Travel insurance is one of those topics that have caused a lot of controversy among travelers over the years. Some swear by it while others think it is simply a waste of money. Let’s explore both sides of the coin.

When you’re planning your holiday, your travel agent may suggest purchasing travel insurance. This may or may not appeal to you and there will most likely be an additional expense incurred if you choose to take the option. It’s important to ask yourself if travel insurance is something you actually need and not just a useless item to placate your traveling anxiety. Also, remember that travel agents receive commissions on selling insurance so be sure to ask a lot of questions.

The most important step is to find out what the insurance does and does not cover. There are many plans out there so be sure to find one that will suit your needs without going over the top. For example, if you plan to travel to Tokyo for business, chances are that you will not need insurance to cover adventure activities such as skydiving or bungee jumping. If you are considering jumping out of a plane or going scuba diving, read the fine print on the policy because many plans will exclude these dangerous activities.

What does traveler’s insurance cover? It depends on the policy of course, but some benefits include covering unforeseen mishaps such as lost or stolen luggage or traveller’s cheques. Medical expenses are always a big factor when looking at insurance and some also include coverage for personal and legal liability.

Before making the final decision, check your personal health insurance policy as you may already be covered. Remote areas may not have medical services covered under private insurance so be sure to check that out, as well.