Do you really need travel insurance?

Posted at 7:19 PM, Sep 21, 2017

We need car insurance and health insurance, but do we really need travel insurance?

The answer depends on where you are going and how much you are willing to lose.

With hurricanes in the Caribbean and earthquakes in Mexico, a lot of vacation plans have been put hold but if travelers have certain types of travel insurance, there is a good chance losses could be covered.

Trip cancelation and trip interruption insurance are two common coverages.  Cancelation reimburses for trips you can't take, and interruption for trips that are cut short. Each policy will have its own requirements for coverage like, receipts, and itineraries.  Alo find out if you would benefit from supplemental policies for illness or traveling abroad.  

Like health or car insurance there are specific exclusions but according to AAA Arizona, "some policies offer “Cancel for Any Reason” upgrade. This indeed provides more coverage for an additional cost, but there are still exceptions, so always read the fine print."

At the same time, be careful not to purchase too much insurance. Consider how much you spent on the trip versus how much it costs to insure it.  AAA recommends purchasing insurance "especially for more expensive trips." 

They warn not to put it off, saying to start the process once you put a deposit on a trip and that "you’ll be able to adjust your coverage later if you need to."  

As with any insurance policy in Arizona, you are entitled to a prorated refund if you decide to cancel before your trip.  You can also file a complaint with the Arizona Department of Insurance if you believe a denied claim should have been approved according to your policy.

Also check for coverage you may already have. Does your health insurance cover injuries or illness out of state or out of the country?  Will you car insurance extend to a rental? Does you credit card cover trips you have booked using it? If so, what is included?

Most importantly: be picky. Don't just click to accept some random insurance policy you haven't even read.  The fine print is important. Take the time to shop around for the best price and the most appropriate coverage.