Trip cancellation insurance was created in order to protect travelers from financial losses that may occur if you need to cancel your trip. What travelers must realize is that trip cancellation insurance does not protect you if you just decide that you don't want to go anymore. You must have a legitimate excuse to not travel such as an injury, a death in the family, jury duty or a sudden illness. Trip cancellation insurance also protects you against unseen events such as a fire, flood, or other natural disasters. Travel insurance is very smart to purchase if you have a feeling that something may happen or if the price of traveling comes at a high financial amount.