Trip insurance vs refundable flights

It’s a matter of choice, life circumstances, and risk tolerance. I buy refundable to trip credit - meaning I get my purchase amount that can be applied to a future flight within the next year but doesn’t come back to me in cash. That is what I am comfortable with. I carry insurance, but it won’t cover trip cancellation “just because I want to” (like the year I had to cancel because 2 nephews decided to get married, one week apart, during my trip).

In my case, primarily flying AA or partners, I also buy refundable because a few other perks come with it. Several friends that I sometimes travel with still buy basic economy nonrefundable. They like the price and don’t care about the perks and are willing to take the chance they won’t need to cancel.

Trip insurance is like car insurance. You hope you never need it. But sometimes you do.

Sammie, it all depends on what insurance you might already have and your level of risk aversion. I don't buy refundable airline tickets. I do always buy changeable. With Delta, if there is a change, you get a credit which you have to use within a year. I rarely buy trip insurance. I do have a yearly policy for emergency evacuation. We do have health insurance that covers us out of area. I typically reserve refundable hotel rooms. For car rental insurance, I can use my Chase or Delta credit cards. My Chase card does include cancellation coverage on some expenses. I have purchased insurance for the two cruises we have done.

Trip insurance is pretty expensive, IMO. It behooves people to analyze coverage they already have. My biggest peeve is the companies bundle so much of the coverage in a package. So then folks could be paying for coverage they already have. That said, if you have gaps, lack of insurance can be very expensive if you incur some kind of incident.

You can do some searches of the forum for a lot of opinions on trip insurance.

Tend to travel on airlines that will allow me to have a credit to use for future flights if I have to cancel so I don’t need to worry about the airfare. I will use it eventually.

Travel insurance is for when I fall in Europe and break my hip and need to be medically evacuated back to the United States on a special plane. unless you’re independently wealthy I would suggest buying this kind of insurance because all medical care in Europe is not free and getting you home is definitely not free

I’ve never found travel insurance that expensive. I buy an annual policy and while I don’t remember what it cost I’m going to say less than $250 last year.

It depends on what you are comfortable with. At this point I'm now paying for refundable to my credit card so that I can cancel for any reason, including finding a better flight or any other reason. That gives you "cancel for any reason" peace of mind - for travel insurance unless you pay extra for "cancel any reason" you only get reimbursed for covered reasons. It will likely come down to how comfortable you are with the vagaries that life tosses at you, your age, any family/health worries, etc. When I do purchase insurance I've been happy with squaremouth.com which lets to you customize what you want to insure and compares a variety of companies and plans.

Having said that, when I was in my 50's and 60's I rarely insured my trips, just got travel medical so it totally depends on your age, personal circumstances and comfort level. You may also want to consider booking accommodations that are cancellable if that is a concern

Is there something specific about Italy that is raising these questions in your mind?

If not, and it's just a general trip planning consideration, I would offer that you should

a) read the T&C's of any travel insurance option carefully, so you know what's covered
and what's not. Reputable companies still offer multiple options.
b) think about your risk profile (age, physical condition, travel savvy, etc) and whether
that justifies the concerns you're raising
c) weigh the cost of refundable flights, as these come with caveats as well.

If this is the first of many big trips you might take, taking overly large precautions each
time will add up in terms of cost and effort. But if this is a one time thing and you are
concerned about some aspects of your personal situation, and you are planning far
ahead of time, then it may be worth doing the things you're asking about.

I book flights and hotel rooms that I can easily cancel. If I need to cancel, I can do so online in 30 minutes. The problems with travel insurance are (1) the policies contain exceptions and exclusions you probably do not know of and (2) you are dealing with an insurer.

Great question. What do you want to insure?

I buy tickets that can be credited to my account, not refundable for cash. I carry on my luggage, so I don't worry about lost, stolen or delayed bags. I am on my own rather than a tour, and have hotels that are reserved but not paid in advance. I may have some prepaid train tickets that I could lose if my trip is totally canceled.

I do buy health and return home insurance. I do this through Blue Cross.

https://search.ricksteves.com/?button=&date_range=2y&filter=Travel+Forum&query=Trip+insurance

In Italy, one must buy rental car insurance; credit car provided insurance isn't acceptable.
There are many variables you haven't provided, such as age, need for medical coverage, etc. that would help with answers. The link I provided should include useful info.
Have a great trip.

Travel insurance policies have so many caveats when it comes to cancellations, I think it worth spending a little extra. Given the current unrest and uncertainty in the Middle East, I would only buy a fully refundable ticket (or one with a small cancellation penalty fee)

Trip insurance can be insurance for reimbursement for cancelled flights, etc. or insurance for Medical/Evacuation to home purposes. Different policies, different prices. Insurance for a cancelled trip is a personal choice, and many opinions have already been offered.

If you are asking about Medical/Evacuation insurance too - For me Medical/Evacuation insurance is worth the cost, and I have only needed it once in many trips. I have had a number of policies which ranged in price from about $100 to 150 dollars.
A poster noted that they: "We do have health insurance that covers us out of area. " This can be true for the poster, but in my experience Medicare and most US health policies don't cover non-US locations including Canada. You should be very careful to check your policy and your wallet if you choose not to purchase Medical and Evacuation Insurance.

