Travel insurance makes sense if you want to protect the amount of money you have set aside for your vacation. But no one can blame you if you’re hesitant to add another expense to your travel budget after paying for airfare, hotels, meals, and activities. Still, if you can’t afford to lose that money if something unexpected happens, travel insurance can be a smart investment.
The average cost of an insured trip is about $5,453, according to squaremouth, a travel insurance comparison website. the cost of travel insurance was $252, on average. You may be planning to spend a lot more than that on your dream vacation, or going on a long weekend getaway that costs a lot less. Typically, the cost of travel insurance is 5% to 6% of the cost of your trip.
Here are some scenarios where travel insurance can pay off.
what does travel insurance cover
travel insurance compensates you for travel costs and money you spend due to unforeseen events before and during your trip.
travel insurance for trip cancellation
Before you can finish packing your sunscreen and swimsuits, an unforeseen circumstance could force your trip to be cancelled; for example, if a tour operator closes, you get sick or a member of your family dies. Travel insurance that includes trip cancellation coverage will reimburse prepaid non-refundable costs of your trip in these types of situations.
In addition, if you, a family member or a fellow traveler becomes ill or injured while traveling, the policy’s trip cancellation feature will generally reimburse you for the unused portion of the trip. the trip cancellation benefit could even be activated if you, a family member or a traveling companion dies during the trip.
travel insurance “cancel for any reason”
Please note that you can file a claim using trip cancellation coverage only if the reason for the cancellation is listed in the policy as an acceptable reason. To extend cancellation coverage, there is an add-on known as “cancel for any reason” (cfar) travel insurance.
cfar coverage allows you to cancel a trip for any reason and receive a partial refund, as long as you cancel at least 48 hours before scheduled departure. For example, maybe you’ve chosen to stay home so you can attend your high school reunion after all. Cfar coverage typically adds 50% to the cost of your standard travel insurance policy. the refund is usually 75% of the trip money you lose.
travel medical insurance for emergencies
Whether you’re canoeing in Argentina or taking a safari trip in Zambia, a medical emergency can certainly put a dent in your travel mojo. it can also put a dent in your budget.
many us health plans do not offer coverage outside the country. That means you have to pay for your medical care if you get hurt or sick during your trip, and if you think that’s not likely, think again. allianz, a travel insurance company, says it receives more than 4,000 calls a year from customers who have a medical emergency while traveling.
travel medical insurance covers the costs of medical and hospital bills, ambulance service, medications, x-rays and laboratory tests, up to the limits of your policy.
medical evacuation travel insurance
Imagine having to be airlifted from a mountainside in Switzerland after a hiking accident, spending a few weeks in a Colombian hospital recovering from a heart attack, or needing a flight home from Jamaica to treat a hip fracture.
It can cost between $15,000 and $200,000 to transport you by helicopter or ambulance to a nearby health care facility for treatment of an injury or illness somewhere in the world, according to allianz. which does not include the cost of the treatment itself.
Medical evacuation travel insurance covers the cost of moving to the nearest medical facility abroad that is equipped to treat you, and may also pay for someone to move to the US. uu. for advanced medical care. Along with medical evacuation, a policy may cover the repatriation or transfer of a traveler’s remains to the US. uu.
for example, hth worldwide’s tripprotector preferred plan is one of the most generous in the industry, providing $500,000 for emergency medical expenses and $1 million for emergency medical evacuation.
travel insurance for missed connections
Missing a connection while traveling can be an expensive hassle. Missed connection travel insurance reimburses you if you miss a departure for a reason listed in the policy.
This would make up for a trip delay of, say, three, six or 12 hours caused by something like a mechanical failure in an airplane or a storm preventing a cruise ship from docking on time. compensation would typically cover the cost of catching up on a tour or cruise.
for example, travelsafe’s classic plan provides $2,500 after three hours of connection loss.
travel delay insurance
Travel delays are a headache for many travellers. A policy with travel delay insurance can reimburse restaurant and hotel expenses when a flight is delayed due to a reason listed on your policy, such as bad weather or a mechanical problem. the daily amount of coverage is usually between $150 and $200.
