I have never found travel insurance worth the money so instead I do 3 things to protect my trip
There are too many things for me that travel insurance doesn't cover.
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Travel insurance costs are often higher than booking hotels and airlines with flexible terms. When I book a trip with a credit card, I get reimbursed if something goes wrong on my trip. One of my biggest concerns, when I travel, is how much money I can save on the trip.
Not only do I spend quality time researching discounted flights and hotel accommodations, but I like to make sure I'm getting the best deals available, even if that means waiting until the last minute to book a trip.
But over the years, I've found myself in a variety of situations, from getting the flu the day before a trip to bring home from a hurricane, which made me decide to sign up and pay extra for travel insurance. I determined I would never do this again after doing it multiple times and spent anywhere from $75 to $125 to cover various components of the trip.
Here are the reasons I'm quitting travel insurance.
1. Limited coverage of cancellation
When I first bought travel insurance, I didn't read the fine print. I thought travel insurance covered more than it did. But, it turns out that most basic travel cancellation policies don't cover the things that often cause me to cancel my trips, like a change of plan or a cold. Usually, the standard reasons are such as the death of a family member, jury duty, or sudden job loss.
If you want more comprehensive coverage, you'll have to pay extra, and you may only receive a portion of your money back if you cancel within 48 hours of departure.
2. I travel so much that it becomes costly
As someone who takes up to a dozen trips each year, getting travel insurance for your trip adds up. The average cost of travel insurance is between 4% and 8% of the price of your trip. If the vacation costs me $2,500, have to pay more than $300 for insurance.
If I were to sign up for travel insurance for all my trips, or even half of them, I would be paying several thousand dollars a year for this protection. It's a cost is worth it.
Check out Insider's picks for the best cheap travel insurance »
3. There are too many things it doesn't cover
When I was recently considering getting travel insurance for a week-long trip to Montana, I started reading the details of different policies to see how many gaps there were.
While it might seem like these insurance plans cover you for anything, some always have fine print that excludes certain events and activities. For example, one plan I looked at said it wouldn't cover a sprained ankle on a walk or hike.
It made me think how much it would hurt if I had to submit a claim only to have it rejected because of a loophole I didn't know about or recognize when I signed up for the policy.
How do I protect my trip without travel insurance?
1. I get protection through my credit card
Instead of spending an extra few hundred dollars on travel insurance, I decided to maximize the deals already available to me through my credit card.
If I buy a trip with my travel credit card ( Insider Reviews the Best Travel Rewards Credit Cards ), I'm offered up to $1,500 in nonrefundable travel expenses if the trip is canceled due to unforeseen circumstances. Before purchasing travel insurance, first, check what your credit cards offer.
2. I found the hotel's friendly cancellation terms
When searching for hotel deals, I only book accommodations that allow me to cancel as close to the travel date as possible, usually within 48 or 24 hours of the stay.
While this might take some potential budget hotel deals off the table for consideration, I've found that refundable deals are only $25-$50 more per night, which is worth paying for the option to cancel close to your arrival date.
3. I book flexible tickets
One of my biggest travel non-negotiables is my airfare. When I take a vacation or even travel for work, I want to be able to change the time or date of my flight. Most travel insurance policies will not allow you to make these changes unless there is an emergency.
So instead of paying fees for this, I only book flexible tickets that allow you to cancel at any time (and either give you a refund or credit the ticket to your account as travel credit) or let me make last-minute changes. date or time of flight.
Even though these tickets cost me $50 to $75 each way more than a standard non-refundable ticket, if I know there's a chance I'll make the change, the flexibility is worth the cost of paying it.
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