Travel Minute — Travel Insurance: What If You Change Your Mind?

The Costa Concordia disaster got me thinking about travel insurance, and in my last two Travel Minutes, I discussed how it can help you as well as what it will cover or not cover .  But can you insure a trip and get back money you put down if you simply change your mind and don’t want to travel?

The answer is, “Yes, up to a point,” but that coverage doesn’t come cheaply.  Let’s say you make a non-refundable deposit of $8,000 this month to rent a villa in Italy in June.  But you’re worried you might be too busy at work in June to travel. 

You’ll pay about $300 for a basic policy that will reimburse you up to $5,000 if you have to cancel your trip because you or a family member falls seriously ill or are injured . . . if a strike or 24 hours of bad weather delays your travel . . . if you’re laid off from your job or any other of several reasons.  

But a policy that allows you to cancel your trip for any reason—even if you’re just in a bad mood–will get half of your $8,000 back and will cost you nearly $800.  Be sure to read the rules detailing the legitimate reasons for cancelling a trip with the most common policies that travelers purchase.