Comprehensive travel insurance policies package together a number of valuable benefits. You can also buy policies that cover only trip cancellation or only medical expenses. With the wide variety of travel insurance plans available, you can find coverage levels that will fit your budget and trip needs. The core types of travel insurance include the following:
Trip cancellation insurance reimburses you 100% for money you lose in prepaid, non-refundable deposits if you have to cancel for a reason listed in the policy. Common reasons include unexpected illness, injury and family member sickness. This is different from the “cancel for any reason” travel insurance upgrade.
Travel medical insurance pays for ambulance service, X-rays, lab work, medicine, doctor and hospital bills, and other medical expenses during your trip, up to policy limits. Accidents and health issues can arise unexpectedly, so this is important coverage for travelers going abroad, where your U.S. health plan may have limited global coverage or no coverage.
I was excited to try a highly regarded restaurant while visiting London, but shortly after lunch, I experienced severe nausea and symptoms suggesting food poisoning. It got worse so quickly that I had to rush to the emergency room for medicine and IV fluids. Thankfully, my travel insurance came through. It covered 100% of the $822 in hospital charges and medication costs. The claim process was surprisingly smooth—I just submitted my records and receipts online. This experience made me realize just how essential travel insurance is!
– Katy D., New York
Emergency medical evacuation insurance pays up to the policy limits to get you to the nearest adequate medical facility. This can especially come in handy if you are in a remote location and need emergency transportation for medical care.
Travel delay insurance compensates you for expenses for things like meals and lodging if you’re stuck somewhere due to a delay that’s covered by your travel insurance plan. Specified waiting period before benefits apply—for example, six or 12 hours—and also a per-day maximum limit and a total maximum per person.
If you have to cut your trip short because of a reason listed in the policy, trip interruption insurance reimburses you for the non-refundable parts of your trip that you miss. It can also pay for a last-minute one-way ticket home if you have an emergency.
Baggage insurance reimburses you for lost, stolen or damaged belongings. But note that reimbursement is for the depreciated value of your items, not the cost to buy new ones.
And baggage delay insurance lets you recoup expenses for necessities, such as clothes and toiletries, while you wait for your luggage. Policies usually require a certain time delay before baggage delay coverage kicks in, such as six hours.
“Cancel for any reason” (CFAR) travel insurance is optional coverage that allows you to cancel your trip for any reason that’s not listed in your base policy and be partially reimbursed for non-refundable trip costs.
You generally must cancel at least 48 hours before your departure time. Reimbursement under a CFAR claim is usually 75% or 50% of your trip costs. CFAR adds an average of about 50% to an insurance plan’s cost, but might be worth it if you want the most flexibility for trip cancellation.
“Interruption for any reason” (IFAR) travel insurance is an optional upgrade that permits you to cut short a trip for any reason and get up to 75% reimbursement for the non-refundable money you lose. You usually must be at least 48 hours into your trip to file a claim. It typically adds 3% to 10% to your travel insurance cost.
Accidental death and dismemberment (AD&D) insurance is included in some policies. If an accident that’s covered by the policy kills or dismembers the policyholder during the trip, travel accident insurance pays out the specified amount.
It usually pays out a percentage of the maximum benefit, depending on the loss.
