Guide to travel insurance

The topic of travel insurance can be overwhelming – and, frankly, unpleasant. Options abound, as does fine print – and the best choice isn’t always the most obvious one, but rather depends on your personal needs.

But there’s good news: once you know just what you want covered, navigating the process gets much simpler.

Start by asking yourself about the circumstances that could seriously impact your trip. Are you worried about a medical emergency abroad? The need to fly home suddenly for a family matter? Or simply the peace of mind offered by coverage that allows you to cancel for any reason? Once you identify such priorities, it’s easier to sort through the main types of policies and decide on the best one for you.

Two people are seen from behind sitting on a ledge overlooking a valley at dusk. A the pointed summit of a rocky outcrop is seen in the distance. — Your need for travel insurance will depend on the kind of trip you’re planning. Pier Nirandara for Lonely Planet

Do I need travel insurance?

Good question. Start by reading this guide to think through what you might need, if anything.

The answer, in a nutshell? Some people and some trips call for insurance coverage, while others do not. Our overview of the shopping and buying process covers things like what to look for, how to compare policies and when to select which types of coverage.

Types of travel insurance

Comprehensive: Most common, covering cancellations, interruptions, medical needs, lost baggage and more.
Medical only: Focuses on emergency medical care abroad; a good option for those not concerned with trip interruption or cancellation benefits.
Annual: Designed for frequent travelers, providing year-round coverage across multiple destinations.
Medical evacuation only: Covers transportation to a hospital, often in your home country, if you’re seriously ill or injured in an under-resourced location.

A woman takes a photo with her phone in a temple. Ornaments hang from the ceiling next to columns, and the smoke from incense is pictured in rays of sunlight. — Travel insurance can’t make up for a bad experience – but can recoup some costs if your trip goes south. Adrien Jean for Lonely Planet

What does travel insurance cover?

Even the best policies can’t compensate for a bad experience – but they can protect your wallet if things go awry. Note that insurers usually reimburse after you’ve submitted a claim (sometimes long after you’ve submitted a claim), so you’ll likely need to cover expenses out of pocket before getting reimbursed. Remember, policies are strict. Read the fine print and carefully follow local laws, or your claim may be denied – even if you’re not at fault.

Trip cancellations and delays

One of the most common reasons travelers buy insurance is to cover prepaid, nonrefundable expenses like flights, tours and cruises. Policies typically insure against cancellations for illness, injury, a family death, military deployment, jury duty, job loss or severe weather.

Delays (sometimes referred to as “trip inconveniences”) also qualify. If weather, maintenance issues or missed connections leave you stranded, travel insurance might reimburse meals, transportation or lodging. However, this coverage is usually a secondary benefit. In the case of delayed flights, the airline covers what it’s responsible for, by rebooking you on another flight, say, or a hotel for a severe delay due to maintenance issues (but not weather-related reasons). Your travel insurance policy can then supplement extra costs.

Lost, delayed or damaged luggage

By law, airlines must compensate passengers for lost or damaged luggage – but payouts can be slow. Travel insurance, often with higher benefit limits, applies right when you arrive, covering essentials like toiletries and clothes.

There are caveats. Most policies exclude cash and high-value items like jewelry. (Pro tip: leave your engagement ring or heirlooms at home and travel with less valuable jewels, like moissanite.)

Lost or stolen personal items

Separate from baggage coverage, this applies to valuables like wallets, cameras or laptops. Claims require proof: receipts, serial numbers, photos and a police report or official record. I recommend photographing everything in your bag before departure, ideally with a piece of paper displaying the date, and saving receipts or serial numbers somewhere safe (I email them to myself).

Coverage limits for electronics and other pricey gear are low, so check if your homeowners’ or renters’ policy extends beyond your house. Many do – but only with a rider for valuable personal property.

Medical needs

This is where travel insurance becomes especially important. Most domestic health-care plans offer little or no international coverage, and any care you seek abroad is considered out-of-network and requires payment upfront.

Travel insurance covers everything from treatment at a local hospital to a costly medical evacuation home (even if home is across the world). The latter is fortunately rare – but when necessary, astronomically expensive – sometimes into the hundreds of thousands of dollars. Keeping in mind that unlikely and impossible are very different, and that medical evacuation coverage is important for your trip, you can buy a dedicated policy (more below).

Be aware that most travel insurance plans exclude pre-existing conditions, unless you meet specific requirements. You may have to provide proof that you can safely travel, or purchase an additional medical waiver.

Trip interruption

Different from trip-cancellation plans, interruption benefits kick in if you must cut your travels short because of illness, injury, or a family death or emergency. Coverage may reimburse unused bookings (say, the remainder of an Airbnb stay) or a last-minute ticket home.

Whether it’s worth it depends on your situation. I usually skip it, but am comfortable with the risk because I don’t have any chronic health issues or ill or elderly relatives. If that doesn’t describe you, this extra coverage may be worth it. Another approach: compare the added cost of interruption with refundable (higher-priced) airfare. It’s not a perfect solution, since you may still be on the hook for tours or the remainder of your hotel stay – but it could help mitigate a potentially significant expense.

An underwater shot of a snorkeler swimming above a coral reef toward the surface. — Pay careful attention to what you’re travel insurance doesn’t cover, such as high-risk activities. Michael George for Lonely Planet

What travel insurance doesn’t cover

Equally important as knowing what a policy includes is understanding what it does not. All policies have clear exclusions – and as you read through them, you could be in for an unpleasant surprise.

