Top Travel Insurance Coverage: What You Need to Know [2024]

Travel insurance is one of those types of insurance that many people are on the fence about. This article examines what does travel insurance cover and assists you in comparing your options.

Get free insurance quotes by inputting your zip code now!

Travel insurance isn’t like health insurance, which everyone needs. Not every person who travels will need travel insurance. There are many things that factor into your decision about travel insurance, which means that it is difficult for any single source to tell you whether you will need it.

For example, as an incentive for people to use their credit cards more, many credit card companies are offering various types of travel insurance if you pay for your travel with your credit card.

Some simply offer baggage insurance, but there are some that also offer trip cancellation protection, death or dismemberment insurance, and remote assistance if you become stranded while you travel.

You might not need travel insurance if you:

• Travel with little to no luggage
• Take short trips
• Don’t stay in hotels when you travel

There are, however, many travelers that forgo travel insurance when they shouldn’t. For example, you should consider coverage if you:

• Travel internationally
• Are taking an extended trip
• Are checking luggage onto the plane
• Are carrying valuables in your luggage
• Take a cruise
• Have limited or no health insurance

Keep reading to learn about the different types of travel insurance, how much travel insurance might cost and how to save money on travel insurance costs.

Travel Insurance Options

The first thing that you need to do is get it out of your mind that travel insurance is an insurance meant to provide benefits to your family if the plane should crash. Many people think that this is what travel insurance is and, because planes so rarely crash, they forgo this valuable insurance.

While you can purchase a death or dismemberment policy when you travel that will cover loss of life if the plane were to crash, this policy actually offers coverage for the entirety of your trip. If you are struck by a car while crossing the street, this policy will pay out its benefits, just as long as you are still on your trip.

There are several type of travel insurance that you can purchase. You can make the decision to purchase different types of insurance or you can purchase a comprehensive plan. Here is an overview of the different types of insurance that you can purchase.

• Lost luggage insurance – Lost luggage insurance is perfect if you are planning on taking high dollar items with you when you travel. Some insurance companies may require you to provide an inventory with receipts or photos to show proof of the ownership for the items you are taking with you on your trip.
• Airlines offer passengers a certain amount of coverage if luggage gets lost. This coverage is valued at a maximum of $400 per bag and $3000 per incident. The airlines offer actual cash value rather than replacement cash value, which means they don’t provide what you need to replace your items, only the current market value. In addition, airlines don’t cover electronics, furs, cash, gold and many other items.
• Luggage delay insurance – Luggage delay insurance allows you to replace essentials while waiting for your delayed luggage to arrive. This is meant to be used for personal items only, not electronic equipment, or an entire wardrobe.
• Trip delay insurance – If you are traveling and your trip is delayed, this insurance provides you with accommodations, if necessary, until your trip resumes.
• Trip interruption insurance – If your trip is interrupted, then it will be impossible for you to get reimbursed by the airlines or cruise lines as you have already used your tickets. This insurance reimburses you for the remaining value of your trip.
• Trip cancellation insurance – If your trip is canceled due to something on your end, you may not be able to get reimbursed for your plane or cruise tickets. In addition, you may face cancellation fees from your airline or cruise line as well as any hotels and rental cars that you have booked. Trip cancellation insurance will reimburse you for any costs associated with your trips cancellation.
• Travel medical insurance – No one really wants to get sick or injured when they travel, but if you do, this insurance will cover your medical expenses. In some cases this coverage includes emergency medical evacuation to the US when you are stable, in other cases you have to purchase this separately. If you have your own health insurance, check your policy to see what it covers when you travel. If you are covered no matter where you go, then you can forgo this insurance. If you are traveling somewhere where your health insurance doesn’t protect you, then this insurance is a must.
• Comprehensive travel insurance – When you purchase a comprehensive travel plan, then most, if not all, if the insurance options mentioned above will be included.

The Cost of Travel Insurance

As you can see, each of these different types of insurance can be a valuable purchase for you when you travel. The cost of travel insurance is directly related to the types of coverage you purchase. The cost for medical insurance will vary depending on your age, gender, where you are traveling to and whether you have any pre-existing condition.

Overall you can expect to pay between $4 and $20 per $100 of your trip’s value for a comprehensive insurance plan. What this means is if your trip costs $4000 including airfare and lodging, then your insurance costs could be anywhere from $160 to $800.

Basically, an 80 year old woman with a heart condition could expect to pay the higher dollar amount while a 20 year old woman with no medical conditions could expect to pay the lower amount. The cost will vary depending on the insurance company you choose as well.

For individual choices, the cost is harder to pin down. That because not all of the costs are associated with the cost of your trip. For example, lost luggage insurance will typically cost $1 to $2 for every $100 of coverage. Delayed luggage insurance, however, many only cost $5 to $10.

Saving Money on Your Travel Insurance

Being unaware of the costs of travel insurance is just one of the many reason that you should do a comparison of travel insurance options before your buy. Many insurance companies offer travel insurance , but some offer much better prices than others.

By using our free quote tool, you can compare the cost of several different companies so that you can purchase the most affordable option. Enter your zip code now; it is fast and easy and will help you to find the best travel insurance quotes today!