Travel insurance is one of those things you hope you never use, but if you get sick abroad, miss a connection or have to cancel a trip, it can save you thousands. Here’s what travel insurance covers, what it doesn’t, and how to choose a policy.
Note: this is general information, not financial or legal advice. Always read the policy wording before you buy.
What does travel insurance cover?
| Coverage | What it does |
|---|---|
| Emergency medical | Pays for doctors, hospitals and medicine if you’re sick or injured abroad |
| Medical evacuation | Covers transport to a suitable hospital or home, which can be extremely expensive |
| Trip cancellation | Refunds prepaid, non-refundable costs if you cancel for a covered reason |
| Trip interruption | Covers extra costs if you have to cut your trip short for a covered reason |
| Travel delay | Pays for meals and hotels during long delays |
| Baggage | Covers lost, stolen or delayed luggage up to a limit |
What travel insurance usually doesn’t cover
- Canceling simply because you changed your mind (unless you buy “Cancel For Any Reason” coverage, which costs more)
- Pre-existing medical conditions, unless declared and accepted, or covered by a waiver
- Injuries from risky activities not included in your plan (some policies exclude scuba diving, motorbikes or extreme sports)
- Incidents involving alcohol or drugs
- Events that were already known when you bought the policy, like a named storm
Do you really need travel insurance?
If you’re traveling internationally, medical coverage is the most important part. Many domestic health plans offer limited or no coverage abroad; for example, US Medicare generally doesn’t cover care outside the United States. A single hospital stay or medical evacuation can cost tens of thousands of dollars.
Trip cancellation coverage matters most when you’ve prepaid a lot of non-refundable costs, like resort stays, cruises or tours.
How to choose a travel insurance policy
- Check what you already have. Some credit cards include trip cancellation, delay or rental car coverage.
- Make sure medical limits are high, and that medical evacuation is included.
- Check the activities you plan to do (diving, hiking, scooter riding) are covered.
- Declare pre-existing conditions honestly.
- Buy early: cancellation coverage protects you from the day you buy, and some benefits require buying soon after your first trip payment.
- Compare several providers and read reviews about how they handle claims.
FAQ
How much does travel insurance cost?
It depends on your age, trip cost, destination and coverage. Comprehensive plans often cost a small percentage of the total trip cost; medical-only plans are usually cheaper.
When should I buy travel insurance?
As soon as you book. Cancellation coverage only protects you from the date you buy the policy.
Does travel insurance cover hurricanes?
Many policies cover cancellations caused by hurricanes if you bought the policy before the storm was named. Check the policy wording.
Planning a beach trip in hurricane season? Read our Punta Cana family resorts guide and our Cancun vs Tulum comparison.
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