As the travel sector reopens, more and more Americans are preparing to take their dream trips and see the world. According to the 2021 American Express Travel: Global Travel Trends Report, 56 percent of the public is ready to book a trip immediately, even if they have to cancel it in the future, while 65 percent are saving their credit card points to book a trip.
While you may be ready to see the world, are you prepared to deal with anything that could go wrong abroad? A study by AXA Global Healthcare shows an overnight hospital stay for the uninsured can cost between $661 and $2,800, depending on where you go. If you have a more serious accident and need treatment for a broken ankle, you could face a bill anywhere from $2,000 to over $8,300. In the worst-possible case, an air ambulance could cost over $270,000 -- in some parts of the United States that's the cost of a home.
Before you leave on that dream vacation, getting travel insurance can prevent your next adventure from becoming a nightmare. At InsuranceRanked.com, we researched all the travel insurance options to help you find the right level of coverage for your needs. Here are our picks for the best travel insurance providers available today.
Best Whole Trip Travel Insurance: Faye
Faye is the streamlined way to get a comprehensive travel insurance policy online. It's ideal for US residents planning local or international vacations on a fixed budget and allows travelers to receive necessary services through the company's mobile app quickly.
What customers get with Faye:
- A customizable base plan that fits their travel needs with comprehensive health-, trip-, and property-related coverage, along with add-on coverage for rental car care, adventure and extreme sports protection, vacation damage protection, pet care, and "cancel for any reason" coverage
- Faye's app provides real-time flight alerts for customers, including delays, cancellations, and gate changes
- Insurance quotes, coverage, and claims can be obtained and processed digitally
- Around the clock, proactive customer support through phone, email, WhatsApp, and chat through the mobile app
Best Overall Travel Insurance Marketplace: Squaremouth
When comparison shopping for travel insurance,Squaremouth may be the most comprehensive website for making an apples-to-apples decision between two plans. Offering dozens of policies from over 30 reputable companies, Squaremouth is arguably the most comprehensive marketplace today.
Quick facts about policies offered by Squaremouth:
- Squaremouth offers policies from over 30 insurance companies, giving you plenty of options to find the right travel insurance plan for your needs.
- Additional coverages include Cancel for Any Reason, pre-existing condition waiver with early purchase, and hazardous activity coverage.
Best Customizable Overall Travel Insurance: Seven Corners
When it comes to travel insurance policies, every traveler has unique needs. Understanding every traveler needs different policies, Seven Corners travel insurance offers a solid combination of benefits and add-on benefits, helping everyone get the best plan for their needs.
Quick facts about policies offered by Seven Corners:
- Seven Corners offers travel insurance policies across seven categories, ranging from single-trip insurance to annual plans to emergency medical-only coverage.
- Add-on coverage includes Cancel for Any Reason, Trip Interruption for Any Reason, event ticket protection, and sports & golf equipment rental.
Why is Buying the Right Travel Insurance Important?
As travelers book airfare and make hotel reservations to see the world with destinations reopening, 2020 reminded everyone that the unknown could ruin our best-laid plans. Not only was the threat of a pandemic looming overhead but cancelled flights and closed hotels as well. Many travelers received future credits they may not have been able to use or lost their money entirely in some situations.
Buying the right travel insurance plan can help you in two different ways. First, many insurance plans may protect your investment if something goes wrong that's out of your control. For example, if an accident on the way to the airport held you up, causing you to miss your flight, trip cancellation could help you recover some of your non-refundable costs. Also, if your trip is delayed significantly, trip delay benefits can help you pay for unexpected meals or an emergency hotel room.
Travel insurance doesn't just cover the problems that can happen on your trip -- you may also have protection during a medical emergency. Travel insurance policies usually come with emergency medical and dental benefits, which can help if you need an ambulance, a trip to the emergency room, or a hotel stay. If you are involved in a serious accident and need a medical flight home, most plans will arrange it and pay the provider directly.
