But you may be better off saving that money for a hotel room upgrade or a few nice dinners out, says Consumer Reports. Most travel insurance actually just "duplicates coverage" that people already have. According to Bob Hunter, director of insurance for the Consumer Federation of America, "sophisticated travelers don't buy travel insurance."
That's because you're probably already covered — and you don't even know it.
Before buying trip cancellation/interruption insurance, baggage coverage, medical assistance coverage or accidental death insurance, check your current insurance policies and memberships. Homeowners and medical insurance will cover many of the problems you'd encounter while traveling, and credit cards and automobile clubs often offer travel protection for accidental death, lost baggage and rental cars.
It may make sense to buy additional travel insurance if your health is an issue and you are traveling overseas. Some health insurance policies, such as Medicare, won't cover you abroad.
If you do decide to purchase travel insurance, Consumer Reports recommends the following:
By Marshall Loeb