One noteworthy exception: “Cancel for Any Reason” (CFAR) policies let you cancel for nearly anything…as long as you buy the policy soon after booking (usually within 14 to 21 days), and you cancel at least 48 hours before departure. Unsurprisingly, they’re pricey, about 40% or more above standard plans. They also reimburse only 50–75% of costs.

While every policy has its own exclusions, in general, here’s what you can expect not to be covered.

Pre-existing medical conditions: Many policies don’t cover care for ongoing health issues. Ones that do, such as Allianz OneTrip Prime, may require you to prove you’re medically fit to travel at time of departure, or buy your policy shortly after booking your trip.
Routine care for pregnancy and other health conditions: Treatments related to pregnancy, mental health, dementia or substance abuse are never covered, although a policy’s medical provisions should cover emergency services.
Known storms: If you travel somewhere in the path of a hurricane, don’t expect reimbursement. Unpredictable events like volcanic eruptions or earthquakes, on the other hand, are generally covered.
High-risk activities: Nearly all policies exclude inherently dangerous pursuits such as skydiving or rafting. If your travels revolve around adventure, pick a plan covering your specific activities. I personally use insurance from World Nomads for this reason: their policies cover everything from cave diving to glacier walking.
Illegal activities: Any incident that occurs while breaking the law voids any coverage.
Reasonably foreseeable events: If you’re coming from the US, heed the US Department of State advisories. If you ignore a Level 4 “Do not travel” warning, coverage won’t apply – period. (An important gray area to consider: trips to areas under Level 3 “Reconsider travel” advisories may be covered, as long as flights are operating and the area is stable. Still, be sure to avoid public protests or other high-risk zones.)
War and civil unrest: Some policies cover limited civil unrest (see above), but generally exclude war, which falls under the “foreseeable” category.
Negligence: Missed a flight because you overslept? Don’t count on reimbursement.

People on a walking tour are pictured on a city street. Paper flags are strewn across the street, and murals decorate the walls of its one-story buildings. — Pay careful attention to the differences between trip-protection coverage and true travel insurance. Juan Tapias for Lonely Planet

Travel insurance vs trip protection

Trip protection (sometimes called travel protection) covers such straightforward trip costs as airfare and related cancellations or interruptions, but not medical care or lost luggage. This is a tempting option because it’s cheaper than travel insurance – yet you ultimately get what you pay for: much-more-limited coverage that’s not a substitute for true travel insurance.

Trip-protection offers typically pop up during checkout when booking flights with airlines or third-party sites. These days, you usually have to manually select a box to opt out (be prepared for dramatic language, like “No, I choose not to protect my trip”) to complete your booking. Note that many travel-oriented credit cards provide trip-protection coverage as a perk – another reason to think carefully about buying when booking.

How much does travel insurance cost?

As a general rule, expect to spend 4–10% of your trip’s prepaid, nonrefundable expenses on travel insurance. The exact cost will depend on several factors; plans with higher coverage limits or add-ons (like Cancel for Any Reason) are pricier. Age, trip length, your destination and risk factors such as existing medical conditions will also contribute to the price you pay.

People walk down a narrow cobbled street in a city in the evening, past tables at outdoor restaurants. — Carefully compare the costs and benefits of travel insurance before you pick a policy. Kerry Murray for Lonely Planet

Best travel-insurance providers

Start with a side-by-side comparison of policies and rates using an online tool like Squaremouth or InsureMyTrip. Importantly, insurers are country-specific – someone in Europe, for example, may find plans that Americans don’t qualify for.

Allianz: Offers several plans, including annual coverage. Pre-existing conditions are covered under its OneTrip Prime plan. Natural disasters and canceled concerts or sporting events are 100% excluded.
World Nomads: Covers a wide range of adventure activities that many insurers exclude. Policies are similar to vehicle insurance, based on maximum benefit amounts rather than trip cost.
AIG Travel Guard: Its multiple plans include annual, CFAR, and same-day (“Pack N’ Go”). Covers pre-existing conditions if purchased within 15 days of initial trip deposit. Adult plans also cover one child.
Faye: Although there’s only one core plan, add-ons cover vacation-rental damage and even pets (health-care or quarantine costs if they fall sick while traveling, or boarding/pet-sitting if a delay causes you to get home late).
American Express: Insurance plans are offered separately from cardholder benefits. Offers a pre-existing conditions waiver if purchased within 14 days. Trip Cancel Guard reimburses up to 75% of nonrefundable flights up to 48 hours before departure.
GeoBlue: Medical-only coverage, including pre-existing conditions, with plans for single trips, multi-trip and annual coverage. Includes rare perks like dental and zero-deductible in-network visits.
Medjet: Emergency medical evacuation (MedjetAssist) and expanded crisis coverage (MedjetHorizon); valid both domestically and internationally, provided you’re 150+ miles from home.

Credit cards with travel insurance

Many premium travel-oriented cards – like the Chase Sapphire Preferred, Capital One Venture X Rewards and Amex Platinum – include travel-insurance benefits underwritten by major insurers. The cards’ coverage may reimburse costs associated with lost or delayed baggage, trip interruption, significant flight delays and rental car damage. However, benefits vary significantly by card issuer (review your card’s benefits guide with a fine-tooth comb), and only travel booked with that card will be covered.

Exclusions and payout limits can be stricter than stand-alone policies. Since annual fees and deductibles can add up quickly, a dedicated travel policy could make more sense both for your needs and for your bottom line.