Five myths about travel insurance

Machines clear snow off the tarmac at LaGuardia Airport in New York on Jan. 27, 2015. (Photo: Seth Wenig, AP)

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Many travelers think that travel insurance is as essential to their trip as a passport and sunscreen. Others see it as a needless expense. You can make up your own mind after reading these five myths about travel insurance.

1. I don't need travel insurance, I have health and homeowners insurance as well as credit cards that offer protection.

You may think you're locked and loaded, but you're not, says Lisa Leavitt of ActiveTravels.com. a Newton, Mass.-based Virtuoso travel agency. Travel insurance in its basic form usually provides trip cancellation, trip interruption, lost luggage, travel assistance, accidental death and limited medical evacuation benefits.

Health insurance policies, on the other hand, differ greatly and "your health insurance likely has lower benefits and deductibles when you use a doctor out-of-network," says Leavitt. "Travel insurance will pay for a doctor anywhere around the globe if you fall ill or get injured while on vacation."

Besides, it's not all about you.

"One thing people don't realize is that travel insurance will cover a canceled or interrupted trip due to the death, illness or injury of an immediate family member at home before or during your trip," Leavitt adds.

Travelers who have homeowners or renters insurance will find that such policies offer some protection but Leavitt says that "it can only go so far. If you land at your Caribbean resort and your suitcase is still flying to some unknown locale, some travel insurance companies will help you track down your luggage if you call their hotline."

Let's assume you've also just flown in from a Minneapolis winter.

"You'll need a bathing suit and some decent clothes to wear around the resort until your suitcase is found and returned to you," Leavitt says. Travel insurance can reimburse you for purchasing clothing in the event this happens, as long as you keep those receipts for your purchases, something a homeowner's insurance policy won't do.

Finally, while many travelers believe that their credit cards will cover emergencies when they're on the road, it's not that easy. Leavitt notes that for any card to cover you, "you have to pay for your travel expenses with that same credit card to be entitled to any coverage. But chances are that your credit card won't protect you in case of travel delays, trip cancellations or emergency medical coverage overseas. Even if they do, it's likely very limited coverage. Call your credit company to find out just what they will cover."