Travel Confidently

Like with all insurance-related things, there are many variables that will determine how much you’ll have to pay for travel insurance. The major factors are the traveler’s age, type of insurance, cost and length of the trip, where you live, and the amount of coverage included with each policy.

A standard policy that includes the trip cancellation coverage should typically cost between 5% and 10% of the total cost of the trip. A policy without trip protection that includes medical coverage only is significantly less expensive. That might be a great option for someone who used points and miles to book the most expensive parts of the trip, such as flights and hotels.

Getting a quote is free and takes only a few minutes, so you have nothing to lose by exploring your options.

It’s important to insure nonrefundable expenses such as accommodations, transportation and activities. This will help protect you against loss in the event that your trip is canceled due to some unforeseen event such as a hurricane, medical issue, or should an airline/hotel/travel company go bankrupt.

You also want to have insurance that covers medical expenses you might incur on a trip and evacuation in case of medical or other emergency. These things of course can be very expensive should you need to purchase them unexpectedly out of pocket.

Many policies might look the same and include the same benefits. However, it’s important to dig into the details of each policy to see what it covers to find the coverage you actually need. Travelers need to read each policy carefully, not just the summaries, to understand what it covers.

It could be helpful to create a spreadsheet to compare costs and coverage across different policies. Here are a few things to look for when shopping for travel insurance:

• Check the amount of medical coverage of each policy. Pay attention to the specific numbers, as the emergency medical coverage could be far lower for older travelers.
• Does the policy offer primary medical coverage? With the secondary coverage, you’ll first have to submit documentation for reimbursement to your health insurance provider, and your travel insurance will cover the rest.
• Does the trip interruption coverage include isolation due to testing positive for COVID-19?
• If you booked your ticket with miles and points, does the policy reimburse the miles reinstatement fees?

When shopping for a “cancel for any reason policy,” keep in mind that it might not cover the entire cost of the trip. Depending on the state, “cancel for any reason” insurance covers 50% to 75% of your nonrefundable deposits.

If the majority of your trip costs are covered by points and miles, add up your nonrefundable expenses, such as tours, ground transportation, guide fees, etc., and only insure the nonrefundable portion of the trip.

Most policies don’t cover alcohol and drug-related injuries as well as high-risk activities and extreme sports. There are separate policies for high-risk activities such as scuba diving, bungee-jumping, skydiving and other extreme sports.

Policies that have specific time-sensitive benefits, such as pre-existing conditions, and “cancel for any reason” policies have to be purchased within 14 to 21 days of making the initial trip deposit. 

When you are evaluating policies and are concerned about the pre-existing conditions clause, pay attention to the look-back period specified in each policy. High blood pressure is not considered a pre-existing condition for travel insurance purposes, but the new treatments or medication changes implemented during the look-back period are. 

You can purchase a trip cancellation policy up until the day of departure. However, it’s recommended to purchase travel insurance as soon as possible because only unforeseen events are covered. 

If you are primarily interested in medical coverage, you should purchase insurance any time prior to the day before you leave.