This week on Unpacked, we untangle the confusing world of travel insurance: is it worth it? Do you really need it? What does travel insurance cover, exactly? And which companies offer the best coverage? Get answers to all that, plus a little fun, along the way.
Read the transcript here: https://rebrand.ly/pcj2yam
Discover more episodes of the Unpacked by AFAR podcast here: https://www.afar.com/podcasts/unpacked
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Read the transcript here: https://rebrand.ly/pcj2yam
Discover more episodes of the Unpacked by AFAR podcast here: https://www.afar.com/podcasts/unpacked
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CONNECT WITH AFAR
Afar.com is a digital and print magazine that publishes travel tips, guides, news, and stories: https://www.afar.com
Get updates on the latest articles, travel news, and more from AFAR by signing up for the AFAR newsletter: https://afar.com/newsletters
Follow AFAR on Facebook: https://www.facebook.com/AfarMedia
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TravelTranscript
00:00 Okay, I'm unconscious in the Amazon in the middle of nowhere.
00:06 And I'm what what are you expecting me to do in order for my claim to be paid?
00:10 Eventually,
00:11 unconscious in the Amazon sounds like a great headline.
00:20 I'm Aislinn Green.
00:21 And this is unpacked the podcast that unpacks one tricky topic and travel each week.
00:26 And this week, we are going to try to untangle the confusing web that is travel insurance.
00:31 Now, before you tune out, shut this all down.
00:35 I know it's not the sexiest subject.
00:37 But it is an important one, as I found out on a recent trip.
00:41 And I promise we'll try to have some fun or at least we'll have some education.
00:46 There's even a trivia question buried in the middle of the episode and who doesn't love
00:49 trivia?
00:50 But back to the story that sparked this episode.
00:57 A couple of months ago, I traveled to a conference in the Midwest.
01:01 It was one of those long hellish journeys to get there one of those flight mares that
01:05 make you want to swear off air travel forever.
01:09 After 24 hours of travel, I finally got to my hotel, hopped into the shower and immediately
01:17 slipped.
01:19 It was one of those tub shower combos.
01:21 And one second I was up and the next second I was down.
01:25 And on the way down, my ribs slammed against the side of the tub, knocking the wind out
01:29 of me.
01:30 Fortunately, I didn't hit my head or land on my wrist, but it was very painful.
01:34 And I thought I'd actually broken a rib or two.
01:37 Now, I did not do what most people would recommend in this situation, what my mother would recommend.
01:43 I didn't go to the ER.
01:45 I did not call to see if my health insurance would cover a visit to the ER.
01:49 And I didn't tell anyone besides my partner what had happened.
01:52 I just kind of suffered through it, hoped for the best and went to the doctor when I
01:56 got back home.
01:57 Although I did Google to figure out how to tell if you have a punctured lung and felt
02:02 pretty pretty confident that I did not.
02:05 Turns out it was just a badly bruised rib, not a bad ending to the story.
02:08 But the experience kind of spooked me.
02:09 It was a reminder of just how quickly things can turn.
02:13 One minute you're up and happy and healthy and the next you're slipping in the shower
02:17 or you're down with food poisoning or maybe something even worse.
02:21 Part of the reason I didn't do anything while on my trip is because I didn't really know
02:25 what to do.
02:26 I didn't have travel insurance.
02:28 And I didn't want to spend the time to kind of figure out in the middle of this trip what
02:32 was going on or what I could do.
02:34 I've actually never purchased travel insurance before.
02:37 But once I got home, I thought that maybe it was time to learn a little more about it.
02:41 So today we are taking a deep dive into the world of travel insurance.
02:46 We'll talk with several experts to understand what travel insurance is really, the different
02:50 types of insurance, how to figure out if you need it, and if so, how to pick the best policy
02:55 for you.
02:56 We'll also share tips on what to do if the worst happens and something does go wrong
03:00 on your trip.
03:01 You ready?
03:03 The point of travel insurance is to protect you financially.
03:08 The amount that you get paid in advance for a trip.
