One of the most popular types of travel insurance is trip cancellation. Just be sure you know what you are buying.
“Across the board, the biggest mistake [people make] is not understanding the coverage,” said Megan Moncrief, chief marketing officer of Squaremouth, a website that compares travel insurance.
The most comprehensive coverage is “cancel for any reason” — as in, if you change your mind — but it comes at a price. Expect to pay about 50% more. Generally, you’ll get about 75% of your trip reimbursed.
There are also policies with a variety of exclusions. What most people look for is insurance that allows them to cancel their vacation in case of injury or illness, or if there is bad weather, such as a hurricane. Expect to provide a doctor’s note for any medical claims.
If you aren’t taking a cruise or a tour and instead booked the various pieces of the vacation yourself, you don’t necessarily need trip cancellation insurance. You may just pay a change fee with the airline and can likely cancel your hotel for no penalty if it is within a certain window.
Another thing to consider is how far in advance you booked the trip. If it is a last-minute vacation, the likelihood of something coming up is slimmer than if you booked it seven months out.
Read the full CNBC article online here: https://www.cnbc.com/2019/10/11/when-it-pays-to-buy-travel-insurance-and-when-to-skip-it.html