A Comprehensive Guide to Purchasing Travel Insurance

For many people, travel insurance may appear to be an unnecessary extra cost. However, if you find yourself in a difficult situation—such as a medical emergency, a trip cancellation due to a pandemic, or a stolen camera—it quickly becomes a valuable investment that saves you money instead of costing you more.

This was the experience of writer Chris Ciolli. After years of traveling without coverage, she opted for travel insurance on a recent trip where she was taken to the hospital at 3 a.m. for a series of precautionary tests. Although her diagnosis was simply gastritis, she accumulated a stream of medical bills totaling nearly $6,000—a few hundred dollars here, a thousand there. Thankfully, her $185 World Nomads policy covered all expenses after a $80 copay.

However, even if you grasp the advantages and are ready to purchase travel insurance, selecting the appropriate policy for your specific needs—and even identifying those needs—can be challenging. To assist you in finding the best travel insurance for your journey, we’ve gathered insights from various travel agents, insurance experts, and seasoned travelers. In this guide, you will discover everything you need to make an informed choice, including travel insurance reviews, comparisons, and answers to frequently asked questions to help you select the right policy for your upcoming trip.

What exactly is travel insurance?

Travel insurance is akin to health or auto insurance, offering financial protection against unexpected incidents during your travels, such as lost luggage, trip cancellations, or medical emergencies.

While your existing homeowner’s, renter’s, auto, or health insurance may provide some coverage during your travels, it typically does not encompass everything—especially for international journeys. A solid travel insurance policy will fill in those coverage gaps.

Where can you obtain travel insurance?

Basic forms of travel insurance are often included if you booked your trip using certain credit cards, like World MasterCard, Capital One Venture Rewards, and Chase Ink and Sapphire cards. These plans might offer protection against some delays, luggage issues, and travel accidents, but their coverage tends to be quite minimal.

You can also opt to purchase travel insurance as an add-on when booking flights, cruises, or hotels. However, these plans are often limited and may only cover you in the event of unavoidable cancellations due to circumstances like natural disasters or family deaths. 'Although it may appear cheaper, it might not encompass all aspects of your trip,' states Andrew David Harris, vice president and COO of Harris Travel Service. While these options are certainly better than having no coverage, the most thorough and effective travel insurance policies are available from providers such as World Nomads, Allianz Global Assistance, Seven Corners, or TravelEx. You can acquire these plans through your travel agent, but it is frequently more cost-effective to book directly with the travel insurance provider or via a comparison site like SquareMouth.

What is included in travel insurance coverage?

Each traveler and their journey is unique, which is why there is a wide range of travel insurance plans available. Regardless of the policy or provider you opt for, here are some typical coverages offered by travel insurance. Experts recommend carefully reviewing the fine print for specific exclusions before making a purchase. If you have any doubts, don’t hesitate to ask. A reputable insurance company will be prompt in addressing your concerns.

Coverage for trip cancellation and interruption

Most travel insurance policies offer some level of trip cancellation and interruption coverage, which compensates you for nonrefundable costs, such as prepaid hotel stays or airline tickets. Without adding cancel for any reason (CFAR) coverage to your policy, your claims will be limited to specific acceptable reasons. Commonly accepted reasons include illness, the death of a close family member, and adverse weather conditions.

Coverage for trip delays and missed connections

It is also common to receive reimbursement for extra expenses if your trip is delayed and meets the criteria outlined by the provider. For example, with World Nomads, your flight must be delayed by a minimum of six hours to be eligible.

Coverage for baggage and personal belongings

Most plans will reimburse you for lost or damaged luggage and personal items, as well as provide funds to purchase essentials if your baggage is delayed.

Emergency medical and dental coverage

This provides financial assistance for medical care if you become ill or suffer an injury while abroad, typically including costs for medical evacuation. However, travel insurance should not be considered a replacement for standard health insurance, as it does not cover non-emergency medical expenses (like check-ups, cosmetic procedures, or eye exams). Additionally, childbirth is not covered, even for pregnant travelers who go into premature labor.

Shannon O’Donnell, named the 2013 National Geographic Traveler of the Year and the writer behind A Little Adrift, highlights another common coverage oversight: “You are only protected for activities you are licensed to perform back home—if you operate a motorbike in Southeast Asia without a permit, you may not be covered in the event of an accident.”

Emergency medical evacuation coverage

This type of coverage pays for emergency transfers (such as by ambulance or helicopter) from locations lacking sufficient medical facilities to the nearest medical center that can provide the necessary care. While it can be expensive, it is crucial in remote or politically unstable regions of the world.

Accidental death and dismemberment and repatriation coverage

Experts advise that the most critical aspects to seek are extensive coverage for hospital expenses and medical repatriation back home. “Everything else is just extra,” they say. Many basic plans may exclude this essential coverage, but it can often be added by upgrading to a higher-tier policy.

