What Is Travel Insurance? All You Need to Know About a Travel Insurance Policy

Shawn Plummer

CEO, The Annuity Expert

When planning a vacation, the last thing you want to worry about is getting sick or injured and spending your hard-earned money on medical expenses abroad. That’s where travel insurance comes in.

Travel insurance is a type of insurance that covers you while you are traveling. It can help protect you from unexpected costs if something goes wrong while you’re away from home. This guide will discuss what travel insurance is and why it is essential when you’re going on a trip. We will also look at the travel insurance policies available to choose the one that best meets your needs.

Table Of Contents
  1. What Is Travel Insurance Coverage?
  2. What Is Not Covered by Travel Insurance?
  3. Which Travel Insurance Is Best?
  4. What Is the Travel Insurance Cost?
  5. What Are the Travel Coverage Types?
  6. What Are the Typical Insurance Services?
  7. The Best Travel Insurance Companies
  8. Next Steps
  9. Travel Insurance Quotes
  10. Frequently Asked Questions

What Is Travel Insurance Coverage?

What does travel insurance cover? Travel insurance protects clients on an upcoming trip against unexpected medical events that can happen during a trip.

Here’s what typical travel insurance reimburses:

  • Trip Cancellation, Interruption, or Delay: This helps recover your prepaid non-refundable expenses if you cancel your trip for covered reasons.
  • Baggage and Personal Effects Coverage: This pays for lost, stolen, or damaged bags and personal items.
  • Emergency Medical Coverage: Arguably, the most crucial aspect is international travel health insurance or travel insurance for medical situations, covering the medical costs if you get sick or injured during your trip.
  • Emergency Medical Evacuation: This pays for you to be transported to a suitable medical facility in case of a health crisis.
What Is Trip Insurance

What Is Not Covered by Travel Insurance?

Travel insurance coverage doesn’t include everything. Common exclusions include situations arising from pre-existing medical conditions, extreme sports injuries, or incidents related to alcohol or drug use. Always read the fine print of your policy.

Which Travel Insurance Is Best?

The ‘best’ travel insurance largely depends on your specific needs. When you compare travel insurance, consider your trip’s nature, health status, and risk tolerance. Reading travel insurance reviews from other customers and professional reviewers can provide invaluable insights.

These are the most common types of travel insurance:

What Is the Travel Insurance Cost?

Travel insurance costs can vary on several factors, and the rates change constantly. Travel insurance costs typically range from 10% of your total prepaid, non-refundable trip cost. So, for instance, if you’ve spent $5,000 on your vacation, a policy will likely cost between $200 to $500, depending on coverage levels and specific policy terms.

Some of the factors taken into consideration when counting the travel insurance cost are:

  • Trip Length (weekly, monthly, and annual plan)
  • Traveler Ages
  • Traveler’s Gender
  • Total Trip Cost
  • Deductible Amount
  • Coverage Levels
  • Medical Coverage Amount
  • Rental Car Coverage
  • Adventure activities (bungee jumping, sky diving, scuba diving)

What Are the Travel Coverage Types?

There are two primary types of travel insurance policies:

Travel Insurance for USA (Domestic Trips)

Whether you’re heading to the beaches of California or the bustling streets of New York, traveling insurance within the USA covers trip cancellations, medical emergencies, lost baggage, and more. Be sure to read the terms of your policy carefully for specifics.

Travel Insurance for International Trips

Are you crossing national boundaries? International travel insurance increases your coverage, adding emergency medical evacuations and care, trip interruption due to unforeseen circumstances, and even assistance services like translator help.

International health insurance or international medical insurance is also a key component. This type of insurance coverage provides payment for medical services received abroad, protecting you from the often hefty bills associated with international health care.

What Are the Typical Insurance Services?

A comprehensive travel insurance plan typically offers emergency travel assistance services and concierge services to you while on your trip 24 hours a day, seven days a week, which include:

  • Emergency travel arrangements to the nearest hospital
  • Emergency medical care coverage
  • Emergency evacuation coverage
  • Car rental coverage
  • Trip cancellation coverage
  • Emergency assistance, including lost passports and travel documents
  • 24-hour health care monitoring
  • Lost luggage and personal belongings assistance
  • Emergency cash transfer
  • Embassy or consulate referrals
  • Legal professional referrals
  • Emergency message relay service
  • Emergency translations
  • Emergency prescription drug replacement
  • Natural disasters

The Best Travel Insurance Companies

Allianz travel insurance, IMG Global, and GeoBlue are the best travel insurance providers based on customer reviews and financial strength, with above-average ratings. Conduct a comparison to determine what the policy covers and the best price for your next trip. When buying travel insurance, compare plans to understand any additional coverage (adventure travel) needed to complete your policy.

