Buying trip insurance can be confusing. From getting quotes and comparing plans, to hard-to-understand lingo and legalese in the policy document fineprint, there’s a lot to unpack.
With flight disruptions, baggage loss and trip delays becoming increasingly common, every seasoned traveler knows the value of trip insurance. The trick is to find the best trip insurance for your needs with all the benefits you might need at a premium you can handle.
Who Should Buy Trip Insurance?
It really depends on your particular situation, but in general, any individual traveling more than 90 miles from their home should think about it. This is particularly true if you're planning on staying at a hotel or vacation home while you're traveling, as well as if your mode of transportation is something other than your own vehicle.
Trip insurance can cover expenses related to getting your trip back on track in case of a flight disruption, a delayed train, or a missed cruise ship. If you’re renting a car for your trip, trip insurance often offers a broader range of accident and collision coverage than the rental agency.
In addition to helping to protect your transportation and accommodations investment, trip insurance is great to have in case you have to cancel your trip plans. Any basic trip insurance plan will usually come with its own standard list of covered reasons for cancellation. For example, if inclement weather, death of a loved one, or sudden illness stops your trip before it even starts, trip insurance may reimburse you at 100% for any prepaid nonrefundable expenses.
Cancel For Any Reason trip insurance is an add-on benefit that travelers can purchase for even more cancellation protection. So, if you find a great vacation bundle with an amazing limited-time offer, you can go ahead and book that trip with confidence, even if your dates aren't firmed up yet. If you purchase trip insurance with Cancel For Any Reason, and you end up having to cancel your trip due to schedule issues, you can recoup a lot of your prepaid nonrefundable travel expenses and save the money until you can reschedule your trip.
Why Buy Trip Insurance?
Trip insurance covers you against unexpected fees resulting from things like trip delay, flight disruptions, baggage loss and much more. Most people assume that a trip insurance policy premium is expensive but in reality it’s usually no more than 10% of your total trip cost (this is the dollar amount that you want insured). On average, coverage costs travelers between $100 to $200, depending on add-ons and length of coverage, which is a small price to pay when you think about the money you’d save if a new sickness or injury disrupts your trip or if you have to cancel your trip altogether.
As we’ve seen, travel of any type is unpredictable. What trip insurance gives you is certainty and flexibility. Even if you don’t end up having to file a claim, knowing that you’re protected against the loss of your trip investment, gives you the peace of mind and focus you need to enjoy your trip.
When to Buy Trip Insurance
As a best practice, buy trip insurance after booking your hotel and flight reservations. Though, you’re able to buy trip insurance at any time before or during your trip, you would lose cancellation benefits (including Cancel For Any Reason coverage) if you purchase it less than 48 hours before your departure.
If you purchase it in the middle of your trip, you would only be covered once the premium is paid. If you lose your luggage or are injured during your trip and you don't have trip insurance, you wouldn't be able to purchase trip insurance after the fact to cover these issues. Keep in mind that coverage only begins on the policy effective date. In general, the earliest a policy can begin is the day following the purchase.
Where to Buy Trip Insurance
These days it seems like every hotel, airline and credit card company offers some form of travel insurance. Buying trip coverage from these sites may be very tempting, especially when they come up as part of the buying process.
However, you'll likely find that these trip protections are rather limited and do not offer the medical protections that come with standard trip insurance's Accident & Sickness benefit. The policy maximums for add-on trip protections may be up to $10,000, while the Accident & Sickness benefit policy maximum can be up to $500,000. Filing claims through these add-on trip protections is often more difficult and claims are more likely to be denied.
Alternatively, a global travel insurance marketplace like VisitorsCoverage can offer you quote generation and plan comparison tools that make researching policies easier. These marketplaces work with a variety of insurance companies and products, so you can trust that you are getting a full, unbiased picture of each plan's benefits as well as its limitations.
