Should you buy trip insurance for your Hawaii vacation or another trip? We’ll be looking at this more in our new three-part series that will include tips on everything from how to decide if you need it to the specific coverage types available.
Trip insurance is a question that we think should follow only one step behind forking over your credit card for expensive airline tickets and accommodations. We used to be cavalear about this and almost never used trip insurance domestically. Well all that has changed.
Non-cancellable, non-changeable travel is part of the new pricing paradigm that we all face.
Here’s a case in point today: On booking a hotel reservation we were able to save a hefty 25% by reserving early and making a non-refundable reservation. In this case, buying trip insurance to protect that purchase helped confirm our decision to purchase something that could not be changed.
The decision to buy trip insurance largely comes down to this….
How much money will you lose in the event we have to cancel for reasons that can be insured? If that is much more than the cost of trip insurance, we typically buy coverage. And as pointed out above, we’re now also factoring in how much saving is possible with non-refundable advance purchases.
Don’t make an emotional knee jerk decision.
Insurance, be it car, home or trip insurance, isn’t some kind of blanket that protects us and keeps us warm. It is all very specific. Annoyingly so. Buying without understanding is probably of little to no use such that you might be better saving that money to go out to dinner.
Stay tuned for more. Up next,
Travel insurance part 1: Getting started
- Reasons to consider trip insurance
- What information you’ll need to start shopping
- Timing on buying trip insurance
- Basic coverage types
- Trip cancellation and interruption
- Baggage loss, delay, and damage
- Travel delays
Travel insurance part 2: Understanding specific coverage components
- Hospital of choice
- Cancel for any reason