Trip Insurance in Los Cabos

What kind of coverage do you honestly need? Do you even need trip insurance at all? Take a deep breath and read on.

We believe that comprehensive trip insurance is especially valuable if you're booking a very expensive or complicated trip (particularly to an isolated region) or if you're booking far in advance. But whether you get insurance has more to do with how comfortable you are assuming all that risk yourself.

Comprehensive travel policies typically cover trip-cancellation and interruption, letting you cancel or cut your trip short because of a personal emergency, illness, or, in some cases, acts of terrorism in your destination. Such policies also cover evacuation and medical care. Some also cover you for trip delays because of bad weather or mechanical problems as well as for lost or delayed baggage. Another type of coverage to look for is financial default—that is, when your trip is disrupted because a tour operator, airline, or cruise line goes out of business. Generally you must buy this when you book or shortly thereafter, and it's only available to you if your operator isn't on a list of excluded companies.

If you're going abroad, consider buying medical-only coverage at the very least. Neither Medicare nor some private insurers cover medical expenses anywhere outside the United States (including time aboard a cruise ship, even if it leaves from a U.S. port). Medical-only policies typically reimburse you for medical care (excluding that related to preexisting conditions) and hospitalization abroad, and provide for evacuation. You still have to pay the bills and await reimbursement from the insurer, though.

Expect comprehensive travel insurance policies to cost about 4% to 7% or 8% of the total price of your trip (it's more like 8%-12% if you're over age 70). A medical-only policy may or may not be cheaper than a comprehensive policy. Always read the fine print of your policy to make sure that you are covered for the risks that are of most concern to you.

You can save a bundle on trips to warm-weather destinations by traveling in rainy season. But there's also a chance that a severe storm will disrupt your plans. The solution? Look for hotels and resorts that offer storm/hurricane guarantees. Although they rarely allow refunds, most guarantees do let you rebook later if a storm strikes.