When I traveled around-the-world for six months in 2007, many friends advised me to buy travel insurance. Normally I would not even consider such a thing. Frankly, I believe that most people in the U.S. are overly fearful about travel. In all my years of traveling I have had only one instance when insurance might have been a help. But I was living on the Outer Banks of North Carolina prior to embarking on my travels and the issue of safety was in the forefront because a local man, David Creecy, had been critically burned in the 2002 Bali terrorist bombings. Rumors circulated that his health insurance refused to pay for him to be transported back to the U.S.; one of Creecy’s friends told me that he had to raise $25,000 cash before a medical evacuation flight could be arranged.
My choice for medical evacuation insurance
Additionally, this trip was to launch my new career as a travel writer, so I would be backpacking with expensive gear: top-of-the-line cameras and lenses, a laptop, multiple thumb drives, and an iPod. So, So, I made all the appropriate phone calls. Would my insurance company pay for my medical expenses if I had an accident or got seriously ill while traveling? Sort of. I would have to pay the bills when they occurred and submit receipts for reimbursement upon returning. Did my plan include medical evacuation? Absolutely not.
What about coverage for theft, loss, or damage to my electronic equipment? I considered dozens of policies from many different providers, all of which had premiums in excess of $1,000 for six months. For each, I read the fine print until I was cross-eyed. In every case, reimbursement for electronic items was limited to $500, and then only if I could produce original receipts for the equipment. Since my clothes, toiletries, and luggage were hardy worth the remaining $500, I decided to take my chances, keep my wits about me, and if the worst happened, hit the secondhand stores.
In the end, I decided to purchase only a medical evacuation plan with MedJet Assist, choosing this particular company over others because MedJet allows customers to chose the hospital they wish to be evacuated to. Many other insurers dictate the destination hospital, choosing the nearest ‘appropriate’ facility, which may or may not be equipped to handle the level of care required. For instance, if I had been injured while on safari in Tanzania, the hospital of choice would likely be Nairobi, Kenya, or Cape Town, South Africa. With MedJet, I could demand to be taken to the Mayo Clinic in Minnesota. The policy cost, if I recall, around $425 for an entire year, and having it made me feel secure on that first long term trip.
If I were leaving again today, I would do exactly the same thing. Nothing bad happened during my trip. I didn’t get sick in any third-world country, despite eating constantly from street vendors (thank you, iron gut). I wasn’t robbed or even vaguely threatened, though I walked all over unfamiliar cities. And I now know that there are decent medical services available in many, if not most areas of the world. However, that’s just me; everyone has to decide for themselves. But at the very least, I strongly advise reading the fine print before making a final decision.
After years of working 70 hours a week at jobs I detested, I felt like the proverbial "hole in the donut" - solid on the outside, but empty on the inside. Searching for meaning in my life, I abandoned my successful but unsatisfying career and set out on a six-month solo backpacking trip around the world to pursue my true passions of travel, writing, and photography. 
October 20th, 2009 - 8:37 pm
I’ve only purchased a medical evacuation insurance plan once, when I traveled to Malaysia for a few weeks. The cost was $25US through TravelGuard and fortunately I didn’t need it:)
October 20th, 2009 - 11:07 pm
Though policies are probably different in Australia, I have always travelled with travel insurance and never claimed on it in over 20 years of travelling – not a lost bag let alone an illness. It has cost several thousand dollars all up I guess over the years for the peace of mind. They all have eyewatering amounts of exceptions. Some credit cards provide some basic cover now and I tend to use that a little more. It is one of the trickier issues around balancing risk and insurance.
Interesting article and viewpoint and I’d love to hear more from other readers.
October 20th, 2009 - 11:40 pm
Would you pass on normal medical coverage too? Sometimes I think travel insurance is used too broadly, and I’m not quite sure how you mean it here.
Travel insurance that covers “stuff” is one thing, however I think far too many travelers try and save money by passing on medical insurance. They get catastrophic coverage only (and on the cheap) through companies like World Nomads, but what would happen if they got cancer abroad, and were not covered?
They would be in for a long and expensive treatment process, and could run into trouble trying to get coverage in their home country (if that country is the USA and pre-existing conditions are a roadblock). These things can happen, and they can bankrupt the traveler’s family.
Personally, I was fine traveling around the world without coverage for “stuff” however I was happy to pay for medical coverage through International Medical Group. I had my teeth cleaned a few times, and didn’t need prescrips for pharmacies. I never bothered to send a claim because the costs were so cheap.
However, I would always recommend people ensure they have comprehensive medical coverage. Emergency treatment might be available in a host country, but if you’re going to be recuperating from a multiple fractures after jumping off a cliff into way-too-shallow water in Jamaica, you’ll be wanting to do that back in your home country.
(the Jamaica story was a real situation I encountered while working in customer service for a health insurance company)
October 20th, 2009 - 11:42 pm
I actually do travel with insurance and plan to for all of my upcoming travels as well as traveling rtw for the past year. Although I never made a claim, it was piece of mind knowing I had it – I also consider my small outlay of cash a service to my family if something should happen to me and I have to be medevaced back to the states or my remains repatriated if I die. Shit happens and I wouldn’t want that financial burden to fall to my loved ones at the end of the day, so I pay and have piece of mind
I have insurance in the states…why not when I’m not in the states?
I also have a fairly week immune system and the street food in Laos did me in quite a bit at one stage! Cheers to you for the iron gut, I’m envious!
October 20th, 2009 - 11:50 pm
Interesting viewpoint, though in a matter of minutes I found a 6-month worldwide policy that does include air evac, $2,500 on baggage and has a $100 premium. All that for $260.
