Consider carefully what items would be reimbursed.
Generally, trip interruption/cancelation insurance covers items that are not refundable. The question: among those non-refundables, how many are covered?
Not all of them are built into every policy.
Frequently, the insurance only protects you in the event of a sudden illness, serious injury, or death in the family. You might not define "illness" and "serious injury" in the same way as the insurer, so read the documents carefully.
Expect to pay more for policies that go beyond the basics. Some will cover areas under threat of terrorism or civil unrest. Others protect against so-called "acts of God" such as earthquakes or hurricanes.
Is the coverage good for every segment of the itinerary?
A journey that crosses international borders might be a problem. The policy might note that coverage is only good within the company's home country. Other policies sometimes exclude certain areas for reasons that might not make much sense to you.
Be wary of "bankruptcy" protection.
A fair number of companies that go belly-up never officially declare bankruptcy. If your policy spells out that word by name, you may not be covered if an official declaration is not made. Another consideration: it often takes months (or even years) between cessation of operations and the official declaration. You will get nothing until it's filed.
Look for language that covers you if the company cancels the trip for financial reasons.
Buy coverage from a disinterested third party.
Cruise lines frequently offer trip interruption or cancelation insurance. What if they go broke? Do you think they will have funds to reimburse you? The same can be said of travel agents or any other entity in the travel industry.
Look for policies from established companies outside the travel industry.
Call your credit card company.
Some credit cards providers insure travelers against losses. It's worth checking. Beware: it might not be adequate.
Do some shopping.
Prices vary more widely than the coverages offered. It pays to do some comparison homework on premiums.
Only cover potential losses.
Inexperienced travelers make the mistake of buying insurance coverage equal to the entire cost of the trip. You only need enough to pay for items that are not reimbursed.
For example, even a non-refundable airline ticket can be exchanged for new dates. A fee is involved to make the change. Make sure you're covered for the fee, not the entire cost of the ticket.
Always err on the low side. Most of us can afford to risk losing some of the money. Few of us want to be overinsured.
What if your trip is interrupted due to an illness or injury during the journey? Click "next" to the right to consider some medical issues.