For example, Trawick International’s Safe Travel Voyager plan offers travel delay coverage of $150 per day, up to a total of $2,000, after five hours of delay.
The travel delay benefit may also cover the costs for you to reach a destination or return home, or may even reimburse you for unused travel expenses that are prepaid and non-refundable.
baggage insurance
If your luggage is lost, stolen or damaged during a trip, a travel insurance policy with luggage insurance can reimburse you. Homeowners or renters insurance policies may also cover theft of your luggage and belongings.
Baggage insurance also covers your personal belongings, so if your backpack is stolen, you can make a claim. Keep in mind that baggage insurance compensates you for the depreciated value of your belongings and not the amount to replace your things with new items. plus, there are exclusions and limits on certain items.
Also, some travel insurance plans cover baggage delays. This coverage can pay for items you need to buy, like clothing and toiletries, to help you while you wait for your luggage to reach you. Please note that baggage delay benefits come with a specific wait time before the benefits are applied.
here are some examples of baggage delay coverage from some of the best travel insurance companies as rated by forbes advisor:
- hth tripprotector preferred world plan: $400 after a five hour delay
- john hancock insurance agency gold plan: $500 after a five-hour delay
- Seven Corners Round Trip Elite Plan: $600 after a five-hour delay
- trawick international safe travels voyager plan: $600 after a 10 hour delay
- usi affinity travel insurance select elite plan: $500 after a five-hour delay
- elective procedures
- mental health care
- participation in adventure or extreme activities
- physical therapy
- routine physical exams and routine dental exams
- routine pregnancy
- the cost of your trip is much more than you can afford to lose
- you are traveling internationally
- traveling to a remote area with limited nearby healthcare facilities
- You are traveling to a hurricane-prone country
- has many non-refundable prepaid tours, day trips and planned activities
- your trip includes connecting flights or multiple destinations
- you want to be compensated for cancellations related to covid and medical problems when traveling abroad
- want to receive a partial refund if you decide to cancel your trip or return home early for any reason
In general, travel insurance is a small cost relative to the travel costs it can protect, especially when travel uncertainties and surprises abound.
what does travel insurance not cover?
In general, travel insurance does not cover losses due to reasons and circumstances that are within your control. is designed to safeguard your travel investment if unexpected circumstances derail your plans.
For example, trip cancellation benefits only apply if you cancel due to reasons listed in your policy, which are unforeseen events beyond your control. That means you won’t be eligible to file a standard trip cancellation insurance claim if you simply change your mind about your trip. for that, you would need cfar coverage.
You should review the fine print of your travel insurance policy and become familiar with what your policy does not cover because all travel insurance plans have exclusions.
For example, medical claims exclusions often include things like:
Also keep in mind that travel insurance policies generally won’t cover your losses from a hurricane unless you purchase travel insurance before the storm is named.
related: what travel insurance does not cover
When is travel insurance worth it?
Usually, travel insurance is worth considering if:
related: best covid travel insurance plans
when is travel insurance not necessary?
You generally don’t need travel insurance if you’re not putting down large non-refundable travel deposits or your health plan will cover you at your destination.
For example, you may not need travel insurance if you’re going on a cheap domestic trip. If you’re going on a long weekend getaway and staying with friends with plans to see a show and do some shopping, chances are you won’t have many prepaid nonrefundable expenses. and your us health insurance can cover any medical costs if you get sick or injured during your trip. in that case, travel insurance may not be needed.
You may also not need travel insurance if your credit card benefits provide travel insurance coverage. It’s a good idea to check with your credit card company before planning a trip to be aware of any applicable travel coverage.
Also note that some baggage insurance is secondary, meaning you must first file a claim with your airline or homeowners insurance. You may want to skip baggage insurance if you have secondary baggage insurance, aren’t packing a lot of expensive items, and have a direct flight.
