Why millennials aren’t getting travel insurance... and why they should

Millennials are looking to save money, we get it!

The economy isn’t the greatest for us. We have school bills, phone bills, internet bills, transportation bills and probably five more. The rental and homeownership markets are terrible in the cities, and we can barely afford housing. Why would we want to go spend extra money on travel insurance, when we can barely afford the hotel, hostel or Airbnb we’re staying at?

Millennials usually skip over insurance by any means. Our parents tell us to get renters insurance, and we'd rather just, not. Our grandparents tell us to get travel insurance, and we say we'll be fine, Grandma. We don’t want the warranty for the new thing we just bought because it costs a whole $15 extra. We secure the bare minimum and hope nothing will ever go wrong.

But usually, things do go wrong when we’re not expecting it.

Since we’re talking about all the things millennials can barely afford, let’s look at travel insurance and why this particular demographic should think about it for their next exciting travel escape.

Consider what you can and cannot afford

If something goes wrong while you’re away, you’ll be able to afford the marginal cost of travel insurance before you’ll be able to cover foreign medical bills, replacing all your luggage, or a travel interruption/cancellation fee.

If you think about travel insurance this way, by balancing the risks and benefits, the coverage starts looking exceptionally affordable. You’ll save a lot more money in an unfortunate situation with travel insurance than you would without it, and you can get great travel insurance for 5% of your overall trip cost.

Foreign medical care has no student/child/youth discount

All those sweet student deals you get at home vaporize into thin air at a foreign hospital. If you break an arm or need medication or medical attention, you’ll be paying the same price as other foreigners, and they’re not usually the friendliest of prices. 

Millennials take more risks abroad

What do young people want to do when they travel? Have fun, of course.

What does fun mean, abroad? Partying maybe, playing with exotic animals, bungee jumping, swimming, watersports...

These are all risky endeavours that may result in the need for medical attention, even if you’re being as careful as possible. Most adults steer away from these activities on vacation because they’ve learned from their past mistakes.

There is specialized insurance for sports or extreme activities. So if you know you’re going to be surfing along the coast of Australia, then you should be looking into at least this form of travel coverage. Likewise, if you know you’re going to be partying for the entirety of your trip, look into medical coverage so you can get help if you ever feel ill. But be careful, intoxication can lead to a denied travel insurance claim -- especially if you need extensive medical care.

Your accommodation type could make you more vulnerable

This is especially true for hostels: an affordable accommodation option where you share bedrooms, kitchens and bathrooms with strangers.

Hostels are great because they’re affordable and usually filled with young, like-minded travellers. Researching the hostel you’re interested in is of the utmost importance though, so you can avoid any nasty surprises.

You’re more likely to have your things stolen with shared accommodation, and your luggage may even get infested with pests or bugs (I’ve heard stories!) forcing you to throw everything out and start fresh. You could catch an airborne infection too, with so many people using the same space.

Travel insurance would cover these unexpected costs.

It’s cheaper when you’re young

Travel insurance actually works in the opposite way of car insurance, which often penalizes young drivers with high premiums. For healthy, young travellers, your travel insurance will actually be one of the cheapest age brackets to insure, because travellers older than 60 are riskier.

Summary

Though all travellers face particular risks abroad, perhaps the most important risk for millennials is an unexpected travel expense; one that can turn the whole trip upside down. Next, most young millennial travellers are unsure when it comes to handling travel disasters. Lastly, we know the young and young at heart want to get the most out of their trip and might pack risky activities into their itineraries.

Having the right travel insurance plan can make all the difference when it comes to support, expenses, and getting home in one piece.