What Is Travel Insurance? All You Need To Know About A Travel Insurance Policy (2023)
What Is Travel Insurance? All You Need To Know About A Travel Insurance Policy (2023)
What Is Travel Insurance? All You Need To Know About A Travel Insurance Policy (2023)

Tip: Travelex insurance services, World Nomads, AXA Assistance USA, John Hancock, and Travel Guard are solid options too. Instead of using a comparison engine to find trip insurance policies, focus on these three companies. The quote process is straightforward.

Next Steps

Whether you’re a seasoned globetrotter or embarking on your first big adventure, understanding the ins and outs of travel insurance can go a long way in ensuring a worry-free journey. Trip protection provides a safety net for unexpected travel disruptions and medical emergencies, allowing you to fully immerse yourself in the joy of exploration and new experiences.

Like any investment, it’s crucial to do your research before purchasing a policy. Consider your individual needs, compare travel insurance quotes, and read travel insurance reviews to ensure you get the best coverage. Remember, travel insurance aims to make your journey as smooth and worry-free as possible, so you can focus on creating memories to last a lifetime. Safe travels!

How Does Trip Insurance Work

Travel Insurance Quotes

Need help to find the best plan for your upcoming trip? No worries. Contact us below for a free quote.

The Annuity Expert – Travel Medical Insurance Inquiry

Frequently Asked Questions

When does coverage begin?

Typically coverage begins on the scheduled departure date as long as the insurance payments have been made and end on your return trip date.

Does a travel insurance policy cover weather?

Purchasing a comprehensive plan with several benefits is essential to meet your travel needs. For example, you travel to the Caribbean during Hurricane Season because you get a killer discount on travel accommodations.

Unfortunately, the weather prohibits you from going to or coming back home due to severe weather. The insurance typically covers trip cancellation or trip delay coverage. However, cancel For Any Reason can also be purchased to cover a traveler in any situation regardless of a covered reason or not.

How do I find the best deals?

One way to save money for travel insurance is by buying coverage as a group. The entire group may be able to buy travel insurance in a single group policy at a discounted lower rate than you’d pay for individual policies.

Is travel insurance worth it?

Whether or not travel insurance is worth it depends on your needs and trip. For example, travel insurance may be a good idea if you take an expensive or dangerous vacation. However, you may not need it if you take a short trip to a safe destination. Ultimately, the decision is up to you.

What do travel insurance policies cover?

Travel insurance can cover various things, including missed flights, baggage loss, hospital costs, trip cancellations, and delays. But, of course, it depends on the policy you choose as to what is covered.

What isn’t covered by travel insurance?

Travel insurance policies, such as pre-existing medical conditions, financial default of a travel provider, and intentional damage, do not typically cover some things. Again, it depends on the policy you choose regarding what is and is not covered.

What should I do if I have a problem while on my trip?

If you have a problem while on your trip, contact your travel insurance company first. They will be able to help you resolve the issue and get you the assistance you need.

What are the best travel insurance companies?

Some of the best travel insurance companies include Allianz, World Nomads, and Travel Guard. It depends on your individual needs and which company is best for you. It would help to compare policies and quotes from multiple companies before deciding.

Which type of travel insurance plan covers Covid?

There is no definitive answer to this question as policies vary by company. However, many travel insurance policies cover medical emergencies, including Covid-19. Therefore, it is always best to check with the company you are considering to see what their policy covers.

How do I claim my travel insurance?

If you need to claim your travel insurance, you will first need to contact your insurer. They will then provide you with a claim form, which you must complete and submit along with any supporting documentation. Once your claim is approved, you will be reimbursed for your expenses.

What should I do if I have a problem while on my trip?

If you have a problem while on your trip, contact your travel insurance company first. They will be able to help you resolve the issue and get you the assistance you need.

When to buy travel insurance?

The best time to buy travel insurance is when you book your trip. This way, you’ll be covered in case anything happens between the time you book your trip and the time you leave for it. For example, if you need to cancel your trip due to an illness or injury, trip cancellation insurance can reimburse you for its cost.

Which travel insurance is best when living abroad?

International health insurance plans are the best type of travel insurance when living abroad. These plans provide comprehensive coverage for medical costs, including emergency medical evacuation and repatriation.

Does your credit card give you travel insurance?

Some credit cards offer travel insurance as a benefit, but reading the fine print to see what is covered is essential. Generally, credit card travel insurance only covers you for delays, lost baggage, and cancellations. It does not cover medical expenses or evacuation.

