The Debate on Travel Insurance
July 12, 2007. The next time you book a luxury vacation rental, should you get travel insurance as well? Experts have debated this question throughout the media, resulting in a very unclear answer, according to a recent article in the Los Angeles Times.
Perhaps the best answer is, it depends.
It depends on whether you could face huge financial losses if something goes wrong with your trip.
"The first question to ask yourself about travel insurance is whether something trip-related could land you in financial disaster," according to the article. "Insurance has the most value when it protects you from financial ruin, not minor annoyances."
The L.A. Times did a great job laying out the components of travel insurance and plotting questions every traveler should ask before buying in. The three primary components are trip-cancellation insurance, unexpected costs and medical insurance. The questions one should ask are:
What am I afraid of?
What coverage do I already have?
How expensive is my trip?
How much of my trip is prepaid and nonrefundable?
Let's say you have a family vacation planned for Belize. You booked airfare for five, two weeks in a luxury vacation rental, and a three-day whitewater rafting and rock climbing excursion in a remote jungle. Your health insurance policy doesn't cover expenses incurred outside the United States. And your sick mother in-law just announced an operation the week before you leave.
That's quite a few opportunities for financial issues, from possible cancellations to possible medical expenses.
