Airfare, hotel, activities, when everything’s booked you might be missing one thing – travel insurance. Here’s our guide to knowing when it pays to have travel insurance.

By Annabel Fuller

Travel insurance can cover things like trip cancellation, medical treatment, lost luggage or a missed connection, so it can pay to have. But not all policies are the same. Some can cost as little as a few dollars a day while others cost thousands, so what’s the difference?

Policies vary greatly depending on your age, destination, planned activities and trip length, and while on average they cost between 5%-10% of your trips cost, insurance can save you a lot if any bad fortune arises while on holiday.

However, the biggest mistake people make is not understanding their coverage.

We advise to always check what coverage you already have. Your homeowner’s policy may provide protection against theft and your auto insurance may cover a rental car.

Your credit card may also provide protection against lost baggage, flight delays/ missed connections and basic medical coverage.

Some policies may double up on coverage you already have, charging you unnecessarily, wasting your hard-earned money when you could be spending it on your epic adventure.

While we always advise that travel insurance is a good idea to protect you, your loved ones and any others involved in your travel woe be savvy and choose a policy that fits your needs. There’s no point splurging on ski protection if you’re vacationing to the beach, likewise, you probably don’t need car rental insurance if you’re on a cruise.

And if nothing else travel insurance can provide you with peace of mind so you can stop worrying and enjoy your trip.