- Travel or trip Insurance covers you in the event of financial loss or hardship related to travel. In exchange for this protection, you pay a sum to the insurance company known as a premium.
- According to the U.S. Travel Insurance Association, as of October 2009 the average cost of trip insurance is 4 to 8 percent of the total cost of your trip.
- The actual amount of travel insurance you need varies based upon the length of your trip, your destination, your age, and the ages of anyone traveling with you.
- Trip insurance protects you from financial losses associated with cancellation because of an accident or illness or damage to your home due to a disaster, loss of luggage, and automobile accidents that occur while traveling. It also covers hotel expenses due to cancellations or delays in flights or a natural disaster that prevents you from leaving your vacation destination on time, as well as medical or legal expenses you incur while traveling.
- If you travel frequently, it may be more cost effective to purchase an annual travel insurance policy that covers any trips you take during a year in exchange for monthly, quarterly or annual premiums based upon your age.
