After booking airfare and locking down your accommodations for that big trip, spending money on travel insurance is probably the last thing you want to do. But the additional expense of purchasing a policy could save you big time in certain circumstances, and depending on the details of your trip, it’s borderline financially irresponsible not to pick up some coverage.
CNBC Select explains what travel insurance covers, when it makes sense to get a policy, and what alternatives to explore if you want some protection without purchasing insurance.
What is travel insurance and what does it cover?
Travel insurance is a type of coverage designed to protect against risks and financial losses before and during your trip. These risks often include unforeseen events such as missed airline connections, delayed luggage, injuries or minor illnesses. The typical price of a travel insurance policy is between 4% – 10% of your prepaid,