Exploring the world can provide many exciting, rewarding experiences, but travel does come with certain inherent risks. So how can we travel the world safely?
Travel insurance is a vital safeguard for any traveler to protect themselves when they are away from home.
What Is Travel Insurance?
Travel insurance is an umbrella term for short-term insurance that can cover you during a trip. Travel insurance includes two main categories of insurance: travel medical insurance (also referred to as international medical insurance or visitors insurance) and trip insurance (sometimes called trip cancellation insurance).
Both travel medical insurance and trip insurance can offer protection for your scheduled trip, but they have varying benefits.
Trip Insurance: Coverage & Benefits Geared Towards Protecting Your Investment
Trip insurance, primarily available to U.S. citizens and residents or visitors to the U.S., can offer coverage for prepaid and nonrefundable travel expenses for things like your hotel, accommodations, and tour reservations if you need to cancel, interrupt, or delay your travel plans for a covered reason.
For example, if you're forced to cancel a trip due to a covered reason like a natural disaster, trip insurance can help you recoup some financial losses. Trip insurance can also cover things like delayed, damaged or lost baggage, accident and sickness, or lost passports.
Who Should Choose Trip Insurance?
- Travelers taking short vacations (typically under 30 days)
- Those with significant non-refundable prepayments (expensive tours, cruises, etc.)
- People primarily concerned about protecting their travel investment
- Those traveling to destinations where healthcare is affordable or their regular health insurance works
Travel Medical Insurance: Coverage & Benefits Made to Protect Your Health Abroad
Travel medical insurance, sometimes referred to as travel health insurance, visitors insurance, and international travel insurance, can cover unexpected medical costs incurred while abroad.
Your home country's health insurance may cover medical events incurred through domestic travel, but it won't protect you in foreign countries. If you have an accident or injury and need medical care while abroad, you could be forced to pay medical care costs out of pocket. This is where travel medical insurance can cover:
- Customizable medical coverage: Choose your coverage limit ($50,000 to $1,000,000+)
- Flexible deductibles: Select what you pay out-of-pocket ($0 to $5,000)
- Emergency medical evacuation: Transportation to adequate medical facilities or back home
- Extended coverage periods: Options for longer stays (up to several months or even a year)
- Repatriation coverage: Returns remains to your home country in worst-case scenarios
- Some limited trip benefits: Many plans include basic coverage for trip interruption, baggage issues, etc.
Visitors to the United States, where medical costs are notoriously high, will find travel medical insurance particularly beneficial. These types of plans can also be helpful to new immigrants who don't have permanent healthcare parents visiting their children in the U.S.
Who Should Choose Travel Medical Insurance?
Travel medical insurance is ideal for:
- Longer-term travelers (stays of a month or more)
- Visitors to countries with expensive healthcare systems (especially the US)
- Seniors or those with higher health risks who want customizable coverage
- "Snowbirds" spending extended time away from home
- Parents visiting children abroad for extended periods
- Study abroad students
- Business travelers on extended assignments
- Those whose primary concern is having robust health coverage while abroad
What’s the Difference Between Travel Medical Insurance and Trip Insurance?
The key difference is in the focus and flexibility: Trip insurance offers stronger trip cancellation/interruption benefits with standardized medical coverage, while travel medical insurance provides highly customizable medical benefits with more limited trip protection.
How Much is Travel Insurance?
The cost of your travel insurance policy will depend upon many factors, including which type of plan you opt for. This can include things like the type of policy, duration of your trip, travel destination, your age, add-on coverage, and more.
Trip Insurance Pricing
For trip insurance, pricing typically ranges from 4-10% of your total trip cost. For example:
- $2,000 vacation: $80-200 for comprehensive coverage
- $5,000 family trip: $200-500 for comprehensive coverage
- $10,000 luxury cruise: $400-1,000 for comprehensive coverage
Travel Medical Insurance Pricing
Travel medical insurance costs vary based on age, coverage amount, and trip duration:
- 30-year-old traveler, 2-week trip, $100,000 coverage: $40-80
- 60-year-old traveler, 3-month trip, $500,000 coverage: $300-600
- 70-year-old traveler, 6-month stay, $1,000,000 coverage: $800-2,000
Additional Benefits of Trip and Travel Medical Insurance
Although many people think of travel insurance as limited to reimbursement for canceled plans or medical bills, it actually encompasses a number of different features.
Some common benefits include financial protection expenses incurred from lost passports and luggage as well as coverage for replacement eyeglasses if yours are lost or damaged during your trip.
Here are some lesser-known benefits of buying travel insurance. These are usually considered add-ons to the basic trip and travel medical coverage we outlined earlier.
- Multi-trip insurance: Certain plans can cover multiple trips within a one-year period. Business travelers and anyone else who frequently travels internationally may benefit from multi-trip insurance.
- Cancel for Any Reason travel insurance: While most trip insurance plans have a built-in benefit that covers trip cancellations for reasons beyond the traveler's control, like natural disasters or airline issues, this CFAR add-on can cover certain prepaid travel expenses if you decide to cancel for literally any reason.
- Border entry protection: Did you know that even if you arrive at a U.S. border with a valid visa, you're not guaranteed entry? If you're turned away at the border, plans like Cover America-Gold can help with the financial burden of getting back home sooner than anticipated.
- Repatriation: One of the hardest benefits to think about is repatriation, or the return of mortal remains. If you or one of your traveling companions were to pass away far from home, it can be very difficult and expensive to transport the body home to be laid to rest. Repatriation coverage helps with the cost of returning mortal remains of a person to their homeland. This benefit's required for those applying for a Schengen Visa.
