The Ultimate Guide to Travel Insurance: the Holy Grail of Coverage and Essential Insights

Unforeseen circumstances can strike anytime during your travels, yet for some reason, travel insurance is often overlooked when it should be an essential investment for every travel.

What are the odds you’ll need it? Frankly, it’s hard to predict. How inclined are you to take a gamble on uncertainties? In my experience, the expense of travel insurance far surpasses the potential risks. I’ve encountered unforeseen incidents that, in my case, amounted to 20 times the initial cost of the policy. Investing in travel insurance not only provides financial security but proves to be a wise decision, offering substantial value in unexpected situations.

Make sure to also read our Essential Travel Safety Guide for Women.

While it may appear as an unnecessary expense, travel insurance serves as a crucial safety net when abroad. It covers unexpected costs stemming from theft, illness, injury, canceled flights, damaged electronics, lost luggage, and even the unfortunate event of a family member’s death back home.

Travel insurance proved invaluable when a couple of friends had to be helicoptered off the Carrauntoohil, the highest mountain in Ireland during their hike. , when another friend urgently had to fly home due to her father’s passing, and when yet another friend had her bag stolen.

Designed to prevent significant financial losses during emergencies abroad, travel insurance becomes crucial, especially considering that most domestic health insurance plans do not provide coverage overseas, and travel credit cards offer limited protection. Purchasing travel insurance is a necessary step to safeguard yourself against the uncertainties of travel.

As travel insurance can be complex, yet crucial and confusing in trip planning, this ultimate guide to travel insurance will break it down to help you understand the nuances and guide you in selecting the best travel insurance plans in just a few steps!

What to Look for in a Comprehensive Travel Insurance Plan

Insurance is a billion-dollar business, and everyone wants a piece of the pie. With that in mind, the policy, terms, and coverage information shared by these companies can be mind-numbing, confusing, and overwhelming.

Once you dig into the nitty-gritty of the fine print, you often discover that plans aren’t as robust as they initially appear.

So, what are your next steps?

First, ensure that your travel insurance offers a high coverage limit on your medical expenses. A reputable company will offer coverage care up to $100,000, while more expensive policies can extend coverage to higher amounts, reaching up to approximately $2,000,000.

Insurance with high coverage limits is crucial because if you fall ill, sustain an injury, or require significant medical attention, you want assurance that your substantial hospital bills will be covered. Opting for a policy with a low coverage limit, such as $20,000, can lead to potential financial strain. Imagine getting hurt and exhausting that limit before your medical needs are adequately addressed. Prioritize your health by ensuring coverage of at least $100,000 and avoid compromising your well-being with inadequate protection.

Second, it’s crucial to ensure that your travel insurance policy includes coverage for emergency evacuation and care, distinct from your medical coverage. For instance, if you experience extreme dehydration while hiking a mountain, your policy should cover the cost of evacuating you to the nearest acceptable medical facility.

In the event of a natural disaster requiring evacuation to a different location, your plan should provide coverage for this scenario as well, with protection extending up to $300,000.

It is also essential to know if your evacuation coverage includes arrangements for returning home or if it only covers transportation to the nearest acceptable facility. Understanding these details ensures comprehensive protection for unforeseen circumstances during your travels.

Standard emergency evacuation coverage often only facilitates your relocation if your current medical facility is inadequate or if the situation is deemed “medically necessary.” Only under these circumstances will the coverage extend to the cost of a flight home.

To ensure comprehensive coverage, make certain that your insurance includes the cost of your return flight if needed.

If you prefer not to undergo treatment and recovery in a foreign hospital, consider exploring medical transport membership programs like Medjet. Their programs guarantee repatriation if you are hospitalized abroad, a benefit that many traditional travel insurance policies may not guarantee.

Third, good travel insurance plans should provide the following:

• Coverage for Most Countries: Ensures coverage in the majority of countries worldwide, particularly those in your travel itinerary.
• Flight Insurance: coverage of travel delays, accidents that occur during the flight, baggage delay or loss
• Electronics Coverage: Offers limited coverage for electronic devices with the option to increase the coverage limit.
• Medical Coverage: Includes coverage for injuries and sudden illnesses, with pre-existing conditions typically excluded.
• 24/7 Assistance: Provides timely assistance around the clock to address emergencies.
• Possessions Coverage: Covers lost, damaged, or stolen possessions such as jewelry, baggage, and important documents.
• Cancellation Coverage: Ensures coverage for cancellations of hotels, flights, and other transportation bookings due to sudden illness, a family death, or other emergencies.
• Emergency Situations Coverage: Addresses political emergencies, natural disasters, or unrest in the destination country that necessitates an early return.
• Financial Protection: Provides financial protection if any company you are using goes bankrupt, leaving you stranded in another country.

Regarding electronics, many insurance companies have a modest limit, often up to $500 per item, as part of their basic coverage. It’s possible to purchase supplemental insurance to obtain a higher level of coverage. Before opting to increase coverage for expensive gadgets, check whether your home insurance already provides coverage for your electronic devices.

