That's a great question. I always buy it since emergencies aren't planned. Travel insurance has two components: cancellation insurance and protection while traveling.
The Cancellation insurance will reimburse you for non-refundable cost incurred if you have to cancel your trip for a covered reason. Many of the all-inclusive resort packages I sell offer Cancel for Any Reason insurance.
Here's some reasons people have cancelled and received a full refund under Cancel for Any Reason insurance:
- Babysitter had to cancel.
- Caregiver for elderly parent got sick so traveler had to cancel.
- Daughter made it to the national championships in softball.
- Heavy rains were predicted for Jamaica so we switched the trip to Cancun.
Travel insurance can also include coverage while traveling. This can include coverage for missed connections and medical coverage. Being airlifted off a cruise ship and transported to the hospital of your choice can cost $70,000. I think it's worth the small investment in travel insurance to protect against the worst case scenario.
I've recently used travel insurance to cover a hotel room and overnight expenses when a delayed flight meant I missed my connection.
How about you? Do you tend to purchase travel insurance when you travel?