- Adventure sports optional riders: If you plan on participating in exciting activities like river rafting, skiing or mountaineering on your trip, you may want to purchase an additional adventure sports rider that will cover you if you're injured during some of these more risky activities.
- Kidnap and Ransom insurance: Unfortunately, some areas of the globe are more dangerous than others. In certain places, there is a real threat of kidnapping. If you are kidnapped, you or your loved ones may be asked to pay a ransom or hire lawyers and negotiators to return home safely. Sometimes known as K&R, Kidnap & Ransom insurance protects you and your loved ones against the debilitating costs that can be incurred to get a kidnapping victim home safely.
How to Get the Best Travel Insurance
The best place to get travel insurance is an insurance marketplace and comparison platform like VisitorsCoverage. This way, in just minutes, you get to compare and contrast plans to find travel insurance that fits your coverage needs and budget, whether that be a trip insurance plan or a travel medical insurance plan.
How Does Travel Insurance Work?
Securing travel insurance should be done ahead of your trip plans, at least 24 hours before your scheduled trip. Depending on the type of travel insurance plan you choose, how exactly your plan will work will vary.
For trip insurance, you will insure all of your nonrefundable and prepaid expenses when you purchase your plan, and can file a claim for reimbursement if your trip is canceled, interrupted, or delayed for a covered reason. Additionally, claims can be made for medical expenses related to an accident or sickness that occurs during your trip or for other benefits such as lost baggage.
For travel medical insurance, you can purchase your coverage and have peace of mind knowing that if you are injured or become ill during your travels, you can submit a claim for your medical expenses.
How Can I File a Travel Insurance Claim?
If something goes wrong during your trip, these steps will help ensure your claim goes smoothly:
1. Document everything: Keep all receipts, medical reports, police reports, airline statements, and communications
2. Report promptly: Notify your insurance company as soon as possible (many have 24/7 assistance lines that can even guide you through having a smooth claims process)
3. Follow instructions carefully: Each insurer has specific procedures for different types of claims. Luckily, they are required to clearly outline the exact requirements and instructions, making it easy to navigate the process.
4. Submit complete information: Incomplete claims are the \#1 reason for delays and denials. Although your claims team will reach out if your submission is missing documentation, this back-and-forth communication can significantly delay the process. Submitting all the required documentation correctly the first time around is the quickest way to get your claim processed.
5. Be persistent: If you believe your claim is valid but gets denied, don't hesitate to appeal. If you purchased your plan through VisitorsCoverage, our team of insurance agents can even advocate for you and escalate your claim.
Most insurers now offer digital claims processes through mobile apps or online portals, making it easier than ever to submit and track your claim.
Find Travel Insurance Coverage Today
Finding the right travel insurance policy for you and your loved ones can give you peace of mind so you can focus on acing that overseas business presentation, reuniting with your children, or creating amazing memories with your loved ones.
Secure Travel Insurance Through VisitorsCoverage
VisitorsCoverage is a trusted online travel insurance marketplace where travelers can get travel insurance reviews, compare travel insurance options and ultimately find the best travel insurance for their needs.
We know how confusing travel insurance is. We also know it doesn't have to be. If you have any questions or concerns, reach out to our Customer Success Team for friendly assistance.
Frequently Asked Questions (FAQs)
How far in advance should I buy travel insurance?
For maximum benefits and eligibility for time-sensitive coverage like pre-existing condition waivers or Cancel for Any Reason, purchase insurance within 14-21 days of making your initial trip deposit. However, standard coverage can typically be purchased until the day before departure.
If you forget to get travel insurance in time, you can purchase travel insurance after your trip has started, but it’s important to know that this can complicate the claims process and mean you miss out on some key benefits. Try to get your insurance as soon as you have made the first payment towards the trip.
Can I add travel companions to my policy after purchase?
Most policies require all travelers to be listed at the time of purchase. Adding someone later is usually not possible, though some providers allow changes within a certain timeframe after initial purchase. If your trip has already started, give a call to the number on the back of your insurance ID to try to see what can be done.
What happens if I need to cut my trip short unexpectedly?
Trip interruption coverage reimburses you for unused prepaid expenses and additional transportation costs if you must return home early due to covered reasons like illness, injury, or family emergencies.
How does travel health insurance differ from my regular health insurance?
Regular health insurance typically has limited or no coverage internationally. Travel health insurance specifically covers emergency medical situations that occur while traveling abroad, including evacuation if necessary.
Can seniors or people with pre-existing conditions get travel insurance?
Yes, travelers of all ages and health conditions can purchase travel insurance. However, seniors may pay higher premiums, and pre-existing conditions may not be covered unless you purchase a plan with pre-existing condition coverage or a pre-existing condition waiver (typically available when buying insurance shortly after your first trip payment).
Do I need travel insurance if my credit card offers travel protection?
Credit card travel benefits often provide limited coverage compared to standalone travel insurance policies. While they may offer some protection for trip delays or lost luggage, they typically have stricter coverage, lower coverage limits, and fewer benefits, especially for medical emergencies abroad.
Can I purchase travel insurance for multiple trips throughout the year?
Yes, annual or multi-trip insurance plans cover multiple journeys within a 12-month period. These plans are cost-effective for frequent travelers, though they typically limit the duration of each individual trip (usually to 30-90 days at a time).
Can I insure trips I booked with points or miles?
Yes, but differently than cash bookings. Since points themselves have no cash value, you can't insure their redemption value. However, you can insure non-refundable fees associated with point bookings and still get medical coverage, baggage protection, and other benefits.
Can I extend my travel insurance if I decide to stay longer?
Some policies allow extensions if requested before your original coverage ends. Travel medical insurance is generally more flexible with extensions than trip insurance. Contact your provider before your coverage expires to explore options.
