What Is Trip Insurance & What Does It Cover?

What Is Trip Insurance & What Does It Cover?

When planning travels for the future, there’s always a possibility that something will detail or interrupt your plans. Maybe you get sick right before your travel dates or your passport is stolen preventing you from going on your trip. 

Under certain circumstances, not being able to go on your trip or having your trip delayed can take a toll on your wallet for nonrefundable prepaid costs. However, with trip insurance, you can protect your travel investment and recoup funds if your travel plans are disrupted.

What Is Trip Insurance?

Trip insurance is travel protection that allows you to insure certain prepaid nonrefundable expenses for a specific trip. By insuring your trip’s nonrefundable costs, you can take advantage of benefits in the event that your trip is canceled, delayed, or interrupted for certain covered reasons.

You can insure certain nonrefundable, prepaid costs related to:

  • Air travel
  • Prearranged transportation
  • Hotels or accommodations
  • Tours
  • Event tickets
  • Cruises

Trip insurance protects you from certain financial losses that might occur during your travels. These expenses could include anything from small inconveniences like delayed baggage to trip cancellations. Putting trip insurance on your packing list is essential to safeguarding your travel experiences. 

Death or illness of a family member may cause you to cancel your trip. Bad weather could result in missing your flight or delaying your trip. Your passport or baggage may get lost or stolen. These are just some of the situations in which trip insurance helps travelers.

Remember that airlines, hotels, and cruises may not reimburse you for such incidents, even if it's their fault.

What Does Trip Insurance Cover?

A typical trip insurance policy covers nonrefundable expenses related to incidents such as:

Like any insurance plan, trip insurance only provides trip cancellation and interruption coverage for covered reasons. However, some plans do offer a Cancel For Any Reason add-on benefit, allowing you to cancel your trip for reasons that may not be otherwise covered by your policy.

Learn more about the Cancel For Any Reason benefit.

Is Trip Insurance Worth It?

Travel plans don’t always go as planned. Flights can be delayed, baggage can be lost and overseas business meetings can be canceled at the last minute. Travelers with trip insurance can protect their investment when things don’t go quite as they expect.

For a small upfront investment, you can help protect your nonrefundable trip costs and recoup your expenses in the event of a covered travel hiccup.

How Much Is Trip Insurance?

The cost of trip insurance will vary depending on the plan and other factors such as the cost of insured funds, trip length, and destination. 

To calculate your trip insurance cost, you will first want to calculate your prepaid nonrefundable expenses for your trip. With this information, you can get trip insurance quotes for your specific travel plans to find the best trip insurance plan for you.

Trip Insurance Coverage Explained

Let's look at how trip insurance could protect your next trip. These are various trip insurance coverage benefits and how they can safeguard your expenses.

Trip Cancellation

If you have to unexpectedly cancel your trip due to unforeseen events, trip cancellation insurance can help. This insurance covers some of your non-refundable trip expenses such as airfare and hotel accommodations, reducing your risk of financial loss.

Trip Delay

Inclement weather conditions, flight delays, and lost passports are just some of the things that could delay your trip. Trip delay insurance covers additional expenses such as food and accommodation and additional transport costs in the case your travel plans are delayed.

Cruise Insurance

Cruise insurance is short-term travel coverage that can help provide support for trip issues like cruise cancellation or trip delays, as well as medical coverage should the policyholder become sick or injured while on board.

Why Do You Need Trip Insurance?

Trip insurance is beneficial for all travelers. It helps minimize the risk associated with booking travel in advance, which can often be nonrefundable. With trip insurance, you can have peace of mind knowing that if something happens with your trip plans, you may be able to get most if not all of your nonrefundable expenses back.

Trip insurance is great for:

  • Protection against last-minute cancellations
  • Going on a cruise
  • Family travels
  • Baggage loss or delay
  • Medical emergency evacuation
  • Lost or stolen passport/visa

If you need assistance finding a plan that will work for your trip, our Customer Success Team is ready to help.