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What is Travel Insurance and How Does it Work?

Most people have some experience with car, home or health insurance, but not everyone is familiar with travel insurance and how it works. With interest in travel insurance at an all time high after the COVID pandemic, we thought it would be a good idea to explain what it really is.

To help you understand and educate yourself, we’ve answered common questions that people who are new to travel insurance often ask, like “ what is travel insurance? ,” “ what does travel insurance cover? ” and “ how does travel insurance work? ” 

What is Travel Insurance: The Basics

We’ve all heard about canceled flights and lost baggage, but most of us don’t automatically think “do we have insurance and are we covered?” Travel insurance helps protect you from certain kinds of unexpected events that can occur before or during your trip.

Unlike auto insurance, travel insurance is elective, which means it’s up to you to decide if you want it. Ultimately, it’s meant to help you travel with more peace of mind so you can worry less and focus on having a great trip.

Learn more about travel insurance: •  How Much Does Travel Insurance Cost? •  Top 5 Reasons to Get Travel Insurance •  Travel Insurance Comparison: How to Choose the Right Plan

What does travel insurance cover?

The coverage that most people are aware of is  trip cancellation , which provides reimbursement for unused, non-refundable, prepaid trip costs if you need to cancel your trip for a  covered reason , such as sickness, job loss,  flight cancellations  due to adverse weather and more. Similarly, with  coverage for trip interruption  you can recoup trip costs if you can’t continue your trip due to a covered event, and our plans provide reimbursement for additional transportation costs to return home or rejoin your group.

See our full list of travel insurance coverage details and covered reasons

Travel insurance can also include lesser known elements including travel delay, lost, damaged and delayed baggage, medical and emergency evacuation coverage. Different providers offer different plans with a mix of these coverages and more, so be sure to  educate yourself about all the options  before choosing one. One way to tackle this is to determine your specific needs and  find a plan that fits . Don’t be afraid to  ask  your travel insurance provider if you have questions.

Let’s use an example. If you are taking your family on vacation to Paris, then you would probably want a plan that included coverage for trip cancellation and  post-departure coverages  during your trip. These may include Baggage, Travel Delay, Medical and Dental, and Emergency Assistance and Transportation.

Generali Global Assistance offers a  variety of plans  and add-on coverages that will help protect your trip, whether it’s a weekend vacation rental stay or a month-long trek across Europe. Additionally, our  24-Hour Emergency Services, Concierge and ID Theft Resolution services  are included with our plans. These services round out the travel protection plans, so not only can you be reimbursed for certain costs if something goes wrong with your trip, but you can get assistance in real-time when you need it on your trip.

Read more about what travel insurance covers  and what it doesn't cover

How does travel insurance work?

The process for filing a travel insurance claim is similar to car or home insurance. If you get in a car accident or have a water leak in your bathroom, you file a claim.

If something happens during your trip and you need to use your travel insurance, you’ll need to file a claim to be reimbursed. We have a page that explains how to start a claim , a great resource for learning more about the claims process.

Let’s say your baggage is delayed and you need to buy clothes and toiletries, you would submit a claim to seek reimbursement. Travel insurance comes in handy in scenarios like this.

When you’re ready to buy a plan, you can purchase directly from the travel insurance company online . Oftentimes, travel insurance is offered when buying a cruise, airfare or booking a vacation rental . We encourage customers to pay attention to the fine print. For example, a cruise line’s travel insurance may not pay cash to cover a cancelled or interrupted cruise, but instead, offer credit towards a future cruise. If you prefer cash reimbursement, that’s reason to consider purchasing direct from a travel insurance provider instead. Also consider the type of trip you are taking. If you are taking a cruise, then you may want a plan that includes Missed Connection coverage, as our plans do.

Also read:  Why Travel Insurance is Crucial for Cruise Trips

Be sure to bring a print out of your plan documents with you. If you are affected by a storm and can’t get internet or lose power, you still know what number to call and what instructions to follow. 

  Learn more about: How does travel insurance work?

When to buy travel insurance

As with all things in life, timing is everything, especially when it comes to deciding when to buy travel insurance . Travel insurance is designed to protect you against unforeseen events, which means it is meant to be bought before an event occurs. For example, you would not want to buy travel insurance after you decided to cancel a trip, for the same reason that you can’t buy car insurance to cover an accident that has already occurred.

It’s best to buy your plan when you book your trip so you are eligible for coverages that apply prior to departure. For example, if you break your leg and need to postpone hiking in the Alps, then you could be covered. 

Get the right travel protection plan for you

Should you buy travel insurance?

Now that we’ve covered the basics, we can tackle the big question. Should you buy travel insurance? There are a few major factors to consider before determining if travel insurance is right for you: cost, destination and who is traveling.

If you can’t afford to lose the amount you’ve invested in your trip, then you should probably consider travel insurance. If you’re traveling far , maybe around the world, or to a remote area where the nearest hospital is many miles away, then a travel protection plan could help save the day. It’s impossible to know what might happen to you or a traveling companion that could throw a wrench in your travel plans, especially if travelers include children or the elderly , who might be more vulnerable, travel insurance may help you rest easier before and during your trip. 

Also read:  Do You Really Need Travel Insurance?

Travel Insurance Questions Answered

What is travel insurance?

• Is Travel Insurance Worth It? 3 Examples Where it Pays Off
• Guide to Understand, Purchase and Use Trip Insurance
• How Travel Insurance Can Help When You Fly
• See detailed answers to your travel insurance coverage questions
• Are You Protected? How Travel Insurance Can Help During Your Trip
• Travel insurance in the USA: Why insure your trip even if you're not leaving the country
• Does Travel Insurance Cover the Flu or Other Illness?
• Travel Insurance Comparison: How to Choose the Right Plan
• When to Buy Travel Insurance: Timing is Everything
• How Travel Insurance Covers You and Your Belongings While Away

Travel Resources

1.   U.S. Travel Insurance Association

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What Is Travel Insurance?

Trip Insurance Explained

Lorraine Roberte is an insurance writer for The Balance. As a personal finance writer, her expertise includes money management and insurance-related topics. She has written hundreds of reviews of insurance products.

Meredith Mangan is a senior editor for The Balance, focusing on insurance product reviews. She brings to the job 15 years of experience in finance, media, and financial markets. Prior to her editing career, Meredith was a licensed financial advisor and a licensed insurance agent in accident and health, variable, and life contracts. Meredith also spent five years as the managing editor for Money Crashers.

Definition and Examples of Travel Insurance

How travel insurance works, what does travel insurance cover.

• The Best Time To Buy Travel Insurance

How Much Does Travel Insurance Cost?

Alternatives to travel insurance, do i need travel insurance.

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Travel insurance guards against certain travel-related financial losses resulting from circumstances such as trip cancellations or delays, lost luggage, and even medical expenses while traveling.

Travel insurance is a popular type of policy that reimburses you for travel-associated expenses due to unforeseen events such as canceled flights, tours, cruises, and theme-park bookings. It can also cover medical emergencies and delayed suitcases .

Travel insurance policies typically have named-perils coverage, meaning they cover only specific instances and losses under certain conditions named in the policy.

• Alternate name : Trip insurance

Typically, your plan provider reimburses you for a covered financial loss after a claim approval. That means you usually pay for expenses out of pocket first, then receive your money back later.

Say you purchase travel insurance for your family vacation to the Bahamas in August. Three days after you arrive, a hurricane hits the island. Everyone is okay, but everything shuts down on the island while you’re there because of widespread flooding and power outages. Travel insurance covering trip interruption can reimburse you for nonrefundable prepaid expenses you weren’t able to use, and change fees to move up your flight.

You can purchase a plan through insurers, travel agents, travel insurance providers, travel suppliers, and internet aggregators.

In prior years, there weren’t industry standards for travel insurance policies. But in 2016, concerns were raised about the lack of regulation. As a result, a travel insurance working group was appointed to address this. Two years later, the National Association of Insurance Commissioners (NAIC) adopted a model law, which covers market regulation, rate regulation, and enforcement.

Travel insurance typically bundles three types of coverage: trip cancellation, interruption, and delays; medical insurance and evacuation coverage; and 24-hour assistance in case of emergency.

Trip Cancellation, Interruptions, and Delays

• Illness, injury, or death
• Uninhabitability of your destination from flooding, fire, and other natural disasters
• Work-related reasons, such as involuntary job loss
• Acts of terrorism
• Other reasons like jury duty, extended school year due to weather, and more

Baggage Loss, Delays, and Personal Effects

• Lost, stolen, or damaged bags up to your plan limits, such as 75% of actual cash value
• Cost of personal items due to delayed baggage

Travel Medical Insurance

• Injury and illness medical expenses while traveling
• May act as primary or secondary insurance, depending on the policy

Primary insurance means that you don’t need to use your own medical insurance for covered losses. Secondary means it will only cover medical expenses that your health insurance plan doesn’t cover.

Medical Evacuation Insurance

• Medical evacuation to the nearest hospital

Cancel for Any Reason (CFAR)

• Coverage for trip cancellations for any reason, up to a specified time frame
• May give partial refund of 50% to 75% of total price

Assistance Services

• Help arranging medical treatment in an emergency
• Monitoring your care
• Help replacing lost passports
• Interpretation services
• Help arranging accommodations in an emergency

Travel insurance may not offer coverage for:

• Preexisting health conditions
• Civil and political unrest at the destination
• Extreme sports such as snowboarding and bungee jumping
• Pregnancy and childbirth
• Fear of traveling to countries
• Medical travel

Each type of travel protection provided under a travel insurance policy has its coverage limitations and exclusions. Read your policy’s terms carefully to ensure you have the kind of coverage and amounts you think you do. Also, search for any conditions of coverage, such as needing to obtain approval before receiving medical care. 

When Is the Best Time to Buy Travel Insurance?

Many plans allow you to purchase coverage up until the day before you leave. But like other insurance, travel insurance is designed to protect against unforeseeable circumstances. So the best time to buy it is before you need it.

You don’t have to purchase travel insurance as soon as you book your cruise, but if you wait to buy it until a named hurricane starts heading toward your destination, any related losses wouldn’t be covered.

Some travel insurance providers may also provide bonus coverage if you buy within a certain window, such as within 15 days of making your first trip deposit.

Travel insurance may cost between 4% and 10% of your total trip cost. Factors influencing your price include:

• Total trip spending
• Coverage amounts
• Coverage add-ons
• Number of people covered
• Your destination location
• Number of days traveling

Discounts aren’t allowed with travel insurance. Providers must file rates with each state, and they cannot offer discounts off the filed pricing.

Before purchasing travel insurance, check to see if you already have it through other means. Some credit cards include a travel protection benefit when you make travel purchases on the card. Your card may cover trip cancellation, medical coverage, and baggage and personal-effects loss. It can also offer things like rental car damage coverage and death benefits .

Another place to look is your home or renters insurance, which can provide coverage if your personal belongings are lost or stolen while traveling. Depending on your policy, you may receive the item’s actual cash value or replacement cost value, up to your policy’s limits. Some common items, such as sunglasses, may be excluded.

Even if you have coverage for your personal effects under your home or renters insurance, it’s not always worth filing a claim because your deductible may be close to or above the value of what was lost. Your home insurance could even be canceled if you make more than two claims within five years.

