Travel insurance is a matter of some contention. According to a recent survey, about 38% of travelers bought insurance for their vacation, citing reasons that ranged from mistrust of the travel provider to concerns about health issues to habit.

Granted, that is still the majority of travelers, leading to the obvious question: Do you really need it? And, if you decide you do, how should you pick a policy? The short answer is that it depends on variables unique to your trip: destination, length, and your personal situation. Which, of course, just leads to more questions.

In today’s post, we’ll discuss what travel is, how much it costs, where to get it, and what to know before buying it. We’ll also take a look at how to choose it and when to avoid it. So grab that piña colada, a notepad, and a comfy chair … and read on.

What is Travel Insurance?

Simply put, travel insurance is a type of insurance that protects you in case your trip does not go as planned and you need to cover the costs. These can include, but aren’t limited to:

• Hotels
• Airfare
• Transportation
• Tours

Most people never need to use their medical insurance, but if you do, it will likely be in one of the following contexts:

• Medical emergencies, injury, or death
• Natural disasters or evacuations
• Trip cancellations for health or family reasons
• Theft of personal property or baggage loss

How Much Does Travel Insurance Cost?

There is, unfortunately, no one answer to this question, because the cost of your travel insurance is directly related to the costs of your individual trip — duration, destination, level of luxury, and so on.

In general, though, you can expect to pay about 6-7 percent of the total cost of your trip. That means if you’re paying $8,000 for that dream safari for two, you’ll likely have to tack on $480 to $560 to cover insurance.

Factors that may influence the total cost include:

• Your age (the older you are, the more you’ll pay
• Trip destination (especially if the activities or area are dangerous)
• Desired level of coverage

Where Can You Get Travel Insurance?

Although there are any number of vendors through which you can get travel insurance, the most common providers are travel sites, representing 55 percent of policies purchased. Travel agents represented just 17 percent, while marketplace options comprised an additional 13 percent.

Credit card companies may also provide travel insurance benefits, such as covering lost or delayed baggage, rental cars, and trip delays. Calling your credit card provider to learn more is a good first step if you’re considering insurance.

What Should You Know Before Buying It?

So you want to buy insurance. But not all that glitters is gold, so you should always review a policy very carefully before signing on the dotted line.

For instance, many people are surprised to discover that a “family emergency” will often only cover spouses, parents, and children. If your cousin has a medical emergency that requires your help, you may be out of luck no matter how close you are.

Furthermore, some insurance providers may exclude pre-existing medical conditions, some types of natural disasters, or trip cancellations if you could reasonably be expected to foresee them (e.g. the death of a loved one who has been ill for some time).

Finally, check the policy carefully. Make sure it will cover your trip(s), as some providers only cover trips of a certain length. Ascertain how long the policy lasts to avoid it expiring before you’ve used it.

How to Choose Travel Insurance

When choosing insurance, keep the following tips in mind:

• Consider the risks involved in your trip: If it’s low-risk or pretty predictable, your trip may not warrant insurance.
• Know whether you already have medical coverage: Depending on your health insurance, you may already be partially covered for health emergencies abroad.
• Get quotes: Never select the first plan you come across. Always compare benefits from different companies.
• Read the fine print: As discussed above, there’s a lot in the fine print that can make your insurance pointless, so know what you’re getting into.

When to Avoid Travel Insurance

Just because travel insurance is a good idea in some contexts doesn’t mean you always need it. You can safely save the dollars if you:

• Aren’t leaving the country
• Have free cancellation on your reservations
• Have flexible reservations (e.g. Southwest Airlines will let you change to a flight of the same cost for no additional fee)
• Get travel insurance through your credit card

Don’t Spend More Than You Have To

In a perfect world, no one would need travel insurance. Sadly, our world is not perfect, but by following the above tips, you can save as much as possible … and travel for less!