For some trips, travel insurance is smart

The cost of travel insurance depends on the age of the traveler, the type of coverage, and the cost and length of the trip. The typical cost is 4 to 8 percent of the trip cost. And it can help.

One in eight adults had their travel affected by natural disasters or world events during the period covered in a survey by the U.S. Travel Insurance Association. Only 29 percent of those people had travel insurance that would cover some of their costs and provide other kinds of assistance.

Any trip can be jeopardized by illness or other circumstances, but travel experts say that insurance makes the most sense for trips overseas, cruises, and stays at vacation rental properties. USTIA offers these examples:

You have to cancel or cut your trip short because of illness or an accident.

Your flight is delayed and you miss your cruise departure.

You need medical assistance while abroad.

You have an auto accident in a foreign country and need legal assistance.

You can’t get home because of a hurricane, flood or other natural disaster at your destination.

Travel insurance can reimburse you for expenses incurred when a trip is interrupted or delayed by unforeseen events. It can also provide medical, legal and evacuation assistance.

The American Society of Travel Agents says the most common forms of travel insurance are:

Trip Cancellation — covers nonrefundable payments and deposits if a trip is canceled for unforeseen reasons.

Trip Delay — reimburses you for expenses incurred when a trip is delayed.

Accident and Sickness Medical Expenses — covers costs due to injury or illness on a trip. Some health insurance policies do not cover medical expenses incurred in foreign countries.

Medical Evacuation and Transportation — pays for transport to a medical facility.

Supplier Default — covers deposits and payments lost when a travel provider defaults on its obligation to provide service.

Baggage and Personal Effects Loss or Delay — covers losses due to items lost, damaged, or delayed during a trip that are not reimbursed by the travel provider.

Travel experts and the Better Business Bureau say whether you buy travel insurance could depend on several factors.

Check the coverages provided by your homeowner’s, auto, health and other insurance policies before buying travel insurance to ensure that you don’t duplicate coverages. Some credit card companies provide various kinds of insurance if you purchase your travel services using their card.

Read the fine print to know exactly what’s covered and what isn’t. Travel insurance policies spell out “named perils” that are covered. Some common causes of travel delays such as bad weather and mechanical problems may not be covered.

Understand that most medical-related policies have a pre-existing condition exclusion. You won’t be covered for emergencies that result from an illness or injury you had prior to traveling. You may be able to buy additional coverage for such conditions.

While many travel providers offer their own policies, you should consider buying one from a thirdparty insurer. A policy sold by a tour operator or other travel provider won’t protect you if it goes bankrupt.

If you’re taking along expensive electronic equipment or other valuables, consider buying additional insurance to cover them. A floater or endorsement on your homeowner’s policy may be the least expensive way to get this coverage. Randy Hutchinson is president and chief executive officer of the Better Business Bureau of the Mid-South.