All About Travel Insurance

The majority of people take vacations in the summer months. If you’re planning to travel this time of year, it's wise to consider purchasing travel insurance. This type of insurance covers unforeseen losses and events incurred while traveling, both domestically and internationally. Below is a resource guide highlighting the ins and outs of travel insurance.

What is it?

As stated, travel insurance provides specific coverage for unexpected events during a trip. It can cover several situations, from flight interruptions and cancellations to baggage losses and accidents on a trip. The overall cost of a travel insurance policy can vary, as the traveler’s age, destination, trip duration, and trip cost play into consideration. Generally, a travel insurance policy costs between 4% and 10% of the overall trip price. There are several types of travel insurance policies, all of which are highlighted below.

Trip Cancelation Insurance

Trip cancellation insurance covers nonrefundable reservations that are canceled due to a covered reason, including inclement weather, medical emergencies, and others. This type of travel insurance typically covers 100% of the total trip cost in the event of a covered cancellation. Similarly, trip interruption insurance covers nonrefundable reservations if a traveler has to return home early or misses a portion of a trip because of extraordinary, unforeseen circumstances. Again, this insurance type will cover 100% of trip costs if your trip is interrupted for a covered reason.

Cancel for Any Reason

As its name suggests, Cancel For Any Reason (CFAR) travel insurance allows you to cancel your reservations for any reason and get a partial refund. This insurance type is typically an add-on to other types of travel insurance. CFAR travel insurance reimbursement covers anywhere from 50% to 75% of your trip’s total cost, as long as you cancel at least two days before the reservation date.

Travel Health Insurance

Most medical care outside of the United States requires you to pay for your services out of pocket, even if a country has a nationalized healthcare system (which is only available to citizens of that country). That being said, travel health insurance protects you in the event of illness or injury while abroad. Travel health insurance may also cover emergency medical evacuation and accidental death or dismemberment, depending on the policy. It’s particularly wise to consider purchasing travel health insurance if you plan on traveling for more than six months, are participating in high-risk activities, or have a pre-existing medical condition.

How to Purchase

There are a few different ways you can obtain travel insurance. The most common way of purchasing it is through a travel agent or online. There are several travel insurance comparison websites, such as Squaremouth.com and Travelinsurance.com. Comparing travel insurance policies allows you to choose one that fits your needs and budget. Additionally, some credit card companies offer travel insurance in the form of trip cancellation or rental car insurance. In most cases, travel insurance offered through credit card companies is only valid if you purchase the insurance policy with that card. While coverage is free for credit card holders, you’re unable to customize the insurance policy to meet your needs.

Is it Worth it? 

Depending on your itinerary, travel insurance may be worth the investment. While some airlines and hotels offer refunds in the event of trip cancellations or interruptions, travel insurance can be a lifesaver if you’ve made several non-refundable reservations. It’s also wise to purchase travel insurance if your trip has multiple connections and destinations. As stated, domestic health insurance will not work overseas and is another consideration when it comes to purchasing travel insurance. Similarly, if you’re traveling to a remote destination far from medical attention, travel insurance can help cover emergency medical transportation.

When traveling, a single missed flight or connection can have a domino effect on your plans, causing you to lose both time and money. A travel insurance policy can offer peace of mind if your trip doesn't go exactly as planned. After all, a vacation is meant to be enjoyed!

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Hunter Morrison

About Hunter Morrison

Hunter has freelanced for various print and radio publications across Northwest Florida, including The Bay Beacon, Navarre Press, Inweekly, Crestview News Bulletin, and WUWF. He was also the Editor in Chief of the University of West Florida’s student newspaper, The Voyager. In 2023, Hunter moved to Kenai, Alaska to take up a news reporting position with KDLL Public Radio. For fun, Hunter enjoys cross-country skiing, hiking, photography, thrifting, traveling, and looking for the best Thai food around.