Trip insurance can be a good investment if you can’t afford the costs of the following:

• Losing your prepaid vacation expenses due to unforeseen events
• A return flight home if you need to shorten your trip because of an emergency
• Medical expenses while away from home if your health insurance plan doesn’t cover foreign emergency care
• Lost or delayed baggage and canceled or delayed flights, such as an extra night at a hotel or replacing clothes and personal hygiene items

Consider that you may already have many of the major protections offered by travel insurance through a credit card. Decide whether that’s enough coverage for you or whether supplementing with travel insurance gives you greater peace of mind.

The U.S. Department of State urges consumers to consider their medical insurance options before traveling abroad, such as travel health insurance and medical evacuation insurance. U.S. citizens overseas aren’t provided medical insurance by the U.S. government. Your current health insurance provider may not extend coverage overseas either.

Key Takeaways

• Travel insurance is usually a comprehensive policy that bundles three types of coverage: trip cancellation, interruption, and delays; medical insurance and evacuation coverage; and 24-hour assistance in case of emergency.
• You may already have a credit card providing many of the same protections covered by travel insurance. Your homeowners' or renters' insurance may also protect your personal belongings.
• Travel insurance is best for people who don’t already have travel protections through other means. It’s also a good option for those who can’t afford the travel-related financial losses arising from unforeseen events.

U.S. Travel Insurance Association. " Frequently Asked Questions ."

National Association of Insurance Commissioners. " Travel Insurance ." See "Status."

U.S. Travel Insurance Association. " Frequently Asked Questions ." See "What Will It Cost?"

Berkshire Hathaway Travel Protection. " What Is Travel Insurance All About? " Pages 15-18.

Ohio Department of Insurance. " Guide to Homeowners Insurance ." Page 12.

U.S. Department of State. " Insurance Providers for Overseas Coverage ."

Overview of Travel Insurance Coverage

What does travel insurance cover, what does credit card travel insurance cover, what travel insurance coverage do you need to pay more for, choosing the right travel insurance, what does travel insurance cover frequently asked questions, understanding what travel insurance covers.

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

The information for the following product(s) has been collected independently by Business Insider: Chase Freedom Flex℠. The details for these products have not been reviewed or provided by the issuer.

• Travel insurance is intended to cover risks and financial losses associated with traveling.
• Coverage can include trip cancellation, baggage protection, medical care, and emergency evacuation.
• When filing a claim, be specific and comprehensive in your documentation to ease the process.

Whether it's a trip across the world or a trip across the state, having travel insurance provides major relief if things go awry. Flight delays, lost baggage, illness, injuries, and other unforeseen events can disrupt even the best-laid plans. With a major disruption comes the potential for unanticipated expenses.

Travel insurance and the coverage it offers can help keep you protected and save you money in the long run.

Travel insurance policies protect travelers from financial losses should something go wrong during their trip. You can customize which coverages you want to include, and there are several to choose from.

"Common types of coverage include trip cancellation, trip interruption, baggage protection, coverage for medical care if you get sick or hurt during your trip, and emergency medical evacuation," says Angela Borden, a travel insurance expert and product strategist for travel insurance company Seven Corners.

Travel insurance plans offer nonrefundable payments and other trip-related expenses. While monetary compensation is a primary benefit, there is another valuable perk of travel insurance. It can provide peace of mind.

Your specific travel insurance plan (and its terms and conditions) will determine the minutia and specifics of what is covered. As with most other forms of insurance, a general rule of thumb is the more you spend, the better your coverage.

"Travel insurance can be confusing, so it's best to research a reputable company that specializes in travel insurance and has a long history of successfully helping travelers all over the world," says Borden.

Trip cancellation and interruptions

A travel insurance policy can reimburse you for a prepaid, nonrefundable trip if it is canceled for a covered event, such as a natural disaster or a global pandemic.

Trip interruption insurance covers you if you're already on your trip and you get sick, there's a natural disaster, or something else happens. Make sure to check with your travel insurance providers to discuss any inclusions, coverage, and more.

Travel delays and missed connections

Travel delay insurance coverage provides reimbursement for any expenses you incur when you experience a delay in transit over a minimum time. Reimbursements can include hotels, airfare, food, and other related expenses.

Medical emergencies and evacuations

Typically, US healthcare plans are not accepted in other countries. So travel insurance with medical coverage can be particularly beneficial when you are abroad. Medical coverage can also help with locating doctors and healthcare facilities.

Medical transportation coverage will also pay for emergency evacuation expenses such as airlifts and medically-equipped flights back to the US. Out of pocket, these expenses can easily amount to tens of thousands of dollars. Certain plans may even transport you to a hospital of choice for care.

Travel insurance generally does not include coverage for pre-existing conditions. That said, you can obtain a pre-existing condition waiver, which we will talk about later.  

Baggage and personal belongings

Most airlines will reimburse travelers for lost or destroyed baggage, but be prepared for limitations. Travel insurance plans will typically cover stolen items, such as those stolen out of a hotel room. This may not include expensive jewelry, antiques, or heirloom items. Typically, airlines have a few days to recover your bag.

In the meantime, you can make a claim to pay for items like certain toiletries and other items you need to pick up. If your bag is truly lost or you don't get it for an extended period, you can file a true lost baggage claim.

A major perk on several travel credit cards is embedded credit card travel insurance . Typically, you will need to use the specific card for the transaction (at least with partial payment) for travel coverage to kick in.

Each card has specific rules on what exactly is covered. But one of the industry leaders is the $550-per-year Chase Sapphire Reserve credit card. Here's a snapshot of what is covered with this specific card:

• Baggage delay: up to $100 reimbursed per day for up to five days if a passenger carrier delays your baggage by more than six hours.
• Lost and damaged baggage: up to $3,000 per passenger per trip, but only up to $500 per passenger for jewelry and watches and up to $500 per passenger for cameras and other electronic equipment.
• Trip delay reimbursement: up to $500 per ticket if you're delayed more than six hours or require an overnight stay.
• Trip cancellation and interruption protection: up to $10,000 per person and $20,000 per trip for prepaid, nonrefundable travel expenses.
• Medical evacuation benefit: up to $100,000 for necessary emergency evacuation and transportation when on a trip of five to 60 days and traveling more than 100 miles from home.
• Travel accident insurance: accidental death or dismemberment coverage of up to $100,000 (up to $1,000,000 for common carrier travel).
• Emergency medical and dental benefits: up to $2,500 for medical expenses (subject to a $50 deductible) when on a trip arranged by a travel agency and traveling more than 100 miles from home.
• Rental car coverage: primary coverage for damages caused by theft or collision up to $75,000 on rentals of 31 days or fewer

More protections are included with cards with an annual fee, but there are exceptions. The no-annual-fee Chase Freedom Flex, for instance, includes up to $1,500 per person (and up to $6,000 per trip) in trip cancellation and trip interruption coverage.

However, there are some differences between credit card travel coverage and obtaining coverage from a third party.

"Credit card coverage does not typically provide travel medical benefits," Borden says. "For protection if you get sick or hurt while traveling, you'll want a travel insurance plan with medical coverage."

Whether you get your travel insurance in a standalone policy or through a credit card, it's important to review your plan details carefully. In either case, there may be exclusions and other requirements such as deadlines when filing a claim, Borden notes.

Knowing what travel insurance doesn't cover is as important as knowing what it does cover.

"Travelers should understand that travel insurance benefits come into play only if a covered reason occurs," Borden says. Most standard travel insurance plans won't reimburse you for the following:

Cancel for any reason (CFAR)

Cancel-for-any-reason travel insurance covers a trip cancellation for any reason, not just a covered event. your standard benefits won't kick in unless it's a covered event. For instance, you'll be reimbursed simply for changing your mind about taking a trip.

That said, CFAR travel insurance is not without its downsides. For one, it's more expensive than traditional insurance, and most CFAR policies will only reimburse you for a percentage of your travel expenses. Additionally, CFAR policies aren't available for annual travel insurance . 

You can find our guide on the best CFAR travel insurance here.

Foreseen weather events

Sudden storms or unforeseen weather events are typically covered by standard travel insurance plans. There are exceptions to be aware of. For example, an anticipated and named hurricane will not be covered.

Medical tourism

If you're going to travel internationally for a medical procedure or doctor's visit, your travel insurance plan will not cover the procedure itself. Most medical travel plans also won't cover you if something goes wrong with your procedure.

Pre-existing conditions and pregnancy

Those with specific pre-existing conditions, such as someone with diabetes and needing more insulin, will not be covered by most plans. In addition, pregnancy-related expenses will likely not be covered under most plans.

That said, you can obtain a pre-existing condition waiver for stable conditions. In order to obtain a wavier, you will need to purchase travel insurance within a certain time frame from when you booked your trip, usually two to three weeks, depending on your policy.

Extreme sports and activities

Accidents occurring while participating in extreme sports like skydiving and paragliding will typically not be covered under most plans. However, many plans offer the ability to upgrade to a higher-priced version with extended coverage.

Navigating claims and assistance

When a trip goes awry, the first thing you should do is document everything and be as specific as possible with documentation. This will make the claims process easier, as you can substantiate and quantify your financial losses due to the delay.

For example, your flight home has been delayed long enough to be covered under your policy, you'll want to keep any receipts from purchases made while waiting. For instances where your luggage is lost, you will need to file a report with local authorities and document all the items you packed.

Cancellation protection also requires meticulous attention to detail. If you're too sick to fly, you may need to see a doctor to prove your eligibility. If an airline cancels a flight, you'll also need to document any refunds you received as travel insurance isn't going to reimburse you for money you've already gotten back. 

Part of the benefit of CFAR insurance is the reduced paperwork necessary to file a claim. You'll still need to document your nonrefundable losses, but you won't have to substantiate why you're canceling a trip.

Each plan should be personalized to meet the insured party's needs. Some travelers prefer to stick to the bare minimum (flight cancellation benefits through the airline). Others want a comprehensive plan with every coverage possible. Before you buy anything, set your destination. Are there any travel restrictions or changes pending? Does your destination country require emergency or other medical coverage?

If the destination airport is known for lost or delayed luggage, travelers should keep important items in carry-ons. Lost or delayed luggage coverage protects insured parties in the event of a significant delay or total loss.

Second, check current credit card travel benefits to avoid redundancies. Savvy travelers don't need to pay for the same coverage twice.

Finally, consider your individual needs. Do you have a chronic medical condition, or do you feel safe with emergency-only medical coverage? Keep in mind, this does not include coverage for cosmetic surgery or other medical tourism. Do you have a budget limit for travel insurance? Asking and answering these important questions will help every traveler find the right product.

Most travel insurance plans are simple, and Business Insider's guide to the best travel insurance companies outlines our top picks. Remember, read your policy and its specifics closely to ensure it includes the items you need coverage for.

No one likes to dwell on how a trip might not go as planned before even leaving. However, at its core, travel insurance provides peace of mind as you go about your trip. While the upfront cost may seem significant, when you compare it to the potential expenses of a canceled flight, emergency evacuation, or a hefty medical bill, it's a small price to pay in the grand scheme of things.

Coverage for pandemics vary from policy to policy. Some travel insurance companies have specific provisions for pandemic-related cancellations, while others may exclude them entirely.

Sports injuries are often covered under travel insurance, but high-risk or adventure sports might require additional coverage or a special policy.

