Travel Insurance: The Elephant in the Room

There, I said it.

Travel insurance.

The elephant in the room when it comes to travel.

I know. It isn't nearly as exciting as talking about where you're going to stay, what you're going to see, where you're going to eat or what wonderful experiences await you. But after almost 30 years in the travel industry, and nearly 40 years as an educator in one form or another, I have learned that sometimes the things we don't necessarily want to talk about are the things we most need to understand.

So, let's talk about it.

And before I go any further, let me make something very clear.

I am not a lawyer. I am not an insurance agent. I am a professional travel advisor, and I am an educator at heart.

I do sell travel insurance, and I am licensed to do so in the states where I am permitted to sell it, including my former home state, Minnesota, where my business is based. But I am not licensed to sell insurance everywhere, and I am not going to pretend to know the insurance laws and regulations of all 50 states.

For legal reasons, I can answer general questions about travel insurance and explain why I believe protection is important. When it comes to the particulars of a policy, what is covered, what isn't covered, how a claim is handled or how a particular state's regulations apply, that is where I defer to the insurance company.

And I think that is important for me to say right at the beginning.

So, What Exactly Are We Talking About?

When I talk to my clients about travel insurance, I am not talking only about getting sick while traveling.

Yes, medical coverage is an important part of many travel insurance policies, particularly when you are traveling outside the United States.

But travel insurance can also protect against certain financial losses when a trip needs to be cancelled or interrupted for a covered reason. Depending upon the policy, there can also be coverage for things such as travel delays, lost or delayed luggage, emergency medical transportation and other expenses.

Notice that I said depending upon the policy.

That is important.

Not every policy is the same, and not every circumstance is covered.

This is why I tell my clients to read the policy, understand what they are purchasing and ask questions of the insurance company when they need clarification.

The U.S. Department of State makes a similar point in its travel insurance guidance, noting that policies can differ considerably and travelers should review what is and isn't covered, including medical care, evacuation, trip cancellation and the activities they plan to undertake.

Is Travel Insurance Mandatory?

Here is where things get interesting.

Travel insurance is not simply a universal requirement for every traveler going everywhere in the world.

But more countries are establishing health-coverage or insurance requirements for certain travelers, which is another reason to check the current rules for the destination you are visiting.

The Schengen Area in Europe is one example. For travelers who require a Schengen visa, proof of medical insurance covering emergency medical care, hospitalization and repatriation is part of the visa requirements.

And then there is Argentina, a destination I sell and have arranged travel to among many other countries as you know.

Argentina is another interesting example because changes introduced in 2025 established new health-insurance provisions affecting foreign visitors. Argentine government information recommends that foreign visitors have medical or travel insurance, and the implementation of the new requirements continues to evolve.

Why am I telling you this?

Because travel requirements change.

What was true five years ago may not be true today.

And what is true today may change again before your next trip.

This is one of the reasons I continually tell my clients to check the requirements for the specific country they are visiting and, when necessary, verify them with the appropriate government or consular authority.

I can educate you and give you general guidance.

I cannot tell you that a particular policy definitely meets a particular country's legal requirements.

That is not my role.

And Then There Was Iceland

I have a personal story about travel insurance.

Actually, I have several.

But this one is probably the most dramatic.

About 10 years ago, I was in Iceland for a travel trade show. One of my suppliers suggested that I take an ATV ride into the Icelandic countryside.

And I accepted.

You can probably guess where this is going.

About a third of the way through the ride, I managed to flip the ATV.

Yes, even though I was strapped in and wearing a helmet.

In the process, I slammed my left arm onto the Icelandic lava — thousands of years old, and apparently quite hard.

I broke my left forearm.

I was taken to the hospital in Reykjavik, and fortunately, I had travel insurance protection.

There are countries where, depending upon the circumstances, medical providers may require payment upfront if they cannot obtain an immediate guarantee of payment from an insurance company. Sometimes, simply being in another time zone can make getting that immediate confirmation more complicated.

Fortunately, my insurance company was able to assist.

I made a claim and ultimately recovered the cost of the emergency treatment in Iceland, as well as the additional airline expense associated with needing an extra seat on my flight home to Minnesota.

Once I returned home, my regular health insurance covered my medical treatment and the surgery needed to repair the breaks.

