Is Travel Insurance a Scam?

Updated: Aug 2nd, 2018

I am not here to harsh your vacation mellow – but – consider what level of risk you are willing to take while vacationing.

So here is an overview of your risks while on vacation.

There are 3 levels:

  1. You slip and scrape your knee,
  2. You’re showing off and fail. It’s off to the hospital for some stitches,
  3. You accidentally cut your head off and need air-evac to a US hospital to get it sewn back on;
So let’s address #1 – a minor scrape

All decent resorts have a doctor or nurse at the resort. They can fix you up for – little to no – cost.

#2 – you need to go to a hospital

Bring your credit card. You will be expected to pay BEFORE you get medical attention.

#3 – you need to an air – evac

Bring your credit card with a VERY big limit. Like $15 – $20k – before wheels up. There is no amount of crying, wailing or logic that will get you results before you pay.

So now you ask, ‘What do I do?’

First, check to see if your existing insurance covers you when you travel (most don’t!).

And then check the price of travel insurance.

For about $79-99 pp you can buy travel insurance that protects you from medical emergencies – and – also allows you to cancel your trip for any reason – and get all your money back (including airfare).

Like all breathing people, I dislike being gouged by insurance companies – so here are links to other opinions – both Pro and Con.

Con link:
http://www.huffingtonpost.com/2014/03/17/travel-insurance-101_n_4957141.html

Pro link:
http://www.forbes.com/sites/nextavenue/2013/07/08/a-travel-insurance-skeptic-changes-her-mind/#77f03eb72596

The bottom line is how much risk will you accept.

Hope this helps…….

>>Jake

P.S. Ask us any Travel Insurance question. We have heard it all.

About Jake Johnson 165 Articles
Jake Johnson is a full-time travel bum, who prefers warm climates where the women wear less clothing. We've tried to teach him things like manners and diplomacy, but we've given up and simply rely on our editors to remove the most offensive bits from his articles. We take no responsibility for his inane ramblings opinions - they are his own.

4 Comments

  1. Where do I go to find out who besides AAA handles travel insurance. I would like to compare rates but I don’t want to be harassed by agents calling me. The company that handles my home and auto does not handle trip insurance nor were they helpful in pointing me in that direction.

    • Hola Barb,
      IMHO http://www.insuremytrip.com and http://www.squaremouth.com are the best sites to compare travel insurance plans. If you’re a big Warren Buffet fan then you can also check out Berkshire Hathaway’s new travel insurance at http://www.bhtp.com.

      The CFAR insurance (Cancel For Any Reason) offered by travel wholesalers is very hard to beat. For about $59-$99 per person (depending on the cost of your vacation) you get your money back – including your airfare……….Gotta love that…….Hope this helps…….

  2. Thanks, I was able to make an informed decision. I was really pleased to find that for a small amount I could buy piece of mind. You were very helpful.

  3. Is there a break even point with regard to cost of trip and cost of travel insurance that should be taken in to consideration. Say that my trip is costing me $6k, would my insurance cost be more than I might stand to regain?

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