Do I Need Trip Cancellation Insurance for an All-Inclusive Resort?

These days, it’s convenient and common to click a box indicating you wish to have trip cancellation insurance when paying for your resort. However, depending on how much you’ve saved and are spending on this vacation, it may or may not be worth adding on. Basic trip cancellation insurance usually covers lost luggage, reimbursements for prepaid deposits, and sometimes non-refundable portions, should you need to cancel your trip due to illness, injury, or emergencies. It’s important to reflect and then decide if trip cancellation insurance is necessary for you.

Start by asking yourself: “Am I the type of person who won’t let anything stop me from following through with a decision that’s been made, for example, a vacation that’s been booked and paid for? Or am I the type of person who’s prone to accidents and letting emergencies take priority over my vacation, sometimes at the last minute? Is the amount of money I’m going to invest in this vacation significant enough to insure, or can I walk away from it if needs be?”.

When You May Need It

You may want trip cancellation insurance if your pre-paid deposit and total resort fee are a large enough amount in which you’d feel uncomfortable losing. We tend to view vacations as a financial investment. Let’s say you’ve invested quite a lot into your all-inclusive resort. You’ll probably want that amount given back to you, should an emergency arise. Trip cancellation insurance often allows travelers to feel at ease prior to their vacation, knowing they will be covered and can get their prepaid deposits back. If you’ve already spent a large amount on your upcoming vacation, then the amount most trip cancellation insurances cost will only be a small dent in comparison, and could end up saving you in the long run!

If you’ve saved money by booking your all-inclusive resort during an off season, such as hurricane season, then you may want to buy trip cancellation insurance. It would be a shame not to take that much needed break due to inclement weather, but it could be even worse if the money you’ve already spent was completely wasted. Trip cancellation insurance often covers travelers that had to cancel their trip due to natural disasters, both domestic and in the areas they were traveling to. If you can’t get to your vacation, then why pay for it?

You may consider trip cancellation insurance if you’re booking your trip far in advance. It’s hard to predict the future. We’d like to think that nothing would happen to keep us from experiencing that “trip of a lifetime”, but sadly, accidents and emergencies can occur when we least expect them. If you’re booking your resort several months in advance, we highly recommend that you include trip cancellation insurance on your packing list, and in your budget. The earlier you buy a plan, the longer you’re being covered, and therefore, the more value you’re getting out of purchasing the insurance.

When It’s Not Always Necessary

You may not need trip cancellation insurance if your credit card already provides it. You already have your credit card out and ready to use for booking your resort. Why not call the credit card company, or look online in the fine print, to see if trip cancellation insurance is already something they offer? It wouldn’t make sense to pay for it twice, would it? Several major, well-known credit cards offer trip cancellation insurance as a perk for their customers.

If you have booked your vacation at the last minute, or found an already ridiculously great deal on either airfare and/or the resort itself, paying for the added protection may not be worth it. We like to think of every vacation as a financial investment. Consider if the amount you’ve spent towards your vacation is worth insuring or not. If you’ve already found a great price on your trip, it may not be worth the extra cost to insure an amount you’re comfortable risking already.

If your resort is domestic, you may not need trip cancellation insurance, which sometimes includes medical coverage. Your health insurance should already keep you covered within your domestic country, allowing you to avoid this additional and unnecessary fee. When you leave the country, however, your health insurance doesn’t always travel with you. Be sure to call your insurance provider to find out when and where you’ll be covered. If you are accident prone, or just want to be on the safe side while traveling abroad, then you may consider buying travel medical insurance. This often covers medical emergencies and evacuation coverage, though it may leave out cancellation insurance.

In Summary

Remember, buying trip cancellation insurance comes down to one main factor. Is the price you paid large enough that you’d be hurt to lose it, or is it small enough that it could be sacrificed? A good rule of thumb is that if you can afford to lose the money, skip the insurance. As always, go with your gut.

Our All-Inclusive Resort Search may provide results of resorts that offer a free cancellation policy. When you’ve picked your resort, make sure to read their cancellation policies carefully before booking.