When Is Travel Insurance Necessary?
Anna asks how Dave feels about travel insurance when booking trips through sites like Expedia. Dave generally recommends it in expensive situations.
QUESTION: Anna on Twitter asks how Dave feels about travel insurance when booking trips through sites like Expedia. Dave generally recommends it in expensive situations.
ANSWER: I only buy travel insurance on extremely expensive vacations. You don’t want to have the death of a loved one or a personal illness or something interrupt that trip and you lose that huge chunk of money. So in those cases, I actually do buy travel insurance. I have the ability financially to self-insure for those things. But it’s not that expensive, and I pick it up. Booking a basic flight, I don’t fool with that. But if there’s a big, hairy deal, it’s a matter of ratios in your life. What is a lot of money to you? If a $3,000 cruise is a lot of money to you, then yeah, you probably ought to do that. If a $200 Southwest flight is a lot of money to you, then you probably shouldn’t be booking the flight. So you don’t need travel insurance on that kind of junk. But when I’m sinking some serious bucks in a trip, I have often bought travel insurance.