If you are traveling with items such as a camera, laptop, phone, and other electronics, it’s essential to ensure you have appropriate coverage. These items are typically more susceptible to being lost, stolen, or damaged during travel.

What Most Travel Insurances Will Not Cover

Just as it is crucial to understand what your plan covers, it’s equally important to be aware of what is not covered. In some cases, you may need to extend your coverage for specific instances. Generally speaking, most plans don’t cover:

• Incidents related to alcohol or drug use.
• Carelessness in handling your possessions and baggage.
• Accidents that are sustained while participating in extreme adventure activities such as skydiving, hang gliding, paragliding, or bungee jumping – some plans allow for coverage when you pay extra.
• Reckless endangerment, the definition varies across insurance companies.
• Pre-existing conditions or general check-ups.
• Lost or stolen cash.
• Theft coverage may not apply if you leave items in plain sight or unattended.
• If civil unrest makes your destination unsafe but your government hasn’t called for an evacuation, you may not be covered.

Loopholes to Watch Out For When Choosing Your Travel Insurance

Travel insurance policies come with limits, and crucial details are often embedded in the fine print of the terms and conditions. It’s not uncommon for plans to have limitations that may not align with your initial expectations. It’s essential to carefully review the policy to fully understand its coverage, exclusions, and any potential limitations that might affect your travel protection. Being aware of these details ensures that you have realistic expectations and can make informed decisions about your insurance coverage.

The medical component of travel insurance primarily focuses on emergency care rather than serving as a substitute for your routine healthcare.

It’s crucial to bear in mind the adage that you get what you pay for. Understanding the specifics of the coverage and considering your individual needs is essential to ensure the travel insurance plan aligns with your expectations and requirements.

Here’s a helpful chart that summarizes common concerns and the corresponding coverage you’ll need. Use it to help you find a suitable travel insurance plan:

Check if Your Credit Card Offers Travel Protection

You might find that a credit card in your wallet offers travel insurance as an included benefit. Make sure that your credit card is used for the travel bookings to receive the included coverage. To ensure you have access to all the desirable features in a travel insurance policy, it’s essential to review and confirm the coverage terms provided by your credit card. Check the terms and conditions to make sure they align with your travel needs and offer the comprehensive coverage you expect.

Our Recommended Travel Insurance Companies

There are so many insurance companies to search through and to help make your decision process as easy as possible, here is a list of our favorites.

Travel Insurance for Luxury Travelers and Travelers Over 65

For seniors planning a luxurious vacation or group travel, Berkshire Hathaway’s coverages present an ideal solution, especially when premiums with other providers are too expensive. The company’s LuxuryCare policies offer travel protection up to $100,000, catering to travelers who prefer high-end accommodations.

Key Features:

• Higher overall limits, with coverage up to $100,000 per person
• Automatic coverage for pre-existing conditions and financial insolvency when you purchase a policy within 14 days of your initial trip deposit date
• $500,000 worth of medical evacuation insurance for travel to remote areas

Pros:

• 24/7 emergency travel assistance and concierge services
• Claims paid up to five times faster than other insurers
• Coverage limits up to $100,000 per person

Cons:

• Baggage delay coverage starts 12 hours after delay
• Plan does not cover nonmedical evacuation or repatriation of remains
• Lower medical limits may be insufficient for seniors

Berkshire Hathaway provides a tailored solution for seniors seeking comprehensive and high-limit travel protection, ensuring a worry-free and luxurious travel experience.

Travel Insurance for Budget Travelers

Safety Wing provides affordable and convenient insurance plans specially designed for digital nomads, expatriates, and long-term budget travelers.

Tailored to meet the unique needs of the on-the-go lifestyle, Safety Wing offers affordable and convenient insurance plans. Benefit from cost-effective monthly plans, exceptional customer service, and a hassle-free claims process.

Key Features:

• Affordable monthly plans with a deductible
• Purchase and renew policies online within minutes
• Claims can be conveniently filed online
• Retain medical coverage in your home country for 30 days after being abroad for 90 days (15 days in the U.S.)
• Inclusion of up to 2 children under 10 per family (1 per adult) at no extra cost
• Up to $5,000 for trip interruption with no deductible
• Ideal for digital nomads and frugal travelers

Pros:

• Affordable plans
• Offers some COVID-19 coverage
• Backed by a single insurance company
• Coverage available up to age 69
• Purchase plans while traveling
• The monthly subscription model allows for easy cancellation

Cons:

• $250 deductible
• No trip cancellation coverage (limited trip delay coverage)
• Payout by wire transfer only (no direct deposit)
• Limited coverage for gear and adventure activities

Experience peace of mind on your travels with Safety Wing, providing reliable insurance solutions that cater to your unique lifestyle at an unbeatable price.

Travel Insurance for Digital Nomads and Expatriates

Insured Nomads stands out with their long-term traveler coverage.

