When planning travel, understanding your insurance options is crucial but often confusing. The term “travel insurance” actually encompasses several different types of coverage, with trip insurance and travel medical insurance being the two primary categories. Though they may sound similar, these insurance types serve distinct purposes and choosing the wrong one could leave you with critical gaps in coverage.
This guide explains the key differences between trip insurance and travel medical insurance, helping you determine which type best suits your specific travel needs and circumstances.
Travel Insurance Types: Trip Insurance & Travel Medical Insurance
The two types of travel insurance types are very different in both eligibility and the coverage that they offer.
- Trip insurance offers protection for financial losses due to unexpected trip-related issues
- Travel medical insurance offers protection for health-related issues, and is often also referred to as visitors insurance
Let’s take a closer look at the differences between trip insurance and travel medical insurance.
What Does Trip Insurance Cover?
Trip insurance protects you against financial losses suffered due to certain unexpected trip cancellations, trip interruptions, trip delays, missed flight connections, baggage loss, rental car coverage, and other nonrefundable travel-related expenses.
If you’re traveling with kids, or seniors, headed to risky areas like war zones or regions vulnerable to natural disasters, your travel plans may be more susceptible to change. In the case of any eligible trip-related mishap, trip insurance can help protect your financial investment.
Trip Insurance Benefits
Trip insurance can help protect financial investments one makes in their travels, especially for costs that are nonrefundable. Key benefits that trip insurance offers include:
- Trip cancellation
- Trip delay
- Trip interruption
- Missed flight connection
- Lost baggage
- Emergency medical evacuation
- Accident and sickness
Who Is Trip Insurance Best Suited For?
Trip insurance is primarily designed for residents of the United States traveling within the United States or internationally for short trips of up to 6 months. However, individuals traveling to the United States from abroad can also qualify for certain trip insurance plans.
Trip insurance is for travelers who want to protect their financial investments such as flight or accommodation costs in the event of a trip interruption.
What Does Travel Medical Insurance Cover?
Travel medical insurance plans offer protection for unforeseen health issues like sudden illness or injuries that occur while you’re abroad. These plans can cover expenses for medical treatment, emergency medical evacuation, accidental death and dismemberment, or repatriation while traveling.
This type of travel insurance is also referred to as visitors insurance, visitors medical insurance, travel health insurance or overseas travel insurance.
If you’re traveling abroad or to a foreign place where risk to exposed health issues are higher, travel medical insurance is a must. Whether you’re a visitor to the U.S., where medical expenses are high, or a U.S. resident traveling to Africa for a safari trip, comprehensive travel medical insurance is strongly recommended.
Travel Medical Insurance Benefits
Travel medical insurance can provide coverage for emergency medical care if one needs to visit a doctor or hospital for eligible reasons while abroad. Key benefits of travel medical insurance include:
- Medical coverage for new illnesses and injuries
- Emergency services including hospitalization and surgery
- Emergency medical evacuation
- Prescription coverage
Who Is Travel Medical Insurance Best Suited For?
Travel medical insurance is designed for individuals who are leaving their home country to travel internationally. Travel medical insurance or visitors insurance is for travelers leaving their home country who want to protect themselves financially in the event that they become ill or injured during their trip, typically for trips up to 1 year long.
Which Type of Travel Insurance Do I Need?
If you’re unsure of what type of travel insurance is right for your trip, it’s important to consider several factors. Here are some travel examples to help you choose the travel insurance plan that is right for you.
You should choose travel medical insurance if you:
- Are visiting the U.S. from another country
- Are traveling internationally and do not have a domestic healthcare plan that offers coverage abroad
- Are concerned with costs associated with receiving healthcare abroad in the event of an unexpected illness or injury
You should choose trip insurance if you:
- Want to add on certain benefits such as Cancel For Any Reason to recoup trip investments for cancellation of any reason
- Are traveling during a busy travel season where delays and cancellations aren’t uncommon
- Have invested a lot of money into your travel plans such as flights and accommodations
How to Find the Best Travel Insurance For You
Understanding the difference between the two types of travel insurance can be very tricky. If you have any questions about which option you should pick, feel free to reach out to our Customer Success Team, a specialized team of licensed travel insurance experts, and they can help match you to whichever plan is the best for you.