03:12 That's Wendy Perrin, the editor in chief of wendyperrin.com, a travel advice website.
03:17 Now Wendy has thought a lot about insurance.
03:20 Check out her website.
03:21 She has some great explainers there.
03:23 At its very basic level, travel insurance is coverage that protects you from risk and
03:28 financial loss while traveling.
03:31 But as Wendy says, so you don't always need travel insurance.
03:33 It just depends on your particular circumstances.
03:37 We'll get to how to look at your travels and make the right decision later in the episode.
03:42 But first let's try to understand the three main benefits of travel insurance.
03:46 Enter Christina Tanna, the general manager of marketing and brands for World Nomads,
03:51 a travel insurance company that focuses on adventurous and independent travelers.
03:57 You want to get insurance for the three categories where stuff can happen to you.
04:01 And it could happen to your investment, to cancel your trip, or you're on your trip and
04:06 something happens, you have to come home.
04:07 And so all the reservations and bookings that you made.
04:10 So your investment, it covers you, your person, your health, your body.
04:15 So medical emergencies or accidents, sickness, things like that, and your stuff, right?
04:21 So things that you take with you.
04:23 But how do you know when and if you need it?
04:27 Wendy Perrin says to first think about the reasons you might need to cancel a trip.
04:31 Either a situation that you have back home that might draw you back home, a health issue
04:36 that you have or another family member, any risks related to activities on your trip.
04:42 Choosing insurance is highly personal and it changes from trip to trip.
04:46 Do you have a mother who has a heart condition, who you might need to leave your trip in the
04:51 middle to come home to take care of her if something happens to her?
04:55 Are you going to a place where it's kind of risky and, you know, politically or geopolitically?
05:03 Are you going to the Caribbean in hurricane season?
05:05 Like you want to think about what are the reasons why you might need to leave a trip
05:11 in the middle or cancel it in the first place.
05:14 But make sure that you're really careful about the policy you buy if you're doing certain
05:18 types of activities.
05:20 Let's say your trip is going to involve rock climbing or scuba diving or bungee jumping
05:26 or some activity that's seen as risky.
05:29 Then you might have an additional need like you're like, "Okay, I really ought to in
05:34 case I get injured and I'm in the middle of nowhere and near no reliable medical care,
05:40 maybe I should have insurance."
05:41 But then you need to be really careful which policy you're buying because only certain
05:46 policies are even going to cover sort of riskier sports like that.
05:51 Honestly, even young people in their 20s and 30s need it.
05:54 I know it can be easy when you're younger and on a budget to cut insurance, but don't
05:58 think so fast.
06:00 Everyone can get injured no matter what your age, right?
06:03 You can trip and fall, you can break your ankle, you can...
06:07 Any number of injuries can happen on many different types of trips.
06:11 I mean, young people might be particularly active, right?
06:14 You know, they're the ones who want to go rock climbing or scuba diving.
06:17 If you don't quite know how to look at your trip and figure out the risks, go with the
06:21 cancel for any reason insurance.
06:23 The advice that I normally give folks is if you're buying the insurance because you think
06:29 something is more likely than not to occur, buy the cancel for any reason.
06:36 That's Beth Godlin, president of Aeon Affinity Travel Practice, which creates travel insurance
06:42 policies that travelers can buy through third party services.
06:45 So for example, if you've ever booked a tour or a cruise and been offered or purchased
06:50 travel insurance at the time of booking, there's a good chance that Aeon is behind the policy.
06:56 Now, cancel for any reason insurance, the kind that Beth mentioned, is expensive, but
07:02 there's a good reason for that.
07:03 You may get, instead of a refund of money, you may get a credit for a future trip, or
07:08 you may get a 75 or 80% of what you insured depending upon the product that you buy.
07:16 But that gives you the most flexibility and it doesn't have specific reasons that you
07:21 could choose to cancel insurance.
07:23 It sounds like a lot of it comes down to what are your personal priorities.
07:26 Like are you carrying a lot of gear with you that would be really, you know, horrifying
07:30 to lose or...
07:31 Which is all insurance, right?
07:33 You know, do I rent an apartment?