...your level of risk aversion.

If anthing I self-insure. I fly United so tickets are changeable without fees, and like other posters that is sufficient. Along with changeable flight tickets, my hotels reservations are cancelable, but I'll usually purchase non-refundable train tickets.

In 2022 after my accident I canceled hotels and flight from hospital bed, and ate £102 in UK train tickets. I was ok with that.

I used to purchase cancel for any reason insurance (which often reimburses only 75%, but for any reason), but when refundable tickets became the norm, I often just count on that given that airfare is my biggest expenditure. I used my cancellation policy only once.
Having a comprehensive travel insurance plan is a matter of personal risk tolerance.

There are some websites that serve as clearing houses for insurance. You can use them to see what is available in your state (it varies). Two that are often mentioned are SquareMouth and InsureMyTrip. I believe there are others.

Ultimately, you really, really must read the policy details. That's where you'll find out what isn't covered.

I have medical insurance that works overseas, and I opt to self-insure for everything except medical evacuation, which is potentially a mortgage-your-house expense. Self-insuring works for me, because I don't prepay for anything I don't have to, and I often have enough frequent-flyer miles to cover my transatlantic flight. My United mileage tickets are changeable or cancellable at no cost; I have altered my departure date several times. I can redeposit the miles if I need to completely cancel a trip, but that hasn't happened yet.

For folks who plan well ahead and score significant savings from booking non-cancellable hotel rooms, travel insurance might cost less than the savings on non-flexible hotel bookings.

Thank you all for the helpful replies.

My questions arose from this situation: I originally booked fully refundable tickets on Lufthansa (Denver–Munich, Munich–Bologna, Bologna–Munich, Munich–Denver). I intentionally paid extra for refundable tickets so we would have flexibility if a family member in the U.S. had a medical emergency and we needed to change our plans. I’ve also booked hotels and Airbnbs that allow cancellation for the same reason.

I assumed (apparently incorrectly) that I could cancel or change individual legs if needed. We considered canceling the Bologna–Munich flight, taking the train instead, and extending our return by one day. After 38 minutes on hold with Lufthansa, I was told it would cost $794 to cancel the Bologna–Munich segment. The agent also said she couldn’t tell me the cost to change the Munich–Denver flight until after the flight was canceled. The only way to receive a refund, she said, would be to cancel the entire itinerary and rebook.

When I checked online, the same flights (Denver–Munich, Munich–Bologna, Munich–Denver) are now $2,575 more than what I originally paid.

That led me to wonder whether it might make more sense to book nonrefundable tickets (at about the same price as my original refundable fare) and rely on trip insurance instead. Specifically, would trip insurance cover us if a family member in the U.S. had an emergency and we needed to return home early? It sounds like trip insurance has a lot of caveats and may not be the best option.

At this point, we’ll probably keep the flights as originally booked. Lesson learned: “fully refundable" doesn’t necessarily mean individual segments can be changed without additional cost.

Several of you also mentioned travel medical insurance, which I do plan to purchase. Is Allianz a good option, or are there other companies you would recommend?

Thank you again for your replies. They are sincerely appreciated.
Sammie

Regarding hotel rooms purchased well in advance to take advantage of lower rates, there are credit cards that cover cancellation in specific instances, for example, Chase.

I think the biggest thing is people need to read the fine print whether its trip insurance you are considering for purchase and any existing insurance. Yes, there are health insurance policies that do not cover out of area including international travel. But, some do. There have been a few times, I've had a few conversations with friends regarding travel and trip insurance. I've suggested they first look at their existing medical coverage and they were surprised that they were covered internationally.

@Sammie, unfortunately, ANY change to an airline ticket changes the pricing for the whole reservation.

I think people do like Allianz. But you really need to look at what you are most keen to cover and price out various plans taking into account ages, etc.

FYI
For insurance coverage for preexisting medical conditions, one usually has to make the purchase within 2-3 weeks of the first trip reservation.
I know, it's all so complicated. Good luck!

Changing a leg of a flight is gonna be a huge PITA no matter how you go about it.

GeoBlue is a second company people here have mentioned using for medical insurance overseas. I have no personal experience with either GeoBlue or Allianz, but those are probably the first two I would check out if I didn't already have coverage.

For future reference, including intra-European flights for mid-trip travel when you buy a transatlantic ticket is often quite expensive. (I don't know whether that is what you were doing with the Munich-Bologna-Munich travel legs.) There are budget airlines connecting many city pairs via non-stop flights (in addition to trains), so it is frequently a lot cheaper to book the intra-European flights separately, as long as they aren't part of your transatlantic travel. I use skyscanner.com for intra-European flight schedules, but perhaps Google Flights would work just as well. When dealing with budget carriers, you do have to be especially careful about fees for things like checked bags and seat selection, plus size and weight limits for carry-on items.