Unpacked: S2, E30: Everything You Need to Know About Travel Insurance

AFAR

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  ---- 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 Follow AFAR on Twitter: https://twitter.com/afarmedia Follow AFAR on Instagram: https://www.instagram.com/afarmedia Follow AFAR on Pinterest: https://www.pinterest.com/afarmedia

Transcript

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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