Travel Insurance Test Page

Whether you’re booking a once-in-a-lifetime vacation or your routinely travel, travel insurance can reduce the money you’ll lose when things go wrong. Whether it’s a missed flight connection or a serious medical issue abroad—or even a fear of traveling during the coronavirus outbreaks—travel insurance may have just the safety net you need.

There are several types of travel insurance available to cover a trip, from basic policies that reimburse you if the trip is canceled or interrupted, to policies with loads of extra coverage such as emergency evacuation insurance and baggage-delay insurance.

Coronavirus and Travel Insurance

The coronavirus outbreak has spread to more than 60 countries, and 12 states in the U.S. The Centers for Disease Control and Prevention (CDC) has advised travelers to avoid nonessential travel to countries with Level 2 and Level 3 warnings, including China, Iran, Italy, Japan and South Korea.

Some travel insurance companies have issued a statement that the coronavirus is now considered a “foreseen event.” This means that some types of coverage within their travel insurance policies may not be applicable, or have limited benefits related to the coronavirus outbreak.

Some travel insurance policies specifically exclude coverage for problems related to epidemics and pandemics.

If you have a trip planned and you’re concerned about the coronavirus, you may be feeling like you want to cancel your trip. If you’re wondering if you’ll be covered by travel insurance, here’s a quick guide.

If you’re thinking of buying travel insurance, consider buying “cancel for any reason” (CFAR) coverage. This reimburses a portion of your prepaid and non-refundable trip costs, generally 50% or 75%.

You usually have to purchase “cancel for any reason” coverage within 14 to 21 days of your first trip payment. And you may have to cancel your trip at least two days prior to your departure in order to use the CFAR coverage. There may be some exceptions. For example, a travel insurance company may offer “cancel for any reason” coverage for “cruise only” policies that you can buy anytime before your final trip payment.

The specific time frames to purchase and cancel the trip will depend on the travel insurance company.

Squaremouth, a comparison site for travel insurance policies, has a feature that allows you to search only for policies with CFAR coverage.

If you recently bought a travel insurance policy, you may be able to add “cancel for any reason” coverage. Again, this is a time-sensitive addition, and typically needs to be added within 14 to 21 days of your first trip payment.

If you didn’t buy “cancel for any reason” coverage, here are some travel insurance coverage types that might cover some expenses if the coronavirus affects your trip:

• Trip cancellation or trip interruption. Trip cancellation coverage may not apply if your travel insurance company is calling the coronavirus outbreak “a foreseen event.” If you bought your policy in late January or after, when the outbreak started, you may not be able to use trip cancellation coverage to cover cancellation due to the coronavirus. But you can use it if your trip is cancelled for other reasons covered by your policy.
• Medical expenses. You may have coverage if you contract the coronavirus while traveling, but it could depend on the date you purchased the policy and when the outbreak was considered “foreseen.” Travel insurance companies are handling this on a case-by-case basis.
• Travel delays and missed connections. You may have some insurance benefits, like food and accommodations, if the coronavirus outbreak affects your airline travel.

If you want to postpone your trip to a future date, your travel insurance company might change the coverage dates for your policy.

If your travel insurance policy doesn’t fit your needs, you might be able to get a refund. Some travel insurance companies have a “free look” period, typically within 10 to 15 days of purchasing your travel insurance policy.

Types of Travel Insurance Options

Trip Cancellation and Interruption Insurance

Trip cancellation and interruption insurance covers specific problems that prevent you from going on a trip—or that interrupt a trip after you’ve left. Here are some problems typically covered:

