How Much Travel Insurance Do I Really Need?

There's been a lot of confusion over whether or notor more hours to your time of departure. One Gold
travel insurance covers a natural disaster such as thePlan reimburses you $250 for a missed connection.
April 2010 volcanic eruption in Iceland that stranded4. Doesn't my airline refund ticket costs, and put me
tens of thousands of travelers. When someone asks,up in hotels and cover food expenses in the case of
"Does my travel insurance cover this type of event?"trip cancellation and interruption? So, why do I need
I answer, "Check the fine print." Clicking the insuranceextra travel insurance? That's a good question. Years
button when buying an online ticket most likely willago my family and I traveled from San Francisco to
not give you very good coverage. These types ofSingapore and our trip was delayed due to
travel insurance offer very basic coverage, whichmechanical failure. The airline bused all passengers to
may be fine if your trip doesn't cost much. Or if youra nearby hotel, paid for our rooms and gave us food
itinerary is not a complicated one requiring multiplevouchers to use in the hotel restaurant.
stops over a longer period of time with expensiveAnother time I had to cancel my flight due to illness.
hotel reservations.Because I bought a non-refundable ticket, I was able
Here are five guidelines for knowing how much travelto apply that ticket to another travel date, minus of
insurance to get.course, a penalty fee of $100. I had one year to use
1. What is your trip worth to you? A young studentthe ticket.
sleeping in hostels throughout Europe and carrying aOnce, when dense fog grounded my plane for 8
backpack won't need a "Cadillac plan" trip protector.hours, the airline gave everyone who asked for it
Compare that to a couple in their early 60s whofood vouchers for an airport restaurant. Because it
have reservations in 5 star hotels in some of thewas a foreign country, and I didn't speak the
most expensive cities in Europe and who fly firstlanguage, I didn't know food vouchers were being
class. Their travel will cost quite a bit, so they shouldgiven out, and so I missed out on coffee and
consider paying top of the line coverage.croissants. Best advice here is to know your
2. Compare the cost differences between a basicpassenger rights.
plan and a premium plan. I went on a well-knownMissed connections are another form of travel
travel insurance website to see how much it wouldfrustration. If your missed connection occurs when
cost me for a two week international trip. The Basictraveling with the same airline or air alliance, then you
plan sells for $127 for a person my age. When Iwill be taken care of by the airline company.
added in "cancel for any reason" coverage, upgradedHowever, if your missed connection happens when
medical coverage, and optional flight coverage, theyou fly two different airlines or airline alliances, then
total jumped to $202. So now I have to ask myself,you are out of luck with the airline companies. If you
is that extra $75 worth it?have travel insurance that covers missed
3. Know what you are buying. Travel insuranceconnections, then you are in luck.
policies contain 4 types of trip protection: trip5. Buy travel insurance for the medical coverage and
cancellation, trip interruption, trip delay and missedother services. Sure, airlines do reimburse and are
connection.obligated in many cases by law to compensate for
- Trip cancellation reimburses you the full cost oflong travel delays, interruptions and cancellations. But
your pre-paid ticket in the event you have to cancelthey won't pay any medical bills should you be injured
prior to your trip. One insurance company sells aon your travels. And they won't pay for worldwide
"Cancel for Any Reason" policy for an additional cost,assistance services such as medical evacuation,
though most other companies have specific - but stillphysician referrals, translation services, prescription
extensive - conditions under which one can cancel.replacement, emergency cash transfers, and
Find out what your trip cancellation covers, and whatconcierge services, and a host of other services you
exclusions are not covered. Some companies, forcan purchase with travel insurance.
example, did not reimburse those affected bySo, the choice is yours. Most trip cancellations and
volcano ash because they considered that a weatherinterruptions are pretty straight forward, and you can
disturbance instead of a natural disaster.get reimbursements from the airlines. In those cases
- Trip interruption reimburses you for travel expensesyou wouldn't need a premium Trip Cancellation plan.
in the event of an unexpected crisis during your trip,But in the event of a volcano erupting, or some
causing it to be cancelled, interrupted or delayed. Oneother natural disaster that severely disrupts travel for
worldwide travel insurance company paid 100% ofdays and days, you could be out hundreds of dollars.
the trip cost for trip interruption due to volcanic ashThat's why there is travel insurance. Like any
that affected Europe April 2010.insurance, we get it because we don't know the
- Travel Delay reimburses you for expenses you payfuture.
for trips delayed for more than 5 hours due toTrip insurance is worth it for the medical coverage
covered reasons but only up to a certain amount,alone. All travel insurance covers trip delays or
some $1000, others $750. Travel delay typicallycancellations for specified reasons (again, check what
covers hotel accommodations for stranded travelers,they WON'T cover), and are easily upgraded for
meals, taxi fares and essential phone calls.additional costs. Their real value, however, is medical,
- Missed connection reimburses you if inclementespecially for medical evacuations which cost tens of
weather or common carrier causes cancellation or athousands of dollars.
delay of a regularly scheduled airline flights for three