While the average American spends about $2,400 on vacation, some spend thousands upon thousands of dollars on getaways, according to Travelex. And as people look forward to big vacations this year and in 2022, a vacation can be a significant financial commitment.
So, should you buy? travel insurance and add to your other costs of airfare, hotel, meals and other expenses for your trip? Travel insurance makes sense if you want to protect the money you have set aside for laying on the beach in France or seeing the sights of Tokyo.
According to Squaremouth, a travel insurance provider, the average cost of travel insurance in 2020 was $291. Typically, travel insurance costs 5% to 10% of the total cost of your trip. The money you pay for travel insurance can help offset a financial loss if something unexpected gets in the way of a getaway.
Here are five scenarios where travel insurance can pay off.
Before you can even pack your sunscreen and swimsuit, an unforeseen circumstance can cancel your trip, such as if a tour operator goes bankrupt, you get sick or a family member dies. Travel insurance including: travel cancellation coverage will reimburse the prepaid, non-refundable costs of your trip in such situations.