You’re checking out flights, narrowing down your list of sights to see and deciding between a vacation rental vs. a traditional hotel. Before you book your trip, you may want to consider adding one more item to your to-do list: travel insurance.
If you're feeling skeptical, you're not alone. Deciding if it's right for you depends on your travel plans. Consider your situation and weigh the coverage options before purchasing a policy.
What does travel insurance cover?
When you spend a lot of money on a trip, you naturally want it to go as smoothly as possible. Travel insurance can help protect against lost luggage, illness, flight cancellations and more, depending on what kind of coverage you get and who you get it from.
You can purchase a policy through a third-party insurer, or you may be able to buy coverage for specific aspects of travel through that vendor. For instance, you can purchase flight insurance through your airline.
Not sure what kind of policy you need? Take a closer look at some common types of coverage before you make the call.
Types of insurance
Trip cancellation or interruption: This covers prepaid, non-refundable travel expenses when your trip is cancelled due to unforeseeable events, such as a medical emergency or natural disaster.
Rental car: If you own a car, your auto insurance likely covers rentals, but additional coverage options are available.
Flight: This type of coverage is offered by airlines and third-party insurance carriers. This insurance typically covers the cost of your flight in the event of inclement weather or other causes of delays and mid-flight diversions. The coverage might also provide rebooking assistance if your flight is changed.
Medical emergencies: No one wants to think about being sick or injured while on vacation, but it can happen. You may assume your health insurance at home will cover any medical care you need while you’re away, but that’s not always the case. Check your policy before traveling.
Baggage loss or delay: This insurance typically covers the cost of baggage contents up to a certain amount if luggage is lost, stolen, or delayed.
Emergency evacuation: This insurance will provide you with emergency medical transportation, such as ambulance or airlift.
What does travel insurance not cover?
It’s important to remember travel insurance doesn’t protect against everything.
Just as you would with life and auto insurance, carefully read the fine print. While specifics will vary from policy to policy, some common exclusions are:
Pre-existing health conditions
Civil and political unrest at your destination
Pregnancy and childbirth
Coverage for risky activities like bungee jumping, ziplining, snowboarding, etc.
Choosing the right travel insurance policy
Deciding whether you need coverage depends on your budget as well as the nature of your trip. Say you’re visiting a friend for the weekend in another state. There’s probably a lot less risk involved in that trip compared to an overseas vacation with multiple stops and flights.
Determine if travel insurance is worth it for you
Before you arrive at your destination, you have a lot to think about. Before you book your next getaway, consider whether you should add travel insurance to your vacation to-do list. Will the coverage provide the protection you need to enjoy your vacation? Or will the extra cost distract you from your relaxing getaway? Remember, there’s no right or wrong answer, just the right fit for you.