Travel advisories have different effects on your travel insurance depending on your policy. Traveling to a country already under travel advisory may invalidate your coverage, but if you're already traveling when a travel advisory is announced, you may be covered.

Travel insurance usually covers the cost of emergency medical evacuations to the nearest suitable medical facility, and sometimes back to your home country, if necessary.

Many travel insurance policies provide coverage for the cost of replacing lost or stolen passports during a trip.

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards .

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

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Travel Insurance 101: How Travel Insurance Works

What is travel insurance?

Travel insurance is a plan you purchase that protects you from certain financial risks and losses that can occur while traveling. These losses can be minor, like a delayed suitcase, or significant, like a last-minute trip cancellation or a medical emergency overseas.

In addition to financial protection, the other huge benefit of travel insurance is access to assistance services , wherever you are in the world. Our elite team of travel and medical experts can arrange medical treatment in an emergency, monitor your care, serve as interpreters, help you replace lost passports and so much more. Sometimes, they even save travelers’ lives.

A few things you should know about travel insurance:

• Benefits vary by plan. It’s important to choose a plan that fits your needs, your budget and your travel plans. Here are definitions of all available travel insurance benefits.
• Travel insurance can’t cover every possible situation. Allianz Travel Insurance is  named perils  travel insurance, which means it covers only the specific situations, events, and losses included in your plan documents, and only under the conditions we describe.
• Travel insurance is designed to cover  unforeseeable events —not things you could easily see coming, or things within your control. If, for example,  you wait to buy insurance for your beach trip until after a named hurricane is hustling toward your destination, your losses wouldn’t be covered.

How does travel insurance work?

In most scenarios, travel insurance reimburses you for your covered financial losses after you file a claim and the claim is approved. Filing a claim means submitting proof of your loss to Allianz Global Assistance, so that we can verify what happened and reimburse you for your covered losses. You can  file a claim online , or do it on your phone with the  Allyz ® TravelSmart app .

How does this work in real life? Let’s say you purchase the OneTrip Prime Plan , which includes trip cancellation benefits, to protect your upcoming cruise to Cozumel. Two days before departure, you experience a high fever and chest pain. Your doctor diagnoses bacterial pneumonia and advises you to cancel the trip. When you notify the cruise line, they tell you it’s too late to receive a refund.

Without travel insurance, you’d lose the money you spent on your vacation. Fortunately, a serious, disabling illness can be considered a covered reason for trip cancellation , which means you can be reimbursed for your prepaid, nonrefundable trip costs. Once you’re feeling better, you gather the required documents—such as your airfare and cruise line receipts and information about any refunds you did or did not receive—and you file a claim . You can even choose to receive your reimbursement by direct deposit, to your debit card, or via check.

Sometimes, this process works a little differently. Travel insurance may pay your expenses upfront if you require emergency medical treatment or emergency transportation while traveling overseas. Or, with the  OneTrip Premier and OneTrip Prime plans, you may be eligible to receive a fixed payment of $100 per day for a covered travel delay or $100 for a covered baggage delay . No receipts for purchases are required; all you need is proof of your covered delay.

Many travelers are wondering: Can COVID-19 be considered a covered reason for trip cancellation? And can travel insurance help if you become seriously ill with COVID-19 while traveling? Most of our travel insurance plans now include epidemic-related covered reasons (benefits vary by plan and are not available in all jurisdictions). The Epidemic Coverage Endorsement adds covered reasons to select benefits for certain losses related to COVID-19 and any future epidemic. To see if your plan includes this endorsement and what it covers, please look for "Epidemic Coverage Endorsement" on your Declarations of Coverage or Letter of Confirmation. Terms, conditions and exclusions apply. Benefits may not cover the full cost of your loss. All benefits are subject to maximum limits of liability, which may in some cases be subject to sublimits and daily maximums.

> Learn more: Travel Insurance and COVID-19: The Epidemic Coverage Endorsement Explained

How to choose a travel insurance plan

There’s a wide range of Allianz Travel Insurance plans, each with different benefits and benefit limits. So how do you know which is best for you? To begin, get a quote for your upcoming trip. When you enter your age, trip costs and trip dates, we can recommend a few plans for you. Then, you can compare the costs and benefits of each.

If you’re a budget-conscious traveler who’s traveling in the U.S., you may like the OneTrip Cancellation Plus Plan . It includes trip cancellation, trip interruption and trip delay benefits.

If you want protection in case of medical emergencies overseas, but you have few pre-paid trip expenses, you may consider the OneTrip Emergency Medical Plan . This affordable plan includes emergency medical and emergency transportation benefits, as well as other post-departure benefits, but not trip cancellation/interruption.

If you want the reassurance of carrying substantial travel insurance benefits, the best fit may be the OneTrip Prime Plan . This plan also covers kids 17 and under for free when traveling with a parent or grandparent (not available on policies issued to Pennsylvania residents).

If you’re planning several trips in the next 12 months, consider annual travel insurance such as the AllTrips Prime Plan . It gives you affordable protection for a full year of travel, including benefits for trip cancellation and interruption; emergency medical care; lost/stolen or delayed baggage; and Rental Car Damage and theft protection (available to residents of most states).  

> Find the right travel insurance plan for you 

How to get the most from your travel insurance plan

Don’t wait too long to buy travel insurance! The best time to buy travel insurance is immediately after you’ve completed your travel arrangements. The earlier you buy insurance, the bigger your coverage window. Also, you must buy your plan within 14 days of making your initial trip deposit in order to be eligible for the pre-existing medical condition benefit (not available on all plans).

Read your plan documents before you leave. If you're not completely satisfied with your plan, you have 15 days (or more, depending on your state of residence) to request a refund, provided you haven't started your trip or initiated a claim. Premiums are non-refundable after this period.

Call us when you need help. If you have questions about how travel insurance works, or how to file a claim, or which benefits you need, please contact us ! Our representatives are available 24/7. If you’re already traveling, and you’re facing a travel crisis or just need some advice, call our emergency assistance hotline .

> Read more about how we can help

Related Articles

• What Does Travel Insurance Cover?
• How Travel Insurance Covers Family Members
• Trip Delay, Trip Interruption and Trip Cancellation Insurance Explained

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Insurance benefits underwritten by BCS Insurance Company (OH, Administrative Office: 2 Mid America Plaza, Suite 200, Oakbrook Terrace, IL 60181), rated “A” (Excellent) by A.M. Best Co., under BCS Form No. 52.201 series or 52.401 series, or Jefferson Insurance Company (NY, Administrative Office: 9950 Mayland Drive, Richmond, VA 23233), rated “A+” (Superior) by A.M. Best Co., under Jefferson Form No. 101-C series or 101-P series, depending on your state of residence and plan chosen. A+ (Superior) and A (Excellent) are the 2nd and 3rd highest, respectively, of A.M. Best's 13 Financial Strength Ratings. Plans only available to U.S. residents and may not be available in all jurisdictions. Allianz Global Assistance and Allianz Travel Insurance are marks of AGA Service Company dba Allianz Global Assistance or its affiliates. Allianz Travel Insurance products are distributed by Allianz Global Assistance, the licensed producer and administrator of these plans and an affiliate of Jefferson Insurance Company. The insured shall not receive any special benefit or advantage due to the affiliation between AGA Service Company and Jefferson Insurance Company. Plans include insurance benefits and assistance services. Any Non-Insurance Assistance services purchased are provided through AGA Service Company. Except as expressly provided under your plan, you are responsible for charges you incur from third parties. Contact AGA Service Company at  800-284-8300 or 9950 Mayland Drive, Richmond, VA 23233 or [email protected] .

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What is Travel Insurance & How Does it Work? 11 Questions Answered

Travel insurance is a valuable way to limit the risks associated with travel, deserving of consideration by every traveler. Despite its many benefits, there remains a great deal of confusion, and even skepticism, surrounding travel insurance .

Perhaps the perceived complexity of travel insurance plans and our reluctance to prepare for worst-case scenarios prevents us from discovering the many benefits of travel insurance.   However, equipped with the proper information, you can choose the best plan for your trip and simplify the decision-making process.

From questions regarding pre-existing medical conditions to choosing the right plan, here are answers to 11 common travel insurance questions.

1. WHAT IS TRAVEL INSURANCE  EXACTLY ?

Travel insurance is a contract between a travel insurance provider and a traveler who has financial interest in lessening risks associated with travel.  

The traveler pays a premium to a travel insurance company in exchange for coverage for things like unexpected medical costs, flight delays, cancellations, evacuations, and emergency assistance. Depending on which plan you choose, coverage will vary.

2. WILL TRAVEL INSURANCE COMPANIES TRY TO CHEAT ME OUT OF WHAT IS OWED TO ME?

No. Travel insurance companies strive to pay every legitimate claim covered by your policy’s terms. Understanding your plan is always helpful because it avoids confusion as to what is covered during your trip or the claims process.

Be sure to take advantage of your plan's review period. Each travel insurance plan comes with an industry-wide review period, which allows you to look over your policy, ask questions, and determine whether the coverage works for you.  If you believe the plan you purchased is not to your liking, you are able to cancel the policy in exchange for a full refund during this time. 

3.  IS IT JUST A FANCY VERSION OF HEALTH INSURANCE?

No, it is not a fancy version of your health insurance plan.  In order to receive coverage, a qualified physician must deem treatment medically necessary. Routine doctor’s visits, medical tourism, prescription refills, and standard health assessments are not covered within plan benefits. 

An added benefit to travel insurance: it  can offer emergency medical and dental treatment during your trip without the strict network limitations of several PPO and HMO plans.

4. I AM ALREADY BEING TREATED FOR AN ILLNESS. WILL I BE COVERED?

Possibly. One company may provide coverage while others will not. Most companies who offer coverage for pre-existing medical conditions have eligibility requirements.

This coverage usually requires purchase at deposit or within 7-21 days from the date you made the first payment on your trip. Additionally, your doctor must have cleared you to travel at the time you purchased your policy.

Expert Tip: Many policies offered by cruise lines, tour operators, and airlines do not cover pre-existing medical conditions. 

Are your pre-existing conditions covered?

Take a peek at our coverage & find out. Get a quote today.

5. DO PRE-EXISTING CONDITIONS APPLY TO NON-TRAVELING FAMILY MEMBERS?

It will depend on the company and plan you choose. There are travel insurance companies who only apply pre-existing conditions to policyholders and traveling companions.

In contrast, you have to have pre-existing conditions waived for some plans and others will not cover you for the pre-existing conditions of your non-traveling family members.

6. MY CREDIT CARD SAYS THEY OFFER TRAVEL INSURANCE. ISN’T THAT ALL I NEED?

Not unless you carry an American Express Centurion card, which is exclusively for big spenders, invite only, and has a steep initiation fee of $5,000.

The truth is, even the best credit cards offer limited coverage. Low benefit limits and a long list of exclusions can leave you with a costly bill for things you could have had covered otherwise. 

7. HOW DOES TRAVEL INSURANCE WORK? WILL I RECEIVE AN INSURANCE CARD IN THE MAIL?

You will not receive an insurance card in the mail.  Instead, travel insurance companies send you a brief description of coverage with your emergency assistance contact information via email (it can be mailed upon request).

