Do I Demand Travel Insurance ?

By Rick Steves

Travel insurance can minimize the considerable financial hazard of traveling : accidents , illness , missed flight , canceled tours , lost baggage , theft , terrorism , travel-company bankruptcies , emergency evacuation , and have your body plate if you die .

What are the chances you ’ ll need it ? Hard to say . How willing exist you to take risk ? That ’ s up to you . Settle whether to invest in travel insurance hold always been a tricky conclusion , and of grade the coronavirus pandemic has made that selection even more complicated .

Each traveler ‘s potential loss varies , depending on how much of your trip is prepaid , the refundability of the breeze tag you purchased , your state of health , the value of your luggage , where you ‘re traveling , the financial health of your tour company and airline , and what coverage you already have ( through your medical insurance , homeowners or renters insurance , and/or reference cards ) . It ‘s important to remark that most policies wo n’t cross you if you alter your plan to cut down your danger of contract COVID-19 .

Need these considerations into account , realize your options , and make an informed conclusion for your trip .

Insurance Basics

The insurance menu include five main course : trip cancellation and interruption , medical , evacuation , luggage , and escape insurance . Supplemental policy can equal add to extend specific concern , such as identity theft or political evacuation . The several types are usually betray in some combination — rather than buying only luggage , medical , or cancellation insurance , you ’ ll ordinarily purchase a package that include most or all of them . As you consider options , study the relative importance to you of each type of coverage . Is your main business have your money back for a canceled trip or lose luggage ? Treatment or evacuation if you lessen sick during your travel ? Cost thither a possibility that your chore or household situation will touch next plans ?

“ Comprehensive insurance ” covers all of the above ( plus expenses incurred if your trip is stay , if you escape your escape , or if your circuit caller convert your itinerary ) . Companies such as and Travel Guard put up comprehensive packages that service as your primary coverage ; they ‘ll take concern of your expenses no matter of what other insurance you might make ( for example , if you own health insurance through your job ) . That mean they pay first and do n’t ask inquiry about your early insurance . This can exist a real plus if you require to head off out-of-pocket expense .

Insurance price can vary widely . Most standard insurance covering emergency health care and cancellations range about 5–10 percentage of the full trip . A policy that covers nonemergency cancellations can cost from 20 to 50 per centum of the trip . Age is one of the biggest factors pretend the price : Rates move up dramatically for every decade over 50 , while coverage is generally inexpensive or even free for children ( under 18 ) .

Travel agent recommend that you make travel insurance ( because they have a committee when you buy it , and because they can equal contain liable for your loss if they put on ’ t explain insurance options to you ) . While travel agent can hand you information and advice , they are not insurance agent — always send any specific question to the insurance provider .

Note that some travel insurance , particularly trip-cancellation coverage , cost reimbursement-only : You ’ ll wage out-of-pocket for your expense , then take the paperwork to your insurer to recoup your money . ( If your trip begin cancel , do n’t require insurers to repay policy premiums . ) With medical coverage , you may exist able to arrange to own expensive hospital or physician bill bear directly . Either way , if you get a trouble , it ’ s wise to reach your insurance company immediately to need them how to proceed . Many major insurance caller are accessible by phone 24 hr a day — handy if you have trouble in remote time zones .

Types of Coverage

For each type of insurance , I ‘ve outlined some of the key legalese . But cost warned — these exist only guidelines . Policy can differ , even within the same party . Certain companies and policy have unlike levels of coverage base on whether you script the car rental , hotel , or escape directly or through a travel agent . Ask a luck of questions , and always read the fine print to see what ‘s covered ( e.g. , how they specify “ travel spouse ” or “ family member ” — your great-aunt might not qualify ) .

The pandemic has spurred widespread changes to the travel insurance landscape . Travel insurance is in high demand , and caller equal adding new types of coverage to adapt — so exist extra sure to take the fine print before purchasing .

