As you prepare to hit the road this holiday season, there are plenty of checklist items. Gift for Mom, check. Airline reservations, check. Hotel booked, check. For many people hitting the high seas on a cruise, joining a tour group in some faraway destination, visiting someone for the holidays, or just taking a vacation), the question of travel insurance comes up. But should you purchase it?
Consumer reports (www.consumerreports.com) posted an excellent primer on the subject. The group said almost $2 billion in travel insurance is sold each year. Travelers are protected for trip cancellations or delays due to bad weather, illness, or other reason. If someone gets sick while away, that is covered, depending on the policy. Stolen luggage is also covered.
Premiums depend on the age of the travelers, the type of coverage, and the trip’s cost. For a standard policy you’ll pay about 5 to 7 percent of the cost of the trip, according to the Insurance Information Institute.
But coverage may be unnecessary if you already have protection through homeowners, auto, life, or health insurance. Credit-card benefits and consumer-protection laws also may help. As with any insurance decision, consult your local insurance professional to make sure you have the coverage you need and are not paying for what you don’t need.