Purchasing travel insurance before an expensive trip can provide additional security, as its benefits are usually more comprehensive than credit card protection benefits. However, it is important to know what travel insurance covers to avoid disappointment with exclusions. Here are some factors to consider.
Trip Cancellation and Interruption
Travel cancellation and travel interruption benefits are the basis of travel insurance policies. It can reimburse non-refundable travel purchases and increased travel expenses for the postponed portion of the trip.
You should review the reasons covered, coverage limits and policy terms in order to purchase an appropriate policy. It is important to remember that a delayed or canceled trip does not automatically guarantee that you are entitled to travel insurance.
Grounds covered typically include:
- Flight delays and cancellations
- A hurricane, a natural disaster, or bad weather
- An insured traveler or family member becomes ill or injured
- Legal separation or divorce
- Forced labor or a job-related move
- Termination of employment
- Military action, jury duty, or a required court appearance
- Bankruptcy or default of a carrier
- Terrorist events within 30 days of departure date at destination
A waiting period may apply to prevent insurance fraud. Two examples are employer layoffs and transport company bankruptcies.
Medical conditions and injuries may also require additional testing to rule out pre-existing conditions.
The first step is to contact the carrier or host to see if you can get a refund, delay compensation, and trip rebooking. After you reach the Travel Provider, you can submit a claim for a remaining refund.
Coverage limits for a barebones policy are typically up to $10,000 or the cost of your trip.
which is lower. Upgrading to premium plans offers more generous limits.
Does travel insurance cover hurricanes?
Travel insurance can cover hurricanes if you purchase coverage before the storm is called.
Travel medical insurance is another compelling reason to get a standalone policy. Many new medical and dental incidents during the trip may be eligible.
Pre-existing conditions and injuries resulting from high-risk activities are generally not covered unless you purchase special coverage.
You may also consider purchasing evacuation insurance.
Emergency medicine and evacuation can be most valuable for international travel, since personal health insurance benefits are typically only valid within the United States and territories.
Most travel insurance policies now offer Covid-19 coverage which can reimburse your trip if you test positive before departure. In addition, this insurance option can reimburse the costs of medical treatment and quarantine during the trip.
You may also see this listed as epidemic coverage and may cover other unnamed medical events that may occur. Researching the latest travel restrictions can help you define your coverage options.
Baggage loss and delay
Baggage insurance can reimburse the value of your lost, damaged or stolen items. This coverage may apply to carry-on baggage and checked baggage.
A baggage delay benefit policy can help you pay for necessities like clothing and toiletries while you wait to collect your bags. However, a lag time of 8 to 12 hours is typically required before this benefit occurs.
Accidental Death and Dismemberment
You or your beneficiaries may receive Accidental Death and Personal Injury (AD&D) compensation.
Optional travel insurance coverage
Several add-ons may also be worthwhile for comprehensive coverage:
- Cancel for any reason: Can usually get a full refund if you cancel at least two days before departure.
- Pre-existing illnesses: Get treatment for selected illnesses and injuries. Medical tourism and pregnancy may have exceptions.
- Rental Car Coverage: Reimburses damage caused by theft or collision. This benefit comes standard with most credit cards but may provide additional coverage or apply in excluded countries.
- Sports: Can refund prepaid equipment rental, loss and delay. It may also cover medical incidents from covered activities.
Travel insurance offers the most benefits for expensive trips or trips outside of the United States. Trip cancellation and medical insurance benefits are straightforward for most trips. However, reading the exclusions carefully is crucial if you are in a complex situation such as pre-existing conditions or other travel uncertainties.