When to Buy Travel Insurance
With many policies, travelers can purchase trip insurance any time before the departure date. Some brands even offer fliers the opportunity to buy a plan in the hours immediately before boarding an aircraft. However, getting travel insurance as soon as you make your first payment towards your vacation to get the best benefits is essential.
When you purchase your travel insurance plan early, you can unlock additional benefits only available to those who lock in their policy alongside their trip planning. If you can buy your insurance plan between 14 and 21 days of your first deposit, some plans will offer a pre-existing condition waiver or the opportunity to add additional insurance benefits.
What if you don't know how much your overall trip will cost? Many insurance companies allow you to increase your cancellation coverage as you plan your trip. Paying as you go allows you to lock in your time-sensitive benefits and maintain them as your costs grow.
Many policies offer different early purchase benefits, so check with our travel insurance guides to understand which time-sensitive options may be available when you buy your plan upfront.
Benefits of Travel Insurance
As the name suggests, travel insurance is a temporary insurance policy that covers certain situations which may be unique to your vacation. Most travel insurance policies include benefits for emergency medical needs, trip cancellation, trip delay, and baggage loss.
What Does Emergency Accident & Sickness Medical Cover?
When you travel to another country, your health insurance stays at home. Even if you have Medicare coverage, your benefits only extend to providers within the United States. Emergency accident and sickness medical benefits offer coverage if you need to see a doctor while away from home. For example: If you're riding in a taxi and end up in a traffic accident, emergency accident benefits could cover transportation in an ambulance, doctor's bills, and hospital care.
Travel medical insurance may not cover every emergency accident or sickness. If you have complications from a pre-existing condition -- like heart disease or a broken bone -- your travel insurance may not cover medical treatment for it unless you have a pre-existing condition waiver.
What Does Baggage Delay and Baggage Loss Cover?
Baggage delay and baggage loss help travelers recover losses when an airline, train, bus, or cruise line loses checked luggage. Benefits break down into per-day and total benefits if the luggage is damaged or lost.
If a common carrier (airline, cruise line, etc.) misplaces your luggage when you arrive at your destination, your baggage delay benefits can help you pay for any incidental purchases you will need, such as replacement clothes or toiletries. Depending on the policy, you will be limited to what may be reimbursable. For instance, most plans cover gifts purchased on the trip, packing cubes, and checked sports equipment, but some may not reimburse for electronics like laptops, tablets, or cell phones.
If your bag is permanently lost, travel insurance can reimburse the lost bag's cost and clothing beyond what the airline provides. To file a claim, you must provide proof of your bag's contents and what you paid for the items.
Trip Cancellation vs. Cancel for Any Reason
While "trip cancellation" and "cancel for any reason" may sound the same, they cover different aspects of your vacation. Trip cancellation insurance provides benefits if you cancel your trip from an outside influence the policy specifically covers. For example: if an immediate family member becomes seriously ill and you must cancel to take care of them, your insurance plan could help you recover non-refundable costs, like airfare or tour costs.
However, standard trip cancellation does not include circ*mstances that make you feel afraid or no longer want to travel. Instead, cancel for any reason benefits allow you to change your mind about your trip at least two days before departure and still collect some reimbursem*nt. It won't be a complete repayment of your costs. Typically, cancel for any reason helps travelers recover between 50% and 75% of their purchase.
What Does Trip Interruption Cover?
If things don't go as planned during your trip, interruption insurance may help you reimburse your losses. Suppose you're on vacation at a Florida beach and get a call that a close family member was in a serious accident back home. Trip interruption coverage can reimburse your prepaid expenses for the days you miss at the resort and help cover your return flight home.
Every policy varies what it covers for trip interruption, but usually, they all cover situations like a traveler's or family member's unexpected illness, injury or death, quarantine, jury duty, natural disasters, and transportation strikes. Some policies have more comprehensive coverage than others, like cancel for work reasons, school year extensions, or sick pets, so double-check that the policy covers what concerns you before purchasing it.