But the travel insurance assisted with the Icelandic treatment and the additional costs associated with getting me home.

And I came home with one other permanent Icelandic souvenir:

The scars from the surgery needed to repair the break.

Not exactly what I had planned to bring home from Iceland.

But it certainly gave me a real-life lesson in travel insurance.

Sometimes the Lesson Comes From Your Clients

I have another story that goes back to 2014.

One of my clients, actually one of my very first clients when I entered the travel industry, and his wife arranged a trip to Portugal and Italy.

I did what I could to educate them about travel insurance.

They chose not to purchase it.

They were flying into Rome, taking a train to Naples and then continuing on to Sorrento.

Unfortunately, their flight into Rome was delayed.

Because of that delay, they missed the train they needed to take to Naples. Their driver could not continue waiting for them because of the length of the delay, so they had to pay out of pocket for a taxi.

Then, just to add insult to injury, the airline lost their luggage.

So, they had to purchase clothing and toiletries while they waited for their bags to be returned.

These were exactly the sorts of expenses that, depending upon the policy and circumstances, could have been covered by travel insurance.

And that wasn't the end of their experience with traveling without insurance.

Years later, in 2022, they were scheduled to take an Amtrak trip to Glacier. A medical situation occurred only days before departure, and they were unable to travel. The terms of the tour company were clear: the trip was non-refundable.

Again, they had no travel insurance.

I'm not judging them.

It was their decision.

But it is an example of what can happen when something unexpected occurs and there is no insurance protection available.

Sometimes Clients Have Their Own Protection

I also recently worked with an older couple traveling to Portugal.

I explained travel insurance protection and offered them the opportunity to purchase it.

They told me they already had coverage.

Fair enough.

I am perfectly fine with that.

My Sales Contract gives my clients the choice to purchase or decline the travel insurance option I offer after they have been given the information. They can purchase their own coverage, use another provider or decline coverage altogether.

The important thing to me is that they understand the choice they are making.

In this case, they purchased coverage through Chubb, a company I certainly know.

So, I was actually pleased to know that they had made arrangements to protect their trip, even though they did not purchase the policy I offered.

Their trip begins August 23 and ends September 3.

As I write this, their story is still being written.

And hopefully, this is simply a story with a happy ending — a wonderful trip to Portugal, a safe return home and nothing whatsoever to make a claim about.

Sometimes, that's exactly the kind of travel story we want.

Another Story: When a Trip Suddenly Gets Much Longer

Years ago, I had another client, couple traveling in the United Kingdom.

During their trip, the husband collapsed while they were out.

His wife was with him, and medical services were contacted.

He was hospitalized, and his hospitalization extended beyond their original return date to the United States.

Now the logistics became more complicated.

His return flight needed to be changed to a later date when he was medically able to travel. In addition, he had a health care worker back in the United States who needed to be with him when he returned home.

The insurance company ultimately paid the costs associated with the extended trip, the change in travel arrangements and flying the health care worker to London so that person could accompany him home.

This is another example of where the value of travel insurance wasn't simply about paying a medical bill.

It was about helping deal with the financial and logistical consequences of an unexpected medical situation far from home.

Not Every Story Has a Clean Ending

And this is important to say, too.

Not every claim is automatically paid.

I have clients who were scheduled to travel and had to delay their trip several days because one of the travelers experienced a panic attack at the airport.

The flights were not cancelled, and the traveler was considered a no-show.

The primary client had to change the travel dates and purchase new tickets.

We submitted documentation, including medical information, and the claim was initially denied.

The clients were asked to resubmit the claim, so that story is still ongoing.

I don't know what the ultimate outcome will be.

And that's okay to say.

Because this is another lesson in travel insurance:

Having a policy does not necessarily mean every loss is automatically covered.

There are terms, conditions, exclusions and documentation requirements.

That is why I encourage clients to read their policies and, when they have questions about coverage or a claim, speak directly with the insurance company.

And Then There Was Cancer

Another client was diagnosed with cancer after purchasing travel insurance through me.

The trip had to be cancelled.

The costs were non-refundable.

It wasn't necessarily a clean or simple process, but ultimately, the claim was paid.

And that is why people purchase protection.

But perhaps the best part of that story isn't the claim.

It is what happened afterward.

