Without fail, when I book a trip for myself or my family and get to the end of the checkout, I hesitate over whether to add travel insurance.
Will I really need it? Life already feels too expensive, why would I want to add on yet another fee?
Realtor Eli Harris, a licensed insurance agent and adjuster, and travel agency owner, was once someone like me. That is, until 2018 when he took a group trip to the Middle East and ended up needing medical treatment for a kidney stone.
Fortunately for Harris, the trip’s organizer required travelers to purchase insurance, and he was fully covered.
“The travel insurance company found a local medical facility, coordinated payment directly, arranged transportation, and covered my prescriptions when I was discharged,” Harris says. “I will never travel without insurance again.”
That being said, Harris adds that the best plan isn't one size fits all. When choosing the best travel insurance policy for you, consider factors such as how you’ll be traveling, where you’re headed, how often you travel, and what risks you want to protect against.
To narrow down choices, Greg Jung, Chief Marketing Officer and Head of Insurance Sales at Seven Corners encourages travelers to focus on the coverage features that best match your specific trip.
“A cruise, a backpacking trip abroad, and a family vacation to the beach all come with different risks,” Jung points out. “Travelers should compare coverage for cancellations, interruptions, medical emergencies, baggage delays, and emergency assistance, then choose the plan that matches what they’re most concerned about.”
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Do You Need Travel Insurance?
Melanie Musson, an insurance and finance expert from Belgrade, Montana, does not mince words: “You should have a travel medical insurance policy every time you travel abroad.”
Additionally, she (and nearly all the experts we spoke to) recommended travel insurance for any trip you take, especially when those plans cost a significant amount of money.
“Travel insurance is a safety net,” explains Jung. He adds that travel insurance can protect from things like trip cancellations, lost luggage, and medical care.
The one and only time our experts say you can consider skipping travel insurance is if you’re taking a short road trip close to home in your own car.
But even then, you might consider a policy if you’re driving internationally or need extra medical coverage. So err on the side of caution whenever possible.
What are Travel Insurance Policies?
Jung notes that most travel insurance policies contain protection across three categories: money, health, and belongings.
The first can help reimburse prepaid, nonrefundable trip costs if you need to cancel or interrupt your trip for a covered reason. That can include expenses like airfare, hotels, cruises, tours, or vacation rentals.
When those costs aren’t refundable, insurance can help protect the money you’ve already spent.
Another major area of coverage is to protect your health. In these cases, travel insurance can help pay for treatment if you get sick or hurt during your trip. This is especially important when traveling internationally, since many U.S. health insurance plans don’t provide the same coverage overseas.
Rather than having to pay everything out of pocket, travel medical coverage can ease that financial burden.
Finally, insurance can also safeguard your belongings, jumping in to help if your luggage is lost, stolen, delayed, damaged, or destroyed.
If your trip is just starting and your bag doesn’t arrive, for example, coverage can help reimburse you for essentials like clothes and toiletries.
What Travel Insurance Policies Cover
Harris explains that in general, most travel insurance policies cover similar incidents, though, this list is not a guarantee and you should always check your specific policy for exact coverage conditions.
But generally, that includes trip interruptions, covered cancellation reasons, trip delay, lost baggage and personal items, travel and medical costs, prescriptions, and emergency evacuation.
There are also add-ons to many insurance policies you can purchase, such as rental car coverage, pre-existing health condition coverage, pet coverage, theme park coverage, cruise coverage, extended flight options, death and dismemberment coverage, and non-covered cancellation refunds.
What Travel Insurance Policies Don’t Cover
Most travel insurance policies do not cover canceling a trip simply because you changed your mind.
Although, according to Harris, it is possible in some situations to purchase specific “Cancel for Any Reason” coverage.
Cancel for Any Reason (CFAR) coverage lets you purchase a policy that covers incidents outside of typical travel insurance policies. CFAR policies are generally expensive (sometimes as high as half the cost of your trip), but if approved, can cover a partial or full refund for trip cancellations for most any reason.
Additionally, travel insurance typically does not cover routine medical care, known events, such as flying directly into a predicted hurricane, and at-fault issues, such as if you miss a flight because you were personally responsible for being late.
The Best Travel Insurance Policies
The experts we spoke to gave us their recommendations for the best travel insurance policies to use in both general and specific circumstances. Keep in mind that policies and coverage options can change, so it is always advised to check specific policies before purchasing.
For Basic (Non-Cruise) Coverage: Allianz
For a simple, straightforward policy that covers the basics and is easy to deal with from a claims perspective, Harris recommends Allianz, a recommendation echoed by Leslie Coleman, Travel Expert & Founder of Suitcase Gals.
"My go-to for Travel Protection is Allianz," says Coleman. "They are highly rated within the travel industry, and they make it very easy to make a claim. They also have an A+ rating with AM Best, an independent credit rating agency that specializes in the insurance industry. Its main job is to evaluate the financial strength of insurance companies, basically, how likely an insurer is to be able to pay claims in the future."
In addition to individual trip protection, Coleman adds that Allianz offers an annual travel policy that can protect multiple trips throughout the year.
"This covers any travel outside of 100 miles from your home," she explains. "What is nice about this policy is that it covers each trip up to the value of the policy you purchase, such as $5,000.00 per trip or $7,500.00 per trip. They are not cumulative."
For Travel Medical Insurance: IMG
“IMG is an excellent option for travel medical insurance,” says Musson. “Many people are surprised by how reasonably $1M in medical coverage costs.”
If you are traveling internationally, your regular health insurance plan likely will not cover medical expenses abroad. Many standard travel insurance policies will include basic medical coverage, but if you want higher coverage, speciality coverage, or extended coverage, you can purchase an additional policy.
For International Travel: Seven Corners
Seven Corners specializes in strong coverage and real human customer support, with connection options via phone, text, or WhatsApp. This is important if you are traveling internationally and may not have the phone service you normally would.
They also have 24/7 multilingual emergency travel services, and provide expat coverage, group coverage, medical evacuation coverage, and non-U.S. resident coverage.
For Speciality Medical Conditions and Over-65 Travel: GoodtoGo Travel Insurance
Finding travel insurance for complex medical conditions can be challenging, but GoodtoGo insurance specializes in covering all types of chronic and acute conditions.
It is also ideal for seniors over age 65 and those who may have difficulty with traditional coverage.
For All Coverage, Including Cruises: Faye Travel Insurance
We love the simplicity and streamlined application of Faye Travel Insurance, which offers domestic and international whole-trip coverage, cruise coverage, and speciality add-ons.
The Shortcut
Travel insurance is a must for international travel and any trip you've invested a lot of money in, experts say.
If you're road-tripping domestically, you might be able to skip it, but there are even policies to protect against road trip incidents.
Travel insurance policies can protect against things like cancelled or delayed plans, medical incidents, lost luggage, and even pet care.
