How to Decide: Should I Get Travel Insurance

Once you’ve decided on a travel destination you may find yourself wondering if you need to go to the expense of purchasing travel insurance? On one hand, the possibility of needing it is unlikely, but on the other hand, should the need arrive it would be nice to have your costs covered. Answering the following questions will help you evaluate and answer the question: Should I get travel insurance?

Difficulty: Easy

Instructions

1. Ask: Are my reservations (air, hotel, etc.) refundable?
   
   Airline tickets, hotel reservations, etc. have different strings attached depending on when you purchased them, how you purchased them, and how much you paid. Check to see if your reservations are refundable. If so, is there a financial penalty? The answers to these questions will make a big difference on whether or not it is advisable to purchase travel insurance. The less refundable the reservations, the more there is a need for travel insurance.

2. Ask: How expensive is the trip? If the financial outlay is large (a trip to Europe, for instance) the more sense travel insurance makes. If the outlay is relatively small, the more it makes sense to self-insure.

3. Ask: What is the likelihood of health problems, etc. that could delay the trip?
   
   Is someone in your party ill? Do you have a family member in poor health that could necessitate you delaying or canceling your trip? In any of these events, travel insurance might make sense. If your life if somewhat stable and predictable, travel insurance is less necessary.

4. Ask: Is my destination subject to bad weather, disease outbreaks or violence?
   
   Are you planning a visit during hurricane season? How about on a cruise ship where illness outbreaks are possible? Are you visiting a dangerous area of the world where an outbreak of violence might necessitate delaying or cancelling your trip? All of these might be good candidates for travel insurance.

5. Weigh your answers to the above questions to determine if you should get travel insurance. The greater your financial outlay and the more risk factors involved with your trip the more sense travel insurance makes.

[makaksa]

on 6/30/2009 Good points on how to determine if travel insurance is needed.

[jull14]

on 6/28/2009 As always a great article with so much information. Excellent steps and very easy to follow, thank you so much for helping us learn everyday more. This is a very good article, thanks