Should You Buy Travel Insurance?

You may have been saving for months for your summer vacation or for holiday travel in the winter. But what happens if you have to cancel your trip in an emergency? Travel insurance can help cover cancellation fees and other unexpected expenses, such as medical care, while traveling. But coverage, exclusions and costs vary a lot. If you’re considering travel insurance, ask these questions.

What does the policy cover? Most travel insurance policies will pay for nonrefundable expenses if you must cancel or interrupt your trip because of illness or storm damage at your destination. Some policies even pay if you’re laid off from your job. If you’re planning to travel during hurricane season (June through November), this coverage can be valuable, but read the fine print first. For example, does the policy pay out if you cancel your trip because of a hurricane warning and canceled flights, or does there have to be an evacuation order for the area?

What are the exclusions? Many policies won’t pay out if you have to cancel your trip because of a preexisting medical condition. Find out how preexisting conditions are defined and whether you can buy a preexisting conditions waiver if you get coverage early enough.

Does the policy provide extra medical coverage while traveling? Emergency medical expenses or evacuation to a medical facility may not be covered under your health insurance, but they can be valuable benefits for travel in remote areas. Ask about coverage limits for medical expenses and emergency evacuation.

Compare costs and coverage from several travel insurance providers. Airlines and cruise companies generally offer policies, but they’re usually not your only option. Compare offerings from other insurers, too, and find out whether you have any coverage through your credit card (which may not cover medical care).

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