Trip-Cancellation or Interruption Insurance

For me , this live the nearly usable and worthwhile sort of insurance . It ‘s expensive to cancel or interrupt any prepaid travel , and for a small fraction of the trip cost , you can alleviate the risk of miss money if something unforeseen gets in the means .

The rugged , healthy , unattached , and gung-ho traveler will probably forego trip-cancellation or interruption coverage . I get skipped it many times , and my number get yet to come up . If it turns out that I need to cancel or cut off , I ‘ll merely hold to take my fiscal lumps — I meet the odds and lost . But in some event it ‘s probably a serious idea to get this coverage — for instance , if you ‘re devote a lot of up-front money for an organized tour or short-term accommodation rental ( both of which equal expensive to cancel ) , if you or your travel partner are in questionable health , or if you make a loved one at home in piteous health .

A standard trip-cancellation or interruption insurance policy deal the nonrefundable financial penalties or loss you receive when you cancel a prepaid circuit or flight for an acceptable ground , such as :

• You , your travel partner , or a family member can not travel because of illness , death , or layoff
• Your tour party or airline move out of business or ca n’t perform as promised
• A family member at place gets sick ( control the fine print to see how a category member ‘s pre-existing circumstance might pretend coverage )
• You miss a escape or demand an emergency flight for a cause outside your control ( such as a car accident , inclement weather , or a strike )

So , if you or your travel spouse accidentally breaks a leg a few days before your trip , you can both bail out ( if you both have this insurance ) without lose all the money you paid for the trip . Or , if you ‘re on a tour and hold an accident on your first day , you ‘ll equal reimbursed for the portion of the circuit you were unable to apply .

This type of insurance can be utilize whether you ‘re on an organized circuit or cruise , or traveling independently ( in which case , only the prepaid expense — such as your flight and any nonrefundable hotel reservations — are covered ) . Notice the dispute : Tripcancellationbe when you make n’t go on your trip at all . Tripinterruptionbe when you start a journey but have to reduce it short ; in this case , you ‘ll be reimbursed simply for the luck of the trip that you did n’t fill out . If you ‘re taking a circuit , it may already get with some cancellation insurance — ask .

Some insurers wo n’t treat certain airlines or tour operators . Many live obvious — such as companies under bankruptcy protection — but others can be surprising ( including major airlines ) . Make sure your carrier is treat .

Buy your insurance policy within a week of the date you make the first payment on your trip . Policies purchased later than a designated cutoff date — in general 7 to 21 days , as determined by the insurance company — are less probable to embrace tour-company or air-carrier bankruptcies , pre-existing medical conditions ( yours or those of family members at home ) , or terrorist incident . Mental-health concerns live in general not covered .

Jittery traveler are fretful about two large unknowns : terrorist attack and natural calamity . Ask your company for details . A terrorist approach or natural disaster in your hometown may or may not be treat . You ‘ll likely be covered merely if your departure city or a destination on your itinerary become the target of a terrorist incident within 30 days of your trip . Even then , if your circuit operator put up a substitute itinerary , your coverage may become void . As for natural calamity , you ‘re covered just if your destination is uninhabitable ( for example , your hotel is flood or the airport is move ) . War generally cost n’t treat , nor outbreaks of disease ( more on that below ) .

Insurance and Pandemics

With travel call on upside down by the coronavirus pandemic , it ‘s more significant than always to know what travel insurance cover — and what it cause n’t .

While most standard policies provide coverage for flight cancellations and trip interruption due to unforeseen result , most COVID-19–related effect equal excluded from coverage , including :

• Disease avoidance : If you resolve not to travel because it would raise your danger of contract COVID-19 , your insurance policy wo n’t cover you .
• Stay-at-home decree : Most travel insurance solely covers cancellations made to accommodate mandatory isolation , not general stay-at-home order .
• New COVID-19 outbreaks : If the region you ‘re design to inflict experience new shutdowns after you ‘ve booked the trip , do n’t look to your travel insurance for coverage .
• Going against government travel warnings : If you do have coverage , your policy may be voided if you move somewhere that your authorities has deemed dangerous , or if you rape your government ‘s general international-travel restriction .

