What Does Travel Insurance Cover?
Travel insurance covers unexpected events that disrupt a trip, such as cancellations or delays, medical emergencies, lost luggage, and trip interruptions. Many travelers purchase travel insurance before a vacation because it provides peace of mind. If your trip gets impacted due to a covered reason, like a natural disaster or medical emergency, you can get reimbursed for your prepaid and non-refundable travel expenses.
In this article, we’ll explain what situations travel insurance covers, what travel insurance doesn’t cover, and whether travel insurance is worth it for you.
What Is Covered by Travel Insurance?
Travel insurance covers a variety of scenarios that might cancel or interrupt travel. While every travel insurance policy is slightly different, here’s a list of things that most policies cover:
- Trip cancellations: If your travel plans get cancelled because of a covered reason, like an illness or a hurricane at your destination, the Trip Cancellation benefit of travel insurance will refund you for prepaid flights, cruises, and other expenses.
- Trip interruptions: Travel insurance covers disruptions that occur while you’re on your trip. For instance, if you had to depart a trip early due to a family emergency at home, Trip Interruption would reimburse you for missed trip expenses and additional transportation home.
- Medical expenses: If you or someone you’re traveling with gets sick or injured, your travel insurance policy’s Emergency Medical coverage will reimburse you for doctor’s visits and hospitalization.
- Emergency medical evacuations: Most travel insurance plans cover emergency medical evacuations if you get sick or injured while traveling and need to be transported to a facility that can provide the best care.
- Travel delays and disruptions: Travel insurance covers trip delays and disruptions. For example, if your flight gets delayed for 13 hours, your policy would pay for meals at the airport and an overnight hotel stay, if necessary.
- Lost or delayed luggage: If your luggage gets lost, stolen, or damaged while you’re traveling, you can file a claim with your travel insurance company to get reimbursed for the value of your belongings, up to your policy’s limit. If it’s delayed, you will be reimbursed to purchase essentials while waiting for your bags.
- 24-hour emergency assistance: If you need assistance while you’re traveling abroad, most travel insurance policies include 24-hour emergency assistance. You can get help for things like a lost passport, arranging alternate travel, or finding a medical facility.
What Does Travel Insurance Not Cover?
All travel insurance policies have certain exclusions. Here are some situations that aren’t typically covered under a standard travel insurance policy:
- Cancellation reasons not listed in the policy: Standard travel insurance only covers trip cancellation if it’s caused by a covered reason, like a natural disaster, mandatory evacuation, or the death of a family member. Things like rainy weather at your trip destination or fear of flying are not covered without upgrades.
- Interruption reasons not listed in the policy: Travel insurance doesn’t cover trip interruptions that are caused by an excluded reason, like oversleeping and missing a flight. Typically, trip interruptions are only covered if the reason for the interruption is out of your control.
- Pre-existing medical conditions: Most travel insurance plans exclude coverage for medical care for a pre-existing condition. For example, if you recently had surgery and you developed a complication during your vacation that required hospitalization, travel insurance may not cover your medical costs.
- Adventurous sports and activities: Travel insurance won’t usually cover incidents that occur while participating in high-risk sports or activities, like skydiving or mountaineering. If you got badly injured doing an excluded activity, your policy wouldn’t cover your medical expenses or medical evacuation.
Optional Travel Insurance Upgrades
If you want coverage for scenarios that aren’t covered under a standard travel insurance plan, some insurance companies offer optional upgrades. These are some of the most common travel insurance upgrades that might be worth adding to your policy:
- Cancel For Any Reason (CFAR) coverage: Cancel For Any Reason coverage allows you to cancel your trip for any reason, including ones not listed in your policy, and get reimbursed for your prepaid expenses. For example, if you’re traveling to Florida and there’s rain in the forecast for the entire trip, CFAR coverage would allow you to cancel the trip and recoup a majority of the money you spent upfront.
- Interruption For Any Reason (IFAR) coverage: Interruption For Any Reason coverage will reimburse you for any type of trip interruption, even if the reason isn’t normally covered. This upgrade would allow you to leave a beach vacation early due to a major rainstorm, or fly home before your trip ends if you or someone you’re traveling with gets sick.
- Pre-existing condition coverage: Pre-existing condition coverage reimburses your medical expenses while traveling if you need treatment for a pre-existing medical condition. For instance, if you needed to see a doctor for a surgical-related complication during your trip, your policy would reimburse the visit.
- Sports and activities coverage: If you’re planning to participate in high-risk activities while traveling, it’s a good idea to buy a plan with Sports & Activities coverage. This endorsement will cover your medical expenses if you get injured or sick doing an activity that is not typically covered, like rock climbing.
- Rental car damage coverage: Many travel insurance companies offer optional rental car damage coverage, which will cover your financial responsibilities if a car you’re renting gets stolen or damaged in an accident.
- Accidental death and dismemberment (AD&D) coverage: AD&D coverage pays a death benefit to a designated beneficiary if you pass away or become seriously disabled due to a covered accident while traveling.
Bottom Line: Is Travel Insurance Worth It?
Travel insurance can be beneficial for many travelers, but it’s important to consider the coverage you’re getting and the cost of the plan.
According to Squaremouth data, the average cost of travel insurance is $21 per day. For a 15-day trip, you can expect to pay an average of $311. In general, travel insurance typically costs between 4% and 10% of your prepaid and non-refundable trip costs. Other factors, like your age and travel destination, also impact the premium.
For an average of just $21 per day, travel insurance can provide valuable financial security before a trip and while you’re traveling. If something unexpected happens, travel insurance allows you to recoup your prepaid and non-refundable expenses, and covers you for medical expenses that can cost thousands of dollars.
However, travel insurance isn’t necessary for every trip. For example, if you’re going on a short vacation within the U.S. that’s fully refundable and you have health insurance, you might not need travel insurance. Additionally, if your quoted travel insurance premium is more than the total cost of your trip, it’s probably not worth it.
Travel Insurance Coverage FAQs
Does Travel Insurance Cover Missed Flights?
Travel insurance will cover a missed flight under certain circumstances. For example, it would cover your flight cost if you got into a car accident on your way to the airport and it caused you to miss the flight. However, travel insurance wouldn’t cover a flight you missed because the gate changed and you didn’t hear the announcement.
Does Travel Insurance Cover Cancelled Flights?
Yes, travel insurance covers canceled flights. For example, you could file a claim and get reimbursed if your flight was canceled by the airline due to bad weather or a mechanical problem. If you add CFAR coverage to your plan, you can get coverage for flight cancellation scenarios that would otherwise be excluded under your standard policy.
Does Travel Insurance Cover Medical Expenses?
Comprehensive travel insurance plans cover medical expenses while you’re traveling. If you got sick or injured and needed to see a doctor, you could file a claim and get reimbursed for your medical bills. Keep in mind that medical treatment for pre-existing conditions is usually excluded unless you add pre-existing conditions coverage.
Does Travel Insurance Cover Lost or Stolen Items?
A travel insurance plan will cover personal items that get lost or stolen while traveling, including luggage. Most travel insurance policies have a per-person or per-item coverage limit for lost and stolen belongings. Some items, like electronics, might be covered at a separate, lower coverage limit.
Written by Elizabeth Rivelli