Originally Posted by
cordelli
Is it worth it? No insurance is worth it if you don't ever use it, and if you need it, then it's totally a great deal. But over time you need to figure what all these premiums add up for things like cancelation and luggage protection and if it's worth it for you to keep paying for it. Medical is a totally different issue, one claim can easily pass all the premimus you have paid over the years, but baggage protection becomes a dollar loss at some point to keep buying it[/LIST]
On the is it worth it perspective:
Insurance sellers are in the business to make money, so from a financial perspective insurance is potentially worth it when:
-The cost of a claim is large enough to make an impact to your savings/wealth. For most people travelling, only medical/evacuation coverage meets this. A new ticket home or replacement luggage and clothes isn't cheap, but isn't enough to throw off your retirement savings.
-You are a bigger risk than the insurance company estimates. This is true if you are going to some relatively risky location that they might not be using to price your policy or engaging in risky activities. This is also true for cancellation policies if you know you have a high probability of cancellation. It might also be that you find yourself a particularly attractive target of theft or the like.
You might buy coverage that doesn't meet the above, but then really you are buying peace of mind rather than a good deal.