Travel insurance is a type of coverage that helps protect against potential problems and financial losses that might occur while traveling. These problems can range from small annoyances like missing a connecting flight or having your luggage delayed, to more serious issues like getting injured or becoming seriously ill. Whether you're going on a dream vacation or attending a wedding in another state, you might be wondering if it's worth buying travel insurance. The answer depends on what you can afford to lose. If you understand what travel insurance is and what it includes, you'll be able to make the right choice for yourself.

What does travel insurance cover?

Injury or sickness

Travel insurance supports your health coverage by guarding against medical expenses abroad. It fills the gaps left by most health insurance plans, especially when traveling overseas. Even Medicare fails to offer any coverage. Travel insurance works in addition to your medical insurance and can supplement medical costs in case of illness or injury before or during your trip.

Lost luggage

Travel insurance covers lost or stolen luggage. Airlines may not reimburse fully, especially abroad. In the United States, the Department of Transportation (DOT) requires victims of lost luggage to be compensated up to $3,300, and abroad $1,750. To receive those maximum amounts, individuals must be able to provide receipts to prove the value of their lost items. Some airlines also require that the claim be filed within 21 days, and may only provide enough money for toiletries and essentials until the claim is processed, further inconveniencing those who lost their luggage.

Last-minute cancellations

Most resorts or cruise lines won’t give you a full refund in the event of a cancellation. They may offer a partial refund, but depending on the time of the cancellation, you may not receive anything at all. Travel insurance can help cover costs due to trip cancellations.

Coverage beyond your credit card

Travel insurance covers what most credit cards do not: medical expenses and emergency evacuations.

Some travel insurance policies require you buy a policy within a certain amount of time after making your initial trip payment. It’s important to research this well in advance of your trip so that you are able to plan accordingly. Though cancellation and medical issues may cause stress, you can feel financially prepared by purchasing a travel insurance policy.

TERM GLOSSARY

Baggage Loss/Damage: Covers loss, damage, or theft of baggage

Baggage Delay: Reimburses the reasonable additional purchase of essential items during your trip if baggae is delayed or misdirected for 12+ hours

Business Equipment Coverage: Reasonable replacement or repair of business equipment that has been lost, stolen, damaged, or delayed

Business Equipment Rental Coverage: Reasonable cost of renting replacement business equipment if yours has been lost, stolen, damaged, or delayed

Cancel Anytime (optional upgrade): Reimburses 80% of lost non-refundable trip costs if trip is canceled for almost any unforseeable reason your plan does not already cover

Change Fee Coverage: Provides reimbursement to change dates on airline ticked for a covered reason if fees incur

Concierge: Provides personalized information about destination and assists with restaurant reservations, tee times, event tickets, and more

Epidemic Coverage Endorsement: Adds certain epidemic-related covered reasons for Trip Cancellation/Interruption, Travel Delay, Emergency Medical Care, and Emergency Transportation benefits

Emergency Medical: Provides benefits for losses due to covered medical and dental emergencies that occur during trip

Emergency Medical Transportation: Provides reimbursement for medically necessary transportation to the nearest hospital or appropriate facility following a covered illness or injury

Loyalty Program Redeposit Fee Coverage: Reimburses for fees charged for re-depositing loyalty program awards (such as frequent flyer miles) back into an account following a covered trip cancellation or interruption

OneTrip Rental Car Protector (optional upgrade): Primary collision/loss damage coverage for physical damage to a rental car

Required to Work (optional upgrade): Receive trip cancellation and interruption coverage for work-related emergencies

SmartBenefits: Receive $100/person/day for covered travel or baggage delay, no receipts required

Travel Accident Coverage: Provides cash payment for covered losses due to death, loss of limb(s), or sight as a result of a covered travel accident

Trip Cancellation: Reimburses prepaid, non-refundable expenses if you need to cancel your trip due to a covered reason

Travel Delay: Reimburses up to $200/person/day for additional travel and lost prepaid expenses if your trip is delayed 5+ hours for a covered reason

Trip Interruption: Reimburses you for the unused, non-refundable portion of a trip and for the increased transportation costs to return home due to a covered reason

Trip Change Protector: Reimburses fees or extra expenses if cancellation or change is needed on airline, rail, cruise, or tour itinerary for a covered reason

24-Hr Hotline Assistance: Helps handle covered travel emergencies, including finding local medical and legal professionals, re-booking flight/hotel arrangements, helping with missed connections, lost/stolen travel documents, and more