If you’ve never had the occasion to use travel insurance benefits, you may wonder if buying trip protection is really worth the expense.

Let’s run some numbers! (We’re insurance people — we love numbers.) In our example, 45-year-old Daphne is going on a 7-day Caribbean cruise with her sister. When she adds up the cost of the cruise fare (including port fees and taxes), the drinks package, shore excursions, and airfare, she’s paying $2,685.

What about travel insurance? Based on her age and the cost of the trip, she gets a quote of $151 for OneTrip Prime, our most popular travel insurance plan for cruises and tours. Daphne hesitates to spend the money on travel insurance. Is it worth it? she wonders. The best way to answer that is to look at some what-if scenarios.

Is trip protection worth it… if she has to cancel the cruise?

Scenario 1: Two days before the cruise departure date, Daphne’s sister slips on some black ice in the driveway and shatters her knee. She’s in the hospital, facing surgery, and they’ll have to postpone the cruise until she recovers. The airline agrees to refund Daphne’s $300 ticket — but the cruise line, citing its strict refund policy, gives her $0.

Luckily, travel insurance with trip cancellation benefits can help. The covered serious injury of a family member or travel companion can be considered a covered reason for trip cancellation. In this example, Daphne can file a claim to be reimbursed for her nonrefundable, prepaid trip costs.

• Plan cost: $151
• Potential benefits received: $2,385

Is trip protection worth it… if her flight gets delayed?

Scenario 2: A freak snowstorm grounds Daphne’s flight out of Washington D.C. She begs the airline rep to help her get to Miami, but it’s no good: all flights are canceled. That means she’s going to miss her cruise ship’s departure the next day.

Daphne calls the Allianz Global Assistance hotline for help. The assistance coordinator tells her that her insurance includes missed connection benefits up to $800, which can help in three important ways. First, Daphne can be reimbursed for the unused part of her cruise if she misses at least 24 hours of the trip, minus any refunds. Second, she can be reimbursed for reasonable meal and accommodation expenses while she’s stuck at the airport. Third, and best of all, her insurance can reimburse her for the extra cost of transportation to catch up with the cruise. Her coordinator helps her book a flight from D.C. directly to Nassau, where she can rejoin the ship — and her sister — at its first port of call.

• Plan cost: $151
• Potential benefits received: $800

Is trip protection worth it… if the airline loses her bag?

Scenario 3: Daphne flies into Miami and waits for 45 minutes at the baggage carousel, but her suitcase fails to show up. It was sent to Atlanta, the airline tells her, and should arrive by noon the next day — but by then, Daphne will already be sailing away. Frantically, she rushes around to buy sundresses, a swimsuit, and other cruise essentials.

OneTrip Prime includes baggage delay benefits up to $300, which means Daphne can be reimbursed for reasonable essential items, up to the specific policy’s limit, until her baggage arrives.

• Plan cost: $151
• Potential benefits received: $300

Is trip protection worth it… if she has a medical emergency?

Scenario 4: When the cruise ship docks in Nassau, Daphne and her sister head off on an ATV tour of the tropical forest. Daphne’s ATV hits a rock and overturns, leaving her with a possible spinal injury. Panicking, her sister calls the Allianz Global Assistance hotline for help. The medical team rapidly arranges a medical evacuation flight to carry Daphne to a Miami hospital, where she can receive the best care for her injuries.

OneTrip Prime includes up to $500,000 in emergency medical transportation benefits and up to $25,000 in emergency medical and dental benefits for covered injuries or illness. Not only can Daphne’s air ambulance and medical care be covered, but if she’s hospitalized for more than seven days during her trip, Allianz Global Assistance can arrange and pay for economy class transportation for a friend or family member — like her sister — to stay with her. Once her condition has stabilized, emergency medical transportation benefits can help her return home, with a medical escort if necessary.

• Plan cost: $151
• Potential benefits received: $50,000+ (the cost of emergency medical transportation and emergency medical care can vary widely, depending on the traveler’s location and the nature of the medical emergency). 

Is trip protection worth it… if the trip goes 100% according to plan?

Scenario 5: Daphne’s flight and bags arrive on time. She and her sister have a fabulous time on the cruise — the weather is perfect, the food is fantastic, and the excursions are delightful. She returns home happy and rested, but with one thought nagging at her: Was travel insurance a waste of money?

Not at all. The whole point of a cruise is leaving your worries on the dock, and travel insurance allowed Daphne to do just that.

• Plan cost: $151
• Peace of mind: Achieved

Please understand that these are just hypothetical scenarios. Every trip and every traveler’s circumstances are unique, and travel insurance does not cover every possible situation. An insured traveler must file a claim and have it approved before receiving reimbursement.

Also, every travel insurance plan has different benefits and limits. It’s vitally important to read your plan documents and understand the benefits before you set off on your trip. If you're not completely satisfied with your plan, you have 15 days (or more, depending on your state of residence) to request a refund, provided you haven't started your trip or initiated a claim. Premiums are non-refundable after this period. Have questions? Call us! The travel insurance experts at Allianz Global Assistance can help.

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