07:35 Do I get renter's insurance or do I just insure myself?
07:38 I asked Beth who she thinks needs insurance the most.
07:42 I would say the people that most need it are the ones that are planning travel in advance.
07:48 So booking now for a trip that may come up in 60 days or 90 days, because during that
07:54 window things could happen that might prevent you from taking your trip.
07:58 Likewise, people traveling far away that want to ensure that they've got emergency medical
08:05 benefits, that they've got interruption benefits in case something happens and they have to
08:10 come back early or they, you know, have to come back later because let's say they got
08:15 sick and they couldn't make their flight.
08:17 You also want to consider our old friend that cancel for any reason insurance if you're
08:21 making a huge non-refundable payment far in advance.
08:25 And remember that you usually need to buy this type of insurance within 14 days of your
08:30 initial trip deposit, because then you're covered for cancellation based on pre-existing
08:34 medical conditions.
08:36 But if everything on your trip is cancelable or refundable, you might not need insurance
08:40 that covers cancellation according to Wendy Perrin.
08:44 You know, you've booked a hotel, but you can cancel 24 hours ahead.
08:48 You've booked a rental car, but you can cancel at the counter.
08:52 You've got an airline ticket that you can get a refund on or a full credit toward a
08:57 future flight.
08:58 Like if you haven't put out a lot of money, you don't need insurance protecting you.
09:02 You should still think about medical insurance though.
09:04 And that leads us to our next point.
09:07 Don't over insure.
09:09 Before you run out and get a policy, Wendy Perrin says, check the insurance you already
09:13 have either through your credit card or through, you know, your health, your own health insurance.
09:19 Everyone has a different situation.
09:21 That's what makes this so tricky.
09:23 You really need to think about your own personal.
09:26 What are you already covered for?
09:28 Because you don't want redundant coverage.
09:30 There are two main types of insurance.
09:32 Most people already have health insurance and insurance through their credit card.
09:37 Now, most health insurance plans are likely to cover you or cover some part of your expenses
09:41 if you're traveling domestically.
09:43 But Christina Tenna of World Nomad says, don't assume that's the case internationally.
09:49 Sometimes people think, well, I have healthcare here in the U S so I don't need it for when
09:53 I go overseas.
09:54 There are some plans that might cover you overseas, but that's where a phone call to
09:59 that healthcare company is going to be really worthwhile to understand exactly what is covered.
10:05 If you need repatriation, does your U S health insurance cover that?
10:10 What are the assistance services?
10:12 Will they bring back your stuff?
10:13 If you're repatriated home, what about all the stuff in your hotel room?
10:17 Will the healthcare company repatriate your, your belongings or your family members?
10:22 When it comes to credit cards, it can be just as complex.
10:25 Christina says you need to look carefully at what your credit card includes.
10:29 I know it's all about reading the fine print.
10:32 Does the credit card cover those costs that might not have been paid for with that particular
10:35 credit card?
10:36 That's very important.
10:38 Does the credit card cover emergencies such as ambulance fees?
10:43 Should you need ambulance transfer?
10:45 Would it cover potentially if you're in the hospital, does the credit card insurance cover
10:50 you for an airline, a traveling nurse companion, if that's what you need, or does it cover
10:56 the cost of family having to stay longer in a hotel because you're in the hospital or
11:00 sending them back home because you're going to be in a hospital for a while, all those
11:03 different scenarios, credit card companies may or may not cover.
11:07 Christina says that credit cards could also have limited coverage or they could cap payouts.
11:12 So again, look at your card provider.
11:14 And if you are participating in adventure activities, make sure the credit card company
11:18 covers those too.
11:21 So now you know what kind of insurance you already have.
11:24 How do you go about finding the right policy for you?
11:28 Everybody can benefit, but not everybody can benefit from the same plan.
11:31 I really have to emphasize that it's not a one size fits all.
11:35 For example, since World Nomads is geared toward independent adventurous travelers,
11:39 they offer a unique service.
11:42 Because our travelers are pretty intrepid and sometimes extend their trips because they
11:46 love traveling so much, or they have a reason to maybe claim while they're online.