• Medical problems. This can include serious injury, sickness, hospitalization or death to you or a travel companion. It can also be used to for money you lose if you have to return home if there’s a family member who is not traveling with you but in need of immediate care, a business partner whose illness requires you to return home, or a host at one of your travel destinations who’s ill. Generally, the illness or injury needs to be disabling to the point that it would interfere with your trip. You may need a record of a doctor’s exam and the doctor’s certification that you can’t travel. If that isn’t possible, your policy might allow for an examination within 72 hours of your cancellation or interruption.
• Transportation and accommodation. This applies when an airline, cruise line, common carrier or tour operator has problems[e] such as financial default, mechanical or equipment failure, or a workers’ strike that causes your trip to be canceled or interrupted.
• Environment. This covers travel problems due to weather delays. It can also reimburse you if your destination has been hit by a disaster like a flood, tornado, earthquake, volcanic eruption, fire, blizzard or hurricane. It can also cover problems such as uninhabitable accommodations due to vandalism or burglary.
• Political issues or violence. This covers travel problems because you’re called for jury duty, subpoenaed, hijacked, quarantined, called for active military service, or had a military leave revoked or reassigned. It can also reimburse you if there’s a terrorist incident in a city listed on your itinerary within 30 days of your scheduled arrival.
• Work. This covers travel issues due to a host of work-related problems such as a termination or layoff. It can cover you if you’re directly involved in an acquisition or mergers, product recall or company bankruptcy. It can also apply if you are a key employee of a business that’s affected by a burglary or natural disaster.

Missed Connection Coverage

This coverage pays when you miss the trip because of a flight delay (such as three hours or more) due to inclement weather or any delay caused by a common carrier (like an airline or bus). You’ll typically be reimbursed for additional travel expenses or for any part of the trip you missed that was pre-paid and nonrefundable.

Cancel for any Reason Coverage

If you want to cancel the trip for a reason not already outlined in the policy, “cancel for any reason” coverage pays a certain percentage of your prepaid, forfeited, non-refundable payments and deposits. For example, if you simply change your mind about going, this is the coverage you want.

What to watch for: The reimbursement amount could be 50% or 75% of the money you lose. Read the policy closely to understand what amount you can get back.

You may have to purchase a base travel insurance plan and add “cancel for any reason” coverage within a certain time frame of the initial trip payment. For example, if you plan a vacation in May and booked it in March, you can’t purchase “cancel for any reason” coverage in May.

Also, “cancel for any reason” reason generally doesn’t allow last-minute cancellations. You might need to cancel no less than 48 hours before the trip.

Emergency Medical and Dental Insurance

This covers medical and dental expenses for accidental injuries and illnesses that occur during your trip. Medical expenses that are covered can include:

• Physician services
• Hospitalization
• Ambulance
• Medication, prosthetics and therapeutic services
• Emergency dental treatment for relief of pain

What to watch for: Generally, you must receive the initial treatment for injury or illness while on the trip that’s insured.

Read the policy’s fine print carefully. Medical and dental insurance from a travel insurance policy may be secondary coverage, meaning you have to submit claims to your health or dental plan first.

Emergency Medical Evacuation Insurance

This covers the cost of transporting you to a medical facility for treatment of a medical emergency if there is not an adequate facility available locally. A policy might also cover an escort if it’s recommended in writing by a physician. Some policies pay to transport you (and any dependent children) back to the United States if you are hospitalized for more than seven days following the medical emergency.

What to watch for: This coverage may seem appealing because medical evacuation costs are typically not covered by health insurance. But make sure you take a close look at the travel insurance policy for limitations. For example, we reviewed an AXA Assistance USA policy that will pay up to the cost of one round-trip economy airfare ticket to bring one person to where you’re confined if you are alone, but they will have to pay for their own accommodations.

Generally, a licensed physician must order and certify that your condition warrants an emergency evacuation.

Emergency Non-Medical Evacuation Insurance

This covers the cost of transporting you to a safe haven due to events like natural disasters (like earthquakes, hurricanes and tsunamis) and political situations (civil unrest, insurrection and war). Following the evacuation, this coverage typically pays for one-way economy airfare to your host country (where you are visiting or living) or home country, whichever you choose.

What to watch for: To qualify for this coverage, the appropriate authority must confirm it is unsafe for you to stay in your current location.

