example, if you are sick in a foreign country and need medical care, the policy may pay for that. That doesn't come under the heading of "what you pay for in advance and cannot get refunded."

And that's true for insurance in general. For instance, the owners' policy for our vacation rental covers alternate housing if we or our paying guests can't stay at our place because of, say, a fire.

Marcia - you are absolutely correct! the insurance I buy (through USAA) is basically a menu to select from. Emergency medical is one of the items. Sorry for being incomplete in my earlier answer!

As I dive deeper into the plan documents for several carriers, I note that all seem to indicate that for covid (or any illness) to be covered on trip cancellation or trip interruption a written statement must be provided by a physician after an in person visit.

I just wonder how realistic is it that you could obtain this in a foreign country or even in the US prior to your departure? Anyone have any experience with this?

When I had to cancel our 2020 trip to Italy, I had several non-refundable hotels. That was an expense that was painful, but we had planned to spend it anyway, so not a catastrophe to our budget. The medical coverage & evacuation insurance is what we choose because that could be a huge expense.

I just purchased from Allianz global. They have an epidemic coverage endorsement Option. They also have an associated app they recommend downloading that provides 24 hr assistance if needed. I haven’t bought travel insurance before or used this company before; but after looking at the choices, I bought this one, with the epidemic endorsement option, for trip to Italy in March.

I can't advise on a company as I live in Canada, but I would not dream of traveling without insurance....ever.

We Canadians even get insurance when we drive across for an hour or so to the US to buy gas....you have no idea what could happen even on a short trip; and no one wants to go bankrupt paying another country's horrifyingly huge medical costs when it could have been avoided.

In 2018, I had a trip to Italy booked with my friend who was joining me from the UK; and at the same time, my husband was going to Toronto to a conference.
A week before , he suffered a serious medical event (he's fine now), and we had to cancel it all.
Our travel insurance is through our credit card.
It was all refunded within 10 days of me claiming it all back; and I even made money on it as the exchange rates had changed in our favour. ;)

Just my opinion, but please take out travel and trip cancellation insurance.
Check your credit card, or get a new one that offers good coverage.

I again want to than everyone who has responded to my post as they all have been most helpful.

I note that many are highly encouraging of getting travel insurance, but I will refer to my post before this one though. If the insurance you buy is not going to practically provide you with the benefit you are trying to purchase, then what good is it? Every policy that I have read in the last several days says that in order for benefits to be paid from Trip Cancellation or Trip Interruption you must have a written statement from a physician to validate the claim. This is from the description for World Nomads Trip Cancellation :

Your Sickness, Accidental Injury or death that results in medically imposed restrictions as certified by a Physician at the time of Loss preventing Your participation in the Trip. A Physician must advise to cancel the Trip on or before the Scheduled Departure Date.

Similar wording exists for Trip Interruption.

If I test positively for Covid 48 hours before my flight, how realistic is it that I can get a physician appointment in two days in order to get the necessary statement in the timeframe specified? Same question for if I got Covid in Italy - how would I get a physician appointment in the first place?

I guess until I from someone who had real world experience in obtaining a benefit due to Covid, I have to be a bit skeptical.

Your Sickness, Accidental Injury or death that results in medically imposed restrictions as certified by a Physician at the time of Loss preventing Your participation in the Trip. A Physician must advise to cancel the Trip on or before the Scheduled Departure Date.

That wasn't the policy for the travel insurance I had in 2019. My husband got the flu in New Zealand, and we changed our plans to fly back to the US earlier. Only when we got to the US did he see a doctor. That doctor appointment, which put down in writing that he had Influenza A, was considered valid to get the extra expenses in New Zealand PRIOR to the doctor appointment reimbursed, along with airline change fees.

I'm sure every insurance company has its own different wording, so the moral is to read the policy carefully and ask questions.

I considered travel insurance before our trip to Italy in October. We didn’t have much in the way of non refundable expenses but I was worried about the cost of quarantine if we tested positive before coming home. What I found after carefully reading the policy and confirming with a phone call was the coverage for quarantine was very limited. I ultimately did not purchase insurance because the potential benefits for the risk I wanted to insure against weren’t worth the premium and we could handle the potential expenses if necessary. You may find different policies and/or have a different risk tolerance. Just make sure you understand the coverage because the worst outcome is to pay the premium and not have the right coverage when you need it.

Here in Canada, when my husband became ill and we cancelled two trips; our GP wrote a letter for us to give to our insurance company, and he also wrote another one for my friend in Scotland, explaining why she had to cancel the trip which included her!
She got all her money refunded too at her end, except a small admin fee.

So, worth having a considerate GP, and one who is accessible when you need them.

My question is: for all of you who, in the past, did not take out any trip insurance at all; and then got ill, broke a limb or whatever, on an overseas trip....how much did it all cost you in the end?
Just curious.

We're debating the same thing. There are 9 of us going to Italy in March. We have booked refundable everything so far. But we are worried if we test postive and have to quarantine. I have purchased travel insurance a number of times in the past and thankfully did not have to use it. The one time I did have to use it, it was a pain. They ended not covering any of my expenses and I was out over $5000. I had reward dollars to cover those expenses, so I have thought I might just use my reward dollars as my own insurance and not pay $900 to cover our upcoming trip that I'm not sure will cover expenses if we have to quarantine.

I thought I might close my part of this discussion with an update. I had communication with World Nomads regarding some of the concerns that I have previously shared. I actually think that they have addressed them sufficiently such that I will purchase their Standard Plan for our upcoming Italy trip.

The highlights of the communication:

1. Unlike USAA, their policy will cover me for covid related illness as an Oregon resident while on the trip to a Level 4 country. For some reason the USAA policy did not have approval from the state of Oregon to do that so they were not even an option for me;
2. As Aimee noted previously, if we were to get covid prior to our trip and wanted to claim benefits under Trip Cancellation we would need to obtain a written statement from a physician. They provided me with a copy of the form but clearly it could be something that your physician might complete even after your departure state as long as the physician dates the form prior to that time. I was worried that if one of us got covid close to our departure that we could not get a physician appointment in time;
3. Their response as to what documentation would be necessary if we got covid while in Italy was perhaps a bit less clear. I asked what documentation would be necessary in this scenario since it was highly unlikely we could get an actual physician visit during the ten day isolation period and prior to return to the States. The representative wrote back saying – “If you get a covid test you can provide the positive covid test for the examiners to review. If its any other sickness then you can provide the documents mentioned in the email prior.” That response does not seem to line up with the wording in their plan summary document which references a physician statement and visit, but I will hang on to the emails in case something happens.

Of course, all of this is just for one carrier, but as others have noted, the details are so important to understand whether the insurance you might be buying is really going to protect you against the exposure which you are trying to insure against.

Many folks here on the Forum have stated that trip insurance becomes invalid if the CDC puts your country on a Level 4 designation, which is still only a recommendation not to travel. This happened to us Sept, 2021, the night before we were set to leave. [We went anyway, after hectic last-minute some research.] I never knew if that was the case with our policy, as I was trying to read the 55 page policy on my cell phone, which was quite difficult.
Has anyone actually found this in print in their policies? I am going to call USAA and ask them directly, and cite the section, if so.

I was really frustrated that the CDC made this announcement, effective immediately. At least most European countries give about a week's notice when changes are coming.

Safe travels!