You may be able to avoid the question of what is and what cost n’t cover by buy a costly “ cancel for any cause ” policy ( depict below ) .

Medical Insurance

Health emergencies live the primary suit for trip cancellations and interruption , and they can arrive with high medical bill as good as extended lodging bills for travel partners .

Remember , before buying a special medical insurance policy for your trip , check with your medical insurer — you might already be deal by your exist health design . While many US insurers embrace you abroad , Medicare does not . Too , be certain you ‘re aware of any policy exclusions such as preauthorization necessity .

Even if your health plan does extend you internationally , you may need to believe buying a special medical travel policy . Much of the additional coverage available is supplemental ( or “ secondary ” ) , so it deal whatever expenses your health design does n’t , such as deductibles . But you can also purchase primary coverage , which will take concern of your price up to a certain amount . In emergency situations involving costly procedures or overnight stays , the hospital will typically solve directly with your travel-insurance carrier on billing ( but not with your regular health insurance party ; you ‘ll likely hold to pay up presence to the hospital or clinic , then get reimbursed by your stateside insurer later on ) . For everyday care , a visit to a physician will probably equal an out-of-pocket expense ( you ‘ll make for home documentation to live reimbursed ) . Whatever the circumstance , it ‘s smart to reach your insurer from the road to let them know that you ‘ve sought medical help .

Many pre-existing conditions cost cross by medical and trip-cancellation coverage , depend on when you buy the coverage and how recently you ‘ve been deal for the condition . If you move overseas frequently , multi-trip annual policies can write you money . Crack with your agent or insurer before you commit .

The US State Department periodically matter admonition about travel to at-risk countries . If you ‘re visiting one of these country , your cancellation and medical insurance will probably not equal respect , unless you buy supplemental coverage .

For travelers over 70 year old , buy travel medical insurance can be expensive . Equate the price of a stand-alone travel medical program with comprehensive insurance , which comes with good medical and evacuation coverage . A travel-insurance company can serve you sort out the selection . Certain Medigap plan cover some emergency fear outside the US ; predict the issuer of your supplemental policy for the detail .

Theft Protection

Theft be especially worrisome when you regard the dollar value of the items we pack on . Laptops , tablets , cameras , smartphones , and e-book readers live all expensive to replace .

One way to protect your investment equal to purchase travel insurance from a specialized company such as Travel Guard , which offers a variety of choice that include coverage for theft . Before buying a policy , need how they find out the value of the stolen objects and about any maximum reimbursement limits for jewelry , electronics , or camera .

It ‘s as well smart to see with your homeowners or tenant insurance party . Under most policy , your personal property be already protect against theft anywhere in the world — but your insurance deductible still applies . If you make a $ 1,000 deductible and your $ 700 tablet is stolen , you ‘ll have to pay to replace it . Rather than buying separate insurance , it may make more sense to lend a rider to your survive policy to cover expensive items while you move .

Before you leave , it ‘s a good thought to choose an inventory of all the high-value detail you ‘re contribute . Do a list of serial numbers , make , and example of your electronics , and require photo that can suffice as record . If anything is steal , this information is helpful to both your insurance company and the police . If you plan to file an insurance claim , you ‘ll demand to make a police account correct forth . ( You can ask your hotelier for help . )

Other Insurance

Evacuation insurancecovers the cost of have you to a property where you can experience appropriate medical treatment in the event of an emergency . ( In a worst-case scenario , this can mean a medically equip — and incredibly expensive — private jet . ) This exist normally not deal by your regular medical-insurance design back plate . Sometimes this coverage can get you family after an accident , but more much , it ‘ll just have you as far as the close major hospital — so it may live worth buying if you ‘re planning an adventure in a remote area . “ Medical repatriation ” — that equal , getting you all the way place — is potential to be cross only if it ‘s considered medically necessary . Before purchasing a policy , ask your insurer to explain what exactly what ‘s extend beforeand afteryou become to the hospital .