Baggage and Personal Items Insurance

This pays for lost, stolen or damaged baggage and personal items. You’ll typically be required to take reasonable steps to keep your baggage safe and to file a report to the local authorities within 24 hours. You could be reimbursed for the actual price, current market value or cost to repair or replace your item, whichever costs less.

The travel insurance policy will list a maximum it pays per item, up to the policy limits. For example, reimbursement could look like this:

• Up to $500 for the first item
• Up to $250 for each additional item
• Up to $500 total for certain items, which can include all jewelry, watches, furs, cameras, computers, electronic devices and sporting items.

What to watch for: Make sure you’d have the ability to make a claim before you buy this coverage. A policy could require that you provide original receipts for items over a certain amount, like $150. If you don’t have original receipts, the policy won’t pay..

Also, notice the special limit above for certain items in aggregate. If you’re taking expensive cameras or sports equipment on the trip, they won’t be fully covered under a $500 limit.

If you’re interested in getting coverage for more expensive items, look into electronic and sporting equipment coverage. This will reimburse the cost to repair damaged items or a portion of missing items, based on the age of the item. For example, a policy might cover up to 90% for items that are 12 months old or less, 50% for items that are between 13 to 24 months old, and up to 25% for items that are between 25 to 48 months old.

Another travel insurance wrinkle of baggage coverage is “delayed baggage coverage.” If your baggage is delayed by a common carrier (like an airport or train station), hotel or tour operator, this coverage pays for the expense of replacing “necessary” personal effects. “Necessary” personal effects typically won’t include items like jewelry, perfume or alcohol.

Rental Car Collision Insurance

This generally covers the cost of repairs and other expenses if your rental car is damaged due to problems covered by the policy. This could include car accidents, theft, vandalism, windstorms, fire, hail and floods.

What to watch for: Before you buy this coverage, check to see if you already have coverage through your own car insurance policy or the credit card you’re using for the rental.

Accidental Death & Dismemberment

You can typically include accidental death and dismemberment (AD&D) insurance within a travel insurance policy. This would pay out if you die due an accidental injury on your trip or suffer certain injuries, such as the loss of a hand or sight. It may also pay out if you disappear for more than a year.

What to watch for: Be aware that this covers only accidental injuries and death. If you die of a heart attack or stroke on your trip, it won’t count as accidental.

Travel Insurance Summary

What is Not Covered by Travel Insurance?

It’s important to understand that a lot of activities are not covered by travel insurance. For example, if you’re planning on spelunking or hang gliding, you may not be covered by a travel insurance company if you get hurt.

Here are some examples of common travel insurance exclusions:

• Pre-existing health conditions
• Injuries sustained during criminal acts
• Dental treatment (except as a result of accidental injury)
• Expenses incurred under the influence of drugs or intoxicants
• Mental or emotional disorders such as anxiety, depression, neurosis and psychosis
• Participation in certain sports like skydiving, hang gliding, parachuting, horse racing, motor vehicle racing, motorcycle racing, bungee cord jumping, spelunking or caving, rock climbing, mountain climbing, heli-skiing, skiing outside marked trails and other types of adventure sports
• Scuba diving below 120 feet or without a dive master
• Participation in sports or athletic competitions, either as a professional, amateur or interscholastic athletics.
• Cutting the trip short or delaying your return for reasons not outlined in the policy
• Cosmetic surgery (except for reconstructive surgery incidental to a injury or illness covered by the policy)
• Accidental injury or illness when traveling against the advice of a physician
• Sexually transmitted diseases

If you buy baggage and personal effect coverage types, here are some items that typically will not be covered:

• Eye glasses, sunglasses or contact lenses
• Artificial teeth, dental bridges and hearing aids
• Keys, money, stamps, securities and documents, deeds, food stamps, bills, credit cards, stocks and bonds, postal or money orders
• Tickets
• Medicines, perfumes, cosmetics and perishables

How Much Does Travel Insurance Cost?

