Travel insurance pays out over $6.7 million a week to cushion the blow when there is a medical emergency abroad, according to a recent report from the Association of British Insurers.Medical and car insurance are so important in most places in the United States that it's illegal not to own it. Shouldn't that at least be enough to prompt you to consider the value of a good travel insurance policy?
Based on new data from the Association of British Insurers, more than 4,300 people rely on the safety net provided by travel insurance to pay for emergency medical treatment. The average cost per claim is $1,524. Now compare that to $54 – the average cost of a travel insurance policy.
That's quite the money-saver.
Traveling With No Insurance
Still, many travelers risk going on vacation without that safety net. Association of British Insurers observes that one out of every 5 people take their chances by traveling uninsured. If the concern is losing money, you'd have to take more than 21 vacations each year for insurance costs to outweigh costs per claim.
In addition, many of us fear losing our luggage, or getting money or baggage stolen during our trips. But more people claim for medical treatment than for either the cancellation of their vacation, or lost or stolen money.
It doesn't help that medical expenses are increasing. In 2013, the average cost of a claim for medical expenses on a travel insurance policy was $1,570, compared to $1,040 in 2004.
"No one expects to go holiday and have to make a claim on their travel insurance," Aidan Kerr, head of travel insurance at the Association of British Insurers, said in the report, "However, unfortunately for many travelers, having something go wrong can be a very real experience. It can be especially traumatic when you or someone you are traveling with is taken ill or injured."
To keep you and your family safe when traveling abroad, here are a couple of tips bear in mind:
1. Remember that when purchasing a travel protection plan, the cheapest package you come across may not cover all of your needs. Thus, don't buy a policy based on price alone.
2. Vacations are meant to be fun and relaxing, but you should act responsibly and stay alert for suspicious activity.
Get a quick quote today by calling your travel agent at 1.800.223.3855.
*Travel Assistance Services provided by the designated service provider as listed in the applicable Description of Coverage.
This is a partial description of benefits. Rates are subject to change at any time. For details on coverages, benefits, limitations and exclusions of the protection plan, please refer to the applicable plan language, on the Travelex website: www.travelexinsurance.com. Travel Insurance is underwritten by Transamerica company, Columbus, Ohio; NAIC # 10952.