How to Shop for Trip Cancellation Insurance
Evaluate your financial investment in the trip., Consider situations that could affect your travel plans., Compare coverage and price from at least 5 independent providers., Review each policy's list of covered reasons for trip cancellations., Find...
Step-by-Step Guide
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Step 1: Evaluate your financial investment in the trip.
Most trip cancellation policies range in price from 2 to 9 percent of your total trip cost.
The price factors in your age, and cost and length of your trip.
If you got a cheap flight of $99 or less, your investment in your trip is rather small and you might have little need for trip cancellation insurance.
On the other hand, if you booked a $10,000-plus cruise, you have more invested and more to lose.
Also, if your trip has a number of stops or connections, there's a bigger chance that something could go wrong. -
Step 2: Consider situations that could affect your travel plans.
If you have young children or elderly parents, there is a risk that they could fall ill and require your care.
If you booked your trip months in advance, there's also a risk that during that time something could go wrong and force you to cancel. , Don't buy trip cancellation insurance from your cruise ship or other travel provider.
If the company goes out of business, that will ruin your trip
-- but it's also likely that the insurance policy you purchased would be void. , Common covered reasons include sickness, injury or the death of you or your travel companions.
You may also be covered in the event of inclement weather or the theft of passports and other travel documents.
Some policies may cover additional contingencies, including pregnancy, divorce or work-related emergencies that affect your financial standing or prevent you from taking your trip. , If you purchased the trip with your card, you may be already covered under federal credit laws.
These laws protect consumers from making a purchase or contracting a service and then not receiving goods or services in return. , For example, some policies only approve coverage if more than half of your trip is affected by a covered reason. -
Step 3: Compare coverage and price from at least 5 independent providers.
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Step 4: Review each policy's list of covered reasons for trip cancellations.
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Step 5: Find out whether your trip is insured through your credit card.
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Step 6: Learn the details about your cancellation insurance policy before signing the contract and paying your premium.
Detailed Guide
Most trip cancellation policies range in price from 2 to 9 percent of your total trip cost.
The price factors in your age, and cost and length of your trip.
If you got a cheap flight of $99 or less, your investment in your trip is rather small and you might have little need for trip cancellation insurance.
On the other hand, if you booked a $10,000-plus cruise, you have more invested and more to lose.
Also, if your trip has a number of stops or connections, there's a bigger chance that something could go wrong.
If you have young children or elderly parents, there is a risk that they could fall ill and require your care.
If you booked your trip months in advance, there's also a risk that during that time something could go wrong and force you to cancel. , Don't buy trip cancellation insurance from your cruise ship or other travel provider.
If the company goes out of business, that will ruin your trip
-- but it's also likely that the insurance policy you purchased would be void. , Common covered reasons include sickness, injury or the death of you or your travel companions.
You may also be covered in the event of inclement weather or the theft of passports and other travel documents.
Some policies may cover additional contingencies, including pregnancy, divorce or work-related emergencies that affect your financial standing or prevent you from taking your trip. , If you purchased the trip with your card, you may be already covered under federal credit laws.
These laws protect consumers from making a purchase or contracting a service and then not receiving goods or services in return. , For example, some policies only approve coverage if more than half of your trip is affected by a covered reason.
About the Author
Brian Nelson
Committed to making lifestyle accessible and understandable for everyone.
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