When booking flights, I’ve never bought an individual travel insurance policy, flight interruption insurance or cancellation coverage.

At most, I may have spent a few extra minutes toggling over the words, “Would you like to protect your trip?” on the second-to-last page of the online checkout form when purchasing airfare.

In the end, I’ve always hedged my bets on whatever guardrails were built into my credit card or group benefit plan.

But after speaking to passengers who’ve lost tens of thousands of dollars on non-refundable excursions and multi-week holidays years in the making, I’m reconsidering.

Their stories reminded me that airfare is often the cheapest part of the trip, and travel insurance extends beyond medical costs and bad weather.

One couple I spoke to on the eve of the Air Canada strike was out of pocket $10,000 for a dream trip to Turkey, including hot air balloon rides, local sightseeing tours and hotels. Another family lost $30,000 on a 50th wedding anniversary trip to Greece.

In the best-case scenario, Canada’s air passenger protection rules may compel an airline to pay a little over $1,000 for certain flight disruptions (though generally not labour disputes).

But where I assumed credit card policies or the extra coverage you buy before checkout might fill the gaps, they don’t.

Most standard travel insurance plans and those that come with your credit card won’t cover labour disputes or airline strikes. On the rare occasion they do, reimbursements hardly cover the full trip cost.

A handful of credit cards, such as the Scotiabank Passport Visa Infinite and the Scotiabank Gold American Express® Card, offer limited coverage for flight disruptions, including labour disputes.

Their coverage in this event includes reimbursement for “sundry or essential items,” such as meals, said bank spokesperson Claire Dawson.

Credit card limits for these types of claims usually peak at about $500–$2,500, according to a look at policies from Ratehub’s list of best credit cards for travel insurance.

Comprehensive individual coverage – bought from a broker or directly through an insurance company – can be tailored to cover both trip cancellations and interruptions, including labour disputes (as long as travellers purchased their policy before a “known date” when the risk of a labour dispute became public).

But it’s often not cheap.

Trip cancellation insurance with labour-dispute coverage typically costs just under 10 per cent of the insured amount, or about $1,000 for a $10,000 trip, said Martin Firestone, a travel insurance specialist with Travel Secure. Trip interruption policies, which kick in once you’re already on holiday, are cheaper but usually cap at a flat $25,000 per person for extra airfare, hotels and missed tours.

To determine whether it’s worth getting this type of coverage, calculate what’s at stake in terms of non-refundable costs, not the cost of the overall trip, said Mr. Firestone.

Ask to insure only what’s truly non-refundable at the time that it’s non-refundable. For example, if $3,000 airfare can be changed for a $600 fee, “it’s the $600 you insure, not the $3,000,” said Mr. Firestone.

He also recommends tracking payment schedules so you can top up once the refundability window for a particular expense comes to a close. If an Airbnb booking only becomes non-refundable 48 hours prior, there’s no point in immediately insuring it as you may decide to cancel 72 hours ahead of the trip.

He advises against “cancel for any reason” policies. These cover nearly any disruption, including an airline strike, but add about 40–60 per cent to the premium and only refund 50–75 per cent of costs, he said.

In reality, people almost always cancel for a legitimate reason like sickness, strikes, or advisories, which are already covered under many cheaper comprehensive policies.

The bottom line: a travel insurance policy that protects passengers in the case of a labour dispute is pricey.

If you have many non-refundable trip expenses, such as pre-paid excursions and small-town hotel accommodations purchased without a flexible booking policy, buying comprehensive coverage to cover those is probably worth it.

If you’re mostly relying on travel services with flexible bookings and wide cancellation windows, a separate policy may not be as urgent.

Has the Air Canada strike changed how you approach travel and travel insurance? Drop me a line at mpostelnyak@globeandmail.com