Smaller costs are often paid out of pocket, and you file for reimbursement later on. Larger catastrophic costs are handled by the travel insurance and emergency assistance company.

For example, both payment and planning would be handled by the travel insurance and assistance companies for a hospital stay or medical evacuation.

8. WHAT ARE THE DIFFERENT KINDS OF TRAVEL INSURANCE?

There are two main types of travel insurance: medical only and packaged plans, or comprehensive travel insurance. Both have long-term and short-term travel options, and the type of plan you choose will depend on your needs.

Medical only plans offer coverage for the costs of necessary medical care, medical evacuations, and sometimes, repatriation. These plans are often used by expatriates or student travelers living overseas. Return dates are not always set, so the option for renewal works out well for them.

Packaged plans offer coverage for you, your things, and your travel investment. Necessary medical costs are usually covered, along with things like medical evacauations, non-medical evacuations, flight delays, cancellation, and lost or stolen baggage .

9. WHAT IS NOT COVERED BY TRAVEL INSURANCE?  

Things the insurance company lists as exclusions. Exclusions are defined within your travel insurance plan and are always predetermined. They exist so you know what is and is not covered up front.  

Here is what you would typically see as an exclusion:

• An act of war.
• Riding or driving races, or speed or endurance competitions or events.
• Participating in a professional stunt.
• Being intoxicated or under the influence of any controlled substance, unless as administered by a legally qualified physician.

While policy exclusions vary by plan, travel insurance companies agree on one thing: anything foreseen is not covered. In other words, if you know about it ahead of time, you do not have coverage. You cannot buy coverage for a hurricane that is already named or a terrorist incident that happened yesterday.

10. HOW OFTEN IS TRAVEL INSURANCE USED SUCCESSFULLY?

According to the U.S. Travel Insurance Association , in 2014, 85% of impacted travelers who had travel insurance said they were satisfied with their purchase.

Here are real claims told by travelers:

11. HOW DO I KNOW IF I AM CHOOSING THE RIGHT PLAN FOR MY TRIP?

By asking yourself the right questions. It will help you effectively choose a plan that fits your needs.   

Some questions you should ask are:

• How long is my trip?
• How often do I travel?
• How much of my prepaid trip costs am I willing or able to lose?
• Will I be partaking in extreme sports?
• What are the plan features?
• What are the risks associated with my trip?
• What are the costs associated with these risks?
• If faced with travel mishaps, which risks would I need help lessening?

1. " Americans Spending More on Travel Insurance ."  Press Release. www.ustia.org . July 14th, 2017.

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What Is Travel Insurance and What Does It Cover?

By understanding what travel insurance is and what it covers, you can decide whether to buy it for your upcoming trips.

in under 2 minutes

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Sarah Horvath is one of the home service industry’s most accomplished writers. Her specialties include writing about home warranties, insurance, home improvement and household finances. You can find her writing published through distributors like HouseMethod, Architectural Digest, Good Housekeeping and more. When not writing, she enjoys spending time in her home in Orlando with her fiance and parrot.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

Travel insurance is a type of financial protection you can buy to reimburse a portion of prepaid, nonrefundable expenses if your trip gets interrupted or canceled. Travel insurance may cover medical bills incurred abroad, lost baggage, lost airline fare and more.

Read on to learn more about travel insurance and what it covers, and explore a few of our top-rated providers .

What Is Travel Insurance?

Travel insurance is a type of insurance coverage that protects you from financial loss when you travel. Depending on the type of policy you purchase, travel insurance usually covers emergency situations such as trip cancellation or interruption, accidents, illnesses and trip delays . 

Since your primary health insurance is not applicable abroad, many travelers will purchase travel health insurance to cover unexpected medical expenses.

The cost of a travel insurance policy depends on the age of the travelers, duration of the trip, location of the trip, how much the trip costs, policy tier selected and more. If you’re planning a trip and you’ve made a significant investment that you can’t afford to lose, you might need travel insurance.

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How Does Travel Insurance Work?

Like most types of insurance, travel insurance works on a reimbursement model. You pay for your travel first and if you experience a covered loss, apply for a reimbursement with your insurance provider later. For this reason, it is important to understand what a plan does and does not cover and how it works before you buy a policy. 

Primary vs. Secondary Insurance Coverage

If you purchase a travel insurance policy to supplement your standard health insurance, it is important to determine which policy will serve as the primary insurance. If your travel insurance provides the primary medical coverage, it will act as the first source of payment for eligible medical expenses. So if you incur medical bills abroad, primary medical insurance will cover your expenses without requiring you first to file a claim with your standard health insurance.

If your travel insurance offers secondary medical coverage, it will only kick in after other applicable insurance policies. In most cases, you must file a claim with your standard health insurance provider first before filing one with your travel insurance provider. Your travel medical coverage would then cover any remaining eligible expenses not covered by your primary insurance.

If you do not have health insurance, having travel insurance with secondary medical coverage is likely not as beneficial. Travel insurance policies are usually more affordable than primary medical coverage, and because you do not have backup insurance, can act as immediate primary coverage. 

However, some policies offering secondary coverage outline a minimum health insurance requirement for claim validity. So, read all the terms of your proposed travel policy before purchasing.

Coverage Limits and Requirements

Travel insurance policies have financial caps or dollar limits on covered situations. For example, if your policy offers $150,000 in emergency medical expenses, your provider will pay out a maximum of $150,000 toward covered expenses. If your expenses exceed $150,000, you are responsible for the extra costs. 

For trip interruption and cancellation protection, insurers usually calculate coverage as a percentage of your total trip cost. So, if interruption benefits include 125% coverage reimbursement on a trip with a total value of $5,000, you can claim up to $6,250 in benefits. For reference, most travel insurance plans include 100% trip cancellation coverage and a minimum of 125% trip interruption coverage to compensate for extra charges such as unexpected flight changes.

In addition to knowing coverage limits, noting any policy use restrictions before buying a plan is good practice. Your provider will likely require you to document all expenses incurred when you file a claim, such as if you buy clothing and cosmetics to replace lost baggage . Most travel insurers also ask you to contact a representative to request authorization before using a medical evacuation benefit, even after being hospitalized.  

What Does Travel Insurance Cover?

Travel insurance is a holistic insurance that covers you in multiple areas. Let’s look at the most common coverages you’re likely to find on your travel insurance policy. 

Trip Cancellation and Interruption

Most travel insurance plans include trip cancellation and interruption coverage to reimburse prepaid, nonrefundable expenses if your trip is canceled or delayed for a reason outlined in your policy. Valid reasons for cancellation usually involve extreme personal or financial hardship, such as:

• An illness, injury or hospitalization that prevents you from traveling
• Death of a family member or travel companion 
• Legal obligations, such as jury duty
• Natural disasters
• Acts of terrorism or war 

Trip interruption coverage offers financial protection if you must return home earlier than originally planned. If a family member gets sick back home while you’re abroad, your trip interruption coverage may cover a sudden return flight and reimburse unused trip expenses.

Specific reasons that qualify the use of trip cancellation and interruption benefits vary by insurance company. If you want to extend your benefits to cover more situations, consider buying cancel for any reason (CFAR) coverage , which lets you claim a partial reimbursement no matter why you cancel.

Baggage Loss or Delay

Benefits for lost or delayed baggage pay for the cost of belongings if an airline temporarily or permanently loses your luggage. However, baggage delay coverage usually has more limited benefits for temporary needs — such as clothing and toiletries — if a travel carrier sends your luggage to the wrong location. This coverage will also typically reimburse you for stolen belongings during a trip. 

To prove a loss or delay to your insurer, you usually need to provide documentation, such as receipts and a property irregularity report (PIR) from an airline. It is also important to note the financial limits on eligible claim items. For example, while most baggage loss policies cover jewelry, you may face a limitation of $100 or less for each lost piece of jewelry. You can also consider additional coverage riders for exceptionally high-value items, such as musical instruments and sporting equipment. 

Auto Rental Damage Coverage

If you plan to rent a vehicle while away, consider adding rental car coverage to your travel insurance policy. Travel insurance usually includes auto collision coverage, which usually pays for damage to a rental car. So if you total your rental car in an accident, collision insurance helps pay the cost of repairs.

Depending on your rental car provider and where you’re visiting, you may need liability coverage to drive legally. In the U.S., for example, each state sets liability requirements for drivers. Travel insurance with auto coverage usually does not supply the necessary liability insurance to drive, so consult with your rental car company to learn more about meeting local requirements.

Vacation Rental Coverage

Some insurance companies also have vacation rental coverage that pays for the cost of any damage done to a short-term rental property. For example, if you rent an Airbnb and your pet urinates on the carpet, the rental owner might charge you for the cost of cleaning or replacing the rug. Depending on your policy coverage, vacation rental insurance would cover this charge.

Travel insurers typically classify auto rental and vacation rental coverage as add-ons, meaning coverage is not included under most standard plans. If you select either add-on, your premium will increase. 

Emergency Evacuation and Transportation

If you’re visiting a remote area or taking a cruise , you might consider insurance to cover medical transportation. Emergency medical evacuation coverage can help you pay for the cost of transportation services if you are far from a local facility equipped to treat your injuries. 

Some policies also offer the ability to use emergency evacuation services because of civil unrest or a political emergency.

Travel Medical Insurance Coverage

Travel medical insurance helps cover medical bills you might incur while on a trip away from home. Many health insurance policies, including government-sponsored policies like Medicare , do not cover injuries and illnesses incurred abroad. A travel medical insurance plan can help you pay the medical bills if you need healthcare while traveling outside your primary health insurance plan’s service area. 

“Find out what, if anything, your domestic health insurance covers when you travel. Even if you do, it could be only for emergencies, and your health insurance company’s definition of an emergency might not be the same as yours. Because of this, we always recommend travel medical insurance for international travel.”

– Angela Borden, Product Marketing Specialist at Seven Corners

Travel Insurance Additional Benefits

Some travel insurance providers offer benefits beyond the above-listed standard inclusions, such as:

• Document replacement: If you lose your passport or personal ID card while abroad, you may need to visit a local consulate for a replacement. Travel insurance with document replacement coverage can help you cover the associated cost.
• Flight departure delay: Some insurers, such as Berkshire Hathaway , give you a credit if your flight gets delayed by more than two hours. You can use the credit to pay for refreshments or entertainment, such as Wi-Fi, during a delay.
• Tarmac delay: Some companies provide a set benefit if your flight is stuck on the tarmac for a specific number of hours. 
• Other benefits : Some insurance providers include additional benefits, such as rental car coverage or identity theft coverage.

What’s Not Covered by Travel Insurance?

Each travel insurance company creates its own policy packages, meaning exclusions vary from company to company. You should assume that any services not listed in your contract are excluded from coverage. Some of the most common circumstances when you cannot use your travel insurance coverage include the following:

Most travel insurance policies cover sudden travel expenses resulting from unexpected natural disasters, such as hurricanes and tropical storms. However, your coverage won’t apply to losses caused by storms that were already named when you booked your insurance.

If you’re traveling abroad to seek medical treatments, there’s always the chance of complications increasing the cost of your services. Medical tourism expenses are not covered under travel insurance policies.

