emma53•7mo ago

DAE pass on travel insurance for weekend getaways?

I always got travel insurance before, but I stopped for short trips to save money. Last month, I went to Cancun for three days and did not buy it. I saved around 50 dollars on my budget. But then I ate some bad street food and got sick. I had to visit a clinic and pay over 200 dollars out of pocket. Now I am stuck thinking about this. On one hand, skipping insurance lets you keep more cash upfront. On the other hand, it can lead to big bills if things go wrong. What do you all think? Is it smart to skip insurance for quick trips or too risky?

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3 Comments

hart.taylor7mo ago

$50 insurance beats $200 surprises every time.

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brown.jenny7mo ago

Yeah I learned that one the hard way last year when I skipped the phone insurance. One cracked screen later and I was out way more than those small monthly payments. @hart.taylor is totally right, it really is about avoiding the big unexpected hits. I feel like my brain fights this logic even though the math is so simple. Why do we always think "it won't happen to me" until it does?

1

pat_wood7mo ago

But what if those small payments end up costing more than the rare repair? I always skip phone insurance because the math can work against you. For instance, paying $15 a month for two years is $360, but a cracked screen fix might only be $250. Companies make money because most people won't need a claim, so they collect more than they pay out. Why not just put the insurance money in a jar for your own emergency fund instead?

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