What does travel insurance cover?
Travel insurance covers events beyond your control, like natural disasters, airline strikes, and lost baggage. Travelers can add coverage to their policies to cover other events like pre-existing medical conditions and rental cars. However, it's not a replacement for rental cars or life insurance.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
UPDATED: Jul 16, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 16, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance providers please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Travel insurance covers events outside your control, like natural disasters, medical emergencies, and lost baggage
- Most companies allow you to buy add-ons, which provide extra coverage for things like pre-existing medical conditions, quarantine delays, and rental cars
- Common events not covered by travel insurance include medical tourism, extreme sports, and plans made after you know you’re pregnant
Whether for business or pleasure, going on a trip is usually a fun experience. However, events outside your control can transform a fun trip into a stressful nightmare. You can avoid this stress by buying travel insurance.
What does travel insurance cover? The purpose of travel insurance is to cover unexpected events that delay, interrupt, or cancel your trip. The top travel insurance plans only cost about 5% of what you pay for your trip, and travel insurance coverage is invaluable in case of an emergency.
Although it’s valuable, travel insurance doesn’t cover everything. Read on to learn what travel insurance covers, then compare quotes with as many companies as possible to find the perfect plan for your trip.
What’s Covered by Travel Insurance
What does travel insurance cover? Although it doesn’t cover everything, travel insurance provides valuable protection whenever you take a trip. It doesn’t matter if you’re traveling for pleasure or business — travel insurance has you covered.
While every plan differs, the typical travel insurance plan covers the following:
- Travel Insurance
- Medical emergencies, dismemberment, and accidental death
- Baggage delay and loss
- Trip delay
- Trip cancellation
- Trip interruption
These separate types of trip insurance coverage found within most travel policies cover a variety of emergency situations. Does travel insurance cover airline tickets? It depends on what type of policy you have. Read below to compare travel insurance and learn more about what your travel insurance policy covers.
Medical Emergencies, Dismemberment, and Accidental Death
Having a healthcare emergency while you’re traveling is stressful, especially if you’re out of the country. Ideally, you’ll be able to access local emergency attention. However, you might need to relocate to another hospital or even back home to get the care you need.
If you need to relocate for medical attention, your travel insurance will cover transportation costs. It also covers the transportation of remains.
Many plans also include accidental death or dismemberment coverage. Your travel insurance will also pay for loss of eyesight while traveling. A death resulting from natural causes, illness, or suicide is not covered, and travel insurance shouldn’t be used to replace life insurance as it only covers accidental death (Read more: Top Life Insurance Coverage: What You Need to Know).
Baggage Delay and Loss
One of the worst-case scenarios when traveling is when your luggage doesn’t arrive when you do. Fortunately, people with travel insurance as a flight protection plan will find this situation a little easier to deal with
What does flight insurance cover? If your luggage is simply delayed, your travel insurance will reimburse you for the cost of essentials while you wait. This includes a change of clothes, a phone charger, and toiletries. Most plans require that your luggage be delayed for a specific amount of time before your travel insurance coverage kicks in, typically at least six hours.
Your plan will also pay to replace your luggage and belongings if your baggage is lost, damaged, or stolen.
Trip Delay
While not as serious as other events, a delay in your trip can lead to expensive out-of-pocket costs. Your travel insurance covers most related fees, however. Most plans require at least a five-hour delay in your trip, but you should check your policy.
Travel insurance pays for transportation, meals, and lodging expenses if your trip is delayed. It also reimburses you for non-refundable or prepaid expenses.
Your travel insurance also covers common delays that keep you from making your trip. Your policy will pay any fees to get you caught up on your travel plans.
Trip Cancellation
The sudden cancellation of a trip can be devastating, especially if you were planning a vacation. While it can’t make a canceled trip happen, it does make it easier to reschedule by reimbursing prepaid, non-refundable costs.
Eligible cancellation reasons include the following events:
- Your passport or visa is stolen
- Natural disaster
- Sickness or death of a family member
- Political unrest or terrorism
- Jury or military duty
- Bad weather
- Financial hardship
- Airline strike
Most plans include coverage if you need to cancel your trip due to COVID-19. Although restrictions are lifting, staying home after a positive test or suspected exposure is always a good idea. If you’re worried, make sure to check your plan’s allowance for COVID-19 cancellations.
Trip Interruption
If you find yourself needing to take an early plane home, your insurance will reimburse you for non-refundable costs you’ve already paid. The reason for canceling your trip has to be covered by your policy and usually includes natural disasters, sudden illness or death in your family, terrorism, and weather.
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Travel Insurance Add-Ons
Although travel insurance covers a lot, it doesn’t cover everything. Most companies offer add-ons so you can increase the coverage in your policy and fill in some of those gaps. Every company has unique options, but most offer the following add-ons:
- Cancel for any reason: Travel insurance usually doesn’t reimburse you when you change your mind about a trip. Cancel for any reason coverage reimburses you a portion of what you paid, usually up to 75%.
- Pre-existing conditions: Travelers can buy extra coverage for their trip in case a pre-existing medical condition affects their plans. Most companies require you to purchase this add-on within 21 days of paying for your trip.
- Rental car collision damage waiver: If you plan on renting a car on your trip, your auto insurance will cover it as long as you’re in the U.S. (Read more: Best Auto Insurance). For international travelers, you can add rental car insurance to your policy.
