I am a huge believer in travel insurance. I think it often pays for itself in terms of actual financial costs and always pays for itself in terms of peace of mind. Here are a few reasons why you should consider insurance.
Upfront known Cost. While insurance does add a cost to the trip, it is a known cost that can be factored into your budget. And in exchange, you can be relatively sure you won’t have any surprise bills at the end of the trip when things go wrong.
Freedom to make rationale decisions. Having travel insurance allows you the freedom and space to make the best decision at the time and to not make health and safety decisions based on money. When things go wrong, and they will, you can make rational decisions without worrying about how you will pay for it or losing money.
Insurance takes some of the stress out of unexpected events. Similar to the point above, but knowing that you have additional resources to help solve a problem can be a huge stress reliever. It allows you to focus on solutions and enjoying the moment instead of worrying about the cost. It also means you are not at the mercy of a single airline or hotel and have options to make arrangements that are best for you.
You never know what can happen. There are the normal “emergencies” like lost luggage, delayed flights and a minor injury. But as history has shown us, there are also major world events that can impact travel. My parents had to be evacuated from Greece. My mom and I had plans to visit Kiev less than a month after the February 2014 invasion of Ukraine. Thousands of travelers were stranded during the early days of COVID. Extreme weather events are more and more common. You want additional resources and flexibility to deal significant world events.
Airlines and credit cards won’t cover everything. There are some great travel credit cards that provide protections, but they won’t cover everything. Supplemental insurance can help make up the difference.
The Importance of Time. I lack flexibility. I use all of my paid time off to travel but returning to work on time is important. Travel insurance provides me the resources and flexibility to overcome delays.
Comfort. Not to sound spoiled, but sleeping on the floor of an airport is no longer fun (but I’m not sure it ever was). The ability to book a hotel room without shopping around or worrying about inflated prices is great when things have gone wrong.
Life Kinetic Travel Research 