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Travel insurance provides a safety net so you can step out with confidence.

All about travel insurance

Trip (or travel) insurance provides coverage for unexpected events that can go wrong before or during your trip, such as inclement weather that prevents you from departing or breaking your leg on a ski trip and needing to fly home early.

According to the U.S. Travel Insurance Association, in 2018, roughly 65.8 million people had trip insurance protections, reflecting a 49% increase from 2016. Due to the COVID-19 pandemic, those numbers are likely to continue to grow.

Knowing you have travel insurance can offer peace of mind in case something goes wrong on an upcoming trip. Travel insurance includes many important benefits and getting acquainted with them can empower you to make the right choice about which coverage type to consider for your next vacation.

What travel insurance covers

Depending on the type of coverage you’re looking for, the chart below will help you determine what to look for when selecting a policy:
Travel medical plan
Payment of medical expenses if you get sick or injured on a trip and need emergency care that’s not covered by your regular health insurance plan.
Emergency evacuation and repatriation
To be taken to the nearest hospital or flown home if necessary when you're injured or you get sick on a trip.
Trip cancellation, interruption and delay
Reimbursement of nonrefundable reservations if you get sick and have to cancel or end a trip early; reimbursement if you incur extra costs (e.g., lodging) due to a delay by the airline or other carrier.
“Cancel for any reason” coverage
Reimbursement of nonrefundable reservations no matter why you cancel a trip.
Baggage and personal belongings
Payment for lost, stolen or damaged baggage.
24-hour assistance services
Help finding a lawyer abroad.
Car rental collision insurance
Payment for rental car damage.

Different types of travel insurance

You’ll find a wide selection of travel protection plans when you shop for a policy. Typically, travel insurance is sold as a package, known as a comprehensive plan, which includes a variety of coverage.

Here are seven of the most common types of travel insurance coverage:

1. Travel medical insurance

These plans provide health insurance while you’re away from home. Although in some ways these policies work like traditional health plans, generally you cannot use travel health insurance for routine medical events. For example, a routine medical checkup is usually not covered. In addition, these policies often include limitations on coverage and exclusions for pre-existing conditions.

Although most travel insurance plans cover many recreational activities, such as skiing and horseback riding, they often exclude adventure sports, such as skydiving or parasailing, or competition in organized sporting events. You may need to buy a special travel policy designed for adventure or competitive sports.

International travel insurance

Most likely, your U.S.-based medical insurance will not work while you’re traveling internationally, and Medicare does not provide any coverage once you leave the United States outside of a few very specific exemptions. If you plan on traveling abroad, purchasing travel medical insurance could make a lot of sense.

2. Trip cancellation, interruption and delay

Trip cancellation coverage reimburses you for prepaid, nonrefundable expenses if the tour operator goes out of business or you have to cancel the trip for one of the covered reasons outlined in the policy, such as:

  • Your own illness.
  • The illness or death of a family member who’s not traveling with you.
  • Natural disasters.

    Trip interruption insurance covers the nonrefundable cost of the unused portion of the trip if it is interrupted due to a reason outlined in the policy.

    Trip delay coverage reimburses you for expenses such as lodging and meals if you’re delayed during a trip (e.g., your flight gets canceled due to weather).

    Many package policies cover all three. These policies are different from the cancellation waivers that cruise lines and tour operators offer, the Insurance Information Institute says. Waivers are cheap, ranging from $40 to $60, and often include restrictions. For example, according to the institute, waivers might not refund your money if you cancel immediately before departure. Waivers are technically not insurance policies.

    Some companies offer additional layers of coverage at extra cost. “Cancel For Any Reason” coverage will reimburse a large part of the trip cost, no matter why you back out. And some companies let you pay extra to cover pre-existing conditions if you cancel for medical reasons.

    • 3. Baggage and personal belongings

    How does lost luggage insurance work? This coverage reimburses you for baggage and personal belongings that are lost, stolen or damaged during the trip. Some plans also reimburse you for extra expenses if you experience a baggage delay for more than a certain period, such as 12 hours.

    Your renters or homeowners insurance may cover personal belongings while you are traveling. It’s best to review your homeowners insurance policy to determine the level of coverage it provides so you do not end up paying for a benefit you already have.

    4. Emergency medical assistance, evacuation and repatriation

    This coverage pays medical expenses if you get sick or injured on a trip. Medical evacuation coverage pays for transporting you to the nearest hospital, and medical repatriation pays for flying you to your home country.

    5. 24-hour assistance

    This service is included with many package plans. The insurer provides a 24-hour hotline that you can call when you need help, such as booking a flight after a missed connection, finding lost luggage, or locating a doctor or lawyer.

    Most travel insurers cover a wide array of services, but the specific options vary. Some plans include concierge services, providing help with restaurant referrals, tee time reservations and more. Many services also offer information before the trip, such as required vaccinations. The only way to know what’s included is to read the policy.

    6. Accidental death and dismemberment insurance

    This coverage pays a lump sum to your beneficiary, such as a family member, if you die in an accident while on the trip. Accidental death and dismemberment insurance policies also pay a portion of the sum to you if you lose a hand, foot, limb, eyesight, speech or hearing. Some plans apply only to accidental death in a plane.

    7. Rental car coverage

    Rental car insurance pays for repairing your rental car if it’s damaged in a wreck, by vandals or in a natural disaster. The coverage doesn't include liability insurance, which pays for damage to other vehicles or for the medical treatment of others if you cause an accident and are held responsible.

    Ask your car insurance company whether your policy will cover you when renting cars on the trip. U.S. car insurance policies generally don’t cover you when driving in other countries, except Canada.

    Car insurance requirements are complex because they vary among countries. You can usually purchase liability insurance from the rental car company. Learn about car insurance requirements by searching for auto insurance by country on the U.S. Embassy website.

    Single vs. long-term policies

    Single trip insurance plans are a great option for those going on a single trip for a specific length of time (e.g., a two-week vacation) and then returning home. The price of the policy is usually determined by the cost of the trip.

    Long-term travel policies cover you for multiple trips, but there are limitations to how long you can be away from home, if you can return home during your travels and how many trips you can take. In addition, trip cancellation and interruption coverage is either not offered or capped at a dollar amount that can be significantly below the total cost of all the trips taken during the covered period.

    Long-term travel insurance plans — often called 'multi-trip' or 'annual travel insurance' — are a suitable option for those who travel often and are satisfied with the amount of trip cancellation coverage for all the trips they take over the duration of the policy.