You’re more likely to make a claim against a travel insurance policy than you are your home or car insurance. Yet, most people don’t buy it.
There’s really no such thing as being too safe, these days. Back in October, the US Bureau of Consular Affairs expressed serious concern about the threat of violent attacks against U.S. citizens abroad — ISIS and al Qaeda, et al.
So here are some tips about when, and if, to buy insurance.
Never buy travel insurance from your airline, tour operator or cruise line. The policies are weak (for example, pre-existing medical conditions are usually not covered) compared to what you can get directly from a travel insurance specialist like AIG Travel Guard.
Can you afford the loss?
The No. 1 reason people make a travel insurance claim: illness or injury (of either the policy holder or a family member) just before starting a trip. Make sure that you document your medical condition with a visit to a hospital or doctor before making the claim, otherwise it will be most likely be denied. And read the fine print that defines “family member” — some policies are broader than others.
Many experts advise that you only insure a trip that’s of such high value that losing your investment would cause financial hardship (a $3,000 cruise, perhaps, but not a $150 flight to Chicago).