11:51 Our products and our website enables travelers to also lodge a claim or to buy online, buy
11:57 when they're already overseas, and to do all of those things, even if they're already
12:02 on the road.
12:03 Depending on your country of residence, you can still purchase a plan with World Nomads
12:07 after you've left home.
12:09 There may be a short waiting period, of course, and you can't apply for coverage after something
12:13 has happened, like you get sick or you get in an accident.
12:17 Going beyond a company like World Nomads, Wendy Perrin recommends using websites like
12:22 travelinsurance.com or insuremytrip.com, which allow you to compare and contrast different
12:28 companies and prices.
12:30 And she reminded me that it starts with asking what you're doing on this trip and where your
12:34 life is at.
12:35 My biggest piece of advice is to think about what is most likely to happen to you on this
12:44 particular trip.
12:45 What are the reasons for which you would need to cancel this particular trip or leave in
12:50 the middle or injure yourself or get sick and need to come home?
12:54 Because each time it's going to be different.
12:56 And remember that timing really matters.
12:59 A lot of people don't realize, like they'll put down a deposit on a trip and then they'll
13:02 realize like six months later, "Oh, maybe I need travel insurance."
13:06 Well, they might have missed out on coverage they really need.
13:10 So just at the time when you're first putting down money for a trip, that's the moment where
13:15 you need to be thinking about, "Do I want travel insurance or not?"
13:19 Then she says, call the insurance company that you're thinking of buying a policy from
13:23 and ask them, "What happens to me?"
13:25 Go through the scenarios.
13:26 Okay, what happens if A happens or if B happens or if C happens to me?
13:31 Is it going to be covered or not?
13:33 How much is it going to be covered for?
13:35 If there's a claim, what are you going to need me to do?
13:38 Like, you know, okay, I'm unconscious in the Amazon in the middle of nowhere.
13:45 And what are you expecting me to do in order for my claim to be paid eventually?
13:50 So there are a lot of questions to ask.
13:53 And I think that's one of the most important things to do before you buy a policy.
13:56 There are also supplemental policies and companies that offer unique coverage that's often left
14:01 out of major policies.
14:04 One great example is medical evacuation.
14:07 Not exactly the first thing that comes to mind, right?
14:10 But as I was reporting this story, I learned about what a heinously expensive process that
14:14 can be.
14:15 We're talking like more than $100,000.
14:18 Unless that is you're covered by a company like Medjet.
14:22 Basically in its first form is a travel protection product for individuals.
14:26 It's a membership program for travelers and those individuals that find themselves traveling
14:31 more than 150 miles away from home.
14:33 And if they find themselves ill or injured and hospitalized, Medjet is a service that
14:38 they would have that would provide them that medical transport back to their home hospital.
14:44 That is John Goebbels, vice president and COO of Medjet.
14:49 Now Medjet primarily uses air ambulances to transport patients.
14:53 In case you're wondering, an air ambulance is a fixed wing aircraft.
14:57 Think of like a Learjet.
14:59 And it has a full critical care team on board.
15:03 Or if someone doesn't require that full critical care team, Medjet can send a critical care
15:08 nurse to retrieve you.
15:10 You and the nurse would essentially fly back commercially in business class, and that nurse
15:14 would take you to your hospital back at home.
15:17 John says that people usually buy the membership for a big international trip, but he finds
15:21 that people often use it closer to home.
15:24 So let's say, you know, you're going to Africa or you're going on a cruise somewhere, you're
15:28 going over to Asia, and we really find that about 90% of the people actually purchase
15:32 it for that big trip, but find themselves using it domestically.
15:37 They go to the beach, they go away for holidays somewhere, and they may be a state away or
15:43 across the country, and they realize like, "Oh my gosh, I've got Medjet.
15:47 We bought for our cruise back in January.
15:50 We still have it."
15:52 And they call up and we take care of everything.
15:54 And you know, even domestic transports could be well over $30,000.
15:58 Medjet offers several different kinds of memberships, including an eight-day membership, a month-long
16:03 one, all the way up to annual and multi-year memberships.
