We do recommend that travelers obtain travel insurance.  You need to understand what you are buying.

It is like auto or homeowner's insurance - you have it in case you need it!

Here is how it works:

Add up the costs you want to insure - tours, flights, extras.

Review different policies to see what they cover and what the limits are.  Look at exclusions, pre-trip cancellation provisions and how far before the trip those start, medical coverage, transportation home if you need it, lost luggage payouts, etc.  Check your credit cards to see if they offer coverage and what it includes.

Know how the policies work.  Most policies require you to pay up front then reimburse you for covered expenses.

If you travel often, consider an annual policy that would cover this trip and all others, even near home or in US, and cost about $500.

Choose the coverage type and limits that you want - just like you would with auto or home.

AIT (our tour company) offers a policy through Travelex (details below).  If you choose this policy, you will pay for it with your final tour payment,  It will not be effective until AIT provides your policy # (usually about a month before the tour) so you will not have pre-tour cancellation benefits. 

You can buy a policy from any company you want to (or not at all but we recommend you have insurance). 

We have had travelers make claims through Travelex and through Allianz. Some were easy and some were difficult, especially when the paperwork wasn't submitted completely.

You will handle claims if necessary so keep all your paperwork, receipts, flight details, etc. well organized..

Articles below may help you decide what to do about insurance.