Travel Insurance

Once my daughter got sick with an awful virus in Spain just a day before our return to Canada. There was no way she could have made the journey home without the help of a local clinic. It was a very close call. With no insurance its could of cost us thousands if we had to stay and missed our flight home.

We've many near misses over the years, and the experiences have taught me one thing: If you can't afford a last-minute change of plans, travel insurance is a important investment.

What insurance covers

Travel policies typically include most of the following coverage's:

Trip cancellation and interruption. If an emergency occurs right before or during your vacation, this coverage will pay for losses from non-refundable airline tickets, tour deposits and cruise, etc.

Trip delays. If you get sick in transit, miss a flight, etc., the insurance company pays your extra hotel and travel expenses.

Medical expenses. When you're hit with a doctor, hospital, or dental bill overseas, the insurance company will pay instead of making you pay cash and will seek reimbursement from your medical insurer at home.

Emergency medical transportation. If you have a heart attack or break your leg on the North Cape of Norway, the insurance company will pay for medevac flights, ambulances,  etc. In many cases, it will also pay for your flight home.

Lost or damaged baggage. The insurance company pays you the full value of your missing baggage (unlike airlines, which have limited liability). In most cases, the company will also pay for "essential items" (such as toiletries and clothing) purchased while waiting for delayed bags to arrive.

Also, some "but not all" policies cover:

Civil unrest or Terrorism. If you're unable or afraid to visit a country where rioting, bombing,  etc. has occurred, the insurer will refund the cost of your trip cancellation. Note: At least one company has stopped issuing such coverage in the wake of the September, 2001 attacks on New York and Washington, D.C., so check policy terms carefully before you buy.

Default by a travel provider. If your travel agent, tour company, or airline goes bankrupt and you can't get your money back, the insurance company will provide a refund.