Here’s Why You Can’t Afford To Travel Without Insurance
Can’t afford to travel without insurance? Yes I can! If anything, it’s cheaper to book a flight without paying for another costly expense. A vacation policy is always less affordable, since the insurer has to cover you for extreme events, such as medical care. Therefore, it’s cheaper to travel without insurance in the short-term.
From a long-term perspective, it’s a stupid move. Sure, lots of people don’t bother, and COVID-19 has only made it worse – 75% of travelers say they won’t invest unless it includes Coronavirus cover. Still, you don’t have to follow suit because it’s the status quo.
Instead, you should always make sure that you have adequate coverage before booking a trip abroad. The recent pandemic has taught us many things, and that is one of them. Here are four extra reasons why you can’t afford a trip without insurance that you should factor into your decision.
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Dealing with travel uncertainty
When a flight is canceled for whatever reason, it’s down to the company to find a solution. 90% of airlines and travel operators are honest, but 10% won’t follow the rules. And, if you don’t know them yourself, you might end up on the losing side if you’re unlucky. Thankfully, insurance is an equalizer.
If an airline states that they won’t provide a refund or reschedule your booking, the only option is to pay for another ticket with a different firm. That way, you can sort out the details when you’re home rather than in an airport lobby. Without the security of insurance, it’s not nice to have to buy a ticket knowing you might never see the money again.
Not only is it the financial implications you should worry about, but the principle of the matter. You deserve what you pay for, and when a provider doesn’t give it to you, you don’t want to offer them the satisfaction of winning.
Considering the risk of theft
Being the victim of a crime- such as theft- can happen anywhere in the world. Depending on the circumstances, it could take place in your backyard, surrounded by friends and family without your knowledge. Cybercrime occurs daily, with the average cost setting individuals and businesses back a huge £13 million.
The difference is, when you’re at home, you’re usually covered. For example, most homeowner have contents insurance. An acts of fraud involving your bank account is covered by your bank. When you’re away, this isn’t the case- unless you have a specific policy. Losing something as small as your glasses is a big deal, too, as the costs rack up. Thankfully, regarding replacements, an insurer will find it easily and pick up the tab so that you can continue your trip.
The same goes for accessories, such as mobile phones and tablets, as well as clothes and money.
Addressing potential liabilities
Unfortunately, another person might not always be liable. In some cases, you’re the guilty party, even if you didn’t mean to cause harm or damage, as accidents happen. When they do, you want to be in a position to give back what you owe without fretting over the economics. Remember that the worst-case scenarios are expensive.
Almost every policy includes liability insurance in the general terms and conditions, so you have a level of liability coverage. Of course, you can tailor the package to suit the potential requirements. For example, it’s wise to include accidents to others if you’re on an extreme adventure weekend.
Alternatively, if you plan to rent a car, it could be worth adding it to your plan in case a crash results in harm to a motorist or pedestrian. You never think about these things until it’s too late.
One In A Million
The odds of getting into an accident could be one-in-a-million. How many times have you traveled without incident? How often do you end up in the ER when you’re abroad? According to the stats, it’s probably not worth the investment.
Yet, it’s not worth the risk. A flight might be canceled and lightning might strike, and if it does, you want to be in the best position to get home safely. If COVID-19 has highlighted anything, it’s the fragility of the world we live in. it looks stable on the outside, but all it takes is a virus to force everything to grind to a halt. When you think about it like that, a couple of hundred dollars for peace of mind isn’t expensive.
You can’t afford to travel without insurance, because the world is unpredictable.
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Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/