Travel insurance protects your investment and health when things go wrong. From trip cancellation to emergency medical care abroad, the right policy provides peace of mind. Here's what you need to know.
Travel Insurance Overview
- Average cost: 4-10% of trip cost
- Trip cancellation: Reimburses prepaid, non-refundable costs
- Medical coverage: $50,000-$1,000,000 for overseas emergencies
- Evacuation: $100,000-$500,000 for medical transport
- Buy early: Within 14-21 days of first deposit for best coverage
Types of Travel Insurance
TRIP CANCELLATION
Trip Cancellation/Interruption
- Reimburses non-refundable trip costs
- Covered reasons: illness, injury, death in family, job loss
- Typical coverage: 100% of trip cost
- CFAR add-on: Cancel for Any Reason (75% reimbursement)
MEDICAL
Travel Medical Insurance
- Emergency medical treatment abroad
- Coverage: $50,000-$1,000,000
- Critical for international travel
- Most US health insurance doesn't cover overseas
EVACUATION
Medical Evacuation
- Transport to nearest adequate hospital
- Repatriation to home country
- Can cost $50,000-$300,000 without insurance
- Coverage: $100,000-$500,000
Best Travel Insurance Companies 2025
| Company | Best For | Medical Max | Cancel Coverage | Rating |
|---|---|---|---|---|
| Allianz | Overall value | $500,000 | 100% trip cost | |
| World Nomads | Adventure travel | $100,000 | 100% trip cost | |
| Travel Guard | Comprehensive | $1,000,000 | 100% trip cost | |
| Travelex | Budget travelers | $50,000 | 100% trip cost | |
| IMG Global | Long trips | $1,000,000 | Varies |
What's Covered vs Not Covered
| Typically Covered | Usually NOT Covered |
|---|---|
| Illness or injury before/during trip | Pre-existing conditions (without waiver) |
| Death of immediate family | Change of mind |
| Weather events (hurricanes) | Known/forecasted events at purchase |
| Airline bankruptcy | Fear of travel |
| Jury duty | Work schedule changes |
| Terrorism (destination) | War or civil unrest (active) |
| Lost/delayed baggage | Valuables left unattended |
Cancel for Any Reason (CFAR)
CFAR Coverage
- What it is: Cancel trip for ANY reason, no questions asked
- Reimbursement: Typically 50-75% of trip cost
- Cost: 40-50% more than basic policy
- Requirements: Buy within 14-21 days of first deposit
- Best for: Uncertain situations, expensive trips, pandemic concerns
When Do You Need Travel Insurance?
Definitely Get It
- International travel: US health insurance usually doesn't cover overseas
- Expensive trips: Cruises, tours, pre-paid resorts
- Adventure activities: Skiing, scuba diving, hiking
- Remote destinations: High evacuation costs
- Pre-existing conditions: With waiver coverage
Maybe Skip It
- Short domestic trips: Especially if refundable bookings
- Credit card coverage: If your card provides protection
- Cheap trips: Insurance cost may exceed trip value
Credit Card Travel Insurance
| Card | Trip Cancel | Trip Delay | Medical | Baggage |
|---|---|---|---|---|
| Chase Sapphire Reserve | $10,000 | $500 | None | $3,000 |
| Amex Platinum | $10,000 | $500 | None | $3,000 |
| Capital One Venture X | $2,000 | $500 | None | $3,000 |
Note: Most credit cards don't include medical or evacuation coverage.
How to Buy Travel Insurance
- Buy early: Within 14-21 days of first deposit for best benefits
- Get quotes: Compare multiple companies for your specific trip
- Read the fine print: Understand covered reasons and exclusions
- Declare pre-existing conditions: Get waiver if buying early
- Keep documentation: Save all receipts and trip confirmations
Filing a Claim
- Document everything: Photos, receipts, police reports
- Notify insurer immediately: Some require 24-72 hour notice
- Get written proof: Doctor notes, airline letters
- Keep copies: Before sending originals
- File promptly: Most require claims within 90 days