16:07 Memberships start at $99 and vary pretty widely depending on, you know, how long you'll be
16:11 away.
16:12 But as John shared, that small fee can wind up saving you a ton of money.
16:17 In late May, we had a couple that was traveling actually in Ghana and came down with kind
16:24 of a weird neurological disorder that, you know, no one would have seen coming.
16:28 Like, they didn't have any past medical history of this.
16:30 They had the Medjet membership, and I think this is one of the last things they thought
16:34 that they would be dealing with.
16:36 And they were hospitalized.
16:37 They were receiving really good care where they were at, but they want to come back.
16:42 And really, it was a condition that is such that there really is not a lot of treatments.
16:47 It can be irreversible.
16:48 So, I think it was super important to get them back here to the United States.
16:53 And really, the cost of that was right around $130,000.
16:57 I'm not aware of a lot of people that can just write a check for something like that.
17:01 So really, for a membership for just an annual, you know, individual, it would be like $315
17:08 to be a member of Medjet.
17:10 That saved them $130,000 to do that and really had a positive outcome on their recovery.
17:16 We'll come back to another company doing interesting things in this space.
17:19 But first, we have that travel trivia I promised you at the top of the episode.
17:24 All right, here's the question.
17:26 Solo leisure travelers may experience "stummfrei."
17:30 What does the Sherman word mean?
17:31 A, a feeling of being able to do whatever you want.
17:34 B, fear of isolation due to bad weather.
17:37 C, a panic attack.
17:39 And D, freedom to confide in strangers.
17:42 I'll reveal the answer after the break.
17:57 And we are back.
17:58 Did you guess the right answer?
18:00 If you guessed A, a feeling of being able to do whatever you want, you are correct.
18:05 And according to our copy editor, Pat Tompkins, who writes these questions, there is no short
18:10 English equivalent for "stummfrei."
18:12 It literally means "storm free."
18:14 Okay, now back to insurance.
18:17 In addition to supplementary services like Medjet, there are newcomers to the travel
18:21 insurance adjacent space.
18:24 Newcomers like sensible weather.
18:26 We produce forecasts that are bespoke for trips or experiences.
18:30 At the end of the day, we guarantee what we forecast.
18:33 So the idea is you can use our tools to plan your trip or if you're going to an outdoor
18:37 music festival or whatever, to really understand what you might expect and ultimately lock
18:41 in that outcome with a product that we call a weather guarantee.
18:44 That's Nick Kavanaugh, the founder and CEO of Sensible Weather.
18:48 Now Nick started his career as a climate scientist, and he's also a huge data nerd and an avid
18:54 traveler, his words.
18:55 He had built these tools to help himself as a climate scientist travel better.
19:00 And he realized that as our world continues to change, and with it the weather, that other
19:05 people could use these tools too.
19:08 Sensible weather isn't really insurance.
19:11 You'd buy it at the same time you book an activity such as camping or skiing or an outdoor
19:15 tour, but insurance only covers a loss.
19:19 So for example, if you couldn't do that activity, but sensible weather is doing something totally
19:24 different.
19:25 What we're really trying to do is take this day that could have been 100% day if it was
19:30 beautiful and sunny.
19:31 Instead it rained half the day, so maybe it's a 40% day.
19:34 Can we reimburse you the entire amount so that it then becomes 140% day?
19:39 You say a guarantee, what does that mean?
19:40 Does that mean that like it rains on my trip and I don't have a great time?
19:47 That is effectively what it means.
19:49 And that's sort of the ethos is really what we're going after.
19:52 Say you go on a seven day trip and two of those days are rained out.
19:57 Those days are maybe otherwise miserable.
20:00 Can we in real time offer somebody a reimbursement for those days so they can change their plans
20:05 and ultimately have a better outcome, better experience?
20:08 The average cost for sensible weather is about 10% of the activity cost and they pay out
20:13 much more than a regular insurance company.
20:16 Here's how it might work.
20:18 So each day, so seven day trip, you'd effectively have seven coverages, one for each day.
