Warning! These travel insurance mistakes could ruin your next trip

If you're about to book a trip, you need to know about a few travel insurance mistakes that could ruin everything.

People are making more errors than ever, thanks to their frenetic travel schedules.

Over the next five years, analysts at Industry Research expect travel insurance sales to grow at a rate of 6.5 percent annually. That's a lot of potential mistakes.

"It's essential to carefully assess your travel insurance needs," says Robert Gallagher, president of the US Travel Insurance Association . "Understand the specific coverage details and consider how they align with your travel concerns and destinations. Properly chosen travel insurance can save you from significant financial and emotional stress, ensuring that you can focus on enjoying your journey."

The misconceptions range from the seemingly obvious -- from a mistaken belief that insurance covers anything that happens to you when you travel, to the assumption that your credit card coverage is as good as a policy.

But believe any of them and you could find yourself in serious trouble.

First, though, let's define our terms. Most travel insurance isn't insurance.?

"Technically speaking, it's travel protection," says Clay Coomer, global head of marketing at battleface . "The policy you're buying also includes non-insurance assistance services." Those can include concierge services or translation services.?

He makes an important point. Travel insurance is a complex product with many variations, and that's probably why there are so many myths about travel insurance. Here are the worst errors: -- and here's the truth.

Error 1: Assuming travel insurance only covers you if you cancel your trip

Not true, says Beth Godlin, president of Aon Affinity Travel Practice . "While you may think that once you board your plane, nothing can go wrong, that’s just not the case," she says. "There are still risks to your trip and your investment even once you’ve embarked on your vacation." For example, some travel protection plans protect you when you lose your luggage, experience a flight delay because of a weather mishap or come down with an unexpected illness that forces you to return early.

Error 2: Believing travel insurance covers all medical events that happen to you when you're traveling

This is a big one, because people don't always play it safe when they travel. “Travelers are seeking more adventure in more remote destinations," says Dan Richards, CEO of the Global Rescue Companies . Activities like rock climbing, scuba diving and backcountry skiing are excluded from many travel insurance policies. Bottom line: You're not covered for everything. But you can often buy additional coverage at an extra cost.

Error 3: Assuming that once you decline the option to buy insurance on an airline's or hotel's website, you can no longer purchase it

In fact, you can purchase travel insurance with trip cancellation coverage right up until your departure date. "Even for those travelers not considering trip cancellation, a last minute travel insurance plan can still provide trip interruption coverage, emergency medical, travel delay, baggage loss, and emergency medical evacuation coverage during the trip," says Stan Sandberg, co-founder TravelInsurance.com .

Error 4: Thinking your credit card offers enough insurance coverage for your trip

Nope, says Neville Mehra, cofounder of the nomad insurance site Genki . "That's a common myth," he says. "If you dig into the details of your credit card coverage, you'll see that there are often significant restrictions and exclusions, especially related to the health insurance portion." For example, there are typically limits on medical costs as well as on the length of the trip or the time that one can stay in a given country. Also, credit cards may exclude certain medical conditions and some high-risk activities.

Error 5: Thinking it's better to buy travel insurance the day before you leave

"That's a popular myth," says Daniel Durazo, director of external communications at Allianz Partners USA . "Actually, the opposite is true." If you buy travel insurance when you book your trip, you will get the maximum period of coverage, and may qualify for coverage for pre-existing medical conditions. If you wait until the day before you leave, you may not get that important coverage." The myth of timing is one of the most widespread, says Chris Carnicelli, CEO of Generali Global Assistance . "While you can buy a plan the day before departure, it’s critical to purchase early to maximize your benefits," he adds. "That's especially true for weather-related incidents or pre-existing medical conditions. Waiting until a storm is forecast -- or worse, named -- will limit your coverage options." So while it's possible to purchase a policy, you'll get more from it if you buy at the time of your booking.

Error 6: Believing a more expensive travel insurance policy is better

"That's a common misconception," says Jenna Hummer, a spokeswoman for Squaremouth . "A higher premium doesn't necessarily mean better coverage." Why not? Insurance providers tailor plans and prices toward their target customer. So, in some situations, policies with identical coverage differ widely on price. As long as a policy meets your criteria, and the provider has positive reviews, you can shop for the lowest price.

