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Caleb Should Not Buy Travel Insurance

I’ve read a lot of info on your website and find it very useful. I think I have confused myself, though. I question whether or not we need trip insurance. My wife and I are looking to book a trip to Cancun for September 5-10. My chief concern is the possibility of a hurricane. If there is a genuine threat of a tropical storm/hurricane, we would likely want to cancel our trip as a precaution. Here are some details:

Hotel: The bill will be $1,274 plus $44 in transfers to/from airport. I have the option of paying the full bill at time of reservation, paying in installments, or paying at the hotel when we arrive. The only definite”non-refundable” portion is the first night’s stay (~$255), if we cancel less than 7 days prior to arrival. If we cancel before that, we get a full refund.

Flight: I am using credit card points to pay for most of the flight, which I know isn’t insurable. I will only have to pay ~$25 after all my points are applied. What I am concerned about is the cancellation fee. If I am understanding the airline correctly, cancellation fees would be $150 per passenger ($300 total for us). My credit card also charges a $50 fee to “restock” the points.

Ages: 31 (Me) and 30 (Her)
State of residence: Kentucky

Is a travel insurance policy right for us? If so, I am assuming I would insure the one night hotel cost and the cancellation cost of the flight for the airline and the credit card company? You guys seem like you don’t sell insurance to “suckers” who don’t need it, so if I truly need coverage, I will look to get it from you. Thanks for your time.

Caleb B.

Hi Caleb,

Thank you for your kind words.

> My chief concern is the possibility of a hurricane. If there is a genuine threat of a tropical storm/hurricane, we would likely want to cancel our trip as a precaution.

Due to the complexities of how trip cancellation travel insurance works, I cannot recommend you buy a plan for the trip cancellation benefits.

The reason I told Caleb not to buy travel insurance is that there are not any plans that guarantee Caleb will get all his money back if he filed a claim. In addition, he would still have had to pay for the insurance which, in my opinion, would be a waste of money.

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