Identification
Travel or trip Insurance covers you in the event of financial loss or hardship related to travel. In exchange for this protection, you pay a sum to the insurance company known as a premium.
Cost
According to the U.S. Travel Insurance Association, as of October 2009 the average cost of trip insurance is 4 to 8 percent of the total cost of your trip.
Causes
The actual amount of travel insurance you need varies based upon the length of your trip, your destination, your age, and the ages of anyone traveling with you.
Benefits
Trip insurance protects you from financial losses associated with cancellation because of an accident or illness or damage to your home due to a disaster, loss of luggage, and automobile accidents that occur while traveling.It also covers hotel expenses due to cancellations or delays in flights or a natural disaster that prevents you from leaving your vacation destination on time, as well as medical or legal expenses you incur while traveling.
Considerations
If you travel frequently, it may be more cost effective to purchase an annual travel insurance policy that covers any trips you take during a year in exchange for monthly, quarterly or annual premiums based upon your age.
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