‘Would you like to add travel insurance?’ You’ve probably seen this message plenty of times when booking a plane ticket online. But, what exactly are you paying for? And is it worth the extra cost? Of course, travel insurance has its benefits, but often it is unnecessary and simply a waste of money.
There are two major factors that determine whether or not you need travel insurance: health concerns and risk of financial loss.
Insurance may come in handy when you’re concerned about cancelled trips, lost baggage or unexpected medical expenses. However, you don’t always need it while traveling. Here are three scenarios where you can go without paying extra for travel insurance.
Last-Minute Domestic Flights
If you’re traveling within your country and already have an insurance provider who can cover any financial loss or medical costs, there’s no need to pay extra for travel insurance on domestic trips.
Booking last minute flights, whether at the airport or online, also reduces the risk of delayed or cancelled trip. So, you don’t have to worry about losing your ticket money either. Of course there are factors such as lost baggage and travel delays where the added coverage can come in handy. However, that alone isn’t enough to justify the cost of getting the insurance.
Cheap Domestic Flights
If you’re traveling outside the country and pay hundreds of dollars for your flight ticket, it makes sense to get travel insurance to minimize the risk of financial loss in case of cancelled trips. However, that shouldn’t be the case with cheap domestic flights where there isn’t a large amount of money involved.
If your return ticket cost only a hundred dollars or less, it doesn’t make sense to pay more to insure such a small amount of money.
You Can Afford the Loss
As mentioned above, you don’t really need travel insurance unless you’re concerned that the non-refundable prepaid expenses are more than what you’re willing to lose. If your ticket doesn’t cost much, and you can afford the loss in case of cancelled or delayed trips, skip the insurance altogether.
When You SHOULD Buy Insurance
It’s an absolute no-brainer that you must have travel insurance when going on an international trip. Especially if your insurance provider doesn’t cover damages outside your home country. Having extra coverage on expensive trips will also guarantee full compensation if you cancel the ticket or lose your luggage while traveling.