What does travel insurance cover?
Key points
- Travel insurance can reimburse nonrefundable trip costs and unexpected expenses if issues like cancellations, delays, lost baggage, or medical emergencies occur.
- Common coverages include trip interruption, missed connections, baggage loss or delay, and emergency medical care (including transport and treatment).
- Policies typically exclude claims related to risky activities, pre-known events, substance use, mental health–related cancellations, or major disruptions like war.
- Coverage varies by plan, so it’s important to consider limits, deductibles, destinations, activities, and whether pre-existing conditions are included before buying.
How does travel insurance work?
Travel insurance helps reimburse you for nonrefundable payments and other costs related to your vacation if something goes wrong, like lost or stolen baggage, or unexpected medical expenses. It may also help reimburse you for trip cancelations, delays due to illness or bad weather conditions. To decide whether travel insurance is right for you, it's helpful to understand the types of coverage available in a policy. Most policies include the following types of coverage:
What is covered by travel insurance?
Here are four common coverages you can get with travel insurance and what each cover.
| Type of coverage | What it covers |
|---|---|
| Trip interruption coverage |
It can help reimburse you for certain expenses if your trip is cut short, according to the National Association of Insurance Commissioners (NAIC). These are typically prepaid and nonrefundable trip expenses. It may also help pay for overnight hotel stays as a result of a trip interruption, depending on your policy. |
| Missed connection coverage |
If bad weather causes you to miss a connecting flight en route to your destination, you may be covered for expenses needed to catch up, such as additional transportation and meals. There may be a limit on your reimbursements and a minimum required delay. |
| Baggage coverage |
There are two types of baggage coverage that may be available on a travel insurance policy: baggage loss/damage coverage and baggage delay coverage. Baggage loss/damage coverage can help if your bags are lost or stolen. It may help reimburse you for personal items, like clothes, up to a certain maximum amount. Baggage delay coverage may help if your baggage is delayed or misdirected for 24 hours or more. It can reimburse you for reasonable additional purchases of essential items during your trip. |
| Emergency medical coverage |
Aso referred to as travel health insurance, it can help cover someone injured or ill during the trip. It can help pay for the following, according to the NAIC:
For example, if you slip and break your ankle while hiking in a remote area, travel health insurance may help cover the costs of being airlifted to the nearest hospital. Or, if you become seriously ill during your trip overseas, this coverage may help pay for the hospital stay. |
What is not covered by travel insurance?
While travel insurance covers many unexpected situations, most plans include exclusions, especially when risky activities or certain events are involved. Common examples include claims resulting from:
- Injuries or losses that occur while you’re under the influence.
- Weather events or storms that were predicted or named before you purchased your policy.
- Medical tourism or planned medical procedures abroad.
- Extreme or high risk activities like skydiving or rock climbing, unless coverage is added.
- Trip cancellations due to anxiety, fear or other mental health-related reasons.
- Losses related to war, terrorism, or civil unrest.
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get a quoteHow to select travel insurance that fits your needs
Before purchasing a travel insurance policy, consider the following questions:
- How often do you travel?
Consider a single trip plan for one vacation or an annual plan if you travel several times a year. - Who are you going with?
Look for a policy that allows you to add a spouse/partner, household member, and dependent for peace of mind. - What coverages make sense for you?
Compare protections like trip cancellation, baggage coverage, emergency medical care, and trip delay benefits. - What activities do you plan on doing?
Consider optional add-ons, such as hazardous activities coverage or sports-related coverage, for activities that may be excluded from standard policies. - Where are you going?
International trips may need additional medical coverage if your regular health plan won’t apply abroad. - What type of traveling are doing?
Ensure you have the right coverage for your plans, whether it’s cruise‑specific coverage, flight protection for missed connections, or rental car coverage. - What kind of limits/maximums do you need?
Check the insurer’s coverage limits and increase them if you need higher medical or personal‑item protection.
Travel insurance deductibles and coverage limits
If you're thinking about purchasing travel insurance, it's important to understand what your policy may help cover versus what you may have to pay for out of pocket. Ask your insurer about the following:
- Deductible
Travel health coverage may come with a deductible — typically up to $1,000. As with any insurance policy, keep in mind that lower deductibles typically mean a higher premium. - Coverage limits
Make sure you know the limits of your travel health insurance coverage. Consumer Reports says some policies are capped at $10,000 – if you need emergency medical care, you would be responsible for paying for any associated costs that exceed your limit. - Pre-existing conditions
You may want to ask the insurer about coverage for pre-existing conditions. According to the NAIC, some policies may not cover treatment for pre-existing conditions, or they may charge a higher premium. The NAIC also states that some insurers may charge more for coverage based on your age.
Knowing how travel insurance coverages work can help you make an informed decision when purchasing a travel insurance policy. When shopping for travel insurance, ask the insurer what kind of protections they offer and the limits of each. They'll likely be able to help you find protections fit for your specific travel needs and budget.