Do I Really Need to Buy Travel Insurance?

Travel Insurance Pros and Cons

If you are like me, then you probably won't even know what travel insurance is . . . until you have a travel mishap and someone tells you, "You should have purchased travel insurance."  Yes, I learned my lesson the hard way when it comes to travel insurance, and I'm here to school you on travel insurance - what it is, and why you should consider it for your next trip.  Do you really need to buy travel insurance?  Read on to make the best decision for your individual circumstances.

Types of insurance.  It's important that you know there are different types of travel insurance, and you can customize your insurance coverage based on your particular travel plans.  The types of travel insurance coverage include: trip cancellation/interruption insurance protects your investment in the case that, for any reason, your trip never leaves the ground; health care insurance, to ensure you get the care you need should you travel to a place that your domestic insurance policy does not cover; baggage insurance, if your baggage gets lost; a variety of other travel insurance policies cover golf travel, extreme sports/adventure travel, credit card insurance, and even terrorist acts.

Cost versus risk.  One thing you need to consider when purchasing your travel insurance is if the cost is worth the risk.  For example, if your plane ticket only cost $73, then it doesn't make much sense for you to spend tens of dollars on trip cancellation/interruption insurance.  If you are traveling just two states over and you have checked with your health insurance provider to verify that you will be covered on your trip, then there is no need to purchase health care travel insurance.  Use your common sense when weighing the cost of the travel insurance policy against the risk.

Advance planning.  It is generally advisable that you get insurance for vacation plans in the far of future.  Why is that?  Because the further off your plans on, the more time there is for something to go wrong.  Moreover, vacations that are planned well in advance often cost more and have complex itineraries, meaning just the slightest hiccup can end up costing you a lot of money if your trip is not insured.

A vacation is a financial investment, and just like any investment, it is in your best interest to hedge your risk so as to avoid having to take some sort of cash loan while you're traveling..  Whether you like it or not, you risk certain things when you go on vacation: your health, your money, your luggage, etc.  Protect yourself, and your peace of mind, so that you can relax and enjoy the time you are away.