(USA Today) – For some trips, travel insurance is a virtual necessity; for others, it’s worthless. The question boils down to a matter of risk. A basic purpose of any insurance is to mitigate financial risk.
So when you have a travel risk, travel insurance can help. Before you buy, assess your risks. Here are some of the most common ones:
Risk 1: Loss of deposits or prepayments.
You often have to pay in full or provide a stiff deposit months in advance for a cruise, a tour or a vacation rental. And if you have to cancel, you may lose a big chunk of those payments in cancellation penalties and non-refundables. Trip cancellation insurance (TCI) reimburses you for non-recoverable deposits and penalties if you have to cancel before you start.