trip insurance vs refundable ticket

Discussion in 'General Discussion | Travel' started by cotter77, Jun 28, 2011.  |  Print Topic

  1. cotter77
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    cotter77 Silver Member

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    I have to purchase RT tix to rome for my family vacation
    apparently the youngest is starting a new job and is a bit flakey so he could bail on the trip - no health issues or anything.
    am i better off purchasing trip insurance or the refundable fare.
    I am never sure that what you think will be covered will actually be covered in that trip insurance.
     
  2. sobore
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    sobore Gold Member

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    I would lean toward the fully refundable fare. You can get burned with trip insurance unless you take time to review the policy under a microscope.
    The insurance would be cheaper, but may fail in the long run costing you more.
     
  3. MSPeconomist
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    MSPeconomist Gold Member

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    However, some trip insurance policies cover more, such as hotel costs if you're stranded overnight and hotel cancellation penalties. The difference between a TATL airfare and full Y is likely to be several thousand dollars per person, more than the cost of trip insurance.

    I'm not sure trip insurance would cover a situation where a voluntary new job causes the trip to be cancelled. In this case, would only one person cancel or all? The cancel penalty on a TATL coach airfare should be $250-400 AFAIK, so how much is it worth to try to insure against this loss?
     
  4. BurBunny
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    BurBunny Silver Member

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    You'd need to purchase a "cancel for any reason" policy, which is significantly more expensive than other insurance. Some carriers have an included "cancel for work reason" policy, but that usually requires a minimum tenure at the current company before it can be invoked.

    The "cancel for any reason" policies have to be purchased within a very short period of time from your initial payment, usually 7 days or less. Most refund 75% of non-refundable amounts as long as cancelled at least 2 days prior to departure. However, if cancellation is for a covered reason, i.e., medical, then 100% coverage still applies.

    Let me know if you have other questions. A fully refundable fare is likely much easier, but the cost difference may make it worth going with insurance instead. Make sure you go with one of the majors, and do read the "any reason" T&C.
     

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