When planning a trip, it is important to consider travel insurance. In some cases, it may not be necessary. For example, taking a road trip over the state line to a casino may not warrant the need for coverage. However, a first-time trip to a foreign country certainly would. To decide whether or not travel insurance is needed, consider the following questions.

1. Is the destination relatively safe or somewhat dangerous?

Finding out the answer to this question is fairly easy. Do some research on the chosen destination. If the area is unsafe, travel insurance is a must. Most plans cover vandalism, theft, return travel home and issues related to terrorism. Although many people still travel to Mexico, only a portion of them purchase enough travel coverage. The entire country is usually in turmoil, so it is important to have international coverage. Not all safety issues are related to possible violence. For example, a ski trip is probably more dangerous than relaxing on the beach. Medical coverage and any other emergency services needed on a ski trip would be covered.

2. Do any travel arrangements need to be paid in advance?

In most cases, the answer is yes. The days of reserving a seat on a plane and paying at the counter are long gone. However, most hotels and rental car companies allow payment upon arrival. There is usually a charge if the customer cancels after a specific time period. If any trip includes a flight, it is best to purchase travel insurance. In addition to compensating for lost or stolen baggage, the policy will cover cancelled flights. Airlines will put passengers on another future flight, but they rarely pay for tickets on another airline. Keep in mind that not all flight cancellations or delays are related to weather. Some may be due to plane damage or other problems with a specific airline. Travel insurance will cover flights on another airline. This is especially beneficial for passengers who are traveling to an event. Travel insurance is also essential for cruise passengers.

3. Is travel frequent or occasional?

Since multiple trips raise the probability of something happening, frequent travelers should not leave home without insurance. If travel is for business purposes, insurance is especially important. Business travelers should carefully examine their employers' insurance policies. Unfortunately, most employer-paid benefits are very limited. There are special types of travel insurance policies for frequent leisure travelers and frequent business travelers.

The best way to determine if this coverage is necessary is to consider the total cost of the trip. If a significant amount of money is involved in booking and planning, travel insurance is beneficial. People who are on a budget and save for a yearly vacation may find that unexpected expenses exceed the amount they allotted. The cost of a decent travel policy is very affordable, so it is good to compare insurance against the total cost of the trip. Be sure to compare quotes from several leading companies before making a decision. It is also important to understand what each company covers.

Ben Duke is a guest writer for Kanetix credit section. Check it out to learn more about credit cards in Canada and to find the best suited for you and your traveling needs.