From severe weather to illness to political unrest, it’s worth considering how to protect your travel investment in case that dream vacation gets cancelled or interrupted.
To manage these unforeseen events, most strategies include add-on purchases in the form of a cancellation waiver or travel insurance.
The two products seem similar, but are very different.
A trip cancellation waiver provides limited protection in case you need to cancel your trip for any reason before it begins. The coverage will typically pay for the cancellation fees imposed by travel suppliers and give you future credit with the same airline, hotel, car rental company, etc.
Travel insurance provides financial reimbursement for trip cancellation or interruption, for baggage loss or delay and for medical insurance and medical evacuation coverage.
Travel premiums generally costs anywhere from 3% to 8% of the total trip, which factors such as the length of the trip, travel destination and your age also influencing the cost.
Many travel insurance policies can be purchased up to 24 hours prior to the trip departure date.
When considering if travel insurance is right for you, compare policy coverage, benefits and prices. Also, review your current health insurance, homeowner’s and auto policies to see if there are already protections for when you travel.
Visit the U.S. Travel Insurance Association website to learn more and find reputable providers.