What are the Travel Insurance "Must Knows"?

Last updated on 03/28/2023

Travel Insurance is a smart investment for many people, but it can be confusing if you have never purchased a plan before or still unfamiliar with its nuances. Below you’ll find high level information about travel insurance, why it is important for every traveler, and how to stay prepared in case you do need to use the coverage.

How Does Travel Insurance Work?

Unlike home insurance or car insurance, travel insurance is purchased on a need basis for either individual trips or an annual term. The most popular type of travel insurance is a comprehensive plan which will provide a level of coverage for trip concerns, like trip cancellation or travel delay - and for emergency medical care.

What is the Purpose of Travel Insurance?

Simple: to protect a financial investment in travel and one’s self from expensive emergency medical bills. While travel insurance cannot prevent travel mishaps, it can assist travelers in paying for or being reimbursed for unexpected changes in travel plans or emergency medical care - including evacuation costs, if needed.

What to Expect When Purchasing Travel Insurance

Depending on where you purchase your travel insurance plan, your experience will be very different. When you purchase a plan from a travel agent or the travel supplier (cruise line or airline), you may not be getting the right coverage for your entire trip. Purchasing a plan from a third-party comparison site allows you to review the options, compare plans and find the right plan that meets your specialized coverage needs.

How Much Should Travel Insurance Cost?

Generally, your coverage should cost 4-10% of your trip cost. The premium of a plan will range due to the level of coverage and maximum benefits available in the plan. It’s important to understand how to calculate your trip cost correctly so you do not overpay (or underpay) for a plan.

Understanding Your Travel Insurance Policy

Like homeowners or car insurance, travel insurance policies have inclusions, exclusions and time specifications you will want to be aware of before you purchase the plan. Each travel insurance plan will vary from each other, so it is important to read the policy details (or rather, certificate) upon purchasing the plan. It is available for review before purchase on the website, however we recommend buying the plan as some benefits may vary due to the state you reside in and this certificate is delivered to you digitally soon after you purchase it. Most plans will allow you a review period, with some stipulations, where you can decide whether you need the plan after reviewing it.

What is a Review Period?

Most travel insurance companies allow up to 10 days to review a plan you have purchased. Essentially, this is grace period that allows you to read through the policy and decide if you purchased the right level of coverage. During this time you can cancel your policy, if you don’t think it’s necessary, or make adjustments to it to scale your benefits up or down.

Avoiding Travel Insurance Claims Issues

One of the biggest reasons travelers become dissatisfied with travel insurance is due to issues with filing a claim. Before you travel it’s important to know exactly what you need in case filing a claim is necessary. We recommend keeping all your receipts, having your policy number handy and keeping the correct phone numbers for your travel insurance company close by. This will help reduce frustrations during a claim process.

Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.

Ask an Expert

I have a question about this subject!

Question:

If I cancel my trip prior to leaving, is my insurance refundable?

- SheilaM,

03/12/2020

Answer:

Typically you can only cancel a comprehensive policy within 10-15 days (depending on the policy) from when it was purchased.

- MattG,

Customer Care insureMyTrip

03/16/2020

Question:

I live in the United states and I do not have medical coverage, I am going on a trip to the Dominican republic and I want to purchase insurance. Do these plans cover me even though I do not have insurance in my home country?

- ChristopherA,

04/30/2019

Answer:

Yes absolutely. As long as it doesn't say "Primary Coverage Required" on the quote you can be covered.

- MattG,

Customer Care insureMyTrip

04/30/2019

Question:

I have medicare and a supplemental policy, but my understanding is Medicare does not cover you outside the U.S. So if your policy only provides secondary coverage does it means a person with Medicare would not be covered?

- Tyles,

03/10/2019

Answer:

The Secondary coverage offered with travel insurance will essentially act as Primary coverage if your existing Primary insurance does not cover you at your travel destination. You would first file a claim with any existing insurance (Primary)and for whatever amount they do not cover, you would then file the claim with the travel insurance provider up to the policy limit.

- MattG,

Customer Care insureMyTrip

03/11/2019

Question:

I am not happy to spend $800-$1000 to insure a $9500 trip (total cost) that will include $5000 for the tour package and $4500 for the not-included airfare and a few incidentals that I would buy independent of the tour packager. So, when I go to compare insurer prices, do I have to list the entire trip cost as the amount to insure, or can I just enter half of the full trip cost (in other words, "self-insure" the remainder)?

- RobertK,

02/11/2019

Answer:

You are always able to self insure a portion of the trip cost if you wish to do so. There are certain benefits that require you to insure 100% of all prepaid non-refundable travel arrangements such as a pre-existing conditions waiver and the cancel for any reason benefit. As long as you are not interested in either of these benefits, it is perfectly acceptable to insure just a portion of the trip cost if you elect to self insure the rest of the trip cost.

- MattG,

Customer Care insureMyTrip

02/12/2019

Question:

How do I indicate on the quote form that I am traveling to multiple countries?

- GLENNB,

09/16/2018

Answer:

If traveling outside the United States, enter the country where travelers will be spending the most time. If spending equal time in multiple countries, choose your first international destination. If taking a cruise, enter the first international port of arrival as your destination.

- MattG,

Customer Care insureMyTrip

09/17/2018

Question:

If we purchase non-refundable airfare and have an eligible reason to cancel our trip, that will be covered - correct?

- Janet,

01/29/2018

Answer:

Yes, if you have to cancel for a covered reason listed in the policy certificate, you are reimbursed 100%. The number one covered reason for Trip Cancellation and Trip Interruption is the unforeseen illness or injury of you or a traveling companion that deems you unfit to travel, by order of a licensed physician; or the unforeseen hospitalization or death of a family member. To see all of the covered reasons to cancel or interrupt your trip, please click on the dollar amount that appears under the words "Trip Cancellation" when viewing a quote.

- MattG,

Customer Care insureMyTrip

01/30/2018

Question:

How far in advance of travel should coverage be purchased?

- Sandra,

01/08/2018

Answer:

You can purchase most policies up until the day before departure, however; you may not be eligible for some time sensitive benefits if you do not purchase within 10-30 days of the initial trip deposit/payment. Some time sensitive benefits are, but not limited to: Pre-Existing Condition Waiver, Financial Default, Terrorism, Cancel For Any Reason and Cancel For Work Reasons.

- MattG,

Customer Care insureMyTrip

01/11/2018

See all questions

I still have a question about this subject!

What are the Travel Insurance "Must Knows"?

How Does Travel Insurance Work?

What is the Purpose of Travel Insurance?

What to Expect When Purchasing Travel Insurance

How Much Should Travel Insurance Cost?

Understanding Your Travel Insurance Policy

What is a Review Period?

Avoiding Travel Insurance Claims Issues

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What are the Travel Insurance "Must Knows"?

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