Author: Stephanie Colestock / Source: fivecentnickel.com
Every time you book a costly trip you’re faced with this question: Is travel insurance worth it? We help you answer this question. We also show you how you can get travel insurance for free.
If you’ve booked a vacation for your family lately or sent your kid off on a school-sponsored field trip, you’ve probably considered trip cancellation insurance.
These offers promise to reimburse you for the vacation or field trip if you need to cancel.So, are these plans worth the cost? Well, the answer to that really depends on your own personal risk calculation.
What does it cover?
Trip cancellation insurance comes in several flavors. One of the best merchants to purchase travel insurance is Allianz.
Basic coverage reimburses you if you can’t make your trip because of certain reasons. The reasons may include getting sick, a hurricane raking the island you were going to visit, or terrorists attacking your hotel. The insurance only covers non-refundable expenses. So, for example, if the operator cancels your scheduled tour and refunds your fee, the insurance does not pay.
Basic coverage also (generally) provides benefits if your trip is delayed or interrupted. It often pays for lost or delayed baggage, some medical benefits if you’re injured during your vacation, and emergency evacuation if something horrible happens during your stay.
You can add to the basics if you need more coverage. For example, for an extra fee, you can add “cancel-for-any-reason” coverage. This would reimburse you for at least part of the non-refundable portion of your trip if you cancel for any reason not covered by the usual terms.
Other common upgrades are rental car insurance and accidental death insurance. You can add these to plans that don’t include them, or upgrade to more coverage.
Needless to say, read the terms carefully before you buy so you fully understand what is covered.
What does it cost?
We did a comparison of four leading providers. The quote covered a family of four on a $4,000, week-long, domestic vacation. The premiums ranged from $84 for a base policy from Travel Insured to $162 for a policy from HTH Worldwide. Each company had more comprehensive options available. But we just wanted to compare the basic offerings.
Those two plans differed mostly in the amount of coverage. For example, the HTH plan included $75,000 in health coverage, while the Travel Insured plan offered $100,000. The HTH plan offered $500,000 in emergency medical evacuation coverage, while the Travel Insured plan provided $1,000,000 coverage…
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