- Quarantine accommodations: Often included under the trip delay part of your plan, you should check your specific policy to see if COVID-19 quarantine is covered. If not, many companies offer quarantine coverage as an add-on.
The add-ons listed above are some of the most popular options for travel insurance, but they’re not the only options out there. Check with your travel insurance company to see what options are available to you. You can also speak with an insurance representative to find out more.
What is Not Covered by Travel Insurance
Your travel insurance might seem like it covers everything, but there are a few exceptions. Every plan is different, but the following situations aren’t usually covered by travel insurance:
- Extreme sports: Most travel insurance plans don’t cover anything related to extreme sports like bungee jumping and scuba diving. However, you can buy separate coverage for any high-risk activities you have planned.
- Medical tourism: If you plan to leave the U.S. for services like dental work or cosmetic surgery, the health care portion of your travel insurance will not cover you.
- Named storms: If your plans are affected due to a named storm — such as a hurricane — your insurance will only cover it if you paid for your trip before the storm earns its name.
- Pregnancy: Similar to named storms, your travel insurance only covers affected plans you purchased before you became pregnant. If you already knew you were pregnant, your insurance won’t pay for anything.
- Fear of travel: Unless you have a cancel for any reason add-on, your travel insurance won’t cover cancellation due to your nerves.
- Alcohol or drug use: Your insurance won’t cover incidents that happened after alcohol or drug consumption.
As you can see, there are numerous events not covered by travel insurance. It’s important to understand what your policy covers before you need to use it. If you have questions about your policy, an insurance representative can help.
Find the Best Travel Insurance Coverage Today
Planning a trip can be stressful, and even the best laid-out plans can go awry. Travel insurance can’t stop delays, interruptions, and cancellations, but it does help you get back on track as quickly as possible. The average travel insurance plan costs about 5% of a total trip, but the cost is well worth it if something delays your trip.
Although travel insurance is usually affordable, you should always compare your options. Comparing travel insurance quotes from multiple companies is the best way to find the most affordable policy for your trip.
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Case Studies: What does travel insurance cover?
Case Study 1: Lost Luggage
Emma, a frequent traveler, embarked on a trip to Europe. Unfortunately, her luggage went missing during a layover. Thanks to her travel insurance, Emma was able to file a claim and receive compensation to replace her lost belongings, ensuring that her trip was not completely disrupted.
Case Study 2: Trip Cancellation
David and Sarah had planned a dream vacation to a tropical destination. However, Sarah fell ill a few days before their departure date and couldn’t travel. Luckily, they had purchased travel insurance that covered trip cancellation due to illness. They were reimbursed for their prepaid expenses, allowing them to reschedule their trip for a later date.
Case Study 3: Medical Emergencies
While exploring a remote hiking trail, Mark suffered a severe ankle injury and required immediate medical attention. His travel insurance policy included emergency medical coverage, which covered his medical expenses, including transportation to the nearest hospital and subsequent treatment, ensuring he received the necessary care without incurring substantial costs.
Case Study 4: Travel Delays
Amanda booked a flight to attend a crucial business conference. However, due to a severe weather condition, her flight was delayed for more than 24 hours. Fortunately, her travel insurance provided coverage for trip delays, compensating her for additional accommodation and meal expenses incurred during the extended wait.
Case Study 5: Emergency Evacuation
During their vacation on a remote island, Lisa and Michael found themselves in the path of an impending natural disaster. With the help of their travel insurance, they were able to arrange and cover the costs of an emergency evacuation, ensuring their safety and well-being.
Case Study 6: Personal Liability
While on a sightseeing tour, James accidentally bumped into another tourist, causing them to fall and sustain injuries. The injured party filed a lawsuit against James. Thankfully, James’ travel insurance policy included personal liability coverage, which covered legal expenses and potential damages resulting from the incident.
Frequently Asked Questions
What is typically covered by travel insurance?
Travel insurance covers events beyond your control, like natural disasters, airline strikes, medical evacuations, and lost passports or baggage.
Does travel insurance cover 100% of your trip?
Although every plan is different, most travel insurance policies reimburse most of your prepaid, non-refundable expenses after an unforeseeable event. If you have a cancel-for-any-reason add-on, it will likely cover between 50% and 75% of your travel costs.
Does travel insurance actually pay out?
Travel insurance pays out for events covered by your policy. These events generally include anything outside your control, like plane delays, emergency medical evacuations, and political unrest.
What kinds of things are not covered under travel insurance?
Travel insurance will not apply if you travel to an area after a known natural disaster or war is announced or when travel restrictions are imposed by a governing body. It also won’t apply to incidents resulting from the consumption of drugs or alcohol.
What is covered in trip cancellation?
The typical trip cancellation portion of your insurance covers events like natural disasters, sickness or death in your family, bad weather, airline strikes, jury or military duty, and financial hardship.
Which insurance is best for travel insurance?
The company with the best travel insurance for your needs depends on your unique plans. Aside from travel insurance companies, you should also check if your credit cards offer coverage.
Does travel insurance cover emergency medical evacuation?
Yes, most plans include coverage for emergency medical evacuation, assisting with costs of transporting you to a suitable medical facility.
Does travel insurance cover lost or stolen passports?
Yes, travel insurance typically covers the cost of replacing lost or stolen passports and may offer assistance in obtaining a new one.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.