Do I Need Travel Insurance?

We have never purchased travel insurance because we are cheap, but it doesn’t mean that it is not worth the money. We’ve simply been very lucky and never lost our backpacks or had medical emergencies during a trip.(Krystin did forget to grab her bag in New York from London and recheck it for the connecting flight and arrived in Florida with no clothes, but that is another story). Scott does, however, have insurance on his camera gear.

Travel insurance can cover many different options depending on the type of trip you're planning and the number of people being covered. Most plans cover trip cancellation and interruption, medical expense and transportation, lost or stolen baggage and 24/7 travel assistance. One time in Brussels, our flight was canceled and we were rerouted out of Paris the next day and were forced to get to the airport on our own dime. The flight was transferred with no extra fee, but the train and bus to the airport was probably about and extra $100-150, which travel insurance would have covered if we had it.

With all the flights being canceled in Great Britain and all over Europe due to the ash from that crazy volcano, travel insurance in theory should cover the hotel and new flight. Scott checked a travel insurance provider to view prices and to see what is included. The first one that popped up on Google was Travel Guard and a quote for a month-long journey costing $3,000 (including "Adventure Sports Coverage" since you never know when cliff diving into the Mediterranean will seem like a good idea) is $135 per person.

This includes 50 percent reimbursement of the cost of the trip if it's canceled within 48 hours of departure, $10,000 medical coverage, $1,000 baggage recovery (with $200 deductible so you really only get $800) and $500 in case of flight delay. To us, this seems like a lot of money for not enough coverage. Most airlines will reimburse you for lost or stolen baggage to a certain degree. Insurance only covers $500 for a delayed flight? If that volcano/terror threat/strike has been holding me up in London for a week, what is $500 (or £300) going to get me – two nights in an airport hotel?

Scott checked out www.insuremytrip.com, which is a comparison site, and many of the plans from 20 companies were very similar in price and coverage. In our opinion, travel insurance is for families spending many thousands of dollars for flight, rental car, resort and tours. We especially think this because Scott checked a quote for a family of four spending $15,000 and the quote was very similar to one backpacker spending $3,000.

Instead of purchasing travel insurance, you may want to consider the benefits of an International Student Identity Card (ISIC), which is an internationally recognized student ID. An ISIC offers discounts on travel, museums and even online purchases that go far beyond normal student discounts.

The card costs $22 and is available to students of any age. If you are not a student but are between the ages of 12 and 25, you can purchase an International Youth Travel Card (IYTC) for the same price. Both are valid for one year from the date of issue.

The biggest advantage of these cards for United States citizens, aside from discounts, is a series of insurance benefits including $300,000 medical emergency transportation and $25,000 accident medical expense. The card also covers travel document replacement and costs incurred from travel and baggage delays and offers a 24-hour free emergency helpline for legal, medical or travel advisors. For a full list of benefits and to purchase your card, visit www.isic.org.

We have a tendency to take too many cameras with us when we travel to document our trip and, of course, make the occasional YouTube video. We’ll have a point and shoot, SLR with extra lens, tripod, video camera, extra memory cards and batteries for each, not to mention chargers and adapters. Anything could happen to our gear (except getting lost on a plane since it is always in our carry-on bag). We have purchased a $10,000 personal property plan for only $125 a year from the same insurance company we have our car insurance from. This includes loss, theft, damage or anything else that happens to any camera, computer, iPod or other device I have included on the plan anywhere in the world. It cannot replace photos that are lost, but it can give some peace of mind if you decide to travel with a camera, computer and/or iPhone. (Like we always say, a camera is justified when traveling Europe. The other two are not.)

Before you leave the country, check with your insurance company to see if they offer personal property plans, ask if your medical provider covers you when in Europe and see what your renters or homeowner’s insurance covers. Some credit cards also offer insurance on items purchased with the card – accident coverage on rental cars, for instance.

Anything can happen on a trip abroad or even just a trip to the grocery store, and it always feels good to know you're safe and someone is watching over you. No one wants to find out halfway through a trip that flights are canceled, your friend broke a hip on a crazy night out at the club or someone grabbed your backpack at the airport carousel by mistake.

Be safe and enjoy the ride!