It’s a constant debate for those who travel often. Is travel insurance worth what you pay for it? Before deciding that it is a frill you can forgo, look at the recent statistics.
When a huge storm hit the Northeast a couple of years ago right at the height of Thanksgiving travel, more than 700 flights were cancelled or delayed. That meant thousands of distraught travelers who were forced into additional costs for hotel rooms, unanticipated meals and other unforeseen arrangements. Those who had invested in insurance were the winners.
Your airline must re-book you in the event of a cancelled flight, but is not obligated to pick up resultant expenses.
Before buying a trip policy, check your credit card. Many cards offer protection against travel snafus. More than half – 63 percent – will reimburse you for lost or delayed baggage. In some cases, the card-issuer offers as much as $5,000 in nonrefundable travel expenses if your trip is cancelled or interrupted.
Many cards will cover a partner and/or children, but only if you make all your arrangements via the card.
If the credit card you are currently using does not offer travel benefits, it may pay to look around. The next alternative is to shop for a travel insurance policy, particularly if you are planning a pricey trip, going overseas or have any reason to think you might have to cancel the trip.
Experts advise that the insurance offered by airlines is not the best alternatives. Their policies often have many exclusions and will not cover pre-existing medical conditions, they say.
Look onsite for companies such as Insuremytrip.com, which offers data on hundreds of policies. The cost is usually in the range of 4 to 8 percent of your nonrefundable travel expenses. Variables include the length of your trip, destination and age.
If you have a pre-existing medical condition, plan to get your travel insurance 10 to 30 days before your travel begins. You may want to consider a policy that allows you to cancel for any reason, rather than a list of pre-determined causes.
If you are facing a tight time-frame on a connecting flight, or if bad weather appears it may be a factor, consider a policy that tracks your flight in real time and automatically helps re-book you on another flight in the event of a missed connection or a cancelled flight.
Such a policy, issued as AirCare by Berkshire Hathaway Travel Protection, also puts a little money in your bank to take care of incidental expenses when there is a problem. A delay of two hours or longer will add $50 to your account. If you miss a connecting flight, the policy offers $100. If your bag doesn’t show up for more than 12 hours, you receive $500. That is a nice cushion for trips that go sour.