Even if you purchase trip cancellation coverage, you cannot cancel your travel for any reason and still claim a refund. If you change your mind and don’t want to travel anymore, your travel insurance will not reimburse you for your expenses

Other standard exclusions include:

• Fear of flying
• Injuries incurred during extreme sports
• Preexisting conditions (on medical policies)
• Travel to high-risk destinations

How Much Does Travel Insurance Cost?

The price you pay for travel insurance depends on several factors, including:

• Your total trip cost: The amount you pay for your trip will impact your travel insurance quote, with more expensive trips usually costing more to insure due to the risk of higher payouts.
• Destination: Some countries have more robust government and healthcare infrastructures than others. The quality and average cost of medical services in the country you’re visiting will typically influence your insurance cost.
• Length of your vacation: The longer the duration of your trip, the more you will typically pay for travel insurance.
• Your age: Older travelers usually pay more for travel insurance because insurance companies assume they are more likely to get hurt, sick or experience an accident, such as a fall, while abroad.

To help give you an idea of what you might pay for travel insurance, the MarketWatch Guide team gathered a series of quotes for several sample trips. Here is the pricing for popular plans with our recommended providers. 

What Is the Cheapest Travel Insurance?

After extensive review, our team found the average cost of a basic travel insurance policy is between $91 and $108 . The least expensive travel insurance companies are Travelex, Faye and Nationwide, according to our review. 

Read more about the cheapest travel insurance providers in our review. 

How Do I Get Travel Insurance?

Are you thinking about buying a travel insurance policy for your upcoming trip ? Here’s how to start comparing policies to get the coverage you need.

Check Current Coverage

If you’re primarily concerned about buying travel insurance for medical expenses and already have health insurance, travel insurance might not be a necessary expense. Employer-sponsored medical coverage, for example, will provide health care coverage anywhere you travel within the United States. Companies that provide ACA-compliant health insurance plans are also legally required to cover emergency services administered at any medical facility in the United States.

If you’re traveling internationally, your health plan will likely have exclusions or limitations on treatments you receive abroad. For example, most Medicare plans don’t offer coverage for international treatments. Contact your health insurance provider to learn what, if anything, your plan will cover abroad.

You might also have additional protections you’re unaware of. Some credit card companies offer limited coverage for airline baggage delays, and life insurance coverage for accidental death and dismemberment still applies abroad.

Assess all your household coverages and consult with insurance providers you’re currently working with to see how much extra trip insurance you need.

Consider Individual Needs

The best travel protection for your upcoming trip will depend on what you’ve spent on the trip, where you’re going and how often you travel. You’ll also need to consider the types of coverage you might need, especially if you’re headed abroad. For example, if you have a chronic condition that requires regular medical care in professional settings, you should consider coverage for a medical evacuation.

Like every other type of insurance, no single travel insurance policy will cover all expenses you might incur. Coverage limits apply to every trip, with the upper limit as the maximum amount that your insurance will compensate you. The higher your coverage limit, the more you’ll pay for your travel insurance plan — but it’s essential to tell the truth about your trip cost to be sure that you have adequate coverage. 

You can often save money on your coverage by selecting a policy with a lower deductible .

Now that you understand the multiple travel insurance types available, it’s time to begin claiming free quotes from competing insurance providers. Though most travel insurance providers allow you to claim a quote online, you can also contact most companies’ representatives via phone or email if you prefer personal assistance.

Remember to get a free quote from multiple insurance providers before choosing the right policy.

How Do I Use My Travel Insurance?

If you’ve ever needed to file a claim with your car insurance or pet insurance provider, you’re already familiar with the process of filing a travel insurance claim. While you’ll need to cover any emergency expenses on your own at the time of service, you can file a claim with proof of your loss or expense to your insurance company. Your insurance company will then assess your claim to ensure that your situation is covered before reimbursing you according to your policy.

You’ll need to incur a travel cost or expense that’s specifically covered by your insurance policy to claim a reimbursement. Make sure you read the fine print on your insurance contract before signing up for coverage, and save all receipts from your trip to maximize your benefits.

Do I Need Travel Insurance?

While some countries or visa requirements require travel insurance, many countries do not require U.S. travelers to purchase a policy as a condition of entry. You also do not need travel insurance to travel within the U.S. or visit Canada. 

Whether you should purchase travel insurance depends on your circumstances. Travel insurance is typically most valuable for expensive trips because you can recoup a higher value of expenses. In other words, reimbursement eligibility scales with vacation value. You may find insurance for low-cost trips tougher to justify financially — especially if part of the trip is refundable or you already have some insurance benefits through a travel credit card . 

Travel insurance is potentially of value if your regular health insurance is limited or you’re traveling to an area with a limited medical infrastructure. Getting sick or hurt abroad often comes at a high expense, especially if you require medical evacuation services to a hospital. Travel insurance that covers medical expenses and evacuations can help cover these costs, especially if your primary health insurance does not extend abroad.

Is Travel Insurance Worth It?

If you’re preparing for a trip, is it worth purchasing travel insurance ? The answer to this question will vary depending on your unique circumstances. If you’re preparing for an expensive international vacation, it’s likely worth the money to insure your trip against cancellation. This is especially true for long-distance trips that require expensive airfare. 

You might also want to consider travel insurance if you have known medical conditions that might cause you to need last-minute trip adjustments. 

Even if you don’t think you’ll buy travel insurance, getting a free quote or two takes only a few minutes — coverage might be more affordable than you think.

Frequently Asked Questions About Travel Insurance

Is it necessary to have travel insurance.

No law mandates purchasing travel insurance when you go abroad. However, you will be financially liable for any money lost due to travel delays or cancellations if you don’t have insurance. If you’ve prepaid for your upcoming trip, you should at least consider a trip cancellation coverage package to recoup a portion of your funds in an emergency.

What are the benefits of travel insurance?

Travel insurance benefits can include reimbursement for lost baggage, medical expenses and other costs incurred when you cancel a trip or encounter a delay. Travel insurance can give you the peace of mind that comes with knowing you can recover a portion of the cost of your trip if something goes wrong or you have an emergency.

Where can I purchase travel insurance?

You can purchase travel insurance through independent insurance companies, many of which offer a range of insurance products. Some of the most well-known names in travel insurance include Allianz, Nationwide and AIG. If you booked your vacation through a travel agency, your agent might also be able to recommend and book travel insurance for your journey.

What is the difference between travel insurance and a medical plan?

Travel medical insurance is a limited type of health insurance coverage that can help you pay for treatments and emergency services you require abroad. While you likely have a medical plan in the form of health insurance through your employer, most insurance companies don’t extend benefits to international services. Travel insurance covers medical expenses like a domestic medical plan but allows you to file claims for specific services and treatments received abroad.

If you have feedback or questions about this article, please email the MarketWatch Guides team at  editors@marketwatchguides. com .

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Last Updated 12/21/2023

Issue: Travel insurance is a type of insurance for risk associated with traveling such as loss of luggage, trip cancellation and delays. The popularity of travel insurance is increasing. According to the U.S. Travel Insurance Association (UStiA) 2020-2022 data shows that Americans spent nearly $4.27 billion on all types of travel protection. Consumers purchased these plans through travel suppliers, travel agents, travel insurance providers, internet aggregators, and insurance producers Around 77 million people were protected by over 49.3 million plans.

 Background: Travel insurance gives consumers peace of mind when booking a trip that they will be reimbursed for part of, or all their expenses should an undesirable event occur that prompts cancellation or interruption of the trip. Policies are generally good for U.S. and international travel and usually cost between 4-8% of the total trip price.

The main types of travel insurance include:

• Trip Cancellation/Interruption/Delay insurance reimburses all pre-paid and non-refundable travel expenses if an individual is prevented from taking all or part of their trip. These policies may reimburse the traveler for part of the vacation should they become seriously ill or injured during the trip or if a flight is delayed, requiring an overnight stay in a hotel. This is the most popular type of travel insurance purchased; trip cancellation/interruption policies account for approximately 89% of the travel protection plans purchased in 2022.  
• Baggage Loss/Delay or personal effects insurance is considered secondary coverage and covers the traveler's lost, stolen, or damaged baggage and personal items. While consumers may have some coverage via homeowner's policies or credit card companies, baggage loss policies can offer additional protection for coverage gaps. 
• Travel Medical insurance offers secondary health and accident insurance in case of illness or injury while traveling as most standard health insurance plans and Medicare likely will not provide coverage abroad. Additionally, a number of countries, including most of the E.U., may require proof of medical insurance in order to receive a visa. 
• Medical Evacuation insurance covers costs related to medical emergency transport to licensed medical facilities. Most U.S. health insurance companies will not pay for repatriation or transport to the nearest appropriate medical facility when overseas. Medical evacuation insurance accounts for about 6.3% of travel insurance plans sold , according to the UStiA. 
• Cancel For Any Reason : Cancel for any reason (CFAR) coverage augments trip cancellation insurance by allowing the insured to cancel their trip and receive a partial refund (50%-75% of the total price) for any reason not covered in the original trip cancellation plan. CFARs offer more flexibility than trip cancellation insurance alone. Usually, certain criteria need to be met to qualify for coverage such as purchasing the policy within a specified time frame, insuring the entire full cost of the trip, and adhering to cancellation restrictions (CFARs typically only allow the traveler to cancel their trip 48 hours or more before the departure date). Because of the comprehensiveness and flexibility CFAR policies offer, they will add close to 50% to the total travel insurance cost . The more expensive the trip, the more a CFAR policy will cost out-of-pocket.

Policy Exclusions

As with any insurance policy, it is good practice to check not only what is included, but what conditions are excluded from the policy as well. Although every policy is different, some of the most common travel policy exclusions are:

• Pre-existing health conditions
• Pandemics  
• Civil and political unrest at the traveler's destination
• Pregnancy and childbirth
• Coverage for those engaging in risky activities such as bungee jumping, backcountry skiing, snowboarding, etc.

Non-Insurance Coverage

Travel insurance products are frequently bundled together with non-insurance products and sold as a package. Even though products and services may be bundled together, only the insurance products have the oversight of state insurance departments. Two of the most common non-insurance travel products are cancellation fee waivers and travel assistance services. Cancellation fee waivers provide coverage for fees that may be incurred when cancelling travel plans. Travel assistance services provide things like translation assistance, referrals to medical services, and assistance with lost luggage or travel documentation.

Status: In November 2015, the U.S. Travel Insurance Association and the Tourism and Travel Industry Consumer Coalition raised concerns regarding lack of specificity and consistent application of regulation of the travel insurance industry to the Property and Casualty (C) Committee. This prompted the committee to appoint a Travel Insurance (C) Working Group in 2016 to consider development of a model law or guideline to establish appropriate regulatory standards for the travel and tourism insurance industry. During the year, the Working Group drafted the model law using the National Conference of Insurance Legislators (NCOIL) Travel Insurance Model Act as a starting point. This model law defines regulatory structure related to travel insurance and covers market regulation, premium tax, rate regulation, and enforcement. The model was adopted by the NAIC membership in December 2018. The International Travel and Health Insurance Journal reports that, as of March 2023, "29 of the 50 states have adopted the rule in some shape or form."

In 2019, the Market Conduct Examination Standards (D) Working Group added some standards relating to travel insurance. A summary of these changes is available here.