Error 7: Assuming travel insurance covers anything bad that can happen on my trip

This is one of the most common travel insurance myths. Travelers fail to read the fine print and believe they're covered for anything that happens when they travel. "In reality, travel insurance is just a title given to coverage of perils listed in the policy," says John Cook, president of QuoteWright.com . One common question is about elderly family members who aren't traveling and who are in fragile health. Will the policy cover them if they die before the travel date? Cook says you can't assume anything; always check the policy to see if an event will be covered by travel insurance.

Error 8: Believing it's better to buy insurance directly from the company you're traveling with

That's not necessarily true, says Maria Laduca, a travel agency owner. "When you buy insurance directly from a cruise line or tour operator, it's important to know that you’re typically only reimbursed if you cancel for a covered reason, as defined in the policy. If you need to cancel for any reason that’s not covered, the insurance usually covers a percentage of your costs, with the rest often issued as a future travel credit rather than a cash refund," she says. In other words, you don't get your money back if you file a claim -- only a credit. To avoid this, Laduca recommends buying a third-party insurance policy. "These often offer more flexibility, and in most cases, if you cancel, you’ll receive a refund in the form of a check instead of being tied to future travel with the same brand," she adds.

Error 9: Thinking you don't need travel insurance for a domestic trip

This travel insurance myth is particularly dangerous because, in fact, travel insurance can reimburse you for prepaid nonrefundable expenses and can cover health care expenses as long as you're more than 50 miles from home. "Travel insurance is not a waste of money, even when you're traveling domestically," says Misty Spittler, who runs the website Insurance Claim Academy . For example, on a recent domestic trip, Spittler's insurance reimbursed her for basic necessities after her airline lost her luggage. "For any trip, domestic or international, it’s worth considering a basic travel insurance plan," she adds.

Error 10: Skipping medical insurance

Some policies or credit cards offer slimmed-down medical coverage or none at all. But you should not depend on that type, says Jeremy Murchland, president of Seven Corners Travel Insurance . "We hear variations of this myth way too often," he says. "People say they don’t need travel medical insurance because their destination has universal health care. Or ‘I don’t need travel medical insurance because I have good health insurance already.’ The truth is that, if you’re traveling overseas, you really do need travel medical insurance. Your domestic health insurance typically doesn’t cover you after you’ve left the U.S. Even countries that have universal health care can’t guarantee that you’ll get free treatment.?

But perhaps the biggest myth of all is that travel insurance is an unnecessary purchase. "Many people think travel insurance is too expensive," says Joe Cronin, CEO of International Citizens Insurance .?

"Travel insurance is much more affordable than most people realize," he adds. In some cases, it can cost just $1 a day to insure your trip. That's a small amount to pay for peace of mind.

As you prepare for your holiday trips, don't forget to carefully assess your travel insurance needs. Evaluate different policies, understand the specific coverage details and consider how they align with your travel concerns and destinations. Properly chosen travel insurance can save you from significant financial and emotional stress, ensuring that you can focus on enjoying your journey. (Here's my free guide to buying travel insurance .)

Remember, when it comes to travel insurance, ignorance isn't bliss -- it's just expensive. So before you jet off into the sunset, make sure you're not carrying any of these costly myths in your mental baggage. After all, the only thing worse than a ruined vacation is a ruined vacation you could have prevented.

Christopher Elliott is the founder of Elliott Advocacy , a 501(c)(3) nonprofit organization that empowers consumers to solve their problems and helps those who can't. He's the author of numerous books on consumer advocacy and writes three nationally syndicated columns. He also publishes the Elliott Report , a news site for consumers, and Elliott Confidential , a critically acclaimed newsletter about customer service. If you have a consumer problem you can't solve, contact him directly through his advocacy website . You can also follow him on Twitter , Facebook , and LinkedIn , or sign up for his daily newsletter .?

This story originally appeared in the Elliott Report under the headline, Warning! These travel insurance mistakes could ruin your next trip .