Budget Travelers Should Buy Travel Insurance

Even when times get tough economically most of us still feel the need to get away for a nice vacation every now and again. In fact, it’s especially when times get tough that we probably feel more of a need to get away. One of the offshoots of the latest economic downturn was a type of vacation labeled the 'stay-cation' by the media. However, according to news reports these little trips close to home, or even visiting local sights while staying at home, didn't cut it for a lot of people. When we want a real vacation that means that we want to get us away from our ordinary lives and environments. But with all costs continuing to rise and the drawn-out nature of this recession causing many to tighten their belts, this means that you have to be a smart shopper to get the most out of your vacation dollar. When you are cutting corners on your vacation just to make sure you can even go, it seems like paying extra for travel insurance is just throwing money away. But if you are traveling on a budget, travel insurance probably will make very good sense.

In order to save money on your vacation, you generally need to plan ahead. For example, if you are trying to get less expensive airfares, advance purchases can mean often mean big savings. On the other hand, if you are trying to plan a trip that is scheduled for many weeks or months in the future, it can be a little unsettling. There is so much uncertainty. What if you put down your hard-earned cash as an advance payment and then you are a family member gets sick and you can't go? The right travel insurance policy might mean the difference between getting your money back and losing all of it.

But all travel insurance policies are not created equal. There is nothing more frustrating than buying travel insurance, having to cancel your trip for one reason or another and then finding out that they have done their very best to exclude every possible claim you might make. The key is to try to anticipate the possible difficulties that you are personally likely to have and then making sure that the insurance you purchase will cover them. Be sure to do plenty of research before you buy.

One possible source for travel insurance can be the credit card you already have, especially if you have one that offers bonus miles for one or more airlines. With many of these cards, they will provide some coverage – in many cases at no additional cost - in the event something happens that forces you to cancel your trip.

For older travelers, health concerns may be a deciding factor on whether ore not they choose to travel. Especially for them, a special type of trip insurance, known as Age Concern Travel Insurance is available.

As just one example, when my wife and I moved to Ecuador to live we were doing our best to maximize the length of our stay by living modestly. We were on a tight budget since the visas we had didn't allow us to work while we were there. Because of past flights, along with the bonus rewards we got from using our credit card for daily purchases, we were able to use some frequent flier miles for the plane tickets. So, we hadn't paid anything for the flights there and back. However, while we were in Ecuador, in one week, we received two phone calls. One was from my cousin informing me that my father was dying and that I needed to return as soon as possible. The other call was from my wife’s sister saying that her mother had had a mild stroke but was doing fine. We needed to get back to the States quickly, which is usually not cheap, and the flights cost us $1100 each. We bought round-trip tickets since we expected to be returning to Ecuador once we had affairs settled. However, when we returned to the States, it turned out that my father had recovered, but that her mother had actually gotten worse. In order to take care of family responsibilities, our trip back to live in Ecuador had to be canceled. I had to return to collect our belongings, which we left behind as we expected to return, and my wife stayed to help out with the parents until I got back.

On my wife’s ticket, we had half of the trip we paid for and half of the trip that we used frequent flier miles for that couldn’t be used. Fortunately, because we had purchased the tickets with a credit card tied to the airline mileage program, they had included some trip insurance at no extra charge, and it covered this set of circumstances. We had to provide letters from the doctors stating that our parents needed care, but they weren't hard to get. Even though my wife had used half the paid-for, round-trip ticket, she lost the return leg of that as well as the second half of her free flight. In other words, she lost a complete round trip to Ecuador and back. Even though half of that was through frequent flier miles, the insurance company worked with us and reimbursed her the full $1100 that we had paid out for the emergency airfare. Needless to say, that was very much appreciated.

As this example shows, life can throw some pretty mean surprises at you. Many of us have experienced these types of setbacks, and if the possibility of it is preventing you from getting that badly needed vacation, the peace of mind you get from some well-chosen trip insurance might be the difference between staying and going.