Five Big Misconceptions About Travel Insurance

Summary: Discover the truth behind common travel insurance myths. Learn why travel protection with assistance services may be valuable for any trip, domestic or international.

Travel insurance may be one of the most misunderstood forms of insurance.

These misunderstandings have led to the emergence of travel insurance myths that you might encounter when searching for the best plan for your trip. We’re here to shine some light on the truth about what to expect when you get travel insurance.

Generali Global Assistance offers Travel Protection Plans that are similar to typical travel insurance although they have added assistance services benefits that other travel insurance plans may not typically include.

Let’s don our safety glasses and steel-toed boots and bust these myths one by one … but from a safe distance, of course.

Myth #1: Travel Insurance Is a Scam.

If you buy travel insurance and don’t have a claim, you may feel like you spent a lot of money on nothing.

That feeling might come from how rarely you use certain types of insurance. Homeowner’s insurance? Only when a tree falls on your house. Car insurance? Only when you hit a deer. Dental insurance? Only when that mysterious pain pops up between your eighth bicuspid and fifth incisor.

Travel insurance is similar to those other types of insurance in that it’s priced based on the probability that something might happen, but it differs in one important way: it’s short‑term. If you bought car insurance to cover you for only two weeks, what are the odds you’d get into an accident during that exact window?

You pack a lot of living into your vacation time, and buying travel insurance is a recognition that such a special time needs special insurance.

Also Read: Our Guide to Protecting Yourself From Travel Scams

Myth #2: Travel Insurance Isn’t Really Insurance.

With the rise of travel protections included with credit cards and “self-insurance” programs from travel providers, it can be hard to figure out what’s really insurance and what’s not. A traditional travel insurance plan may reimburse you for damages caused by certain unforeseen events upon payment of a premium.

Travel insurance typically combines elements of two major types of insurance — property & casualty and accident & health — in a single plan. You may see us refer to our plans as “travel protection” because they include both insurance coverages and travel assistance services. We always recommend verifying that the plan you’re purchasing is backed by a reputable and established insurance underwriter, which has been around since 1831!

Understanding what may be covered by travel protection starts with reviewing the named perils listed in your state specific  plan documents. Named perils are specific, defined events that could impact a trip and may be eligible for coverage when all plan conditions and limitations are met. Each plan includes its own set of covered reasons, so travelers should always refer to their plan documents to confirm which named perils apply.

For example, Trip Cancellation and Trip Interruption benefits are designed to assist when a covered reason prevents you from taking or continuing your trip. Depending on the plan purchased, covered reasons may include certain severe weather events—such as hurricanes that make your destination uninhabitable, floods, forest fires, volcanic eruptions, blizzards, monsoons, or avalanches. Some plans may also include covered reasons like specific flight cancellations or delays, being called to active duty with the Army Reserve, or experiencing an involuntary job loss.

Illness or injury while traveling may also be listed as a named peril, as may the theft of essential travel documents. Because each plan carries its own conditions, limitations, and levels of benefit, travelers should review their plan documents carefully to understand what may be considered a covered reason.

Myth #3: Travel Protection Only Covers Unimportant Stuff That Will Never Happen To You When You Travel.

If you’ve ever had a travel emergency, you might wonder if you’re experiencing something that no other traveler has ever encountered. The answer is likely no – by a long shot. Many travel problems are all too common.

How do we know? We know this because we surveyed travelers and asked whether they had experienced travel emergencies.

What sorts of emergencies do travelers most frequently encounter?  Here’s what our findings showed:

1. Medical issues on a trip: 27% of travelers
2. Vehicle breakdowns: 22%
3. Lost belongings: 20%
4. Travel delays: 15%
5. Illness or other emergency back home: 15%
6. Natural disasters: 10%

Our travel protection plans include coverage for covered events such as having your trip canceled due to a named hurricane—or experiencing a trip interruption if you become sick or a relative has an emergency back home. It may also help reimburse you for lost or damaged luggage or sporting goods (Not available on the Standard Plan), and it can help pay you for extra expenses if your travel is delayed for the amount specified in your state specific plan documents. And perhaps most importantly, it can help pay expenses if you have a covered medical emergency when traveling. To see all of our plans check out our Compare Plans page.

Myth #4: Travel Protection is Only For Big Trips.

Trip-wrecking events can happen anytime. Life is unpredictable and traveling even more so, no matter how long you’re gone.

The odds that you’ll need to cancel your trip before you leave have nothing to do with your trip length – it’s just as easy to get sick before a three-day trip as it is before a two-week trip. Trip Cancellation coverage can help you either way.

The list of travel problems and travel emergencies that can ruin a vacation is long. We’ve surveyed travelers to find the most common issues, many of which don’t depend on how long or big your trip is.

There is no linear relationship between trip length and trip expense. A short trip can be intense and expensive, and a long trip can be free-flowing and cheap. Because of that, it makes much more sense to base your decision to buy travel protection on how much you’re spending, not how long you’re going to be gone.

Also Read: 10 Ways to Prepare for Your Next Big Trip Abroad

Myth #5: Travel Protection is Only For International Trips.

 Similar to Myth #4, the difference between domestic and international trips is often more psychological than practical. For example, the flight from Chicago to Honolulu is significantly longer than the flight from Boston to Reykjavik—nearly twice the distance. Serious issues while traveling within the United States happen more often than consumers realize. While international travelers are more likely to recognize the importance of purchasing travel insurance and assistance services for their trip, domestic travelers shouldn't overlook just how valuable travel protection can be, even when you don’t leave the U.S.

Travelers can encounter unexpected challenges whether a trip takes them a few states away or across the globe. Illness may lead to a trip being canceled or interrupted. Luggage may be lost, damaged, or delayed. Certain natural disasters may result in an evacuation of the destination. These are just a few examples of the many situations that could impact a trip. Because each plan includes its own list of covered reasons and conditions, travelers should review their state specific plan documents to understand what may be eligible for coverage.

Also Read: How to Budget for International Travel

It’s potential disasters like these that make travel protection a great idea for domestic and international trips.

There’s something in travel protection to help provide peace of mind for almost any trip, and there are simple plans to help cover simple trips.

Regardless of how far or how long you travel, travel insurance with assistance services from Generali Global Assistance can help protect your trip. Plans range from the basic Standard Plan to the Premium Plan, with options for all kinds of trips.

Getting a travel protection plan is easy, too. It can be accomplished in minutes, and it starts with getting a quote.

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