So while I agree with your point that one should read the small print, I’d add to that, spend a reasonable amount of time searching for policies that suit your needs and budget.
It’s easy to say after the fact that “I had a hassle-free trip and so don’t need travel insurance”, but your argument would be a good deal more persuasive if you had had problems and still didn’t see the need for travel insurance.
Cheers
October 21st, 2009 - 12:20 am
Hi Dave:
Yes, I passed on the medical insurance when I went R-T-W and opted only for the medical evac policy. Although there are obviously exceptions, I have found that there is usually adequate medical services available for common injuries and illnesses, and the evac policy covered me for anything more serious. Plus the cost of medical treatment in many places overseas is much more reasonably priced than in the U.S., so I was willing to take the chance that I would have to come out of pocket for it and be reimbursed by my Blue Cross/Blue Shield upon returning. But of course, everyone has a different risk tolerance and must make the choice for themselves.
Barbara
October 21st, 2009 - 7:22 am
[...] link: Travel Insurance Pros and Cons | Hole In The Donut Travels Posted in Travel Insurance | Tags: delights-the-senses, heart, intellect, [...]
October 21st, 2009 - 8:03 am
Guys, up front I’ll put my cards on the table and tell you I run a travel insurance company. I should also point out I’m a veteran traveller and head off several times a year.
Just because you buy travel insurance, head off and nothing happens isn’t the point. That’s great. Really. But consider how many policies we have to sell to cover the US$159,000 to get the guy out of Costa Rica who was jogging along a footpath when he had a brain aneurism? Or (yesterday) how the girl who got typhoid high up in Nepal and needed a helicopter.
And that’s not the bad stuff … the bad stuff we really can’t talk about because everyone would think of us as a bunch of cheating insurance types rather than the good guys getting people out of trouble. But there you go.
When I was younger, I sometimes travelled with insurance and sometimes not. Once I passed out cold in Guatemala, smashed my head open on the pavement and woke up being assisted into a police car and on to the hospital. I was lucky as I got taken care of in the local hospital and didn’t even need my insurance. But I was damn pleased I had it.
Now, having seen what I have seen at the sharp end of the business – anyone who travels without travel insurance is stark staring mad, plain and simple. Buy it from whomever, but do your homework and get yourself covered.
Oh, and have fun travelling. It’s what life is for.
Simon
October 21st, 2009 - 8:22 am
I work for one of these insurance companies and when I travel to Asia on mission trips I always buy insurance. In fact I bought the insurance a year before I got a job here. I have made 4 missions trips to Asia with groups from 27 people to only 12. It is amazing how many near misses we have had with disaster. This past trip one of the people had to be hospitalized overnight, I am fairly sure he did not have travel medical insurance. Peace of mind is very valuable to me.
October 21st, 2009 - 3:18 pm
You might also wish to see the info on the the U.S. Department of State website: “The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. If necessary, Americans should consider secondary medical coverage for the trip.”
They go on to list several reasons why you should you should be concerned about medical coverage abroad – see a summary at http://www.medicaltravelinsuranceinfo.com or the State Department site at: http://travel.state.gov/travel/cis_pa_tw/cis/cis_1470.html
October 22nd, 2009 - 12:21 pm
My husband and I can attest to the fact that travel insurance is very necessary! We didn’t think we’d need to use it, but thankfully we had it when our luggage was lost and flight cancelled all on the same trip. The insurance, through Travel Guard reimbursed us for al of the clothing and valuables that we lost and they rebooked us on a new flight when ours was cancelled… other people who were supposed to be on our flight were angry and stressed trying to find a way to their destination. All we had to do was make a phone call to the insurance company and they got us to our destination on time!
October 23rd, 2009 - 6:20 am
[...] Read the rest here: Travel Insurance Pros and Cons | Hole In The Donut Travels [...]
October 23rd, 2009 - 7:51 am
[...] let alone an illness. It has cost several thousand dollars all up … Here is the original: Travel Insurance Pros and Cons | Hole In The Donut Travels Share and [...]
October 27th, 2009 - 9:02 pm
I’m really bad about it. I should by most often don’t. Injuries, illnesses, you name it I was lucky enough to handle on my own. That can’t last forever and I’m planning on getting insurance for the future.
October 28th, 2009 - 2:12 am
So far I have not bought a travel insurance for my trips, but I have a small baby now and I might get travel insurance in the future.
November 7th, 2009 - 4:44 pm
We were sceptical as well on buying travel insurance for our rtw. We weren’t worry of getting ill or anything while in Asia but more about travelling through the USA where, if something would have gone wrong, medical assistance can be very pricey. After some research, we decided to go ahead and bought it from Amex. Only now I can tell you how glad I am we made this decision after a $ 950 emergency root canal occurred in New Zealand which I ended it up pay only the excess fee of $50, phew! Hope this could be of any help http://www.atravelaroundtheworld.com/2008/11/insurance-dilemma.html
November 17th, 2009 - 7:17 pm
[...] choose where you want to be evacuated to. Barbara Weibel of Hole in the Donut Travels indicates in this blog post that many insurers dictate the destination hospital, choosing the nearest ‘appropriate’ [...]
December 18th, 2009 - 1:31 pm
Finding Cheap Travel Insurance I You are Over 65 Years…
Around 30% of policies exclude claims from travellers aged over 65 and many exclude claims from those aged over 70. Different companies also have different upper age limits; for example Marks and Spencer travel insurance has an age limit of 70 for it…..
March 2nd, 2010 - 3:09 pm
On a vaguely related note, Apple have done the right thing for themselves by not announcing international iPad prices yet, for the pound is tumbling against the dollar in recent weeks (not the Apples UK prices are set on exchange rate alone).