Some people want to know if buying vacation insurance is worth the money. So we thought we’d discuss the benefits of having vacation insurance, so you can decide for yourself if you want to invest in this. Understand that we are not insurance agents or insurance experts. However, the travel tips experts at Skycap News believe in sharing some facts and benefits of vacation insurance that you might want to think about before you go on that next vacation.
Vacation Insurance – What is it?
First, we want to think about the purpose of vacation insurance. What is it?
Vacation insurance is insurance that guarantees that, in the event of a financial loss due to interrupted vacations, a sickness that forces you to cancel your reservations, etc., you will be refunded some or all of the money that you invested. Some hotels, beach houses, or other accommodations do not refund you for canceled reservations if you do it past their cancellation time/date.
How much does it cost?
Vacation insurance typically costs between 4 and 8% of your trip’s total upfront investment. So if you rented a vacation condo for $2000 and paid $1000 of it, it would cost around $80 to insure such a trip. But you would generally receive between $800 and $1000 (all of it) back as a refund. If you did NOT have the insurance, you would lose it all. So you just have to weigh the risk of having to cancel or of some unforeseen event happening with the cost of vacation insurance.
Red Flags to Avoid
Keep in mind these are only general averages and should not be considered “set in stone” regarding how much you will or might get back, or even how much the insurance will cost. The cost of the insurance is dependent upon the type of policy, the company, and your risk factors.
But be aware of those charging exorbitant amounts to cover a smaller trip. In fact, the Huffington Post recommends not investing in any type of traveler’s insurance that sounds too good to be true, costs too much, considering your investment, or other red flags. Read their whole article here: Huffington Post Travel Insurance review.
Tips on Deciding Whether to Insure Your Trip
The Huffington Post recommends only insuring the more expensive trips, those trips that are most likely to involve unexpected cancellations (such as older people with health issues), bad weather climates, etc., or other factors. Look into the companies and policies you are considering investing in for travel insurance, and read the fine print before purchasing.
Vacation Insurance – Final Points to Consider
We truly hope that you won’t have to cancel your vacation at all and that you will be able to enjoy every minute of it. But in the unlikely event that something happens, travel or vacation insurance is there as an extra safety net. All in all, if you have a good chance of problems while on vacation, you might pay to invest in vacation insurance. If you do not, it’s probably not worth the upfront expense you will pay in order to insure your trip. So look into it carefully and decide if you think the cost is worth the extra peace of mind. Happy travels, sojourners!