How Does Missed Connection Coverage Work?
Missed connection insurance is helpful if your flight, bus, or train arrives late and causes you to miss the start of your cruise or tour. It helps pay for the additional cost of catching up to the ship or tour group by reimbursing you for flights and hotels.
However, missed connection insurance does not include if one flight arrives late at the airport and causes you to miss the next flight.
What Does Emergency Evacuation Cover?
Nobody wants to think about getting seriously injured in a foreign country. But unfortunately, accidents can occur anywhere in the world, at any time, and usually without warning. A medical evacuation ambulance can cost $50,000 to $500,000 to get home--and most Americans can't afford that out-of-pocket.
Fortunately, travel insurance can help you in your most difficult hours. If a doctor orders an emergency evacuation home by air ambulance, a travel insurance plan enables you to cover the costs and is likely to pay directly for your evacuation. Most travel insurance plans require you to contact them directly to arrange the evacuation instead of booking an air ambulance yourself and requesting reimbursem*nt afterward.
How to Choose the Best Travel Insurance Coverage for You
With so many choices available, choosing the best travel insurance comes down to your needs, budget, and concerns.
Are you concerned about a hurricane disrupting your beach vacation? Are you worried about air travel delays? What if an unwell family member dies just before your trip? What if you got sick from covid or were involved in a car accident during your trip?
Carefully review any policies you're interested in to ensure they cover what you want. In addition, you can ask the company to check for you and help you narrow down the right coverage.
TIP: Get personalized recommendations by calling the company and asking to speak to a licensed insurance agent. They can discuss and interpret the policy with you, whereas customer service reps are not.
- Trip cancellation and interruption reasons: Most travel insurance shoppers are concerned about specific cancellation or interruption circ*mstances. Whether it's being required to work at the last minute, a traveler becoming ill before traveling, or a natural disaster halting your travel plans, check the policy for its complete list of covered reasons.
- Baggage loss or delay: Basic travel insurance policies have lower payouts and longer wait times for baggage problems, such as 12 to 24 hours. Mid and high-tier policies have more significant baggage protection and shorter wait times, like 6 hours.
- Trip delay: Trip delay reimburses you for food, hotels, transportation, phone calls, or internet service costs. Each plan has a different wait time requirement; some also cover mandatory medical isolation, so review your policy for details.
- Medical coverage: You may want a nominal medical insurance if you're traveling within the US, enough to cover your out-of-network deductible. Or, get a policy with at least $100,000 medical insurance if you do not have health insurance. Likewise, a policy with at least $50,000 in medical coverage can cover catastrophic emergencies if heading outside the US.
- Medical evacuation: Air and ground evacuations can be costly. The farther you travel from home, the more evacuation protection you need. Within the US, $100,000 is sufficient, but overseas buy at least $250,000, more if going to a remote location.
- Pre-existing medical conditions: Most mid to high-level travel insurance plans cover pre-existing conditions if you buy the policy early. For travelers with medical concerns, pre-existing condition waivers provide the most peace of mind.
- **Cancellation flexibility: **If you're not sure you want to or can take the trip, cancel for any reason offers the best option. You don't have to provide any documentation regarding why you cancelled the trip—only prove you lost money by cancelling. However, you may only receive 50% to 75% of your covered amount.
- Primary vs. secondary coverage: Some travel insurance policies specify they are primary coverage, meaning they will pay before other insurance you have, including health insurance. Consider primary coverage if you don't want to deal with your health insurance provider overseas.
- Cost: Similar plans from different insurance companies may have different prices. The differences can be minute but essential to you. For example, one policy may cover cancellation due to a NOAA hurricane warning for your destination, while the other only covers a natural disaster after it occurred in the area. Carefully compare the policy benefits and the price to ensure you get the coverage you want.
Final Thoughts
As a licensed life insurance agent for over ten years, I want to share my advice for travel insurance buyers.