A few years later — actually this year — that client got back on the horse and traveled again.

She beat the cancer and is living her life to the fullest.

Now that is the kind of happy ending I like.

And Sometimes Things Happen During the Trip

Another client was supposed to travel to Spain with her brother-in-law.

She had to cancel her own trip because of the situation described above.

He went ahead.

About halfway through his trip, he became very ill and had to be hospitalized.

I happened to be in Rome that summer, so I was in the same time zone and able to assist as needed, at least being a friendly voice on the phone to help him where I could.

Because he had travel insurance protection, the medical costs were covered, along with the cost of the hotel room he could no longer use and other eligible expenses resulting from his illness.

Again, this wasn't about getting reimbursed for something that was inconvenient.

It was about having protection when something happened that nobody expected.

These Are Only Some of the Stories

And honestly, these are just a fraction of the stories I could tell.

Over the years, I have seen clients who purchased travel insurance and needed it.

I have seen clients who declined it and later experienced significant financial losses.

I have seen clients purchase insurance somewhere else, and that's perfectly fine with me.

I don't care where you purchase your protection.

I care that you understand what you are purchasing and that you have protection appropriate for your trip.

And I have seen claims that were paid, claims that were denied and claims that required additional documentation or another look.

That's travel.

That's insurance.

And that's life.

So, Do I Recommend Travel Insurance?

Yes, and purchase travel insurance myself, as you saw in my first story in Iceland, and I still purchase it for travel outside the European Union, of which I am a resident, so I am covered for places like the UK, and if I went back to the states, there too, if and when that may happen.

After almost 30 years of arranging travel, I would be hard-pressed to tell a client that I don't think they should consider it.

In fact, I would estimate that close to 90% of my clients over the years have taken my advice and purchased travel insurance protection.

But I also recognize that it is their decision.

My job is to educate them.

I explain the option.

I provide the information.

I answer the general questions I can answer.

And then I let the client make the decision.

That is why my Sales Contract gives every client the opportunity to purchase or decline the travel insurance option after receiving the quote and policy information.

Some purchase it through me.

Some have coverage through another source.

And some decline it altogether.

That is their choice.

The Bottom Line

Travel insurance is not a guarantee that nothing will go wrong.

It doesn't mean every cancelled flight, missed connection, medical situation or lost expense will automatically be reimbursed.

It doesn't replace common sense.

And it certainly doesn't mean you shouldn't read the policy you purchased.

But it can provide an important layer of protection when something unexpected happens.

And after almost 30 years in this business, I have seen enough unexpected things happen to know that “it won't happen to me” isn't really a travel strategy.

The U.S. Department of State recommends that travelers consider travel medical insurance and medical evacuation coverage before traveling internationally, and it specifically advises travelers to review their policies carefully to understand what they do and don't cover.

That's really the lesson I want to leave you with.

Not:

“You have to buy travel insurance.”

And certainly not:

“Buy it from me.”

Instead:

Understand your risks. Understand your options. Understand what you are buying. And then make an informed decision.

That's what I try to do with my clients every day.

I am a travel advisor.

I am an arranger.

And, perhaps more than anything else, I am an educator.

My job isn't simply to get you from Point A to Point B.

It is to help you understand what that journey might look like, what you should be thinking about before you leave and, when something unexpected happens, help you navigate the travel side of it as best I can.

So, before you head off on your next adventure, ask yourself one simple question:

If something went wrong tomorrow, would I be comfortable absorbing the financial loss myself?

If the answer is yes, that's your decision.

If the answer is no, perhaps travel insurance is worth another look.

And if you're not sure?

That's when I would encourage you to ask questions.

Not because I want to sell you something.

Because I want you to travel prepared.

And after all these years, I have learned that being prepared doesn't take away from the adventure.

It simply lets you enjoy it a little more.

A final note: Travel insurance policies, coverage, exclusions, state regulations and destination entry requirements vary and can change. The examples and information in this post are intended only as general travel education and are not legal or insurance advice. For questions about a specific policy, coverage, claim or insurance requirement, consult the insurance provider and/or the appropriate government authority.

Sources:

U.S. Department of State — Travel Insurance Guidance

European Commission — Applying for a Schengen Visa

Argentina — Current Entry & Stay Requirements