What does travel insurance cover?
The dollar amount of your coverage depends on the policy you bought and where and when you bought it. Most travel insurance providers offer several different policies to choose from, with higher or lower levels of coverage and higher or lower prices to match.
» Learn more: What to know before buying travel insurance
You can buy policies that cover a single trip, multiple trips or a full year. You can buy an individual policy or one that covers your entire family. There are many companies that offer policies, with Allianz and Travel Guard among the best-known. Here is a chart showing the benefits and coverage levels available on some Allianz policies.
|
OneTrip Basic |
OneTrip Prime |
AllTrips Basic |
AllTrips Premier |
|
|---|---|---|---|---|
|
Trip cancellation |
Up to $10,000. |
Up to $100,000. |
N/A. |
$2,000 to $15,000. |
|
Trip interruption |
Up to $10,000. |
Up to $150,000. |
N/A. |
$2,000 to $15,000. |
|
Emergency medical |
$10,000. |
$25,000. |
$20,000. |
$50,000. |
|
Emergency medical transport |
$50,000. |
$500,000. |
$100,000. |
$500,000. |
|
Baggage loss/damage |
$500. |
$1,000. |
$1,000. |
$2,000. |
|
Baggage delay |
$200. |
$300. |
$200. |
$2,000. |
|
Travel delay |
$300 / daily limit $150. |
$800 / daily limit $200. |
$600 / daily limit $200. |
$1,500 / daily limit $300. |
|
Rental car damage/ theft |
N/A. |
N/A. |
$45,000. |
$45,000. |
|
Travel accident |
N/A. |
N/A. |
$25,000. |
$50,000. |
|
Pre-existing conditions |
Covered if certain criteria are met. |
Covered if certain criteria are met. |
N/A. |
Covered if certain criteria are met. |
NerdWallet recently analyzed various travel insurance policies to help you choose the plan that best aligns with your travel goals. Check out our results here: Best Travel Insurance Companies Right Now.
» Learn more: Does travel insurance cover medical expenses?
What does travel insurance NOT cover?
Incidents not covered by your travel insurance vary by policy and provider.
Pre-existing medical conditions are often excluded from coverage, meaning your benefits don't apply to claims related to that condition. Some policies cover pre-existing medical conditions if you meet certain criteria, for example if you purchased the policy within 14 days of paying for your trip and if you were well enough to travel when you booked your trip.
» Learn more: The best travel credit cards might surprise you
Plan on mountain-climbing or engaging in other dangerous activities on your trip? Many policies won't cover you if something goes wrong unless you buy a policy that specifically includes adventure sports. World Nomads travel insurance, for example, offers the Explorer plan, which includes coverage for cave diving, cliff jumping, heli-skiing and many other activities that are considered risky.
Other incidents excluded from a trip insurance policy may involve war, acts of terrorism and the use of alcohol, which can cause your injuries to be designated as "self-inflicted," or the use of drugs, which may be illegal.
If you want full flexibility to cancel your trip you'll need to find a policy that allows you to purchase a Cancel For Any Reason (CFAR) add-on. This additional benefit does exactly what the name implies and allows you to cancel your trip for any reason. Typically, you'll get around 75% of your prepaid nonrefundable trip expenses back, although exact timing and percentages vary by policy.
» Learn more: Cancel For Any Reason (CFAR) travel insurance explained
When is travel insurance not necessary?
Travel insurance primarily covers two aspects of your trip — your nonrefundable reservations and your medical expenses while traveling.
If all of your reservations can be canceled without penalty, then trip cancellation or trip interruption coverage isn't necessary. But even if your trip isn't 100% refundable, insurance may not be necessary. For example, a cheap flight and hotel stay may not be worth covering, though you may still want to purchase travel insurance for medical situations.
Medical coverage typically is not necessary if you have a U.S.-based health insurance policy and you're traveling within the U.S. In those cases, you probably already have adequate coverage for illness or injury.