Travel Insurance: Friend or Foe?

Posted by Bridget Lux Dec 7, 2006

According to the US Travel Insurance Association, travel insurance is a “must-have” if you’re flying this holiday season. Isn’t that sort of like the Apple Grower’s Union saying an apple a day is a “must-have” if you want to stay healthy? Of course the USTIA is going to recommend travel insurance. The real question is: Is it necessary?

Personally, I’m anti-insurance. I said it. I think it’s a scam. I think it’s a scare tactic. I’ve had about six situations in my life where I thought I had insurance to cover just such a situation, but in each instance I was wrong. It was the fine print. “No, your insurance doesn’t cover that dental procedure,” an insurance company representative told me once, after my dentist assured me it would be covered and did the procedure. Dental, medical, auto insurance ... I’ve had issues with all of them. We all have, haven’t we?

Then, you read stories like the one I saw recently on MSNBC: A couple got sick on a cruise ship, spent an hour in the infirmary, and received a $1,600 bill - despite having health insurance, traveler’s insurance and insurance purchased through the cruise line. Again, it was in the fine print.

And so when my traveling partner asked me if I’d bought travel insurance, I felt like laughing. Instead of insurance, I’m flexible (medical issues are, admittedly, a different beast). And if you can’t be flexible, then traveling probably isn’t for you.

Tsunamis are going to hit. Your plane will be delayed. Your luggage lost. Yes, these things all happen and they can derail a vacation. Or, you can prevent them from ruining your vacation by being flexible and prepared.

For example, I always fly with an extra outfit in my carryon luggage. Nothing fancy, mind you, but it would get me by for a day or two if my luggage were lost. I also have my own “emergency medical fund.” Yes, it’s basically a savings account that I have at the ready in case of a traveling emergency.

Maybe I’ve just never truly experienced a travel emergency, but for me it’s all an adventure, and that’s why I’m doing it.