What is Travel Insurance?

What is Travel Insurance and Why Do I Need It?

Travel insurance is a type of insurance policy that protects you from financial losses and unexpected events that can occur before or during a trip. Think of it as a crucial part of your travel planning, just like booking flights or accommodation. A comprehensive  travel insurance plan can reimburse you for prepaid, non-refundable expenses if you must cancel your trip, and it can also cover a wide range of unforeseen circumstances while you're away from home.

For many travelers, the primary motivation for purchasing travel insurance is to protect their vacation investment. With the average American spending over $3,000 on travel annually, the financial stakes are high. But travel insurance offers more than just financial protection; it provides access to 24/7 assistance services, which can be a lifesaver in an emergency.

What Does Travel Insurance Cover?

While policies can vary, most comprehensive travel insurance plans include the following key benefits:

• Trip Cancellation Insurance: This is one of the most valuable components of a travel insurance policy. If you have to cancel your trip for a covered reason, such as a sudden illness, a family emergency, or a job loss, you can be reimbursed for your prepaid, non-refundable trip costs.
• Trip Interruption Coverage: If you have to cut your trip short for a covered reason, this benefit can reimburse you for the unused portion of your expenses and help you with the costs of returning home.
• Emergency Medical Coverage: Your regular health insurance may not cover you when you travel abroad. Travel insurance can pay for emergency medical expenses, including doctor's visits, hospitalization, and even emergency medical evacuation if you need to be transported to a suitable medical facility.
• Baggage and Personal Effects Coverage: If your luggage is lost, stolen, or damaged during your trip, this coverage can reimburse you for the value of your belongings up to a certain limit. It can also provide funds to purchase essential items if your baggage is delayed.
• Travel Delay Coverage: If your flight is delayed for a covered reason, this benefit can help you with the costs of meals, accommodations, and transportation until you can resume your trip.
• "Cancel for Any Reason" (CFAR) Travel Insurance: For the ultimate in flexibility and peace of mind, many travelers are now opting for "Cancel for Any reason" (CFAR) coverage. This optional upgrade allows you to cancel your trip for any reason not otherwise covered by your base policy and receive a partial refund of your non-refundable trip costs, typically up to 75%. While CFAR plans cost more, they provide the broadest protection for your travel investment.

Our Most Popular Travel Insurance Plans

Frequently Asked Questions About Travel Insurance

When should I buy travel insurance?

The best time to buy travel insurance is as soon as you make your first trip payment, such as booking your flight or putting down a deposit on a cruise. Purchasing your policy early ensures that you're covered for trip cancellation from the very beginning. Early purchase is also a requirement for certain benefits, like the pre-existing medical condition waiver and "Cancel for Any Reason" coverage.

How much does travel insurance cost?

The cost of travel insurance typically ranges from 4% to 10% of your total trip cost. The price depends on several factors, including the age of the travelers, the length of the trip, the destination, and the level of coverage you choose.

Is travel insurance worth it?

For most travelers, especially those with significant nonrefundable trip costs, travel insurance is a worthwhile investment. It provides a financial safety net and peace of mind, allowing you to relax and enjoy your trip knowing that you're protected from a wide range of unforeseen events.

Does travel insurance cover pre-existing medical conditions?

Many travel insurance plans offer a waiver for pre-existing medical conditions if you purchase your policy within a specified time frame after your initial trip deposit and meet other eligibility requirements. It's crucial to read the policy details carefully and declare any pre-existing conditions when you purchase your plan.

What is the difference between trip cancellation and "Cancel for Any Reason" coverage?

Trip cancellation coverage only reimburses you for nonrefundable expenses if you cancel for a reason listed in your policy, such as a covered illness or injury. "Cancel for Any Reason" (CFAR) coverage is an optional upgrade that allows you to cancel for any reason and receive a partial refund.