When it pays to buy travel insurance

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When it pays to buy travel insurance
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When it pays to buy travel insurance investinyou (In partnership with acorns.)

When planning your next vacation, those are the first things you look to book. Yet there is one more item you may be missing: travel insurance., it could be a good idea to see what options you have.

"Travel insurance can cost as little as a few dollars per travel day, but can save you a lot if any bad fortune arises on your vacation," said Shannon McMahon, an editor at online travel magazineBefore purchasing any type of trip insurance, take a look at any coverage you may already have. "Across the board, the biggest mistake [people make] is not understanding the coverage," said Megan Moncrief, chief marketing officer ofThe most comprehensive coverage is "cancel for any reason" — as in, if you change your mind — but it comes at a price. Expect to pay about 50% more. Generally, you'll get about 75% of your trip reimbursed.

Another thing to consider is how far in advance you booked the trip. If it is a last-minute vacation, the likelihood of something coming up is slimmer than if you booked it seven months out.Before purchasing medical insurance, check your medical policy to see what coverage, if any, is offered if you travel abroad. For example, Medicare and Medicaid generally do not cover you outside the U.S.

While travel medical insurance covers things that come up on your trip, be aware of any exclusions — if you injure yourself skydiving or bungee jumping, you may not be covered, he said. Also, check the policy's specifics on preexisting conditions.

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