Committees Related to This Topic

Property and Casualty Insurance (C) Committee

Additional Resources

NAIC Travel Insurance Model Act December 2018

U.S. Travel Insurance Association  (UStiA)

International Association for Medical Assistance to Travellers

International Society of Travel Medicine

U.S. Department of State

Travel Insurance Centers for Disease Control (CDC). Last reviewed November 2022

Traveler's Health  (CDC)

News Releases

Insuring your winter vacation experience (NAIC, 2019) 

Breaking for spring travel (NAIC, 2017) 

Globetrotting: Consider travel insurance before you hit the road (NAIC, 2016) 

Travel insurance (NAIC, 2010) 

Media queries should be directed to the NAIC Communications Division at 816-783-8909 or [email protected] .

NAIC Center for Insurance Policy and Research (CIPR)

CIPR Homepage

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What Does Travel Insurance Cover?

• What Does It Not Cover?
• Travel Insurance Requirements
• When Insurance Is Not Necessary
• Travel Insurance Costs
• When Is It Worth It?

The Bottom Line

• Personal Finance

Do I Need Travel Insurance?

Westend61 / Getty Images

Travel insurance can offer financial protection if you cancel an expensive, nonrefundable vacation for an approved reason. Travel insurance can also cover your medical bills if you experience a medical emergency while traveling. However, sometimes you can get away with not purchasing it.

“Ultimately, the decision to purchase travel insurance should be based on your individual circumstances, including your destination, planned activities, health condition, and financial situation,” Rajeev Shrivastava, founder and CEO of insurance marketplace VisitorsCoverage, told Investopedia via email.

Key Takeaways

• Travel insurance typically covers a variety of situations, such as trip cancellations, travel delays, lost luggage, medical care, and emergency evacuation.
• A travel insurance policy generally costs 4% to 10% of the cost of a trip.
• Seriously consider buying travel insurance if you’re taking a nonrefundable trip or traveling internationally.
• Existing coverage from homeowners, health insurance, and credit cards might mean you don’t need to buy a separate travel insurance policy, but it's still smart to look at the best travel insurance companies before your trip.

Travel insurance policies typically cover these five financial and health risks:

Trip Cancellations, Interruptions, and Delays

Illness, the death of a traveler’s family member, bad weather, job loss, or a natural disaster are a few circumstances that might trigger reimbursement of prepaid travel costs, such as plane tickets or emergency expenses. However, only reasons outlined by the insurance policy are covered, so review exclusions.

Luggage and Rental Car Damage or Loss

A travel insurance policy might cover lost, stolen, or damaged luggage, personal items, or auto rentals. In some cases, the coverage might include reimbursement of purchases (such as clothing) you needed to make because you didn’t have your luggage. An auto rental damage waiver covers a rental vehicle’s damage or theft.

Travel Health Insurance 

Travel insurance kicks in for medical or dental emergencies when your regular U.S. health insurance doesn’t apply. Remember that even if a country has a low-cost or free nationalized health system, you’ll pay out of pocket if you are not a citizen.

Medical Evacuation

Medical evacuation coverage reimburses you if you must be evacuated from a remote area to a hospital. For example, if you become seriously ill while trekking in the Swiss Alps, travel insurance may pay for you to be airlifted to a big-city hospital for treatment. Medical evacuation from a remote location can cost as much as $250,000. This insurance may be part of travel health insurance or a stand-alone policy.

Accidental Death and Dismemberment

This type of coverage pays benefits to your survivors if you get injured or die while on a trip. Injuries are typically limited to losing an eye, hand, foot, or limb.

Many travel insurance policies provide 24/7 assistance to help you find medical care, make travel arrangements, and contact loved ones in an emergency.

What Does Travel Insurance Not Cover? 

A standard travel insurance policy won’t cover some cancellation reasons. For example, a standard travel insurance policy won’t provide coverage if you decide to back out of a trip because you need to cut back on spending. You would need to purchase “cancel for any reason” (CFAR) coverage . Even CFAR has its own rules, such as canceling within a specific time frame.

Other losses that traditional travel insurance may or may not cover include:

• Costs associated with preexisting health conditions, pregnancy complications, or mental health issues
• Injury costs after participating in higher-risk activities such as rock climbing or skydiving
• Trip interruption, cancellation, or other losses due to health and disease outbreaks or natural disasters
• Cancellations due to terrorism, civil unrest, or any U.S. State Department warnings

Ask the insurer about exclusions to find out which exclusions apply, or review documentation. You may be able to find travel health insurance coverage that won’t exclude your mountain-climbing injuries, for example. 

Which Countries Require Travel Insurance?

Many countries don’t require travel or health insurance now that the COVID-19 pandemic is in retreat. However, future disease outbreaks can influence requirements. Check the U.S. State Department’s website and destination government sites for the most current information on health requirements and recommendations.

For example, Thailand still requires visitors to carry $10,000 in travel medical insurance if they’re coming from a country with pre-departure COVID tests. However, the United States doesn’t require pre-departure COVID testing, making the insurance unnecessary for Americans.

Some nations have blanket requirements for coverage. Cuba requires U.S. airlines leaving from the U.S. to pay for each passenger’s health insurance. Every international traveler entering Saudi Arabia receives government-supplied travel medical insurance for emergencies.

Travelers entering Qatar must purchase emergency and accident services health insurance from a Qatar-registered insurer.

In some countries, you must apply for a visa to visit, even for a few days. In Nepal, U.S. visitors applying for the required six-month visa must demonstrate proof of a six-month international health insurance policy.  

When Is Travel Insurance Not Necessary?

Suppose you’re taking a short trip in your own country and have adequate health insurance. In that case, you might not need travel insurance, according to Jason Eckhoff , founder and CEO of the BusinessClass.com travel website, as told to Investopedia via email.]

In addition, if you’re taking a trip with refundable costs—such as airfare—and can cancel it without being financially penalized, then travel insurance may not be necessary.

You may not need travel insurance if your credit card offers robust benefits. Travel credit cards and other credit cards may provide the following coverages: 

• Trip cancellation insurance
• Trip delay reimbursement
• Emergency evacuation and transportation
• Accidental death and dismemberment
• Lost or delayed luggage reimbursement
• Auto damage waivers
• Roadside emergency assistance

However, Jiten Puri, founder and CEO of insurance marketplace PolicyAdvisor.com, noted that this coverage might be limited, such as providing only basic medical care or not covering trip cancellation or interruption.

How Much Does Travel Insurance Cost?

Generally, travel insurance costs 4% to 10% of the total prepaid, nonrefundable expenses for your trip. If you buy travel insurance for a cruise with a $6,000 price tag, you might pay anywhere from $240 to $600 for a policy.

The cost of travel insurance varies by insurer. Investopedia reviewed six insurers’ travel insurance plans offering trip cancellation/interruption, emergency medical/evacuation, and baggage loss/damage found the following ranges:

Factors that affect the cost of travel insurance include:

• Age : This is the largest factor in rates charged for travel insurance. Older travelers and travelers with preexisting medical conditions might find travel insurance costs more than it does for other travelers.
• Coverage type and dollar amount : A policy with fewer coverage types and where your trip expenses are lower typically costs less than coverage for higher dollar amounts or extra benefits, such as CFAR insurance .
• Trip length : The more days you travel, the more risks you might encounter.
• Number of travelers : A trip with six people might be riskier (and cost more) than a trip with two people.

Remember that an insurer may turn you down or charge you more after reviewing your application based on the insurer’s risk standards. 

When Is Travel Insurance Worth It?

David Leiter , publisher of The World Travel Guy blog, said it’s generally a good idea to buy travel insurance with appropriate coverages if you’re:

• Taking a pricey trip with nonrefundable costs
• Traveling internationally
• Visiting a remote location without easy access to medical care

Eckhoff suggested considering buying travel insurance if you:

• Have a preexisting medical condition, as long as the policy covers your needs
• Are visiting a country threatened by political instability, natural disasters, or health risks
• Participate in higher-risk activities, increasing the odds of becoming injured or ill

In addition to the above, the U.S. Centers for Disease Control and Prevention (CDC) recommends buying supplemental travel health insurance if you’re traveling for more than six months.

The U.S. State Department suggests buying insurance before you travel and reviewing the country information page of your destination before you travel.

The CDC recommends seeking a travel health insurance policy that makes payments directly to the provider or hospital, provides 24-hour physician support, offers emergency medical transport to the U.S. or equivalent, and covers high-risk activities.

“If you’re shopping for travel insurance, make sure you get something that fits you, your destination, and your style of travel. Think of what’s most likely to go wrong in your situation, and then pick a plan that will cover it,” Leiter recommended.

Do I Need Travel Insurance if I Have Health Insurance?

Your existing health insurance may cover emergency care during international travel. However, only some health insurance plans kick in when traveling abroad. Before buying extra travel insurance, check with your health insurance company about on-the-go coverage; ask if you must seek preauthorization and which exclusions apply.

Do I Need Travel Insurance if My Credit Card Has Built-in Travel Protection?

Built-in travel protection from one of your credit cards may be all you need for your trip. For instance, if your primary goal is to obtain trip cancellation coverage, then your credit card benefits might be adequate. However, you may want to buy travel insurance if your credit card lacks sufficient medical coverage—or offers no medical coverage.

Is Travel Insurance the Same as Cancellation Insurance?

Travel insurance is not the same as cancellation insurance. However, cancellation insurance is often one component of travel insurance. So, your travel insurance policy may offer reimbursement for a cancellation due to specific circumstances, such as a death. But travel insurance can also cover medical expenses, lost baggage, and auto rental damage.

Does Travel Insurance Protect My Possessions?

Homeowners and renters insurance can cover your possessions when you’re traveling. However, that coverage might not be enough to protect valuable items such as jewelry or may not cover the total cost for replacement. Furthermore, filing a homeowners or renters insurance claim might increase your premium.

How Can I Save Money on Travel Insurance?

Don’t go with the first travel insurance policy you come across. Instead, shop around to make sure you’re getting the most coverage at the best price. Also, if you’re booking a trip through a travel agency or tour operator, ask for a package deal, including travel insurance.

Buying travel insurance might not be necessary if you’re traveling domestically or going on a refundable trip, or if you carry adequate coverage through a credit card. “We would always recommend getting travel insurance. But if you are extremely elderly or in very poor health, your travel insurance premiums may be expensive,” Puri said.

Travel insurance generally provides “invaluable peace of mind,” Puri said. For instance, travel insurance can be a smart investment if you’re traveling internationally and purchased a high-cost, nonrefundable trip.

Mass.gov (Commonwealth of Massachusetts). “ Travel Insurance .”

U.S. Centers for Disease Control and Prevention. “ Travel Insurance .”

U.S. Centers for Disease Control and Prevention. “ Travel Insurance, Travel Health Insurance & Medical Evacuation Insurance: CDC Yellow Book 2024 .”

Washington State Office of the Insurance Commissioner. “ Travel Insurance .”

Tourism Authority of Thailand. “ Health Insurance Instruction and Requirements .”

U.S. Centers for Disease Control and Prevention. “ CDC Rescinds Order Requiring Negative Pre-Departure COVID-19 Test Prior to Flight to the U.S. ”

U.S. Department of State, Travel. “ Cuba International Travel Information .”

Saudi Arabia Health Insurance Council. “​​​​​​​​​​​​​ Tourists Health Insurance .”

State of Qatar, Ministry of Public Health. “ Mandatory Health Insurance Scheme .”

