Okay, you’ve got the plane tickets, the hotel reservations, the travel guide, and the extra toothbrush… but have you remembered travel insurance? You may have never bought travel insurance before, but if you’ve ever experienced a trip cancellation, lost luggage, theft during a trip, or—God forbid—injury or illness while you’re away, you may realize the need for it. Here’s a summary of what you need to know about travel insurance.
What is Travel Insurance?
Travel insurance is coverage you can buy to protect yourself from expenses you might incur during a vacation. You can purchase travel insurance when you book a trip to cover only that specific vacation period, or you can opt for continuous coverage that insures all trips within a given period.
What Does Travel Insurance Cover?
A typical travel insurance policy covers trip cancellations, loss or damage to personal possessions, money, or travel documents, costs incurred due to delayed departures, lost or delayed baggage and replacement items, medical expenses, funeral expenses, emergency evacuation, accidental death or injury, and legal costs during the trip. Additional coverage can usually be purchased for higher-risk activities, such as extreme sports or trips to war zones.
When Should I Buy Travel Insurance?
Most travel agencies recommend buying insurance as soon as you book your trip—not just the day you leave. This ensures that if your trip is canceled or reservations fall through at any time before your departure, your costs are covered.
What Kind of Trips Should Be Covered?
If you’re taking a weekend road trip, travel insurance may not be necessary. However, if you’re planning a trip of a week or longer, traveling overseas, going on a cruise, or bringing expensive equipment (such as a laptop), or planning high-risk activities like rock climbing or scuba diving, you should consider purchasing travel insurance.
What Should I Look for in a Travel Insurance Policy?
Make sure your policy is suitable for the trip you’re planning, as well as your medical history. At the very least, your travel insurance policy should cover unexpected expenses related to theft or damage to property, reservation cancellations, and medical expenses—including the cost of plane tickets for family members to come see you if you suffer a serious accident. If you have a pre-existing medical condition, your policy should account for that.
Won’t My Health Insurance, Credit Card Insurance, and Other Policies Cover These Expenses?
Not usually. Your health insurance likely won’t cover expenses incurred overseas or in non-American health systems. Depending on your plan, your health insurance might not cover you even during a trip within the U.S.—particularly if you have an HMO or a preferred-provider plan with restrictions on which hospitals or doctors are covered. For example, if you break your leg during a vacation in the Florida Keys, you won’t be able to fly back home to your covered hospital in Connecticut to get your leg set—you’ll need it treated right there. Your credit card may offer accident insurance, but it usually only covers rental car accidents, or train and plane accidents paid for with that card.
What’s a Better Deal—Single-Trip or Multi-Trip Insurance?
It depends. How many trips do you take each year, and where are you planning to go? Typically, travel insurance for trips within the U.S. costs more than for trips abroad, due to the high cost of medical care in the U.S. Generally, if you take more than two trips a year, multi-trip insurance could be a better deal.
What Coverage Gaps Should I Be Aware Of?
Most travel insurance policies outline specific reasons you can or cannot cancel your trip, which depend on the company and policy. For example, most policies will cover cancellations or interruptions due to illness or a death in the family. Some policies also cover cancellations for business reasons or if you are called to military duty. However, most policies won’t cover cancellations if you change your mind last minute. Additionally, if you’re on a cruise or group trip and the operator or guide changes your itinerary, your policy may not cover it.
Travel insurance can be a worthwhile investment to give you peace of mind during your trip. The cost is typically not large, and it can save you a great deal of money if something unexpected happens. In some cases, travel insurance can make the difference between a minor inconvenience and a major disaster.