Our marketplace has a dedicated claims assist team that will act as an intermediary between you and the insurer. Though we cannot control the outcome of your claim, we can make sure it gets processed as efficiently as possible.
Buy Trip Insurance Through VisitorsCoverage
Whether you want to get trip insurance quotes, buy the best trip insurance, or just have some questions, head on over to VisitorsCoverage or reach out to our award-winning customer success team of licensed trip insurance experts.
Frequently Asked Questions (FAQs)
Why isn't my credit card coverage enough for when I want to travel?
While credit card travel protection seems sufficient, dedicated travel insurance delivers broader coverage for around 4-10% of your trip cost. This modest investment provides protection that credit cards typically can't match, including:
- Trip cancellation coverage for a much wider range of scenarios beyond the standard reasons (including documented traffic accidents, strikes, pregnancy complications, or even divorce)
- Higher medical coverage limits (up to $500,000 or more) for international emergencies
- Coverage for adventure activities and sports equipment
- Reimbursement for frequent flyer points if you need to cancel
- Rental car protection that would cost more if purchased directly
- 24/7 travel assistance services for emergencies, translations, lost luggage help, and medical referrals
While purchasing separate travel insurance may seem like an additional step and expense, this small investment can truly be a lifesaver when unexpected travel disruptions occur.
Will standalone travel insurance cover me if I pay for my trip with points and miles?
Reward points or frequent flier miles tend to have policies from the airline that consider them to be refundable, and should not be included in your trip costs. If there are any rebooking fees or taxes related to your flight, it could be added into your trip cost for a potential reimbursement from your trip insurance plan. However, most airlines can reimburse your points or miles back in credit, but typically do not provide cash reimbursement. It is recommended to quickly verify whether bookings made through rewards points will be refunded in the face of a cancellation before deciding whether or not to include it in your trip costs.
Will I be covered if my travel companion cancels, but I still decide to go?
If your travel companion cancels for a covered reason and you still decide to go, many policies may reimburse you for “single supplement” costs, or the extra charges when double-occupancy rates for a hotel become single occupancy. Oftentimes, if you book a double-occupancy hotel room, for example, the per-person rate is often lower. However, if your travel companion cancels, you might face an increased hotel charge for a now single-occupancy room. However, most travel insurance policies can cover the difference in cost.
Does trip insurance cover traveling with expensive items like cameras or jewelry?
Trip insurance can provide coverage for high-value items. Typically, there are per-item and overall maximum benefit limits. Make sure to read your plan documents to understand the full details of what is covered and to what extent, since every plan is unique. Also, consider purchasing additional specialty insurance for expensive electronics, jewelry, or sports equipment.
Is there trip insurance coverage if I want to travel with my pet?
Yes, there are trip insurance plans that can protect your furry friend. Some trip insurance plans may cover extended boarding, pet kennel fees, pet care coverage, and pet care return. If you are traveling with a pet, it is important to consider a strong trip insurance plan that sufficiently covers the needs of your pet.
Can I buy trip insurance at the last minute if I accidentally forgot to buy it in advance?
While you might find last-minute travel insurance, it is not ideal or recommended because of the potential lack of coverage. The options may also be limited or even more expensive. It is best to purchase travel insurance days before you leave to ensure better and stronger coverage. For specific add-ons, such as Cancel For Any Reason (CFAR), you may have to purchase it 14-21 days before your flight.
What is considered a prepaid, nonrefundable expense?
Expenses that you can recoup with trip insurance are expenses that you already paid and can't get a refund for. This can include the following expenses:
- Flight costs
- Prearranged transportation
- Hotel or stay accommodations
- Event tickets
- Tours
- Cruise costs
How precise should my trip cost calculation be?
You should always input the exact amount for your trip cost. If you go a little under, it can make you ineligible for certain trip benefits. It is best to round to the nearest dollar when inputting your prepaid nonrefundable trip costs, but make sure to check your receipts or documentation of purchase.