20:24 The beginning of the rainy day, 95% of our reimbursements at this point are paid out
20:29 using a forecast.
20:30 So actually at the beginning of the day, you would say, "Hey, this is not going to be
20:34 the greatest day.
20:35 It's going to rain from two to five this afternoon or whatever.
20:38 You're eligible for reimbursement."
20:40 And that comes via text message.
20:42 And there will be a link on that text message where you click that link and you'll be offered
20:45 various methods of reimbursement, whether that's a bank transfer via ACH or Venmo or
20:49 PayPal.
20:50 Nick says their target audience is really the planner.
20:54 A lot of families with young kids who book theme park vacations use the service, as you
20:58 can imagine, as do people who participate in outdoorsy activities such as skiing and
21:03 camping.
21:04 And in fact, Sensible Weather has partnered with two campground booking services that
21:08 you may have used yourself, Reserve America and Camp Spot, because Nick's goal is also
21:14 to support people who run these travel companies.
21:17 So financially, what I hope that we can do through planning tools and weather guarantees
21:23 is sort of nullify the effect of weather volatility, where on the consumer side, obviously, destination
21:29 trip, you get rained out.
21:31 That's a huge bummer.
21:32 We want to reimburse for that.
21:34 However, especially for regional destinations, weather causes cancellations or people not
21:39 to book in the first place.
21:40 So that ends up being a hit to their revenue.
21:43 In the end, the goal is to get people to take their trips, even as climate change increases.
21:48 As we move into the future, travel, travel events, social things that are so emotional
21:53 for people, they will be impacted.
21:56 The world is changing.
21:57 They will be impacted.
21:59 And we are trying to set up the infrastructure so that, yes, it's impacted, but it's okay.
22:03 We want you to get out there.
22:04 We want you to still go.
22:05 We want to empower the customer to enjoy the world.
22:08 So at this point, you might be convinced that you need travel insurance, but maybe you're
22:13 wondering what's it going to cost me?
22:16 Again, it depends on the plan, where you're going and what you'll be doing.
22:21 For world nomads, Christina Tanna says it could be as little as maybe 50 bucks for a
22:25 weekend away.
22:27 Or it could be as much as a thousand dollars if you're going away for six months and you're
22:31 planning to do adventure activities as part of that six months away.
22:35 So there's a massive range in between the costs and it just depends on a lot of the
22:40 drivers and levers of what's driving up that cost.
22:43 If you're buying a policy through one of the booking services that Aeon Affinity Travel
22:47 Practice works with, Beth says they are not priced per day.
22:51 Most of the policies that are sold, most but not all, contain trip cancellation and interruption
22:55 coverage, which is the coverage that will either refund travelers if they have to cancel
23:01 their trip for a covered reason or interrupt their trip and have additional expenses.
23:07 Because those cover trip costs and key off of the original amount that you paid for your
23:13 trip, the package usually runs as a percentage of your trip costs.
23:17 So on average, I would say six to can go up to 10 or 11 or 12 percent.
23:25 And remember that pricing changes depending on what you want to do, says Wendy Perrin.
23:30 Travel insurance can be pricey.
23:32 It can be like basically four to eight percent of your trip cost.
23:37 So it can be expensive, but it's really the trip cancellation part of it that is so expensive.
23:46 If you don't care about that, if you've paid nothing ahead of time for your trip, it's
23:51 all refundable, but you still want the medical coverage.
23:57 It's actually can be really inexpensive.
23:59 And a reminder to check and see if your policy has medical evacuation coverage and how much.
24:04 If it doesn't, remember that Medjet memberships begin at $99.
24:08 So you've got your policy or you're about to get it.
24:13 The work isn't quite over, but you're very close.
24:16 Beth Godlin says, just make sure to dot your I's and cross your T's.
24:21 Take a look at the policy before you buy it, you know, or even after you buy it, almost
24:26 all companies will give you a couple of weeks to get your money back if you don't like it.
24:30 So if you've got a sick parent and you're buying it because that sick parent is very
24:35 sick and you think something may happen, make sure to check the pre-existing exclusion component
24:42 to make sure something like that would be covered or call the company and ask them.
