Concerts can cost big bucks. Can ticket insurance protect your investment?

Ariana Rendon says Kendrick Lamar is one of her favourite rappers of all time. So when he was playing in New York City, where Rendon lives, she had to get a ticket.

But tickets to see big acts like Lamar are expensive. When Rendon got to the online checkout, she saw the option to check a box and add on ticket insurance.

And she went for it.

"It's like when you go out and [are] like, 'let me just bring a jacket just in case I get cold or something.' It's something like that. Just in case you know you have it, so if anything happens, you'll be good," said Rendon.

According to a report by Polstar published in January, the average cost of a concert ticket globally for top-100 touring artists was $135.92 US ($187.79 Cdn), compared to 2015, when the average ticket price was $78 US ($107.77 Cdn).

For example, a floor ticket in Toronto to Beyoncé's Formation tour in 2016 was being resold for $330 on the secondary market. In 2023, that same ticket for her Renaissance tour was being resold for $1,000.

And experts say that has some people making the same move Rendon did so they're not left with empty wallets if they miss the show because of sickness or travel delays.

Shiraz Mawani of Toronto, who buys and resells tickets in his free time, says that if you're travelling to an event, getting the insurance could be worth it.

"Especially flying in that day or getting in that day, things can happen. And so ticket insurance, it does have a purpose. But I feel like it doesn't apply necessarily to everybody," said Mawani.

There are other options for those who can't make it to an event aside from insurance, he says. They could give the ticket to a friend or try to sell the ticket on the secondary market.

Those who remember the Taylor Swift Era's Tour might think of reselling as a lucrative option, but that's not always the case. While Mawani has been able to buy and sell many tickets, he says it's not always a sure thing. And not everyone is comfortable with trying to sell a ticket on their own.

"It can feel overwhelming," said Mawani. "I think that's what the biggest hurdle is for a lot of people. They just don't know where to start."

Finance professor Martin Boyer says it's not surprising people are looking for a little safety when they've paid big bucks for a ticket or two.

And companies want to take advantage of that uncertainty.

"There's a fear there, that you will have lost $3,500, and can you really forgo the cost of a concert to which you did not attend?" said Boyer, who teaches at business school HEC Montreal.

"You're basically stuck with a $3,500 loss and no concert."

Boyer says the other thing companies take advantage of is people's inability to calculate the probability of a catastrophe that would prevent them from going to the event.

"Individuals in general overestimate very rare events," said Boyer. "Catastrophes are exactly what they are: catastrophes. These are one-off. These do not occur often."

A spokesperson for Allianz Global Assistance Canada, an insurance company that works with Ticketmaster, said its ticket coverage is "quite popular," but wouldn't provide an exact percentage of how many customers opt into the product.

"We also see higher opt-in rates when the event is particularly popular, features a major performer, or is a rare or one-time occurrence," said Tayjua Squire in an email.

"These elements increase the perceived value of the ticket — and therefore, the desire to protect it. Additionally, with ongoing uncertainty in the travel and event landscape, many consumers are more inclined to protect their plans and purchases now than ever before."

Boyer says getting coverage for your ticket isn't as cut and dry as people might think. You can't just buy a Beyonce ticket, then decide you don't want to go or aren't feeling it, then get your money back.

While it differs from company to company, there are hoops, and you have to jump through them.

"You need to get a doctor's note saying you really could not go. It needs to be a major illness. If you break your leg, if you have a concussion, or for some medical reason you cannot fly, you cannot drive, you can not travel, then that is covered," said Boyer.

Eve Egan of Las Vegas found that out the hard way. She got tickets for her favourite punk band, Rancid, and even sprung for a VIP booth. Her birthday was coming up, so she wanted to treat herself.

Since she spent about $400 US, she got the insurance through Allianz. In the end, she didn't go. Egan couldn't find people to go with her, so she decided she would prefer to get her money back.

But when she asked, claiming that she was sick and couldn't go, Allianz refused, since she couldn't provide any proof. Egan fought it over the course of a month, and it wasn't easy, but she was able to eventually get her money back.

She says she's learned her lesson.

"I don't buy expensive tickets anymore, but if I was going to I would just make damn sure that I would be able to go," said Egan.

Boyer says that's because ticket coverage is like any other type of insurance.

"Think about it like worker's compensation. You cannot just say, my back hurts, therefore I cannot work. You actually need to go through the process of seeing a doctor, a physician, someone with a professional degree," said Boyer.

For Rendon, the ticket insurance ended up coming in handy. Before the show, she hurt her ankle and needed surgery.

She tried to sell her Kendrick tickets, but with no success. And after looking at some discussion on forums online, she was concerned she might not be able to get her money back.

But, with the help of a note from her doctor, it worked out.

"I think I got an answer within 48 hours. And I got my money back via direct deposit," said Rendon.