As international travel gains more momentum, a growing number of Americans are recognizing the importance of safeguarding their vacation investments. A recent AAA Travel survey indicates that nearly 40% of Americans are now inclined to purchase travel insurance for their upcoming international journeys. Among these travelers, trip cancellation protection emerges as the most sought-after benefit, with an overwhelming 88% prioritizing reimbursement if they need to cancel their trip. This trend underscores the increasing value travelers place on security and peace of mind, particularly when exploring destinations abroad.
Smiling family looking at map in airport
Why International Travel Insurance is Increasingly Essential
“Over 30 million families are projected to travel to international destinations this year, marking a 9% increase from just two years prior,” notes Bill Sutherland, senior vice president of AAA Travel and Publishing. “The reality is, travel plans can be disrupted by numerous unforeseen events, from family emergencies to unexpected natural disasters. Travelers are becoming more proactive in mitigating these risks, opting for the assurance that travel insurance provides, whether for international or domestic trips, including cruises.”
Several factors significantly influence a traveler’s decision to purchase insurance. Beyond the overall trip cost (cited by 70% of travelers), personal or family health concerns rank high (69%). The booking lead time is also a consideration (61%), as is advice from friends or family (57%). These insights from the AAA survey highlight a comprehensive understanding among travelers about the potential vulnerabilities associated with travel and the proactive step of securing international travel insurance.
Key Advantages of AAA International Travel Insurance
AAA emphasizes several compelling benefits of travel insurance, especially for international excursions, to protect travelers’ investments. Life is unpredictable, and sometimes, trips must be cancelled or interrupted. Aaa International Travel Insurance is designed to provide a safety net in various scenarios:
- Lost or Delayed Luggage: Airlines unfortunately mishandle millions of bags annually. AAA international travel insurance can offer coverage to purchase essential items if your luggage is delayed, damaged, or lost during your trip. This ensures you’re not stranded without necessities while your baggage is located.
- Unexpected Illness or Injury: Medical emergencies can occur anywhere, and medical treatment abroad can be incredibly expensive. AAA international travel insurance can help cover medical expenses incurred while traveling internationally. It’s important to note that many hospitals outside the U.S. may require upfront cash payments before administering treatment, making insurance coverage crucial.
- Gaps in Domestic Health Insurance: Critically, many domestic health insurance policies offer limited or no coverage outside of the United States. AAA international travel insurance can bridge this gap, covering medical expenses and even the significant costs associated with medical evacuation back to the U.S. in severe emergencies.
- Flight Disruptions: Flight delays and cancellations can lead to substantial unexpected costs for travelers. While airlines may offer some compensation, it often doesn’t cover all related expenses. AAA international travel insurance can help reimburse costs like rebooking fees, accommodation, and meals incurred due to flight disruptions, minimizing the financial impact of travel interruptions.
- Financial Hardship: Unforeseen economic challenges, such as job loss, can necessitate postponing or cancelling pre-planned trips. AAA international travel insurance can help travelers recover their prepaid, non-refundable trip costs when such unforeseen financial difficulties arise, offering a crucial layer of financial protection.
AAA’s data further supports the increasing demand for travel insurance, with a notable rise in members choosing to protect their more significant vacation investments. Year-to-date, AAA has seen over a 20% increase in both domestic and international travel insurance sales. Moreover, 13% more members opted to purchase travel insurance last year compared to 2016. In 2017, the average insured trip value among AAA members was approximately 18% higher than the previous year, according to Allianz Global Assistance, AAA’s long-term travel insurance partner of 30 years.
Making an Informed Decision on International Travel Insurance
“The relatively modest upfront cost of travel insurance can yield significant returns when unexpected situations arise before or during a vacation,” Sutherland advises. “Given the variations in policies and coverage options, it’s highly recommended that travelers consult with a knowledgeable travel agent to thoroughly explore their AAA international travel insurance options and select the plan that best suits their specific needs and travel plans.”
By understanding the benefits and considering AAA International Travel Insurance, travelers can embark on their international adventures with greater confidence and security, knowing they have a safety net in place should the unexpected occur.
