Travel Insurance Newbies

With trip cancellation insurance, you really have to read the fine print. Generally cancellation insurance will only reimburse the amount you are out-of-pocket (i.e. the non-refundable portion) and many limit the reasons and terms under which you may be reimbursed for cancellation. The other potential components of trip insurance can include medical evacuation (e.g. pays to take you to the nearest appropriate medical facility), medical repatriation (e.g. pays to take you to a hospital in the U.S.), medical (generally covers what your own insurance does not), etc. Again, you need to read the fine print and choose what you need.

Laura has it right: the insurance would only reimburse the non-refundable monies that you will have paid out before the trip. Also: 1. I've found it difficult to insure flights I got on points, as these don't have a dollar value, beyond taxes and/or fees you paid in insurable $$. If a lot of points were used, then I'd consider the separate insurance offered by my points system, just to refund these points. 2. Keep all of your receipts, print-outs and emails that show a) the exact amounts paid AND the booking cancellation policies. b) Never, ever, submit receipts that show an amount greater than the coverage that you actually bought for. For example, you have coverage for $6,000 and your receipts show $6,400, they are likely to reject the whole claim - seriously. So, always present receipts for just under your insured amount. I usually keep some small deposits out of my total, to avoid a big jump in the premium if I pass certain value thresholds. 2.1 Start the insurance with what you anticipate will be the monies spent soon. Buy it as soon as you start paying out big money that you don't want to lose. Cancellation insurance starts working for you the moment that it is bought. You can adjust the policy by increasing the amount covered as you go. i.e, on Aug 15th you buy for $1000, in Oct you up it to $3000. In Nov, the trip has to be cancelled for an insurable reason and you submit $2879 worth of receipts and booking confirmations.

Cont'd 3. Normally, you cover the trip together on a per person basis. That way, if your spouse is the one with the cancellation reason, you both get covered for the whole. 4. Read the fine print, so that you understand EXACTLY what the insurable reasons are for cancelling the trip. Changing your mind, for most policies, doesn't cut it. Some policies don't even consider that losing your job is an "insurable reason". Be very wary of what are considered "pre-existing conditions". 5. Never, ever, lie or omit something about your medical history if you have a form to fill and are asked about it. 6. Shop around! Policies as well as premiums, vary. In addition there are often time limitations for some insurance: One points system I use will only offer their insurance for 30 days from the time of exchange. Never make assumptions about travel insurance!!!
Always check and double-check! The burden is on you to be careful and to know the rules. The insurance companies are there to make money, not pay it out if they can avoid it. They will look for a reason to deny a claim, before they pay out -- that is an industry given. I always have some form of insurance when I travel. I figure out what my risks are, which risks I'm willing to assume myself and how big a loss I'm willing to carry. What has the potential to be quite costly, I insure. Other stuff, I don't.