It can protect against unforeseen events that may cause you to cancel your travel plans.
It may reimburse nonrefundable pre-payments and/or deposits.
It may cover emergency medical expenses if the you purchase a more comprehensive plan.
It may cover miscellaneous expenses caused by travel delays, such as transportation and lodging expenses or, if baggage is delayed, the purchase of essential items.
It can also protect against lost, stolen or damaged baggage.
It typically costs 5 to 7 percent of the total trip cost.