I largely think that insurance is a scam, but it provides one with peace of mind, especially if one is traveling to a less stable country. Of course, this is not the only reason to purchase travel insurance … often coverage protects against trip and baggage delays, lost luggage, repatriation, medical and dental expenses, and trip cancellation.
I was talking to my travel physician who was telling me that a lot of U.S. insurance plans do not cover expenses outside of the U.S. So, if you get sick, depending where you are, you may have to spend a lot to get health care and you may not get reimbursed. And, that does not even include medical repatriation.
Trip cancellations due to weather or bankruptcy is another concern. Heck, that can happen anywhere. If I am spending my hard earned money, I sure do want some protection in the event that something bad happens.
I haven’t had to use my travel insurance and hope not to need it, but …