Government of Nepal, Ministry of Home Affairs, Department of Immigration. “ Information Regarding Visa Reciprocity .”

U.S. Department of State, Travel. “ Insurance Coverage Overseas .”

The Hartford, Extra Mile Blog. “ Traveling? Are You Covered by Insurance? ”

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11 Best Travel Insurance Companies in May 2024

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

If the past few years have shown us anything, it’s that travelers need to be prepared for the unexpected — from a pandemic to flight troubles to the crowded airport terminals so many of us have encountered.

If you don't have sufficient travel insurance coverage via your credit card , you can supplement your policies with third-party plans.

Whether you’re looking for an international travel insurance plan, emergency medical care or a policy that includes extreme sports, these are the best travel insurance providers to get you covered.

How we found the best travel insurance

We looked at quotes from various companies for a 10-day trip to Mexico in September 2024. The traveler was a 55-year-old woman from Florida who spent $3,000 total on the trip, including airfare.

On average, the price of each company’s most basic coverage plan was $126.53. The costs displayed below do not include optional add-ons, such as Cancel For Any Reason coverage or pre-existing medical condition coverage.

Read our full analysis about the average cost of travel insurance so you can budget better for your next trip.

However, depending on the plan, you may be able to customize at an added cost.

As we continue to evaluate more travel insurance companies and receive fresh market data, this collection of best travel insurance companies is likely to change. See our full methodology for more details.

Best insurance companies

Types of travel insurance

What does travel insurance cover, what’s not covered, how much does it cost, do i need travel insurance, how to choose the best travel insurance policy, what are the top travel destinations in 2024, more resources for travel insurance shoppers, top credit cards with travel insurance, methodology, best travel insurance overall: berkshire hathaway travel protection.

Berkshire Hathaway Travel Protection

• ExactCare Value (basic) plan is among the least expensive we surveyed.
• Speciality plans available for road trips, luxury travel, adventure activities, flights and cruises.
• Company may reimburse claimants faster than average, including possible same-day compensation.
• Multiple "Trip Delay" coverage types might make claims confusing.
• Cheapest plan only includes fixed amounts for its coverage.

Under the direction of chair and CEO Warren Buffett, Berkshire Hathaway Travel Protection has been around since 2014. Its plans provide numerous opportunities for travelers to customize coverage to their needs.

At $135 for our sample trip, the ExactCare Value (basic) plan from Berkshire Hathaway Travel Protection offers protection roughly $10 above the average price.

Want something cheaper? Air travelers looking for inexpensive, less comprehensive protections might opt for a basic AirCare plan that includes fixed amounts for its coverage .

Read our full review of Berkshire Hathaway .

What else makes Berkshire Hathaway Travel Protection great:

Pre-existing medical condition exclusion waivers available at nearly all plan levels. 

Plans available for travelers going on a cruise, participating in extreme sports or taking a luxury trip.

ExactCare Value (basic) plan was among the least expensive we surveyed.

Best for emergency medical coverage: Allianz Global Assistance

Annual or single-trip policies are available.

• Multiple types of insurance available.
• All plans include access to a 24/7 assistance hotline.
• More expensive than average.
• CFAR upgrades are not available.
• Rental car protection is only available by adding the One Trip Rental Car protector to your plan or by purchasing a standalone rental car plan.

Allianz Global Assistance is a reputable travel insurance company offering plans for over 25 years. Customers can choose from a variety of single and annual policies to fit their needs. On top of comprehensive coverage, some travelers might opt for the more affordable OneTrip Cancellation Plus, which is geared toward domestic travelers looking for trip protections but don’t need post-departure benefits like emergency medical or baggage lost.

For our test trip, Allianz Global Assistance’s basic coverage cost $149, about $22 above average.

What else makes Allianz Global Assistance great:

Annual and single-trip plans.

Plans are available for international and domestic trips.

Stand-alone and add-on rental car damage product available.

Read our full review of Allianz Global Assistance .

Best for travelers with pre-existing medical conditions: Travel Guard by AIG

Travel Guard by AIG

• Offers last-minute coverage.
• Pre-Existing Medical Conditions Exclusion Waiver available at all plan levels.
• Plan available for business travelers.
• Cancel For Any reason coverage only available for higher-level plans, and only reimburses up to 50% of the trip cost.
• Trip interruption coverage doesn't apply to trips paid for with points and miles.

Travel Guard by AIG offers a variety of plans and coverages to fit travelers’ needs. On top of more standard trip protections like trip cancellation, interruption, baggage and medical coverage, the Cancel For Any Reason upgrade is available on certain Travel Guard plans, which allows you to cancel a trip for any reason and get 50% of your nonrefundable deposit back as long as the trip is canceled at least two days before the scheduled departure date.

At $107 for our sample trip, the Essential plan was below average, saving roughly $20.

What else makes Travel Guard by AIG great:

Three comprehensive plans and a Pack N' Go plan for last-minute travelers who don't need cancellation benefits.

Flight protection, car rental, and medical evacuation coverage, as well as annual plans available.

Pre-existing medical conditions exclusion waiver available on all plan levels, as long as it's purchased within 15 days.

Read our full review of Travel Guard by AIG .

Best for those who pack expensive equipment: Travel Insured International

Travel Insured International

• Higher-level plan include optional add-ons for event tickets and for electronic equipment
• Rental car protection add-on for just $8 per day, even on lower-level plan.
• Many of the customizations are only available on the higher-tier plan.
• Coverage cost comes in above average in our latest analysis.

Travel Insured International offers several customization options. For instance, those going to see a show may want to add on event ticket registration fee protection. Traveling with expensive gear?Consider adding on coverage for electronic equipment for up to $2,000 in coverage.

Be sure to check which policies are available in your state. You will need to input your destination, residence, trip dates and the number of travelers to get a quote and see coverages.

What else makes Travel Insured International great:

Comprehensive plans include medical expense reimbursement accidents, sickness, evacuation and pre-existing conditions, depending on the plan.

Flight plans include coverage for missed and canceled flights and lost or stolen baggage.

Read our full review of Travel Insured International .

Best for adventurous travelers: World Nomads

World Nomads

• Travelers can extend coverage mid-trip.
• The standard plan covers up to $300,000 in emergency evacuation costs.
• Plans automatically cover 200+ adventurous activities.
• No Cancel For Any Reason upgrades are available.
• No pre-existing medical condition waivers are available.

Many travel insurance plans contain exclusions for adventure sports activities. If you plan to ski, bungee jump, windsurf or parasail, this might be a plan to consider.

Note that the Standard plan ($72 for our sample trip), while the most affordable, provides less coverage than other plans. But it can be a good choice for travelers who are satisfied with trip cancellation and interruption coverage of $2,500 or less, do not need rental car damage protection, find the limits to be sufficient and do not need coverage for certain more adventurous activities.

What else makes World Nomads great:

Comprehensive international travel insurance plans.

Coverage available for adventure activities, such as trekking, mountain biking and scuba diving.

Read our full review of World Nomads .

Best for medical coverage: Travelex Insurance Services

Travelex Insurance Services

• Top-tier plan doesn’t break the bank and provides more customization opportunities.
• Offers a plan specifically for domestic travel.
• Sells a post-departure medical coverage plan.
• Fewer customization opportunities on the Basic plan.
• Though perhaps a plus for domestic travelers, keep in mind the Travel America plan only covers domestic trips.

For starters, basic coverage from Travelex Insurance Services came in at $125, almost exactly average for our sample trip.

Travelex’s plans focus heavily on providing protections that are personalized to your travel style and trip type.

While the company does offer comprehensive plans that include medical benefits, you can also choose between cheaper plans that don’t provide cancellation coverage but do offer protections during your travels.

Read our full review of Travelex Insurance Services .

What else makes Travelex Insurance Services great:

Three comprehensive plans available, two of which cover international trips.

Offers a post-departure plan geared exclusively toward disruptions after you leave home.

Two flight insurance plans available.

Best if you have travel credit card coverage: Seven Corners

Seven Corners

• Annual, medical-only and backpacker plans are available.
• Cancel For Any Reason upgrade is available for the cheapest plan.
• Cheapest plan also features a much less costly Interruption for Any Reason add-on.
• Offers only one annual policy option.

Each Seven Corners plan offers several optional add-ons. Among the more unique is a Trip Interruption for Any Reason, which allows you to interrupt a trip 48 hours after the scheduled departure date (for any reason) and receive a refund of up to 75% of your unused nonrefundable deposits.

» Jump to the best cards with travel insurance

The basic coverage plan for our trip to Mexico costs $124 — right around the average.

What else makes Seven Corners great:

Comprehensive plans for U.S. residents and foreigners, including travelers visiting the U.S.

Cheap add-ons for rental car damage, sporting equipment rental or trip interruption for any reason.

Read our full review of Seven Corners .

Best for long-term travelers: IMG

• Coverage available for adventure travelers.
• Special medical insurance for ship captains and crew members, international students and missionaries.
• Claim approval can be lengthy.

While some travel insurance companies offer just a handful of plans, with IMG, you’ll really have your pick. Though this requires a bit more research, it allows you to search for coverage that fits your travel needs.

However, travelers will want to be aware that IMG’s iTravelInsured Travel Lite is expensive. Coming in at $149.85, it’s the costliest plan on our list.

Read our full review of IMG .

What else makes IMG great:

More affordable than average.

Many plans to choose from to fit your needs.

Best for travelers with unpredictable work demands: Tin Leg

• In addition Cancel For Any Reason, some plans offer cancel for work reason coverage.
• Adventure sports-specific coverage is available.
• Plans have overlap that can be hard to distinguish.
• Only one plan includes Rental Car Damage coverage available as an add-on.

Tin Leg’s Basic plan came in at $134 for our sample trip, adding about $8 onto the average basic policy cost. Note that you’ll pay a lot more if you shop for the most comprehensive coverage, and there are eight plans to choose from for trips abroad.

The multitude of plans can help you find coverage that fits your needs, but with so many to choose from, deciding can be daunting.

The only real way to figure out your ideal plan is to compare them all, look at the plan details and decide which features and coverage suit you and your travel style best.

Read our full Tin Leg review .

Best for booking travel with points and miles: TravelSafe

• Covers up to $300 redepositing points and miles on eligible canceled award flights.
• Optional add-on protection for business equipment or sports rentals.
• Multi-trip or year-long plans aren’t available.

Selecting your travel insurance plan with TravelSafe is a fairly straightforward process. The company’s website also makes it easy to visualize how optional add-on elements influence the total cost, displaying the final price as soon as you click the coverage.

However, at $136, the Basic plan was among the more expensive for our trip to Mexico.

What else makes TravelSafe great:

Rental car damage coverage add-on is available on both plans.

Cancel For Any Reason coverage available on the TravelSafe Classic plan.

Read our full TravelSafe review .

Best for group travel insurance: HTH Insurance

HTH Travel Insurance

• Covers travelers up to 95 years old.
• Includes direct pay option so members can avoid having to pay up front for services.
• A 24-hour delay is required for baggage delay coverage on the TripProtector Economy plan.
• No waivers for pre-existing conditions on the lower-level plan.

HTH offers single-trip and multitrip medical insurance coverage as well as trip protection plans.

At around $125, the Trip Protector Economy policy is at the average mark for plans we reviewed.

