What Is Travel Insurance All About?

Get in-depth answers to all your travel insurance questions.


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Chapter 1:
What Is Travel Insurance?

A trip is a sizable investment, so it should be insured, just like a car or a new boat. You probably know all about home and car insurance, but what is travel insurance – and how can it help you?

What Is Travel Insurance (Also Called Trip Insurance)?

Travel insurance is there to protect you if travel emergencies strike, but also to reimburse you for money you’ve already spent on your trip – on plane tickets, hotel rooms, tours, luggage, and personal items – if you have to cancel before it’s even time to leave.

If you think you won’t have travel issues when you travel, consider that:

What Is The Purpose of Travel Insurance?


Travel insurance is there to protect you if travel emergencies strike, but also to reimburse you for money you’ve already spent on your trip – on plane tickets, hotel rooms, tours, luggage, and personal items – if you have to cancel before it’s even time to leave.


If you think you won’t have travel issues when you travel, consider that:

111k
111,000 flights cancelled in 2021[1]
[1] Source: bts.gov
181%
Tarmac Delays increased 181% in 2021[2]
[2] Source: bts.gov
2m
2 million bags mishandled in 2021[3]
[3] Source: bts.gov

How Does Travel Insurance Work?

Every traveler won’t choose the same kind of insurance. In general, the best travel insurance for you is going to depend upon a few variables:

  • Where you're going

  • How you're getting there

  • How much you're spending

  • What you're doing

And those variables have to be matched up with the different types of travel insurance: 

Flight Protection

Plans like AirCare, that just cover your flights. 

Luxury Plans

More expensive plans that offer higher limits of coverage for medical expenses and medical evacuation.

Basic Plans

Inexpensive trip policies that cover trip interruption and cancellation, medical emergencies, and luggage, but may not pay out as much as higher-priced plans.

Specialty Plans

Medical-only, evacuation-only, or adventure plans, often with higher limits than might be found in comprehensive or luxury plans. Many times these plans are bought in cases of obvious need – for instance, an adventurous traveler venturing deep into the Amazonian bush who decides she needs a standalone medical-evacuation in the event she needs to be air-lifted out.

Comprehensive Plans

Mid-priced plans that can offer standard limits for trip interruption/cancellation, medical evacuation, and medical expenses; coverage for pre-existing conditions; and coverage for things like missed connections not covered in basic plans.

We offer different travel insurance for different types of trips:

FOR:

- Basic or flight
- Domestic destinations
- One or two flights, road trips
- Simple sightseeing

FOR:

- Comprehensive, specialty
- Simple international destinations
- Multiple flights, general international
- Sightseeing plus a few basic activities

FOR:

- Luxury or specialty
- Complex international destinations, around the world tours
- Multiple international flights and complex ground - or water transportation
- Multiple activities, some danger

Note that this is a highly simplified guide, and if you’re serious about travel insurance you need to look at the advantages of individual travel insurance plans in much more detail.

To get into coverage specifics, visit Chapter 2: "What does travel insurance cover?".

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