Is It Worth Getting a Travel Insurance: Pros and Cons


The travel industry is back up and running, returning stronger than ever after the pandemic. Global travellers are catching up on finally travelling as they wish. However, the pandemic has taught us that the tourism industry is also subject to uncertainties beyond the control of passengers. Scenarios like this are when travel insurance comes in handy.

Like every insurance package, travel insurance also comes with its own set of pros and cons. Here we will be unpacking the perks and benefits of owning travel insurance, as well as its downsides.

Pros of travel insurance 

Sense of security

First and foremost, peace is what you want when you are looking to travel, especially if you are flying abroad. There are several types of travel insurance out there that give you different kinds of protection:

  • Cancellation insurance 
  • Baggage insurance 
  • COVID-19 insurance 
  • Medical insurance for treatment and hospital visits 
  • Coverage to move to a medical facility when needed 
  • Insurance during a flight crash

Save money 

Travel may be easier now, as cheap flights and hotels may now be available within a matter of just a few clicks. However, travel insurance will save you a great deal of money from risks such as medical and baggage insurance. Listed below are some reasons why you should consider getting travel insurance: 

Coverage for medical emergencies

Health-related issues, especially while travelling, can cause concern. By having travel insurance, you can be assured that all your medical needs, such as proper medical assistance and evaluation, ambulance services (if needed), hospital treatment and hospitalisation charges, are covered, despite the costs.

Coverage for baggage loss

It is not uncommon for travellers to lose their bags or belongings during their travels. In such cases, with travel insurance, you will be reimbursed based on your insurance money.

Replacement or loss of documents/passports

Your travel documents, such as visas and passports, are extremely important papers, especially when you are out of your country. In an unfortunate situation where you have lost or misplaced it, the expenses of getting it immediately replaced will be undertaken by your travel insurance, depending on your insured money.

Coverage during flight cancellations

In case your flight is cancelled or delayed, you will get insured according to your flight policy. Carefully go through the terms and conditions of your travel insurance policy before booking one, as they vary for different insurance plans. Before getting your insurance, you may have to submit documents such as a passport, visa, income details and bank statement. By simply buying travel insurance online through travel apps will save you a great deal of money by giving your financial protection. Moreover, countries like Saudi Arabia have made travel insurance an entry requirement to enter the country. If not for safety reasons, you may still be required to get travel insurance.

Cons of Travel Insurance

It could be expensive 

Ironically, while getting travel insurance will save you money, it may also cost you a lot more. One major disadvantage of buying travel insurance is the initial cost. There are a lot of items, terms and conditions that come under any travel scheme. Naturally, it will cost quite a lot. However, many travellers end up not even using it and thus find it a waste of both their time and money.

But for those valuing their peace of mind, the money paid for buying insurance will seem valid and reassuring. Without insurance, travellers might be forced to spend a lot more on paying heavy hospital bills or more.

Coverage might not be given for pre-existing diseases 

Most travel insurance plans, in their terms and conditions, clearly outline that insurance will not be covered for pre-existing medical conditions. The medical coverage is only applicable for unexpected medical expenses during the trip. There are some insurance packages that cover pre-existing diseases. However, they come at a steep price, costlier than other insurance.

Your claim for insurance might get rejected 

As is the case for any insurance, your claim for travel insurance might be rejected. Despite looking out for the best plan to cater to your needs after proper research, the claim you raise with your insurance company might deny insurance money. The reasons for rejection are several. A minor mistake or technical issue could stop you from getting reimbursed.

Insurance comes with an escape clause 

Most travel insurance packages come with an escape clause or a loophole for the insurance provider to prevent paying insurance claims. They may reject your claim for insurance, citing that it is excluded from the insurance package, even if it doesn’t seem so. For example, if you break or sprain an ankle during trekking and climbing up a hill, your insurance provider will not pay for your treatment. This is because falling from any height might be considered a dangerous sport activity, which is usually not covered under insurance. Only unexpected medical issues will be covered by insurance. In such circumstances, where the insurance company may cite grey areas as the reason for rejection, travel insurance will be of no use.

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