Travel insurance typically costs between 5% to 10% of your total trip cost. The cost varies by insurance company, the coverage types you choose and other factors, but it. For example, if you and your travel companion book a 10-day African safari with a total cost of $15,000, you could expect to pay anywhere between $750 to $1,500 for travel insurance.

The flexibility of “cancel for any reason” coverage can add 40% to the cost of the policy, according to Squaremouth, a travel insurance provider.

Here are some factors travel insurance companies usually look at when setting rates:

• Trip cost. The trip cost is based on the prepaid, nonrefundable trip expenses you want to insure. When you’re shopping for travel insurance quotes,be sure to include any travel expenses you’ll incur before the departure date. You’ll want to include costs like airfare, hotels, tour costs, event tickets, excursions and park passes.
• Age. Generally, the older you are, the more expensive travel insurance becomes. That’s because older folks are seen as a higher risk due to health problems and are more likely to file a claim.
• Number of travelers. Your travel insurance plan can cover multiple family members and traveling partners on the same trip. Generally, the more people insured under the plan, the more you can expect to pay.
• Destination. Some travel insurance plans will factor in the destination and consider things like crime rates and remote locations that don’t have quick access to medical facilities.
• Trip length. Some companies also factor in the length of the trip. Generally, the longer you’re away, the higher the premium.
• Coverage selection. A basic policy will be less expensive than a policy loaded with optional coverage types. It makes sense to select only the coverage types you need and compare travel insurance quotes among a few different insurance companies.

Is Travel Insurance Worth Getting?

The value of having travel insurance grows as your trip gets more expensive, especially when you’ve paid large nonrefundable amounts.

It’s a good idea to consider your trip itinerary, methods of transportation, destination and accommodations, and weigh them against the travel insurance coverage types available. For example, if you’re visiting an urban destination with access to hospitals, you probably don’t need medical emergency evacuation insurance.

On the other hand, if you book a trip with multiple flight connections, you may want to look at trip interruption and missed connection insurance.

Look at Other Insurance First

You may already be covered for some problems under other insurance policies.

If you have health insurance with good international coverage, you may not need emergency medical coverage. If you have homeowners or renters insurance, you’re typically covered for the theft of personal items. Check your policy for the coverage limits though, which can be capped for theft of items like jewelry.

Changing Your Mind

Some travel insurance companies give you a “free look” period, meaning you can cancel the policy and get a refund if you do so within a certain timeframe and haven’t filed a claim under the policy. The time frame varies by company. For example, we found some policies that give a 10-day free look, while others give 15 days.

How Do I File a Travel Insurance Claim?

If you need to file a travel insurance claim, make sure you file it as soon as possible. The travel insurance might require filing within a specific timeframe of the loss, generally between 20 and 90 days, depending on the travel insurance company.

You can typically start a claim by phone, email, the company website and mobile apps. Your claims handler should guide you through the process and tell you what forms and documentation you’ll need.

After you’ve provided the travel insurance company with all necessary documentation to support the proof of loss, you’ll typically receive payment within 20 to 30 days.

When to Buy Travel Insurance

You can usually buy travel insurance up to the day before you leave on the trip — sometimes up to the minute before you leave. But it’s better to buy it within 15 days of your initial trip payment/deposit. You’ll have more coverage options if you buy within a certain window.

For example, some travel insurance companies have a cut-off window for coverage for pre-existing medical conditions. And you may not be able to purchase additional coverage types such as “cancel for any reason coverage” if you don’t buy the policy within 15 days of your first trip payment.

Another good reason to buy travel insurance right after you make a trip deposit is “bonus coverage.” For example, Berkshire Hathaway Travel Protection says you could qualify for additional coverage types at no extra charge such as insurance for pre-existing conditions and additional accidental death and dismemberment insurance. The types of additional coverage you qualify for will depend on your policy and travel insurance company.