What everybody should note, regardless of what kind of plan they’re looking for, is how a company handles claims and what kind of coverage it offers.
Choosing the Best Travel Insurance Company
The claim is your request to the insurance company to reimburse you the costs of unexpected complications when traveling. It’s good to know if the company pays the full claim amount upfront, or doles it out in portions; whether your plan covers all situations, or just the most basic; as well as the company’s general reputation for managing claims. Price and deductible, the amount you pay upfront in an emergency before coverage kicks in, are also important factors, and it’s wise to check the financial stability of the company. Finding the right travel insurance plan depends on various factors specific to your situation, so remember to take the time you need to find the right insurance.
Terms | What's Covered? |
Trip cancellation | Cancellation of your trip due to covered reasons, which vary from one travel insurance company to the next |
Pre-existing medical conditions | Ailments or conditions that were diagnosed prior to purchasing trip insurance which can be covered |
Trip delay | When you become stranded while in transit due to unforeseeable circumstances such as flight delay, passport theft, etc. |
Emergency medical evacuation | In the event of a severe or life-threatening injury or illness, this coverage provides you transportation (if needed) to receive treatment |
Cancel for any reason | Covers cancellation of your trip for any reason, whether included in the plan’s cancellation terms or not - typically available as an add-on |
Types of Travel Insurance Policies
There are many types of travel insurance policies in the US; some travel insurance companies split their plans into tiers with more rigid sets of coverage types, while other companies give you the ability to customize a trip insurance plan as you like.
A basic travel insurance plan typically covers standard benefits such as:
COVID-19 coverage
Trip cancellation
Trip interruption
Emergency medical
Baggage loss/damage/delay
Pre-existing medical conditions
24/7 assistance
To sum it up: if your luggage doesn’t make it to your destination, a basic plan would likely cover the cost of replacing the luggage and the personal effects contained within it. Of course, there are caps on the dollar amount you would be entitled to receive from the insurance company for any particular situation, baggage loss or otherwise.
Add-Ons
It’s important to note what perils are and aren’t covered in your plan. Common perils such as trip interruption and emergency medical are often included in basic plans, while others, notably ‘cancel for any reason’, require an add-on policy. It’s best to consider the circumstances surrounding your trip carefully, then you can decide if it’s worth it to add. Here’s a list of some common add-ons.
Cancel for any reason
Rental car care
Extreme sports protection
Pet care
Vacation rental damage coverage
Purchasing Travel Insurance
Like other forms of insurance, travel insurance is regulated by state rather than federal law. Regulation can vary from state to state, so it’s important to be knowledgeable of your state’s regulation policies. In general, the purchasing process for trip insurance is simpler compared to that of other types of insurance policies. That’s because people searching for travel insurance typically need coverage for short periods of time and often on short notice, meaning insurance providers need to be able to offer their services at a moment’s notice. While it’s an advantage to have travel insurance plans available whenever you need one, it’s always a good idea to do your research in advance as opposed to making a decision at the last minute.