Do I need travel insurance if I have health insurance?

If you have health insurance, you may not need travel insurance. However, checking with your health insurance provider to see what coverage they offer while traveling is always a good idea. Travel insurance can help cover things your health insurance may not, such as lost baggage or cancellations.

What is cancel for any reason travel insurance?

Cancel for any reason travel insurance is a type of insurance that allows you to cancel your trip for any reason. This type of insurance is usually more expensive than other types of travel insurance, but it allows you to cancel your trip for any reason.

Does travel insurance cover you for cancellation?

Travel insurance can provide trip cancellation coverage, refunding you for prepaid and non-refundable expenditures if an unforeseen event requires you to forego your vacation. Circumstances like a decline in health, the death of a relative or loved one, natural disasters, and job loss are usually included among the covered reasons.

Does travel insurance allow you to change your mind?

No, travel insurance does not cover you if you change your mind. Travel insurance protects you from unexpected events before or during your trip. It is not intended to cover voluntary changes to your plans. If you need to cancel or interrupt your trip, contact your travel insurance provider as soon as possible to determine if you are covered.

Do travel insurance companies check medical records?

Travel insurance companies typically do not directly access medical records. However, they may require applicants to disclose their medical history or sign a release form allowing them to obtain relevant information.

Failure to disclose pre-existing conditions can lead to denied claims. Some insurers may also use aggregated data from medical databases to assess risk, but this does not involve individually accessing personal medical records.

Do travel insurance policies include lost baggage coverage?

Most travel insurance policies cover lost, stolen, or damaged luggage and personal belongings up to a specified limit. However, coverage varies between providers and policies, and there may be restrictions or exclusions for high-value items.

What does protecting your flight mean?

When buying travel insurance, you can usually add protection for your flight. For example, if your flight is canceled or delayed, you will be reimbursed for non-refundable expenses, such as hotel reservations or rental car bookings. You may also be entitled to compensation for lost wages if you miss work due to a delayed or canceled flight.

Does travel insurance offer cancellation protection due to civil unrest?

Most travel insurance policies will not cover trip cancellation due to civil unrest. Civil unrest is usually classified as a political event, and most policies have an exclusion for political events.
If you are concerned about civil unrest affecting your trip, you should purchase a policy with a specific exclusion for civil unrest. Some policies may offer coverage for trip interruption or delays due to civil unrest, but this is typically limited to a certain number of days.

Is it too late to purchase travel insurance?

No, it’s not too late to buy travel insurance coverage. You can get travel insurance up until the day of your departure. However, remember that the sooner you buy travel insurance, the better your coverage.

For example, you’ll be covered if you get travel insurance and then cancel your trip due to an illness. But if you wait until the day of your departure and then have to cancel, you likely won’t be covered.

Can I add trip insurance after I book on Expedia?

Yes. If you booked your trip on Expedia and did not purchase travel insurance at the time of booking, you can still add it to your itinerary until the day before departure. First, log in to your account and go to “My Trips.” Then, select the trip you’re interested in adding insurance to and click “Add/Edit Insurance.” Next, you can select the type and amount of coverage you want and complete your purchase.

What does flight insurance cover?

Flight insurance provides financial protection if a canceled or delayed flight, lost or delayed baggage, or medical emergencies occur during the trip. Some policies also provide missed connections and trip interruption coverage.

What travel insurance do I need?

Traveling internationally, you’ll need travel medical insurance to cover any medical expenses you might incur abroad. If you’re traveling domestically, you’ll need travel insurance to protect you in case of lost luggage, cancellations, or other unexpected disruptions.

Why do I need travel insurance?

Travel insurance can help cover the cost of medical care if you get sick or injured. In addition, travel insurance can reimburse you for replacement items if your bags are lost or stolen. And if you have to cancel your trip due to an emergency, travel insurance can reimburse you for non-refundable expenses.

How do you buy travel insurance?

There are a few different ways to buy travel insurance. One option is to buy it online from a reputable insurance company. Another option is to purchase it through a travel agent when you book your trip. Finally, you can also sometimes buy travel insurance through your airline.

Is travel insurance worth getting?

Travel insurance can be worth getting as it provides financial protection against unforeseen events during your trip, such as medical emergencies, trip cancellations, lost luggage, or flight delays.

The value of travel insurance depends on factors like trip cost, destination, traveler’s age, and medical history. Carefully assessing your risk and comparing insurance policies can help determine if travel insurance is worthwhile for your specific travel plans.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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