How to Get Vacation Insurance

Vacation insurance, also called travel insurance, can provide protection while you’re away from home. It can cover lost baggage or personal items, trip cancellations, or even medical expenses if you’re injured or get sick while traveling.^[1] It can also offer other benefits, and if you’re taking a prolonged trip or traveling far from home, this coverage might be something to consider.

Here’s what to know about vacation insurance, its cost, and when you might want to buy a policy.

What is vacation insurance?

Vacation insurance is often referred to as travel insurance, and as the name suggests, it’s meant to insure you and your belongings while away on vacation.

If your luggage is stolen, for example, this coverage will reimburse you for replacing it and the items within it. If you’re hurt while exploring another country, it’ll cover medical treatments and other related expenses.

Travel insurance can be a worthwhile investment when you’re taking a particularly expensive trip that’d result in a loss if canceled. It also might be wise if you’re traveling somewhere with extra hazards, such as physical risks, weather threats, and political turmoil.

You probably won’t need travel insurance if you’re taking a lower-cost trip or if your credit card already includes some sort of coverage.^[2]

How to get vacation insurance

You can get vacation insurance from several places. Travel agencies and many insurance companies offer coverage, and certain credit cards come with built-in trip protection, too. You can also use a travel insurance marketplace to compare several options at once. Some travel providers may offer coverage as well — like cruise lines offering cruise insurance.

To purchase a policy from an agency or insurance company, you’ll need to:

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  1. Gather your trip details

  Travel insurance requirements vary, but you’ll need details such as your destination, travel departure and return dates, total trip cost, and the ages and passport numbers of all travelers. You may also need the date you initially made a payment toward your trip.

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  2. Compare travel insurance policies and quotes from multiple insurance companies

  Look at several travel insurance plans, paying attention to pricing, coverage options, and policy limits. You might also want to consider reviews, reputation, and customer service when comparing options.

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  3. Read the fine print

  Go beyond the policy highlights and read all terms. Verify that it’s valid in the places you plan to visit and that it covers the activities you plan to take part in.

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  4. Buy the policy

  You may need to pay the total premium price up front, but some insurers may offer extended coverage that you can pay for monthly. Once the policy goes into effect, you can file any claims if a covered event occurs.

Cost of vacation insurance

The cost of travel insurance can vary quite a bit depending on the coverage options you choose, the cost, length, and destination of your trip, how many travelers you’re covering, the insurance company you use, and more.

Generally speaking, though, you’ll pay somewhere between 4% and 10% of the trip’s total price. This means that on a $10,000 trip, you’d pay premiums of $400 to $1,000.

When vacation insurance makes sense

Vacation insurance can be a smart investment in many cases.

You might want to consider buying a policy when:

• You’re taking a particularly expensive vacation.

• Your trip (or a portion of it) is nonrefundable.

• There’s a chance you might need to cancel or cut your trip short, and you want to ensure you can get a refund.

• You’re traveling to a high-risk place or during a high-risk time of year, such as hurricane season.

• You’re traveling to another country, and your health insurance policy doesn’t extend to your destination.

If you’re not sure if travel insurance is necessary for your next vacation, talk to an independent insurance agent. They can help you make the right decision for your goals and budget.

What does vacation insurance cover?

Vacation insurance can cover many types of losses when traveling, though the exact coverage depends on your policy and insurer.

Some common travel insurance coverages include:

• Travel delay, interruption, or cancellation: This offers reimbursement for lost travel expenses if your trip gets pushed back, cut short, or canceled due to things out of your control. For example, if your trip gets interrupted by weather, your cruise line goes out of business, or you get sick and must cancel the trip entirely, you’ll have coverage.^[3]

• Medical, emergency evacuation, and illness coverage: This can include the costs of medical treatment or hospitalization while traveling or if you need to be evacuated from another country due to medical reasons.

• Baggage/personal belongings: This coverage will pay for the costs of lost, stolen, or damaged baggage (including items within that baggage) while you’re traveling. It can also include baggage delays.

• Accidental death: If you or a family member dies on the trip, this coverage pays out to the policy’s beneficiaries. It can be used toward funeral, burial, or other expenses.

Coverages and plan types vary by travel insurance provider. Some may offer additional options to cover missed connections, 24-hour traveler assistance services, rental car damage, and more. Be sure to shop around and read the fine print before taking out an insurance policy.

What won’t vacation insurance cover?

Vacation insurance isn’t all-inclusive by any means, and it has some limitations you should know about before you buy a policy.

These are some common exclusions:

• Pre-existing conditions: If you already had a medical condition before taking your trip, your policy may not cover you if it crops up or causes an issue while traveling. Some companies may offer pre-existing condition waivers, so look out for this if it’s something you need.

• Accidents while engaging in high-risk activities: If you’re injured while skydiving, climbing a mountain, or taking part in another high-risk activity on your trip, your travel insurance policy probably won’t cover it.

• Expected storms and weather: Trip interruptions, delays, and cancellations due to unexpected weather or natural disasters are usually covered. If an event has been forecasted ahead of time, though, your policy may not cover losses that stem from it.

Travel protection plans also typically exclude losses due to illegal acts or suffered while under the influence of drugs or alcohol. You should also take note of any payout limits that could restrict your coverage.

Vacation insurance FAQs