12 Best Travel Insurance Policies and Why You Need Them (2024)

The good news is that it has never been easier to buy exactly the type of travel insurance you need at a reasonable price. Most people buy comprehensive insurance for a single trip, but annual travel insurance plans that cover multiple trips in a one-year period are becoming more popular.

You can find some of the best travel insurance policies by visiting an insurance comparison site like TravelInsurance.com, InsureMyTrip.com or SquareMouth.com. Plug in your trip details and you’ll get instant quotes for multiple insurance plans that you can compare on price, coverage limitations, and other parameters. Be sure to read the policy details, as inclusions can vary from plan to plan but will end up making all the difference to your particular needs.

What’s it going to cost?

The cost of travel insurance depends on a variety of factors, including the price and length of the trip, your age, destination, and any optional add-ons. For your average domestic or international trip with flights and hotels, expect to pay anywhere from 3 to 7 percent of your trip’s cost, depending on inclusions.

So for a $2,000 trip, you might expect a typical comprehensive plan with trip cancellation, interruption, and delay, along with baggage loss and delay, and emergency medical coverage and evacuation to cost in the $100 ballpark. Some upgrades, like a “cancel for any reason” provision, will cost more.

When should you buy travel insurance?

Don’t procrastinate. “Some benefits and coverages are available only if you’ve purchased your policy within a short window, typically seven to 21 days from when you make the first payment towards your trip,” says Sandberg. Buy early and you may qualify for a pre-existing condition waiver or a ‘cancel for any reason’ upgrade.

It’s especially important not to delay buying travel insurance if you’re traveling to, say, the Caribbean during hurricane season. Once a major storm has been named, the window of opportunity slams shut, and you can no longer buy insurance for that hurricane. “If you purchase a policy after a storm is named, trip cancellation and trip interruption are excluded from coverage,” says Sandberg.

What’s not covered?

“Some people believe that a travel insurance plan is designed to give you the flexibility to cancel your trip for any reason whatsoever,” says Sandberg. “But the standard plan is not going to provide cancellation coverage for a change of heart or a relationship break-up or an outbreak of Zika in your destination.” If you need that flexibility, opt for the ‘cancel for any reason’ upgrade.

“As far as medical coverage, people often believe a travel insurance plan will cover preventative services such as immunizations and annual check-ups,” says Tysdal. “But travel insurance is intended to cover illnesses and injuries that originate during a trip, and that’s why it’s relatively inexpensive.” Be careful about overindulging, too. “If you injure yourself as a result of being intoxicated beyond a legal limit, your travel insurance policy will not likely cover you,” says Sandberg. Ditto for drug use.

How easy is it to file a claim?

“Documentation is key,” says Meghan Walch, product manager for InsureMyTrip. If luggage is lost or items are stolen, file a report with the airline or police. You may need to provide original receipts for the stolen items in order to receive reimbursem*nt up to the policy limits.“ Also, be aware that baggage coverage only offers coverage up to a set amount,” says Walch. “So, if you are carrying, say, a fancy $3,000 Nikon or Canon camera, you’ll likely need to buy additional insurance elsewhere or cover it under a homeowner's policy.” Note, also, that many plans specifically exclude computers and electronics.

What about car rental insurance?

It’s often possible to add car rental insurance, also known as the Collision Damage Waiver (CDW), to a comprehensive travel insurance plan, which can save you from a serious headache should you get into an accident while driving. “But the biggest mistake people make when renting a car is to waste money on duplicate coverage,” says Jonathan Weinberg, CEO of AutoSlash, the car rental deal-finding site. “The reality is that if you own your own vehicle and have car insurance, you are likely already covered when renting in the U.S.”