You can choose to insure group trips for educators, crew, religious missionaries and corporate travelers.

What else makes HTH Insurance great:

Medical-only coverage and trip protection coverage.

Lots of options for group travelers.

Read our full review of HTH Insurance .

As you shop for travel insurance, you’ll find many of the same coverage categories across numerous plans.

Trip cancellation

This covers the prepaid costs you make for your trip in cases when you need to cancel for a covered reason. This coverage helps you recoup upfront costs paid for flights and nonrefundable hotel reservations.

Trip interruption

Trip interruption benefits generally involve disruptions after you depart. It helps reimburse costs incurred for flight delays, cancellations and plenty of other covered disruptions you might encounter during your travels.

This coverage can cover the costs for you to return home or reimburse unexpected expenses like an extra hotel stay, meals and ground transportation.

Trip delay coverage helps cover unexpected costs when your trip is delayed. This is another coverage that helps offset the costs of flight trouble or other travel disruptions.

Note that many policies have a total amount a traveler can claim, with caps on per diem benefits, too.

Cancel For Any Reason

Cancel For Any Reason coverage allows you to recoup some of the upfront costs you paid for a trip even if you’re canceling for a reason not otherwise covered by your standard travel insurance policy.

Typically, adding this protection to your plan costs extra.

Baggage delay

This coverage helps cover the costs of essential items you might need when your luggage is delayed. Think toiletries, clothing and other immediate items you might need if your luggage didn’t make it on your flight.

Many travel insurance plans with baggage delay protection will specify how long (six, 12, 24 hours, etc.) your luggage must be delayed before you can make a claim.

Lost baggage

Used for travelers whose luggage is lost or stolen, this helps recoup the lost value of the items in your bag.

You’ll want to make sure you closely follow the correct procedures for your plan. Many plans include a maximum total amount you can claim under this coverage and a per-item cap.

Travel medical insurance

This covers out-of-pocket medical costs when travelers run into an emergency.

Because many travelers’ health insurance plans don’t cover medical care overseas, travel medical insurance can help offset out-of-pocket health care costs.

In addition to emergency medical coverage, many plans have medical evacuation or repatriation coverage for costs incurred when you must be taken to a hospital or return to your home country because of a medical situation.

Most travel insurance plans cover many trip protections that can help you be prepared for unexpected travel disruptions and expenses.

These coverages are generally aimed at protecting the money you put into your trip, expenses you incur because of travel trouble and costs incurred if you have a medical emergency overseas.

On top of core coverages like trip cancellation and interruption and travel medical coverage, some plans offer add-on options like waivers for pre-existing conditions, rental car collision damage waivers or adventure sports riders. These usually cost extra or must be added within a specified timeframe.

Typical travel insurance policies offer coverage for many unforeseen events, but as you research to select a plan, consider your needs. Though every plan differs, there are some commonly excluded coverages.

For instance, you typically can’t get coverage for a named storm if you bought the coverage after the storm was named. In other words, if you have a trip to the Caribbean booked for Sept. 25 and on Sept. 20 a hurricane develops and is named, you generally won’t be able to buy a travel insurance plan Sept. 21 in hopes of getting your money back.

Many plans also don’t cover activities performed under the influence of drugs or alcohol or any extreme sports. If the latter applies to you, you might want to consider a plan with specific coverages for adventure-seekers.

For numerous plans, a few other situations don’t qualify as an acceptable reason to cancel and make a claim, such as fear of travel, medical tourism or pregnancies (unless you booked a trip and bought insurance before you became pregnant or there are complications with the pregnancy). This is where a Cancel For Any Reason add-on to your coverage can be helpful.

You can also run into trouble if you give up on a trip too soon: a minor (or even multihour) flight delay likely isn’t sufficient to cancel your entire trip and get reimbursed through your plan. Be sure to review what requirements your specific plan has when it comes to canceling a trip, claiming trip interruption, etc.

Travel insurance costs vary widely. The final price of your plan will fluctuate based on your age, length of trip and destination.

It will also depend on how much coverage you need, whether you add on specialized policies (like Cancel For Any Reason or pre-existing conditions coverage), whether you plan to participate in extreme sports and other factors.

In our examples above, for instance, the 35-year-old traveler taking a $2,000 trip to Italy would have spent an average $76 for a basic plan to get coverage for things like trip cancellation and interruption, baggage protection, etc. That’s a little less than 4% of the total trip cost — lower than average.

If there were multiple members in a traveling party or if they were going on, say, a rock-climbing or bungee-jumping excursion, the costs would go up.

On average, travel insurance comes to about 5% to 10% of the trip cost. However, considering many of the plans reimburse up to 100% of the trip cost (or more) for disruptions like trip cancellation or interruption, it can be a worthwhile expense if something goes wrong.

It depends. Consider the following factors that might affect your decision: You’re young and healthy, all your bookings are refundable or cancelable without a penalty, your flights are nonstop, you’re not checking bags and a credit card you carry offers some travel protections . In that case, travel insurance might not be necessary.

On the other hand, if you prepaid a large chunk of money for a nonrefundable African safari, you’re going on a Caribbean cruise in the middle of a hurricane season or you’re going somewhere where the cost of health care is high, it’s not a bad idea to buy a travel insurance plan. Here’s how to find the best travel insurance coverage for you.

If you’re thinking of booking a trip and not planning to buy travel insurance, you may want to consider at least booking refundable airfare and not prepaying for hotel, rental car and activity reservations. That way, if something goes wrong, you can cancel without losing any money.

Selecting the best travel insurance policy comes down to your needs, concerns, preferences and budget.

As you book, take a few minutes to consider what most concerns you. Is it getting stranded because of flight trouble? Having the ability to cancel for any reason you see fit without losing money? Getting sick or injured right before departure and needing to postpone the trip? Injuring yourself or falling ill while overseas?

Ultimately, you want a plan that protects you, your money and the large investment in your trip — but doesn’t cost too much, either.

Medical coverage. If your priority is having adequate medical coverage abroad, you might want to look for plans with high limits for medical emergencies and medical evacuation.

Complex travel itinerary. If your itinerary has lots of flight connections, prepaid hotels and deposits for activities you can’t get back, prioritizing a plan with the best coverage for trip cancellations or interruptions may land at the top of your list.

Travel uncertainty. If you’re on the fence about a trip and have nonrefundable reservations, you may want to select a plan with a Cancel For Any Reason coverage option, which can help you recoup about 50% to 75% of the costs. This helps provide peace of mind, placing the decision on whether to travel entirely in your hands.

Car rentals. If you’re renting a car, a collision damage waiver is often worth looking into.

The following destinations are the top insured destinations in 2024, according to Squaremouth (a NerdWallet partner).

The Bahamas.

Costa Rica.

Antarctica.

In 2022, travelers spent about 25.53% more on trips than they did before the pandemic.

As of December, NerdWallet analysis determined travel prices are 10% higher than pre-pandemic. Each statistic makes a strong case for protecting your travel investment as you plan your next trip.

Bookmark these resources to help you make smart money moves as you shop for travel insurance.

What is travel insurance?

CFAR explained.

Is travel insurance worth getting?

10 credit cards that provide travel insurance.

Here is the list of travel cards offered by Chase that include various forms of travel insurance.

Having one of these in your wallet is a good start to protecting your travel investments and preventing expensive accidents; however, savvy travelers check card terms closely and sometimes supplement with a third-party policy, like from one of the companies above, to better protect themselves.

on Chase's website

• Trip delay: Up to $500 per ticket for delays more than 12 hours.

• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Baggage delay: Up to $100 per day for five days.

• Lost luggage: Up to $3,000 per passenger.

• Trip delay: Up to $500 per ticket for delays more than 6 hours.

• Trip delay: Up to $500 per trip for delays more than 12 hours.

• Car rentals: Theft and collision damage for most cars in the U.S. and abroad.

• Trip cancellation: Up to $1,500 per person and $6,000 per trip.

• Trip interruption: Up to $1,500 per person and $6,000 per trip.

• Baggage delay: Up to $100 per day for three days.

We used the following factors to choose insurance providers to highlight:

Breadth of coverage: We looked at how many plans each company offered plus the range of their standard plans. 

Depth of coverage: We considered two data points to get a sense of how much each company pays out for common travel issues — the maximum caps for trip cancellation and trip interruption claims.

Cost: By looking at the costs for basic coverage across multiple companies, we determined an average cost for shoppers to benchmark plan prices against.

Customizability: While standard plans can cover a lot of ground, sometimes you need something a little more personal.

Customer satisfaction. Using data from Squaremouth when available, and Google Reviews as a backup, we can give kudos to companies with better track records from their clients.

No, it doesn’t necessarily get more expensive the longer you wait to purchase. However, as you put off buying insurance, you may lose access to potential plans and coverage options.

In general, buying travel insurance within a few days to two weeks of prepaying or making an initial deposit for your trip is your best bet. Assuming you’re not booking last-minute, this will provide you with access to the widest possible range of coverage options. It also helps prevent any medical conditions or storms that pop up between booking and buying a plan from ending up as excluded situations, which won’t be covered by your plan.

But, generally, many plans do allow you to buy coverage quite close to your departure date.

To get the most out of your travel insurance plan, buy it soon after making your initial prepayment or deposit to ensure you have access to the biggest menu of plans possible.

Select a plan that’s comprehensive enough to cover the travel scenarios you’re most concerned about or likely to encounter but not too expensive or laden with protections you’d never likely need.

Whatever your coverage, thoroughly review the plan so you understand what’s covered and what’s not, plus how to adhere to the plan’s rules for making a claim.

Travelers frequently use phrases like “trip insurance” and “travel insurance,” as well as “trip protection,” interchangeably, but they do mean different things, according to Stan Sandberg, founder of insurance comparison site TravelInsurance.com.

Trip insurance, or trip protection, generally refers to predeparture (or preevent) coverage if you need to cancel. You may see these plans sold by airlines, online travel agencies or even ticketed event sellers.

“You could refer to it as the portion that protects the investment in the trip,” Sandberg says.

A travel insurance plan typically includes that — plus more comprehensive benefits to protect you during your trip, from medical coverage to trip delay and lost baggage protections, and many more elements, depending on the plan.

Though travel insurance is typically not required for international trips, your personal circumstances will play a key role in whether it’s a good investment.

For instance, young, healthy travelers with few prepaid trip expenses embarking on a relatively risk-free trip may not see a need to buy a plan.

Older travelers with complicated itineraries who are visiting destinations where they could potentially fall ill or get injured — or who could encounter bad weather or some other disrupting factor along the way — may want to buy coverage.

Consider a few key questions:

How well would your health insurance plan cover you if you needed to visit a hospital overseas?

How much did you prepay for a hotel or rental car?

How much money would you be out if weather or some other flight issue derailed your itinerary?

Could you afford an unexpected night in a city where you have a connecting flight?

Do you already have a credit card that provides some travel protections?

Your answers to these questions can help you decide whether you need travel insurance for your international trip.

In general, buying travel insurance

within a few days to two weeks of prepaying or making an initial deposit

for your trip is your best bet. Assuming you’re not booking last-minute, this will provide you with access to the widest possible range of coverage options. It also helps prevent any medical conditions or storms that pop up between booking and buying a plan from ending up as excluded situations, which won’t be covered by your plan.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024 :

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

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