What Does Travel Insurance Cover?
When we travel, we accept that things may not always go according to plan. When trips take a sudden, unexpected twist, it helps to know that you’re financially protected from any resulting expenses.
Comprehensive travel insurance is your safety net for unexpected hiccups that can wreck your dream vacation. Most policies cover common trip disruptions like medical emergencies, last-minute trip cancellations, significant flight delays, emergency evacuations, baggage loss, and more.
Follow along as we explore some of the typical coverage included within a travel insurance policy.
Coverage for Canceled Trips
Sometimes a trip can end before it even begins. When unforeseen events prevent you from traveling, your travel insurance plan can help you recoup your prepaid trip expenses.
The majority of comprehensive plans come standard with Trip Cancellation coverage. This benefit can reimburse up to 100% of your prepaid, non-refundable trip costs if you’re forced to cancel your trip due to a covered reason, such as:
- Illness, injury, or death of you, a traveling companion, or a family member
- Severe weather that prevents you from reaching your destination
- Natural disaster at home or at your destination
- Trip delays that exceed 24 hours
- Required jury duty
- A terrorist attack at your destination
Comprehensive plans also include a similar benefit known as Trip Interruption coverage. This protection is designed to reimburse any unused expenses, such as hotel bookings or excursion deposits, if a covered reason forces you to end your trip early.
For even greater flexibility, some insurance providers offer the option to add Cancel for Any Reason (CFAR) coverage to a policy. Although this add-on may increase your premium, CFAR lets you cancel for reasons not typically covered by standard Trip Cancellation policies and still get up to 75% of your prepaid, non-refundable trip costs back. This flexibility lets you control your plans, allowing you to change them if needed.
Coverage for Medical Emergencies
If you get sick or injured while traveling abroad, your regular health insurance, such as Medicare or an employer-sponsored policy, likely won’t cover you. That’s where travel medical insurance comes in.
Most travel insurance policies include two key medical benefits, and special coverage for pre-existing conditions:
- Emergency Medical Coverage: Provides reimbursement for medical expenses incurred while traveling, such as hospital stays, doctor visits, and prescription medication. Exclusions and deductibles may apply.
- Medical Evacuation Coverage: Covers the cost of emergency medical transportation services to the nearest adequate medical facility or back to your home country.
- Pre-Existing Condition Waiver: Extends medical benefits to cover pre-existing medical condition flare-ups that occur during a covered trip. This is a time-sensitive benefit that must be purchased within 14-21 days of your initial trip deposit.
Coverage for Delays
Flight delays are increasingly common, with roughly 25% of all flights within the United States being pushed back or canceled. Many travel insurance companies help mitigate the inconvenience through Travel Delay coverage.
This benefit is designed to cover food and accommodation expenses if your travel plans are significantly delayed by an airline, cruise line, or other common carrier.
If a delay forces you to miss a connecting flight, your policy’s Missed Connection benefit may cover the cost of booking new travel arrangements.
Coverage for Lost or Delayed Luggage
Most travel insurance plans also provide protection for the personal belongings you wish to travel with. The two key benefits to consider when looking for luggage protection are Baggage Delay and Baggage Loss.
Baggage Delay provides reimbursement if your luggage doesn’t show up to your destination on time. For example, an airline not loading it to the airplane before takeoff. Most plans will cover the cost to purchase a change of clothes, toiletries, and other essential items while you wait for your baggage to arrive.
Baggage Loss covers the actual cash value of personal belongings that get stolen, damaged, or lost at any point during a covered trip. It’s important to note that most providers enforce strict coverage limits for high-value items, so it may be smart to insure any luxury goods or expensive valuables through other means.
Other Travel Insurance Benefits
- 24-Hour Assistance: All providers offer 24/7 emergency assistance, including medical referrals, legal help, and pre-trip information.
- Rental Car Coverage: Some policies offer optional rental car damage coverage.
- Non-Medical Evacuation: Covers evacuation costs in cases of natural disasters, terrorist attacks, or civil unrest.
- Accidental Death & Dismemberment: Provides a cash payment for unintentional loss of life or limb during your trip.
- Adventure & Sports Coverage: If your trip involves risky activities like skiing or scuba diving, look for policies that cover these sports.
- Cruise Coverage: Tailored policies for cruisers often include high evacuation coverage and other benefits specific to cruise travel.
Before purchasing travel insurance, it’s essential to read the policy’s Certificate of Insurance and fine print carefully to ensure the coverage meets your specific needs.
Compare Travel Insurance Quotes
Purchasing trip insurance before departing for a vacation can allow you to travel the globe with peace of mind. However, with so many types of coverage available, it can be hard to know where to begin your search.
Regardless of your travel plans or destination, it’s always recommended to compare policies from multiple travel insurance providers before choosing a plan. Specifically, we recommend comparing at least three quotes when protecting your trip.
This method allows you to see how different plans compete when it comes to protection and price. Using a travel insurance comparison site like Squarmouth can help make this process quick and easy.