(This commentary first aired 2 Nov 2012)
Not all travel insurance is the same. And I hope you weren’t one of the thousands of customers of the New Jersey tour company called Club ABC Travel that closed its doors without warning a couple a months ago. Because if you bought travel insurance from Club ABC to protect the money you paid for a future trip, you might be out of luck.
If you have to pay up front for an expensive trip, cruise, or vacation home rental, it could pay to buy travel insurance. If you fall ill, if you suffer a death in the family, if catastrophic weather causes you to cancel your trip, or any number of other events, travel insurance can cover many losses.
But don’t buy it from the cruise line you’re sailing or the tour company arranging your trip. If they go out of business, you may not be covered.
There are dozens of third-party sellers of travel insurance. Two of my radio sponsors are TravelGuard and OnCall, and both offer a wide range of policies that cover all kinds of eventualities including some you might not think of.
You may compare and contrast travel insurance offerings and prices at this website.
And never pay cash for future travel. Put your charges on a credit card so you can dispute any charges if–as in the case of some unfortunate customers of Club ABC Travel–you don’t get what you paid for.