24:46 Christina Tanna agrees.
24:48 She says as difficult as it is, sit down and just read your policy.
24:52 I know that's probably not the most exciting thing to be reading, but...
24:57 Get a cup of coffee, sit down with your policy.
25:00 And that's really all it is.
25:01 It's a cup of coffee's worth of reading.
25:04 Now this might be totally obvious, but once you get that policy and you're traveling,
25:08 you're out in the world, don't forget to use it.
25:11 You spent the money, you spent the time and even lost luggage and flight delays might
25:15 be covered if you have the right plan, says Christina.
25:18 We do hear anecdotally of people who maybe their bag didn't make it.
25:23 Like, "Oh, it's fine, I'll just wait and see when it arrives in my hotel."
25:27 And I've always told them, in fact, I met a woman when we're both waiting for a bus
25:31 to go further afield in country and she said, "Oh, my bag didn't arrive."
25:35 And she had insurance.
25:36 And I said, "Well, why don't you call the assistance company?"
25:38 She goes, "Oh no, I'll just wait and see if the airline..."
25:41 No, call the assistance company.
25:43 That's exactly what they're there to do is to help be your eyes and ears for your case,
25:49 for drumming down.
25:51 And so yeah, call the assistance company.
25:54 And if something big does happen on your trip, you want to contact your insurance company
25:59 right away.
26:00 The thing that I avoided during my little incident.
26:03 You'll also want to immediately begin to document the process so that you can file a claim once
26:08 you're home.
26:09 When you come home and you want to start doing the claims process, it could be pretty swift,
26:14 but it's only as swift as the information you have at hand is complete and fully detailing
26:20 your particular claim scenario.
26:23 If you only submit partial evidence of loss, and that loss could be a trip delay, or lost
26:30 baggage, or that you had to overnight in a hotel because your last flight was missed.
26:35 All of those types of scenarios, if you don't have full proof of backing your story with
26:41 the needed receipts and documents, then it becomes a back and forth.
26:46 Okay.
26:47 So keep notes, take screenshots, keep the receipts, all that.
26:51 Keep notes.
26:52 And also, particularly in medical situations, if you're going into a walk-in clinic, you
26:57 might think, "Oh, it's 50 bucks to get my hand bandaged."
27:00 The receipts, everything is great.
27:02 But again, call the assistance because then you already have established your case.
27:06 And you're able to ask the attendant, "What do I need to make sure I do not leave the
27:11 clinic without?"
27:12 And they will help you so that you are not, after the fact, thinking about, "Oh, I don't
27:17 have documentation for that."
27:19 Kristina says that proof of ownership is particularly important for lost gear and tech.
27:25 So you have to be able to prove that you own that piece of equipment before there will
27:29 be a payout of it.
27:30 So you really want to have evidence of ownership as part of your documentation process.
27:36 We always recommend travelers take photos of your receipts, if you still have them,
27:40 take photos of your item, any kind of serial numbers of that item, credit card receipt
27:46 that shows, "Yes, I bought this at Best Buy, July 3rd, 2020."
27:52 Anything that really helps back you up and just put it in the cloud and save it so that
27:56 should you ever have to claim for it, you've got that stuff ready versus doing it after
27:59 the fact.
28:00 I promise we are almost at the end.
28:03 One of the cool things I learned in this process is that insurance can even benefit the greater
28:07 good.
28:08 Here's Kristina again.
28:09 We also view insurance as the responsible thing for travelers to take with them because
28:14 you don't want to be a burden to the host community's hospital systems.
28:20 And you want to make sure that you're not taking a bed from somebody else or just being
28:23 a burden to that medical attention because you don't have it.
28:27 World Nomads also has a program called Footprints, which allows travelers purchasing a policy
28:32 to make a micro donation to a specific project.
28:36 We work with NGOs all over the world that are vetted and we select projects where they
28:42 need very specific funding.
28:45 It's not an ongoing fundraising mechanism.
