The first issue to consider is how much money is at risk. A good rule of thumb is be willing to pay 4% or less of the total value of the trip in insurance to cover to the loss. So in the case of your example, if you might lose $9,000 or more, then the insurance is probably a good value relative to the risk. If your loss might only amount to say $5,000, then you are probably better off self-insuring and accepting any loss that might be realized. Remember, insurance companies know how many claims they receive on these kind of policies and price accordingly including their profit. You don't know your personal odds, but intuition could play a part that financial planners can't factor in.