Concierge services and 24/7 assistance

Daniel Durazo, the Marketing and Communications director for Allianz Global Assistance, emphasizes that “a solid policy should provide a 24/7 hotline for both medical and travel emergencies.”

Popular travel insurance add-ons to think about

While a basic plan typically suffices for most travelers, it may lack essential coverage for older individuals, those with pre-existing health conditions, active participants in sports during their travels, or those booking expensive trips and traveling with high-value items (like premium cameras). If you fit into any of these categories, consider adding on additional coverage or upgrading your plan.

Increase coverage for lost luggage, trip delays, and cancellations

“Standard levels of travel insurance typically cover more modest belongings and accommodations,” advises Annette Stellhorn, president and Group Luxury Travel designer at Accent on Travel. If you plan to travel with expensive equipment or are investing significantly in your trip, it may be wise to upgrade to a policy that adequately covers your expenses.

Additional coverage for adventure and high-risk travel

Stellhorn further explains that adventure and high-risk travel necessitate higher benefit limits for medical evacuation, which can exceed $250,000. Additionally, Judy Perl of Judy Perl Worldwide Travel mentions that “most insurance providers won’t cover high-risk travel at all, except for larger companies like First Allied and Travelex.” Even for certain risky activities and sports, coverage may only apply up to specific limits, such as certain heights for climbing and depths for diving.

Most sports are covered up to a certain intensity; if you exceed that, you might need to secure a different insurance tier. For instance, World Nomads provides coverage for a wide range of adventure travel activities and sports, but this comes at an additional cost beyond the basic insurance plan.

Cancel for any reason (CFAR) coverage

It’s crucial to examine the fine print of any insurance policy because, even if it offers trip cancellation coverage, this benefit usually only applies under specific conditions. Many travelers discovered recently that trips canceled due to the coronavirus pandemic were not covered unless they had a CFAR add-on.

Jennifer Wilson-Buttigieg, co-owner and co-president of Valerie Wilson Travel, clarifies that these plans “only reimburse 75 percent of trip expenses [and only] if travelers cancel their trips at least 48 hours beforehand.”

Does travel insurance cover pandemics?

No. According to Dinogo’s Michelle Baran, “Once events have transpired, like the coronavirus outbreak, they are regarded as known or foreseeable occurrences and are typically excluded from most travel insurance policies.” The exception is if you opted to upgrade your plan to include a CFAR add-on.

What are the top travel insurance policies?

The ideal travel insurance policy will vary based on your individual needs and trip specifics. Ensure that your plan covers the full cost of your journey and the activities you intend to participate in, while also addressing any preexisting conditions. Here are some of the top travel insurance providers to consider:

Allianz

Best for: Senior travelers and individuals with preexisting conditions.

Allianz offers excellent travel insurance for all types of travelers, but it is particularly suitable for those with preexisting conditions, as these are included in every plan. However, its basic coverage is limited to $500 for lost or damaged baggage, so think about upgrading if you’ll be carrying more valuable items.

Request a quote: allianztravelinsurance.com

GeoBlue

Best for: Medical coverage only

GeoBlue's Voyager basic medical coverage is not a comprehensive travel insurance plan that addresses a wide range of situations; instead, it offers basic medical insurance for travelers. The deductible is set at a relatively high $500, but with costs ranging from $19 to $35 per trip, it’s an affordable option to safeguard yourself against catastrophic events. If other insurance (like your credit card or homeowner’s policy) sufficiently covers travel issues such as lost luggage or theft, this plan could be ideal for you.

Request a quote: geobluetravelinsurance.com

TravelEx

Best for: Traveling with children

TravelEx allows travelers to select between a basic or a more comprehensive travel insurance package, which can be tailored to meet their specific needs. Both options cover essential aspects like trip cancellations and emergency medical care, making them a well-rounded choice. Notably, the Travel Select plan offers complimentary coverage for any children under 17 accompanying you, making it a fantastic cost-saving solution for families.

Request a quote: travelexinsurance.com

What is the cost of travel insurance?

Comprehensive travel insurance packages can start as low as $8 per day, but the final cost will depend on factors such as the duration of the trip, chosen destinations, and the level of coverage selected. Additionally, travelers with pre-existing conditions or older adults may encounter higher premiums with certain policies.

