What Does Travel Insurance Cover? (2024)

FAQs

What Does Travel Insurance Cover? ›

So, what does travel insurance cover? Here's the very short answer: Cancellations, medical expenses, evacuations, loss or delays, and 24/7 assistance. These are the 5 basic types of coverage provided with vacation insurance.

Comprehensive travel insurance

The comprehensive policy usually covers delays, cancellation due to sickness or death, lost luggage and some emergency medical costs.

Travel insurance provides financial protection if you face certain problems when you're travelling or on holiday. It covers a range of possibilities, from lost luggage to the cost of medical care if you become ill or have an accident.

Trip interruption insurance reimburses you for unused, nonrefundable costs in the event you must cut the trip short and return home for a covered reason, including a family member's sickness or death, terrorism, inclement weather or a natural disaster, among others.

By far, the most common and often most significant travel insurance claim is for medical emergencies. A sudden illness or injury during your trip can not only ruin your plans but also cause a severe financial strain.

For reference, most travel insurance plans include 100% trip cancellation coverage and a minimum of 125% trip interruption coverage to compensate for extra charges such as unexpected flight changes. In addition to knowing coverage limits, noting any policy use restrictions before buying a plan is good practice.

Cancellation cover is a common inclusion with most standard travel insurance policies, but you can take it out separately if it doesn't offer enough cover. Alternatively, if you only want cancellation cover to protect you against cancelled flights rather than baggage protection, you can get it for that.

The average cost of travel insurance is about 3% to 5% of a trip's total value, according to quotes gathered by our research team across different travel insurance providers for various traveler profiles.

Travel insurance can give you extra protection if your holiday doesn't go as planned. This is very important if you are travelling independently because you may find yourself stranded with no way to get home and no rep to help sort out your holiday problem.

When should I buy travel insurance? ›

In general, you can buy coverage any time before the date of your trip. That said, it's always best to buy coverage as soon as you make your reservations. The sooner you buy travel insurance, the sooner you'll be protected and the more benefits you may be eligible to receive.

If you would lose the money you paid for your flights, accommodations, rental car, or activities if you had to cancel or go home early, travel insurance that specifically includes trip cancellation and trip interruption is probably a good idea.

Emergency medical coverage is automatically included on all comprehensive travel insurance plans. This emergency medical coverage can work in conjunction with your health insurance, or in place of it, to help reimburse the cost of emergency medical care while traveling.

What type of travel insurance do I need? There are two main types of travel insurance: trip protection plans and travel medical plans.

Travel protection provides a more basic form of coverage for tourists. It tends to be significantly cheaper but usually only covers trip cancellations. On the other hand, travel insurance offers more comprehensive coverage, often including medical emergency evacuation, baggage delays and flight cancellations.

Cancellation cover is a common inclusion with most standard travel insurance policies, but you can take it out separately if it doesn't offer enough cover. Alternatively, if you only want cancellation cover to protect you against cancelled flights rather than baggage protection, you can get it for that.

Comprehensive travel insurance typically covers canceled flights that delay your trip for at least 3–12 hours. If your flight is delayed more than 12 hours, you may even qualify for trip cancellation coverage, depending on your plan.

That's where travel insurance comes in. Travel insurance offers the assurance that you'll get reimbursed for non-refundable travel costs from a travel insurance provider. Frequent or business travelers also benefit from this safety net for flight cancellations.