Trip Insurance

• You may want to consider trip cancellation insurance, particularly if you are planning a very expensive trip. Any trip may be subject to cancellation due to unexpected events or emergencies. While this is always disappointing, insurance can protect you from full financial loss. There are many insurance vendors available. Some credit cards offer their customers various levels of insurance coverage for unplanned cancellations if you payed for your trip with their card. Contact your credit card carrier for information.

• If you choose to purchase trip insurance, make sure you fully understand the cancellation policy’s provisions. Clarify terms such as “unforeseen,” “close family member,” and “traveling companion.” Make sure the policy covers events that occur during the trip, and not just prior to departure. Consider if you want coverage for missed plane connections, lost or delayed baggage, or labor strikes. If you are traveling to a region that is at risk for natural disasters, then you may want to purchase additional coverage. Expensive policies permit trip cancellation for any reason, although you may not receive a 100% refund. Most importantly, understand the exclusion criteria. Know what is not covered, particularly if you are purchasing a policy with limited coverage.