Among the many boxes you tick when buying a travel ticket, you might encounter an option to buy travel insurance. It usually costs just a few dollars and claims it’ll protect you if you need to cancel your trip. But unless you’re taking an expensive trip, it may not be worth paying extra for this coverage.
For one, it’s more cost-effective to buy your own travel insurance than to buy it as an add-on to a ticket. If you have a rewards credit card, it’s more than likely that your card—as long as you use it to reserve your ticket—comes with enough protection to cover you if you need to cancel your trip and have nonrefundable tickets. If you change your mind at the last minute, you’ll miss out on a refund either way. But if you get sick and need to cancel your trip, your credit card will probably reimburse you for tickets for which you can’t get a credit.
If you’re traveling internationally or are embarking on a trip of a lifetime, take note: If you don’t have medical insurance that works internationally, the coverage you’ll get from a travel insurance policy will be a huge help and will cover more causes and effects than your credit card. But, as always, do a little price comparison first, and don’t just check the box on the airline or tour company’s booking website just because you feel like you’re supposed to buy it.