Originally Posted by
Timequake
I think you and everyone else misunderstood my point. If you look at the monthly insurance premiums you pay, then deduct the amount actually paid out to you by insurers when you make a claim, you will realize you are paying in way more than you are getting out of it. That's why insurance companies exist. They make money off of consumers' fear and bad math skills. And they make a lot of it!
Statistically speaking, you would be far better off financially if you took the money you paid on insurance premiums and put it in a savings account to draw from if ever you needed to.
You must be poor, and have few assets that are actually worth anything, including your health.
Our health insurance system here in Australia is a little different and cheaper than the US, but it still provides private cover that for me has saved us around $15,000 in medical expenses in the past three or four surgeries.
Someone can only say the math is bad when their annual earnings are worth more than their assets, and that they can afford to self-insure.
If you earn only $75,000 a year and the house you and the bank own is worth $350,000, and it is destroyed... and your house and contents insurance premium is $1,000 a year, for the 20 years or so you might live in the house... yes, I see where the math might be bad.
To bring this back to touring, there are many stories of Australians going overseas and then facing huge debts for medical treatment (because, you know, serious medical conditions require stabilisation and treatment in public hospitals for more than a day, and maybe up to six weeks, at maybe $3,000 a day), and then repatriation... and if there is a serious medical issue involved, that means having medical assistance fly with you. I think $15,000 is just a starting point. Even a dead body may need returning to the country of residence.
The last travel insurance premium I paid to cover Machka and me for our month-ling trip to Canada (North America, so it automatically was the most expensive) was $295 base, then another $175 for special coverage for DVT because Machka is susceptible to it. Otherwise, claims could be refused if there was any inkling that DVT was the cause of a medical problem.
We didn't have to lodge a claim. But refer back to Machka's unexpected bout with DVT. I've always traveled with insurance and always will.
Because I know the math does actually add up in my favour.
(PS: I find it usually doesn't for young people who consider themselves invincible/indestructable).