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Written byKim Porter
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Co-authored the book “Future Millionaires’ Guidebook”
13 years writing personal finance content
A former chief copy editor at Bankrate and past managing editor at Macmillan, Kim specializes in writing easy-to-understand, actionable personal finance content.
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Edited byKatie Powers
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Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Updated
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Table of contents
Table of contents
Travel insurance can help pay for non-refundable expenses during a canceled or interrupted trip. It can also cover costs related to medical emergencies or lost luggage.
These policies can accommodate the needs of solo travelers, families, and travelers on group trips. Comparing policies helps travelers find the best coverage at the most affordable price.
Here’s how to compare travel insurance policies and determine what coverage is right for you.
Quick Facts
Factors to consider when comparing travel insurance policies include coverages, exclusions, policy limits, and costs.
Your credit card issuer may have travel insurance benefits. Check whether you have existing travel coverage.
Researching an insurance company’s reputation can help you determine whether it handles claims quickly and offers good customer service.
How to compare travel insurance quotes
If you’re thinking about buying coverage, the following steps can help you determine your coverage needs and compare travel insurance quotes:
Review your credit card benefits. You may have trip delay and cancellation coverage, rental car coverage, and lost baggage reimbursement through your credit card issuer. Knowing your existing benefits may help you weed out coverages you don’t need from a travel insurance policy.
Review travel coverages from insurers. Consider which coverages you need and what you can do without. For example, you may want to include travel medical insurance if you’re traveling internationally because many U.S. health insurance policies won’t cover you while abroad.[1]
Look for exclusions. The policies you’re considering may mention specific activities, expenses, and scenarios they don’t cover. This may help you rule out some quotes you receive. For example, some travel insurance policies won’t cover pre-existing medical conditions.
Compare coverage limits. Check the maximum dollar amount the travel insurance company will reimburse you for a covered claim. This may vary with each benefit.
Research the company’s reputation. Check third-party review sites, and look for helpful feedback on claims handling, pricing, and customer service. Read reviews and look at the insurance company’s overall satisfaction score.
Check the premium against your budget. Consider what you can afford for your travel insurance premium.
How much does travel insurance cost?
As a general rule of thumb, travel insurance costs between 4% and 8% of your total trip expense.[2] For example, a travel insurance policy for a $5,000 vacation might cost $200 to $400.
The cost of travel insurance can vary widely depending on factors like your destination, your trip length, the coverages you choose, and your age. The cost of the trip is a big factor because it helps the travel insurance company determine how much a claim might cost if something goes wrong.
Shopping around and comparing multiple policies from different insurers is the best way to secure a good deal on coverage. Comparing quotes lets you determine whether you’re getting a reasonable rate.
Types of travel insurance coverage
Understanding various travel insurance coverages can help you figure out which ones you need in a policy.
Trip cancellation, interruption, or delay
This type of travel insurance covers three scenarios.
Trip delay insurance reimburses you for eligible expenses, such as a hotel room and meals, if the airline delays your flight. Trip cancellation insurance reimburses your prepaid, non-refundable travel expenses if you have to cancel your trip due to a covered reason.[3] Trip interruption insurance kicks in if unexpected issues cut your trip short.
Each plan may have a different list of covered emergencies, but they commonly include the following:
Illness, injury, or death of you, a traveling companion, or a non-traveling family member
You’ve recently been laid off from work
Terrorism in your destination city
Bankruptcy of your travel supplier
Severe weather
Common airline carrier issues
Unforeseen natural disaster at home or the destination
A legal obligation, such as jury duty or an adoption court appearance
Baggage and personal effects loss or delay
Baggage and personal effects coverage kicks in when you arrive at your destination but your checked luggage doesn’t. The insurance reimburses you for the costs of any essentials you need while you’re without your baggage.
This insurance product is usually secondary coverage, which means you’ll need to submit a claim to any other eligible insurance policy first. For example, you may be able to use your renters insurance or homeowners insurance if you have it. Baggage insurance covers anything your other policies won’t.
Travel medical insurance
Travel medical insurance helps pay for eligible healthcare costs if you’re sick or injured while traveling. These plans usually cover unexpected medical expenses, such as overseas hospital stays, physician services, ambulance fees, prescription medications, and more. Travel medical insurance typically serves as secondary coverage to your regular medical insurance policy, if you have one.
Emergency medical evacuation
Emergency medical evacuation insurance pays for the costs of getting to a safe place or home when you’re injured or sick while traveling. This type of insurance coverage is helpful if you can’t access quality medical care or facilities outside of the United States and need an emergency evacuation.
The coverage may also pay for the costs of repatriation after an accidental death on your trip.
Cancel for any reason (CFAR)
Cancel-for-any-reason insurance is an endorsement you may be able to add to your travel insurance policy. It allows you to get a portion of your travel expenses back if you cancel your trip for any reason, not just emergencies outlined in your policy. A typical CFAR plan reimburses you for 50%–75% of your prepaid, non-refundable trip costs.
Comprehensive
Comprehensive travel insurance policies include the most protection compared to most travel plans. They provide coverage for delayed, interrupted, and canceled trips, lost or stolen baggage, emergency evacuations, and other non-medical events. You may also have access to benefits like 24-hour traveler assistance and add-ons like CFAR coverage.
Travel insurance FAQs
The following information can help answer your remaining questions about comparing travel insurance plans.
When is the best time to buy travel insurance?
The best time to buy travel insurance is right after booking your trip. This helps ensure you don’t forget to buy the plan. And because your coverage usually starts when you purchase the policy, buying travel insurance now extends your coverage window.
Does travel insurance cover pre-existing conditions?
Travel insurance policies typically exclude pre-existing medical conditions, which means your insurance wouldn’t cover you if you had to cancel your trip for covered health reasons caused by a pre-existing condition. Some policies waive the exclusion and cover existing medical issues if you meet certain requirements.
Will my policy cover trip cancellations?
Yes. Standard travel insurance policies cover trip cancellations due to a covered emergency.
How do you file a travel insurance claim?
Filing a travel insurance claim involves submitting a claim form along with documentation that supports your claim. The type of documentation you need depends on the incident and the type of travel insurance you’re using. For instance, let’s say you plan to submit a claim through baggage loss insurance. You’ll need to provide receipts for the travel essentials you buy, plus a letter from your airline confirming it lost your luggage.
How much does travel insurance cost?
The cost can vary, depending on factors like your age and the coverage you choose. The trip cost, destination, and length will also affect the cost. These policies often cost between 4% and 8% of your total trip expense.
Sources
- U.S. Department of State. "Insurance Coverage Overseas."
- Travel Insurance. "U.S. Travel Insurance Association."
- National Association of Insurance Commissioners. "Should You Get Travel Insurance? What You Should Know About Protecting Your Trips."
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Kim Porter
Kim Porter is a writer and editor who's been creating personal finance content since 2010. Before transitioning to full-time freelance writing in 2018, Kim was the chief copy editor at Bankrate, a managing editor at Macmillan, and co-author of the personal finance book "Future Millionaires' Guidebook." Her work has appeared in AARP's print magazine and on sites such as U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, and more. Kim loves to bake and exercise in her free time, and she plans to run a half marathon on each continent.
Kim has been a contributor at Insurify since October 2022.
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Featured in