A Guide to Travel Insurance Basics

When you think of the word insurance, what comes to mind?  You might think of medical, car, or even home insurance, as these all protect many of our largest assets, but did you know you can also insure your travel? Travel insurance can give you protection financially for non-refundable and prepaid travel costs. Should your trip be cancelled or interrupted, travel insurance may reimburse you for the money spent that might otherwise be lost. Some plans even cover things like lost luggage and some medical expenses. 

Why should I get Travel Insurance?

A lot of care, time, and energy (not to mention resources) go into planning a trip, whether for business or pleasure. There are any number of things that can go wrong during travel, and travel insurance can offer peace of mind, knowing that even if things do not go according to plan, your financial investment is protected. 

What Does Travel Insurance Cover? 

Travel insurance covers a range of issues that travellers may come across. Most standard insurance plans usually cover the following: 

• Emergency medical expenses
  • This covers emergency expenses if you get sick or injured on the trip.
• Emergency medical evacuations
  • If you need to be transported to another hospital for specialty care, this benefit can help cover the cost.  
• 24-Hour Emergency assistance
  • This benefit provides access to assistance if you need help finding the nearest medical facility. It can also help with lost travel documents. 
• Trip Cancellations for plan-approved reasons
  • If your trip gets cancelled for pre-approved covered reasons, this benefit covers your prepaid expenses. 
• Trip interruptions
  • This benefit can help reimburse prepaid travel costs due to a covered event. Covered events can include the death of a family member, inclement weather, a natural disaster, or jury duty. 
• Lost or damaged luggage
  • This can help cover the cost should your luggage be lost, stolen, or damaged. 
• Travel Delays
  • This benefit helps cover costs that may be incurred if you experience travel delays. This may include meals at the airport or an overnight stay at a hotel if your flight is delayed. 

What Doesn’t Travel Insurance Cover? 

While travel insurance does cover many incidents that you may come across in your travels, it doesn’t cover everything. Below are some of the most common exclusions you might find in a travel insurance plan. 

• Cancellations/Interruptions For Any Reason
  • While most plans only cover specific cancellations or interruptions, some providers offer Cancel for Any Reason (CFAR) and Interruption for Any Reason (IFAR) plans. 
• High-risk activities
  • This included activities such as skydiving, rock climbing, and other dangerous sports. However, additional sports and adventure coverage options are available from some insurance providers.  
• Pre-Existing Medical Conditions
  • While some medical emergencies may be covered under plans, most providers will not cover if you need care for a pre-existing condition during your travels. 

Additional Add-Ons to Know About

Now that you know what standard insurance plans may or may not cover, it is time to dive into some of the different add-ons that an insurance provider may offer. These additional benefits often have to be purchased at the time of booking. 

• CFAR/IFAR coverage
  • These add-ons allow you to cancel your trip for any reason (CFAR) or cut your trip short (IFAR) to return home early. These usually reimburse a percentage (50%-80%) of your non-refundable trip costs. 
• Adventure/Extreme Sports Coverage
  • This can help cover medical expenses incurred from injuries sustained during extreme sports activities. 
• Pre-existing Medical Conditions Coverage
  • This can provide coverage for care related to pre-existing conditions such as heart disease, diabetes, etc. 
• Baggage Bundle/Upgrade
  • This can help increase reimbursement limits if your luggage is lost, stolen, damaged, or delayed during your trip. 
• Pet Care Coverage
  • Should your trip be delayed, this benefit can help cover additional pet boarding fees while you are gone. 
• Identity Theft Coverage
  • Especially important in today’s world, this benefit offers supplemental policies to cover identity theft concerns while traveling. 

Where to Purchase Travel Insurance

There are a growing number of insurance providers that offer travel insurance, and it can easily seem overwhelming to start your search for the perfect plan. Below are just a few providers that offer travel insurance packages: 

Squaremouth Travel Insurance

Compare travel insurance quotes & coverage with our side-by-side comparison tool — read customer reviews, filter, and buy travel insurance all in one place.

Allianz Travel

Last-minute cancellations. Travel delays. Rental car accidents. When the unexpected happens, 
you can rely on Allianz Travel Insurance to help make things right

World Nomads Travel Insurance

Compare Travel Insurance Coverage. Our 4 plans cater to all trips – from the chill to the adventurous. Get cover that fits you.

AIG Travel Guard

Get a quote in less than two minutes and travel with more peace of mind. Compare coverage levels and pricing on our most popular plans with our product comparison tool—and find a Travel Guard plan that’s right for you. 

A Note to Keep in Mind

Travel insurance policies vary from different providers. Your trip type and destinations are among the biggest factors in choosing the best plan for your needs. It is important to compare plans side by side to find the best coverage versus cost. Keep in mind that all plans have exclusions, and it is important to read the fine print of each policy to ensure all your needs are covered. Online reviews can be an irreplaceable tool in researching and finding the best plan for you. Only you can decide which travel insurance plan is best for you and your loved ones. 

Do you have more questions?  Or are you ready to travel to the beautiful Anna Maria Island? Contact Serendipity today to start planning your luxury getaway.