There are many types of insurance - it's really about covering any investment that you may have already made in an upcoming trip should it be canceled, what happens if the journey to or from your destination encounters problems and what if there are medical issues.

What actually gets covered depends on the insurance carrier and the specific policy that you take out.

What can be covered?

Cancellation coverage

The investments that you may pay for (in part or in full) before your trip can be covered for cancellation, these may include:

  • Transportation - Flights, Trains, Buses, Taxi's, car hire
  • Accommodation - Hotel, Vacation Rental, Cruise
  • Activities - Attraction Tickets, tours, fishing trips, golf rounds
Be particularly careful to check for coverage against weather-related delays and cancellations in areas that are known to have problems (eg. Gulf coast of the USA, Caribbean, Hawaii).

 

Traveling Coverage

In addition to cancellation there are policies that cover expenses due to delay at, say, the airport and for lost luggage on the journey. Maybe you get half way to your destination and the ongoing flight gets canceled or the airline goes out of business - you'll need to book new flights and stay somewhere locally until you can move on.

Medical Coverage

Medical coverage is also an important consideration -especially when traveling outside of your normal coverage area (usually any foreign travel). Not only doctors visits and hospitalization but medical evacuation if you are in a more remote area.

What does it usually cost?

In general, trip insurance costs around 6% of the amount you are trying to insure. It does vary if you pick and choose what gets covered. It's good to shop around but be sure you compare the same coverages - or at least the coverage that you think you will need.

Compare insurance providers here.

Should I take the insurance for my trip or not?

This is often difficult - weighing up the likelihood of something going wrong versus the additional cost of the insurance. Much will depend on the area you are visiting and how you will get there.

When most people are considering the value of trip insurance the first thought is whether or not they themselves are likely to have an issue that would cause them to cancel the trip. There are many other causes of cancellation/delay/medical issues that are much more unpredictable - here are some of them:

Causes of cancellation

  • Illness or injury of any member of the party
  • Unexpectedly bad weather - snow, fog, hurricanes, tornadoes
  • Destination issues - lack of utilities/supplies, workforce action/strikes
Causes of traveling issues
  • Transportation problems - flight cancellations, airport closures, airline bankruptcy
  • Flight delays - causing additional expenses not covered by the airline
  • Lost luggage - contents will need to be replaced on arrival or return
Causes of medical issues
  • Food poisoning - local water especially
  • Injury - from falling down the stairs or falling off an adventure trail
  • Pre-existing conditions getting worse

 

So in the end, decide how much you can afford to lose or spend...

 

  • If there is a cancellation - if you've not made many commitments or they are mostly refundable with short notice then you're less likely to need it for cancellation.
  • If there's transportation delay/lost luggage - if you can cope with delay costs for a night or so and can easily replace your luggage items then you'll not care so much about getting coverage for that
  • On potential medical costs - if you're traveling in your own country and have insurance that covers you then you'll not need any more. If you are traveling to foreign lands and more remote areas you'll need to ensure you can deal with basic and emergency medial situations.

 

On the whole, if you are paying, say, $5000 for your family vacation then a relatively small $300 insurance policy seems like a good deal.