First, although many policies seem identical, they are not. Each one has subtle differences that might seem invisible to the average consumer. These can range from covered cancellation reasons to exclusions. This discrepancy is why I recommend talking with a licensed agent who is knowledgeable about multiple policies and insurers. For example, AIG might require you to cover all your trip costs for the pre-existing medical waiver, while John Hanco*ck does not.
Second, every trip is different, so you may want to consider a different policy than you bought last time. I love cruising, and sometimes having good travel medical insurance is more important than cancellation insurance. Some of my travel credit cards cover cancellation and interruption, so I only shop for travel medical insurance when I rely on those. Other times, I need cancel for any reason features because I’m not 100% sure I will go on the cruise.
Finally, if you live in a state with a free look period (sorry, New York residents), take advantage of it. After you buy your policy, scrutinize it line by line. Mark anything you need more clarification on and call the insurer or the travel insurance marketplace where you purchased it. Ask a licensed agent to review your questions until you're satisfied. If you change your mind, you can cancel the policy and get a refund during the free look period, allowing you to buy a different plan.
Frequently Asked Questions
Will travel insurance cover COVID-19?
Many travel insurance plans now include emergency medical coverage for COVID-19 infections away from home. Insurance companies consider the pandemic a "known event" and may not cover Covid-19 for trip cancellation, interruption, or travel delay benefits. However, most treat Covid-19 like other infectious diseases, like the flu. Before settling on a plan, check the travel insurance company's website for their Covid-19 statement to gauge the limitations of their coverage.
How quickly can I get travel insurance coverage?
Many insurance policies provide your documents nearly immediately, delivered electronically by email or to a smartphone app provided by the company. Trip cancellation benefits begin immediately, and the rest of your insurance coverage starts on the departure date. Travel insurance companies typically don't allow you to buy a policy once your vacation begins. For example, you can't file a claim for anything that happens before your insurance goes into effect.
When should I purchase travel insurance?
You will get the most benefits by setting up your travel insurance within 21 days of paying the first deposit. As a result, you can take advantage of additional coverage, such as a pre-existing condition waiver. An early purchase can also open up add-on options, including cancel for any reason benefits, cancel for work reason benefits (in states where it is available), or hazardous activity coverage.
How much does travel insurance cost?
Travel insurance costs typically depend on how much cancellation coverage you need. A $500 trip will cost significantly less to insure than a $5,000 trip. In addition, the traveler's age plays a role in the price, with senior travelers paying a premium.
On the other hand, buying travel medical insurance without cancellation can be relatively affordable. However, if you require pre-existing medical coverage, carefully read the policy's requirements to activate the pre-existing condition waiver—it might require you to cover all of your prepaid trip costs to start that benefit.
What does travel insurance not cover?
Most travel insurance policies do not cover circ*mstances like:
- War, civil disorder, and riots.
- Travel to certain embargoed countries like Iran, Venezuela, or Syria.
- Fear of travel due to pandemic outbreak or recent plane crashes.
- Natural disasters that already occurred or cyclonic storms after they've been named.
- Unfavorable weather, like rain forecasted during your beach vacation.
- Most pregnancy-related conditions.
- Hazardous activities like skydiving, mountaineering, or rock climbing.
- Illegal activities or under-the-influence accidents.
- Medical tourism.
- Non-covered dental work.
- Traveler's injury or illness that already occurred.
Can I cancel or get a refund on travel insurance?
Most states allow you to cancel a travel insurance policy within 7 to 14 days for a refund on the premium, assuming you haven't taken your trip or plan to file claims. The insurer typically can't offer a refund after the "free look period" expires.
Is it cheaper to buy travel insurance at the last minute?
No, the price is the same regardless of whether you buy the policy the day before departure or one year in advance. However, be aware that you may miss out on essential features like cancel for any reason and pre-existing condition coverage if you wait to buy a policy for more than 2 to 3 weeks after paying your initial deposit.
