Last winter, my husband and I took the trip of a lifetime – we headed to Patagonia, Chile, for a white water rafting trip.  We were supposed to fly back after ten days in the wilderness, so we packed up our wet, dirty clothes, headed to the airport  . . . and ended up spending another week in Chile.

Why?  Well, perhaps you heard tell of the giant earthquake that hit Santiago last February; at 8.8 on the Richter scale, it was the biggest quake in the world for the past several decades.

Some might have thought that it would be fun to stay in South America for an unplanned week – and, in a way, it was.  But it would have been a lot more fun if we hadn’t been so worried about money.

Yep, you guessed it.  We hadn’t purchased travel insurance.

At the time we booked our trip, travel insurance seemed like an unnecessary extra expense.  After all, ten days in Chile don’t come cheap.  But after the terremoto, we realized that a few hundred bucks spent in advance would have saved us a couple of thousand on the back end.

Considering travel insurance?  There are advantages and disadvantages.  Here’s what to weigh into your travel budget equation:

Are you traveling to a dangerous part of the world? If so, consider buying insurance that allows you to cancel your trip in the event of unrest.  For example, if a coup or terrorist attack occurs in the week or two before your trip, your insurance policy should allow you to cancel.

Have you been experiencing health problems? Buy insurance that lets you cancel if you have a health emergency (or if a close family member does); also consider insurance that goes beyond your health insurance policy in terms of giving you access to health care at your destination. 

Is it hurricane season? Buy insurance that reimburses you for your trip if your destination is affected by a natural disaster, prevents you from getting there, or cuts your vacation short (or, in the case of our Chilean adventure, extends it).

Is this the trip of a lifetime? If so, it was probably expensive.  Consider the cost of your trip when deciding whether to invest in travel insurance; for a big financial outlay, the extra cost of insurance will be well worth it. 

Are you more concerned that you won’t be happy with your trip than you are that something will happen to run it off course?  Keep in mind that some hotel chains, like Hilton’s Homewood Suites, offer their own form of travel insurance.  For example, Homewood’s Suite Assurance guarantee promises that you will be completely satisfied with your suite . . . or your night’s stay is free.  Now, that’s the kind of insurance that everyone thinks is worthwhile!