Trip cancellation insurance it is the kind of insurance you consider your taking a long trip that has cost you a fair amount of money.  While most airlines will allow you to change your ticket to a later date, you will pay a fee for doing so.  Right now it's around $100 to make a change to your reservation, so trip cancellation insurance could save you that $100. If you're bringing along your family of let's say three or four people, that fee from the airlines could start adding up to substantial money.

Trip cancellation insurance will also help offset the cost if you have already paid for your hotel stay. Some resorts make you pay up front especially if you're getting a good deal, and if you can't make the trip for one reason or another the trip cancellation insurance will mitigate your losses.

If the trip you are taking does not involve air fare, prepaid hotels, or a prepaid rental cars, you may not need trip cancellation insurance but if you are out of pocket on a substantial amount of money for your scheduled trip, seriously consider trip cancellation insurance.