Travel insurance can help save your summer vacation from disaster

With spring in full bloom, many are making summer travel plans and paying lots of money for flights, hotels and excursions but many wonder if travel insurance is a worthwhile purchase, too.

The last thing most people think about when they’re excited about planning a vacation is the possibility they will need to cancel it, but there are many reasons a cancelation could happen, most of which cannot be controlled.

Two weeks before Paulette Mann and her family planned to take a ski trip, she tore her knee and had to have surgery. The injury forced her to cancel her vacation.

“The first thing I thought was, ‘Oh my god, I have travel insurance,” she said.

Paulette had prepaid everything from airfare, hotel, ski lifts, rentals and excursions. She also paid 10 percent of the trip’s cost to her insurance company for a premium policy, which allowed her to cancel for any reason.

“I think the insurance company probably paid back about 80 to 90 percent,” Mann said.

Generally, travelers can purchase three types of policies, including basic, mid-level and premium, with coverage and prices increasing accordingly.

“It’s really important that consumers read the policy carefully so they understand exactly what is and isn’t covered,” Consumer Reports Business editor Margot Gilman said.

For example, travelers should note when the policy offers a waiver for pre-existing medical conditions, provides healthcare coverage or covers medical evacuations for more adventurous trips.

Travel agents may have preferred relationships with only a couple of insurance providers. Instead, travelers should use comparison websites, like InsureMyTrip.com and SquareMouth.com. Each sells more than 100 policies from a variety of companies.

As Mann knows, travelers should stick to insurance that covers potentially bigger losses.

“It makes you feel like you’re not at risk for losing a whole chunk of change. Absolutely gives you peace of mind,” she said.

Travelers can call insurance websites to have a representative explain coverage and help determine how much is needed. Many credit card companies also offer travel insurance, so it’s good to check with them as well.