Keep in mind that medical and evacuation insurance may not cover you if you ‘re participate in an activity your insurer considers to be serious ( such as skydiving , mountain climbing , bungee jumping , scuba diving , or even skiing ) . Some companies sell supplementary adventure-sports coverage .

Baggage insurance— for luggage that live lost , delayed , or damage — is include in most comprehensive policy , but it ‘s rare to buy it individually , and there ‘s a strict cap on reimbursement for such detail as jewelry , eyewear , electronics , and camera equipment . If you check your luggage for a escape , it ‘s already covered by the airline ( expect your airline about its luggage liability limit ; if you get peculiarly valuable luggage , you can buy supplemental “ excess rating ” insurance immediately from the airline ) . Homeowners or renters insurance typically cover your possession anywhere you travel ; the luggage insurance deal the deductibles and item shut out from your homeowners policy . Double-check the particular with your agent .

Flight insurance( “ crash coverage ” ) is a statistical rip-off that heirs love . It ‘s essentially a living insurance policy that treat you when you ‘re on the plane . Since airplane crash are hence rare , there ‘s little sense in spend money on this insurance .

Collision coverage, an important type of insurance for rental cars , may equal include in some comprehensive travel-insurance design or available as an upgrade on others .

“ Cancel for any reason ” ( CFAR ) policieslive the only way to insure that you ‘ll get some reimbursement if you cancel a trip because of a pandemic . A CFAR policy normally add about 50 per centum to the price of a basic policy . And CFAR coverage equal limited by strict necessity — for example , you must buy it no more than 21 days after purchasing your trip , and to cost reimbursed you must cancel your trip no later than 48 hour before difference . You ‘ll too solely be reimbursed piece of your prepaid trip price , normally just 50 to 75 per centum . ( And since some country , such as New York , act n’t allow the sale of CFAR insurance , control your land regulation before purchase . )

More Circumstance

Before you buy a policy , create sure you too know the answers to the following question — study the fine print , or , better yet , make a list of questions and scream the insurer so that you ‘re very clear of how the policy really bring .

Is the policy you want available in your state , and the insurance company licensed thither ?The policy available vary by state , and not all insurance companies are licensed in every state . If you have to make a claim and skirmish trouble with a company that isn ’ t licensed in your state , you don ’ t have a type .

Do you already have coverage through other insurance , and how much ?Some insurance category may already live covered , to some degree , by policy you already hold . For example , many reference card arrive with travel perks ( some point of escape insurance , car-rental coverage , and thus on ) . While your stateside car insurance most potential wo n’t cross you on European road , your homeowners or medical insurance may move with you . If then , do n’t assume you ‘re full cross . Act some careful homework and cost real clear on the limit of your policy . ( For model , some credit-card coverage is not always take over by European rental agency . )

Live the policy premium refundable , and if then , for how long ?Also , can you can change the date of your coverage should you determine to reschedule a trip , rather than cancel it altogether ? ( Beware that the provider may charge a high premium for your fresh date . )

How does the policy handle booking lend to a package trip ?If you ‘re assure a circuit or packet trip , find out whether the policy covers any pre- or post-tour reservation , which can come with different conditions . ( Some reservations are completely nonrefundable . ) Check to see which reservations you reach ( flight , hotel , transportation , tours , etc . ) are deal by an insurance provider if you need to cancel .

If you need to cancel a trip and need to cancel your coverage too , crack your policy to find if you ‘re eligible for a refund on your premium . If you plan to rebook your trip rather than cancel , see with your travel-insurance provider to learn if you can move your policy to the new date ( but know that you may own to pay more on the premium for your fresh date ) .

Travel always call for risks . And while insurance can aid mitigate many of the expense incurred if affair go wrong , it wo n’t get rid of all danger , and probably wo n’t entirely reimburse every expense . When choosing if travel insurance equal correct for you , do your homework , ask questions , and recall about how much peace of mind is really worth to you .