28:47 It could be, "We need $20,000 to buy two boats and petrol and gear for rangers who
28:53 are going to help prevent turtle poaching in Nicaragua," or, "We need $50,000 to build
29:01 programs for water sanitation in the Torres Straits."
29:06 This whole thing can seem very overwhelming and a little dry, but a reminder that this
29:10 goes back to one simple concept.
29:12 Travel insurance is there to protect you financially.
29:16 Here's Wendy again.
29:17 I think the main reason why it's valuable is when it can save you tens of thousands
29:22 of dollars, if not hundreds of thousands of dollars, right?
29:26 I think people really need to think about, "Where am I spending the most money where
29:30 I need to protect myself?" or potentially during the trip, because that's really what
29:34 it is, is financial protection.
29:36 Christina agrees.
29:37 And she says a little planning can go a long ways.
29:40 The vacation starts when you actually start planning it and getting inspired for where
29:44 you want to go.
29:45 And I get it.
29:46 People don't want to start thinking about what could go wrong on vacation.
29:50 But if you make it part of your planning process and you're really across what it can and can
29:55 do for you, and each traveler is different, right?
29:57 And then you can carry on with all the fun parts of your holiday, right?
30:00 So get it over with, bed it down, and carry on.
30:08 Let's recap what we learned today.
30:10 Takeaway number one, not everyone needs travel insurance, but the best way to find out if
30:14 you do is to assess your life and your travels each time you plan a trip.
30:20 Takeaway number two, there are three core things that you might want to protect with
30:24 travel insurance.
30:26 The money you have or will spend, your health and your stuff.
30:31 Decide which ones are most important to you and go from there.
30:35 Takeaway number three, cancel for any reason insurance can be the most helpful in terms
30:39 of getting money back, but it's also the most expensive.
30:43 So consider carefully.
30:44 People who are putting down large non-refundable deposits are good candidates for it.
30:49 But remember, you usually have to sign up for it within 14 days of that first deposit.
30:55 Takeaway number four, if you're not worried about cancellations, medical insurance on
31:00 its own can be relatively inexpensive.
31:04 Takeaway number five, before you get a policy, check to see what coverage you already have
31:09 under your health insurance or credit cards.
31:12 Don't over-insure.
31:14 Takeaway number six, don't forget about supplementary plans like medical evacuation and weather
31:19 guarantees.
31:21 Medical evacuation can be quite expensive and isn't always covered under travel policies.
31:26 Takeaway number seven, call the insurance company before you buy a policy and run through
31:30 the most likely scenarios.
31:34 And grit your teeth and read the fine print of your policy once you hit purchase.
31:39 And finally, takeaway number eight, if something does happen on your trip, document, document,
31:44 document, and call the insurance company right away.
31:48 Travel insurance, it's a dizzying subject, but I personally feel so much more prepared
31:52 to invest in my next travels.
31:55 For example, I have a big trip planned to Japan in 2024 and beyond, and you can bet
32:00 I will be buying travel insurance for it.
32:03 We will link to all the resources that we shared in this episode in our show notes,
32:06 as well as to a travel insurance primer on afar.com.
32:10 Next week, we are exploring the world of better travel pledges.
32:13 Until then, happy travels.
32:15 Ready for more unpacking?
32:17 Visit afar.com and be sure to follow us on Instagram and Twitter.
32:21 We're @afarmedia.
32:23 If you enjoyed today's exploration, I hope you'll come back for more great stories.
32:27 Subscribing makes this easy.
32:29 You can find Unpacked on Apple Podcasts, Spotify, or your favorite podcast platform.
32:35 And be sure to rate and review the show.
32:36 It helps other travelers find it.
32:39 This season, we also want to hear from you.
32:42 Is there a travel dilemma, trend, or topic you'd like us to explore?
32:45 Email us at unpacked@afar.com.
32:48 This has been Unpacked, a production of Avar Media.
32:51 The podcast is produced by Aislinn Green and Nikki Galteland.
32:55 Music composition by Chris Gawlin.
32:57 And remember, the world is complicated.
32:59 We're here to help you unpack it.
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