Do I really need travel insurance?

What does your dream vacation look like? Odds are, it doesn’t involve lost baggage, a major injury, or a cancelled flight. But what if either of those incidents happened? Is travel insurance really worth it?

While most people quickly skip over the thought of travel insurance, in some cases it does make sense, and in some cases your personal homeowners insurance will provide enough coverage. Always consider whether or not you will take a big financial hit if the trip is cancelled and you didn’t get coverage, or if your own personal insurance will provide the needed coverage.

What does travel insurance cover?

Lost baggage

This is the typical incident when traveling. Travel insurance will cover your missing items up to a certain limit. Most baggage and personal belongings coverage only pay up to $2,000; it’s your homeowners policy that will do a better job of covering your personal property. Most travel insurance will not cover high priced items. If you’re looking to protect your belongings, travel insurance can only help to a certain amount.

Trip cancellation

Trip cancellation coverage comes in handy when a flight is cancelled because of weather, illness, or a change within your airline that is out of your control. While this insurance may not make sense for a cheap $99 flight, this coverage does make sense for a more expensive vacation involving large flight expenses.

Accidental death or dismemberment

While this is something nobody ever likes to think about, there is always a chance there can be an accident while traveling that can cause major injuries or even death. This insurance can provide up to $500,000 in coverage, but check with your insurance agent as this may already be covered in your personal insurance and may not be needed.

Plan ahead

Before leaving on your vacation, talk to your insurance agent to learn more about travel insurance and whether or not you should purchase coverage before you leave. Insurance doesn’t work if it’s purchased after an accident occurs.

Have you bought travel insurance before? Was it helpful?