While travel insurance is more popular than ever, many aspects of coverage often get misinterpreted. The nation's leading travel insurance marketplace, Squaremouth, debunks 4 common myths travelers misunderstand when it comes to purchasing travel insurance.

Myth 1: Higher Cost Means Better Coverage
A common misconception is that a higher premium means better coverage. But that's not always the case. In fact, Squaremouth always recommends travelers buy the cheapest available policy that provides the right coverage for their needs. 

This is because providers tailor their 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 trips criteria, and the provider has positive reviews, getting the cheaper coverage is a great way to get trip protection and save money.

Myth 2: You Don't Need Trip Cancellation Coverage
Canceled trips are the most commonly paid out travel insurance claim, and Trip Cancellation coverage can cover up to 100% of your prepaid trip costs. With trip costs averaging up to $10,000 this Summer, it's even more important for travelers with prepaid expenses to protect their financial investment in their trip.

Foregoing Trip Cancellation coverage could set you back considerably should you encounter travel disruptions that prevent you from taking your trip, such as an illness, extreme weather, or delay of a travel carrier.

Myth 3: Travel Insurance Covers Every Medical Emergency
While travel insurance covers many common illnesses and injuries you could experience on your trip, it doesn't cover every medical emergency. Each travel medical insurance plan will have its own set of exclusions, which can be found in the policy details, that outlines what activities or scenarios can't be covered.

Myth 4: You Need Cancel For Any Reason
One of the biggest misconceptions in travel insurance is that Cancel For Any Reason coverage is a must-have benefit. For most travelers, the extra cost of purchasing this coverage outweighs the benefits. While Cancel For Any Reason coverage gives travelers the most flexibility, it adds about 40-50% to the cost of the premium, and only reimburses about 75% of trip costs.

The Cancel For Any Reason benefit is excellent, however, if a traveler has a specific concern that is not already covered under standard Trip Cancellation.

Available Topic Expert: Jenna Hummer is available for comment and interview. [email protected]