For comparison, here are some examples of travel insurance costs for a 45-year-old individual taking a $5,000, one-week trip to Mexico:

• $138 for an explorer plan from World Nomads
• $179 for a basic plan with Allianz
• $248 for an essential plan offered by AIG
• $261 for a basic plan through Travelex

While some of these insurance options may appear pricey, remember that if they offer the necessary coverage, they can save you a significant amount of money. World Nomads reported that its average claim amount in 2017 was $1,634, and its highest claim—a medical evacuation of a child from Sitka, Alaska, to Seattle—nearly reached $200,000. Suddenly, that $8 per day makes travel insurance seem valuable. Yet, as Michael Holtz, the founder and CEO of the travel agency SmartFlyer, points out, "People don’t realize they need it until they find themselves in a situation that calls for it."

How can I purchase travel insurance?

Always acquire travel insurance from a trustworthy and official provider or website. This could mean buying directly from the insurance company, through a travel agent, or using a comparison website. According to Stan Sandberg, cofounder of TravelInsurance.com, these platforms allow you to explore, compare, and select from a diverse range of plans.

Some comparison websites for purchasing travel insurance are:

• Travelinsurance.com
• SquareMouth
• Insuremytrip

Sandberg highly advises consumers to consult with a licensed agent if they have any uncertainties about their benefits. The site Elliott Report is also a valuable resource, featuring a compilation of reputable travel insurance providers put together by consumer advocate Christopher Elliott.

When should you purchase travel insurance?

As a rule of thumb, it’s best to secure your travel insurance as soon as you finalize your flight and hotel bookings. If you're headed to a hurricane-prone destination, it’s wise to act quickly, as you won’t be able to obtain coverage for delays or cancellations linked to a storm that has already been named.

Individuals with preexisting conditions must take additional factors into account. Most insurers will only cover expenses related to existing illnesses under very specific conditions; travelers with these conditions typically need to purchase coverage within a designated time frame, usually between 14 to 21 days after their initial trip booking, and they must be medically fit to travel on the day they buy the insurance.

Your travel insurance should span the entire duration of your trip, covering you from door to door (no gaps allowed) and including every location you plan to visit, whether in-state, out-of-state, or abroad. Certain destinations pose higher risks than others, so coverage may vary in both extent and cost.

What does your current insurance cover while you’re traveling?

While your existing health, auto, renter's, or homeowner's insurance might provide some coverage during your travels, it probably doesn't cover everything.

• Health insurance: Many U.S. health care plans, including Medicare, do not cover individuals on international trips. Some plans do offer coverage abroad, so it's essential to verify with your provider. If your health insurance is only valid domestically, both the Centers for Disease Control and the U.S. State Department recommend that you purchase medical travel insurance.

• Travel insurance: Some credit cards offer limited coverage for delays, luggage loss, travel accident expenses, and even a portion of your rental car insurance.

• Homeowner’s and renter’s insurance: These policies may provide coverage for lost, stolen, or damaged items and can include an affordable floater policy (an add-on to your standard policy) if you're traveling with valuable equipment.

• Auto insurance: In the U.S., your primary auto insurance typically covers rental vehicles. However, some domestic rentals may have exceptions, particularly if your auto insurance has low coverage limits. International rentals have different rules; for instance, in Mexico, rental car insurance is mandatory, even if you have your own insurance at home. Always check local regulations before booking a rental car.

Guidelines for submitting claims and obtaining reimbursement

Unlike most U.S. health insurance policies, travel insurance usually does not come with a deductible. Some budget-friendly plans may require a small, nonrefundable initial amount before further expenses are covered up to the benefit limit. Many travel insurance policies operate on a reimbursement basis: you pay upfront, keep your receipts, file a claim, and once processed, your insurance provider reimburses you for covered expenses.

Most insurance policies require you to cover non-emergency costs out of your own pocket and later submit a claim for reimbursement. If you find yourself in a non-life-threatening emergency, it's advisable to call your insurer for guidance if possible; this can simplify the claims process, and the insurer might direct you to a hospital or medical facility where they can bill directly.

Hannah Logan, from the blog Eat Sleep Breathe Travel, emphasizes that this step is crucial because many policies state that contacting the provided number could be essential for coverage.

Regardless of the situation, make sure to document everything. Whether it involves lost luggage, medical costs, or damage to your rental car, collect and keep all relevant information that could support your claim: your original rental agreement, receipts, photographs, medical documents, and a copy of your boarding pass.

Purchasing travel insurance is akin to packing a suitcase: it may feel daunting initially, but it soon becomes a standard practice and an essential part of your travel routine. Once you integrate it, you can travel with peace of mind, knowing you’ve protected yourself from potentially costly mistakes that could amount to $6,000.

This article was initially published online in 2018 and has been updated on June 19, 2020, and on May 15, 2024, to reflect the latest information.

World Nomads offers travel insurance for adventurers in more than 100 countries. As an affiliate, we earn a commission when you request a quote from World Nomads through this link. Please note that we are not representatives of World Nomads. This information is provided solely for your consideration and is not a recommendation to purchase travel insurance.