Certified Travel Agent Practice Test

Which of the following is a direct benefit of travel insurance for travelers?

1. Lower travel costs

2. Reimbursement in case of trip cancellation

3. Guaranteed travel upgrades

4. Free additional luggage

The correct answer is: Reimbursement in case of trip cancellation

Travel insurance is specifically designed to provide financial protection against various unforeseen events that can disrupt travel plans. One of the primary direct benefits of having travel insurance is reimbursement in case of trip cancellation. If a traveler needs to cancel their trip due to covered reasons, such as illness, injury, or in some cases, severe weather, travel insurance will typically compensate them for non-refundable expenses, such as flights and accommodation costs. This feature is essential as it helps mitigate the financial losses that can occur if plans suddenly change, allowing travelers to feel more secure about their trip investments. In contrast, the other choices do not represent direct benefits of travel insurance. While managing travel costs effectively is always beneficial, lower travel costs is not a direct feature or benefit of travel insurance. Similarly, guaranteed travel upgrades and free additional luggage do not align with the purpose of travel insurance, which focuses on protecting against specific travel-related risks rather than providing perks or discounts.