This company stands out as the top choice for expats and digital nomads seeking a robust insurance plan that goes beyond the ordinary, covering regular doctor visits, medication, routine care, mental health, and telemedicine—features that are rarely found elsewhere.

Key Pro Features:

• Coverage for both emergency and routine care
• Inclusive mental health coverage
• Optional coverage for prescription drugs, maternity, vision, dental, and vaccinations
• Family and couple plans available
• Telemedicine services
• Customizable deductible options
• Up to $3,000,000 in plan coverage

Cons:

• Individualized quotes required due to price variations
• Comprehensive coverage can be expensive without a deductible
• Plan prices vary based on your origin and destination, starting at $224 per month

Insured Nomads’ plan is tailor-made for remote workers and digital nomads who prioritize robust care while working and traveling globally. Though priced higher, the investment ensures unparalleled coverage and peace of mind for those navigating the world while pursuing their professional endeavors

Travel Insurance for Adventure Travelers

Explore the world worry-free with World Nomads, offering comprehensive plans tailored for adventurous travelers engaged in activities such as hiking, kayaking, canoeing, and extreme sports like rock climbing or bungee jumping. With coverage for 200 different activities, World Nomads stands out as the optimal choice for those seeking robust protection during their active pursuits.

Key Features:

• Emergency medical and dental coverage
• Trip cancellations, delays, and interruptions covered
• Baggage protection
• Emergency evacuation for both medical and non-medical emergencies, including natural disasters
• Medical transportation services
• 24/7 customer assistance
• Coverage for some COVID-19 medical costs

Pros:

• Tiers for basic and premium coverage
• Delay and cancellation coverage
• Claim submission possible after your trip ends
• Offers coverage for some COVID-related expenses
• Convenient online transactions
• Trusted by brands like Lonely Planet, Eurail, and Intrepid Travel

Cons:

• Claims paid by check
• No car rental coverage on the Standard Plan
• No ‘cancel for any reason’ coverage

Prices vary based on age, country of residency, destination, and duration. Generally, a one-month Standard Plan is approximately $127, while the Explorer Plan is closer to $225 per month.

Insurance for Medical Evacuation

Medjet offers the ultimate in crisis response and emergency transportation with leading membership program dedicated to ensuring your well-being. Their extensive plans go beyond the ordinary, providing unparalleled assistance to guide you through any medical situation.

While typical insurance companies may only evacuate you to the nearest hospital during emergencies, Medjet sets itself apart by guaranteeing repatriation—sending you back to your home country, keeping you close to friends and family.

Here’s a quick overview of Medjet’s benefits:

• Extensive medical transport coverage ensuring a safe journey home
• Empowers you to select the preferred medical facility for transfer
• No need for government-issued warnings to initiate evacuation
• Medical transfer services available both in the US and abroad
• Options for both short-term and annual coverage

Medjet is available for residents of the US, Canada, and Mexico, providing language translation assistance and acting as a liaison with foreign hospital staff on your behalf.

Pros:

• Ensures repatriation to your home country
• Affordable annual plans
• Two tiers of coverage: basic and premium plans
• Global coverage for COVID-19
• Coverage available up to age 74, with potential extensions to 84

Cons:

• Exclusive to North American travelers (US, Canada, Mexico)
• Does not include trip cancellation, trip delay, or baggage coverage
• Must be purchased before leaving home

Choose Medjet for a worry-free travel experience, especially if you’re concerned about being transported home in case of an emergency or crisis. It’s the perfect complement to basic travel insurance plans, providing comprehensive coverage and peace of mind.

Credit Card with Best Travel Coverage

If you’re in search of the ultimate credit card for travel insurance, look no further than the Chase Sapphire Reserve®. Renowned for offering one of the most comprehensive lists of travel protections among credit cards, it goes beyond with valuable rewards, premium travel benefits, and a plethora of travel credits.

Chase Sapphire Reserve® stands out as the best choice for travel insurance due to its:

1. Comprehensive Travel Protections: Enjoy an extensive array of travel protections, ensuring you’re covered in various scenarios.
2. Rewarding Program: Earn valuable rewards with every purchase, enhancing your overall travel experience.
3. Premium Travel Benefits: Access premium travel benefits that elevate your journey, providing a luxurious touch.
4. Abundant Travel Credits: Benefit from a multitude of travel credits, further enhancing the value of your card.

• Auto Rental Collision Damage Waiver – up to $75,000 for theft and collision damage for rental cars
• Lost Luggage Reimbursement – up to $3,000 per passenger
• Trip Cancellation/Interruption Insurance – $10,000 per person and $20,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.
• Baggage Delay Insurance – over 6 hours by passenger carrier up to $100 a day for 5 days.
• Trip Delay Reimbursement – up to $500 per ticket for delays of more than six hours.
• Emergency Evacuation and Transportation – medical services and transportation up to $100,000.
• Travel Accident Insurance – accidental death or dismemberment coverage of up to $1,000,000.
• Roadside Assistance – Emergency roadside call at a fee