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is trip cancellation insurance on a credit card really worth it?
Question : is trip cancellation insurance on a credit card really worth it?
My credit card wants to charge me 99$ a year to have trip cancellation insurance. We’re planning a trip in 4 months and there is always a chance that something might happen and we wont’ be able to go. But if this was the case, is it that easy for your credit card to just reimburse you like that? If I bought friends airline tickets on my credit card and my friends got sick and couldn’t travel, would I still get reimbursed if I had trip cancellation insurance?
Best answer:
No, it is just wasted money. You can buy it before your trip. But most people are able to go on their trips with no problem. The insurance has lots of loopholes where they don’t have to pay. It is not smart insurance to buy..
Lina, answers to this are always more complicated than they seem. Is there a good reason to believe that you will have to cancel for some reason? Is someone elderly or have a chronic health condition? Do you travel often enough so that its a good deal to pay on a yearly basis? Let’s face it, it can be argued that any insurance is not a good idea becasue insurance companies usually pay out less than they collect in premiums. Wise insurance use means trying to match to your needs. For instance if you travel infrequently and everyone is healthy, chances are low you will have to cancel. At the very least, you can always buy insurance by the trip. This may be a much better deal. To be candid, this insurance is really among the most expensive you can buy. I would only buy it, if I thought there was a very good reason I would use it. I hope this answer helps. Dr. Jon