Yes or No on Travel Insurance?
What is Travel Insurance? |
As a budget backpacker with a limited amount of money to spend on lucrative items and services, I have asked myself, “Do I need travel insurance for any period of time while traveling?” There's a "Yes" answer and a "No" answer for this question. It all depends on what you want to cover in term of insurance. Below are the types of insurance that is included in travel insurance.
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Do You Really Need Travel Insurance? |
This is always a tough question to answer because there are so many variables as a budget traveler. It's a personal decision on all levels. I've met many people who swear by it and won't travel without it. But, me personally, I've never traveled with traveler insurance or used it. But, after having a few situations where it would have been nice to have - if someone asked me what I thought about the topic, I'd answer with this:
It's a personal decision that everyone needs to think about. Personally, I do not use travel insurance because of the cost. Travel insurance is a luxury many travelers can't afford. I, being one of them, have to pick and choose what I can and can't do. Travel insurance is one of them. Travel insurance does three major things. It covers cancellations for your activities and transportation, helps aid in the costs of a medical illness or injury and it helps insure that your valuables are safe. For me, I already have my laptop and camera insured through different insurance plans. So, I don't need another added cost. My health insurance back home covers small things like pills or doctor visits. I will say that if something major were to happen to me, knock on wood, that travel health insurance would be nice to have. It would save me tens of thousands of dollars. As for transportation, the costs are extremely low, so if my train or bus were to ever be cancelled, either the company would refund me or I would have to pay another $15USD out of pocket. In the end, I would only recommend the health part of travel insurance. That is the most important part of it. If your electronics aren't already insured, look into getting them insured through different avenues. It's much cheaper. Travel insurance tends to be 4-8% of your travel budget. If I have $19,000USD for a year long trip, I'm paying $760-1,520USD for insurance that I don't need. I'd rather pay $100USD for health insurance. To sum up this point, I would say YES to the health insurance part and NO to the others. Make sure to check out these websites below for an idea of how much travel insurance will cost you. |
Cheapest Travel Health InsuranceCheapest Overall Travel Insurance Companies |
Confused.com is a travel insurance search engine for those who need multiple quotes. For a solo male/female traveler, I can get a quote for $322USD for one year worth of worldwide travel. This coverage includes £2 Million for medical, £1,500 for cancellation and £1,000 in baggage. Valuables like a laptop or camera aren't included. This is through a British Insurance company called Explorer for backpackers. The policy is much cheaper than a U.S. company policy with a 4-8% of my $19,000USD budget. However, this is a UK company, which may be harder for me to obtain the insurance. There are cheaper options for shorter trips.
For a U.S. search engine, World Nomads, the cheapest travel insurance I could find for a 25-year-old was $1,050USD. This includes $2,500USD worth of cancellations, $300,000USD worth of medical expenses and $1,000USD for lost baggage. This is extremely expensive for a budget traveler. Make sure to research the best possible travel insurance you absolutely need. This is not a cheap way to travel. |
