Episode 56: Pros and Cons of Travel Insurance with Laura Adams

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Today, I am talking to Laura Adams, finance analyst, and insurance expert. She has been in over 2000 interviews, featured on major networks such as ABC World News, NBC, CBS, and FOX. She knows what she’s talking about.

We’re going to talk about all things travel insurance. This is one of my favourite topics, and it’s also extremely important for those who want to travel.

You may not think you need travel insurance – after all, nothing has ever happened to you on your trips. You’ve never lost your luggage, you’ve never been ill, and you’ve never had to cancel a trip for any reason.

Just because nothing has gone wrong before, doesn’t mean it never will, and when it does, you’ll want to have travel insurance – it can give you peace of mind and save you a lot of money.

If you’re not convinced, this episode with Laura will surely change your mind.

Let’s get into it:

[04:09] “I don’t need travel insurance. Nothing will stop me from going on this trip.”

If 2020 has taught us anything, it’s that anything can stop you from going on that trip.

Even if you do go, there are still so many benefits to purchasing travel insurance.

It’s not just there to reimburse you if your plans fall through and you have to cancel your trip. It can reimburse you if your luggage is lost or stollen, if your trip is cut short, and it can cover you if you become ill and need medical attention – your health insurance back home doesn’t cover you if you’re abroad!

It sounds like a lot, and maybe you don’t need all of those options, so it’s good to know that these plans are customisable to your needs – and they’re surprisingly affordable considering what they cover.

Make sure you purchase your travel insurance ahead of time, as some of them may require you to get covered up to 21 days ahead of your departure.

[11:04] Cancel for any reason vs covered reasons.

Buying travel insurance doesn’t automatically mean you can cancel for any reason. This applies only if you purchased it at the right time.

To cancel for any reason means that you can cancel your trip at the last moment for whatever reason, no questions asked.

If you don’t qualify to cancel for any reason, you’re limited by the cancellation policy to reasons that are spelled out in the terms of the policy.

[14:15] Lost or delayed luggage.

If you arrive at your destination and your luggage does not, there are several things that you need to know about your insurance.

Is there a time limit? A lot of the time, there may be a waiting period of up to 48 hours.

If you need to purchase clothing, etc. It’s important to understand that your insurance may cover the essentials – so, don’t go purchasing designer clothing and expensive jewellery.

If you do have expensive items that are insured by your homeowner’s or renter’s insurance, you may be entitled to a partial reimbursement if those items are damaged or stolen abroad.

If you suspect that your luggage is stolen or lost, contact the airline first, and you can plan around the information they give you.

Incurring costs to collect your luggage after it was tracked down may be covered by your insurance – check the policy for detailed information.

Those going on international road trips, be aware that you may need to purchase separate auto insurance for your destination country, because your local insurance might not cover you if something happens abroad.

[30:35] Trip interruptions.

Your trip could be cut short for many reasons, and your travel insurance may cover the costs of having to return home.

Medical issues, either your own or within your family, are generally considered under trip interruptions, as well as work-related issues. If a family member passes away or if your company goes bankrupt, the insurance covers the necessary costs.

If you miss your connection and you have to spend a night somewhere to catch the next flight, or you need to get to the next port to catch up with your cruise, those costs are generally covered by the insurance.

It’s important to note that you may only be reimbursed for the unused portion of your trip.

Make sure you understand the wording of your policy so that you know exactly what is covered.

[34:06] Purchasing the right insurance for you.

When purchasing insurance, you have two options – either you can purchase it from the company that’s handling your booking, or from an outside insurance company.

The best way to find the right policies is to shop around and compare the different options. You could even speak to your company of choice about the other policies that you’ve found – the language may be difficult to understand, so it’s worth asking for help from those who would understand how to interpret the policies.

[43:20] Frequent flyers.

For those that travel often, it may be worthwhile to find a policy that covers all your needs that you can purchase whenever you have a trip – this will save you time having to read a new policy every time you want to travel.

There is also the possibility of purchasing an annual insurance policy – it may provide more value than purchasing multiple single-trip policies.

For group travellers, there are also group policies for 10 or more people. These could be more cost-effective than individual policies. Group insurance also doesn’t take age into consideration, while individual policies have age-dependent pricing.

[48:55] Get your finances together.

If travel is an important part of your life, you can align your finances so that every month, you put a small amount into a separate account that you can then use to fund your travels.

Automating your finances will save you a lot of time, and it will eliminate the temptation to spend your extra savings on something other than travel.

This conversation with Laura was truly enlightening. If you were unsure about travel insurance before, I hope this episode has helped you understand how important it is – even if nothing goes wrong on your trip.

It’s better to have it and not need it than to need it and not have it.

If you want to know more about Laura Adams, check out her links below:

Website: https://lauradadams.com

Facebook: https://facebook.com/MoneyGirlQDT

Instagram: https://www.instagram.com/lauradadams

Twitter: https://twitter.com/LauraAdams

LinkedIn: https://linkedin.com/in/lauradadams



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