You’re flying through the treetops on a zip line, the wind whipping your face, when a sudden jolt sends you spinning and straight into an exciting ride that your travel insurance may not cover.
Buying travel insurance is more popular than ever: Americans will spend $5.56 billion on coverage in 2024, according to the U.S. Travel Insurance Association (1).
For many travelers, it gives them peace of mind knowing they are protected from huge, unexpected bills if things don’t go as planned.
But not all policies cover what you would expect. Some travelers are caught off guard when their claims are denied, leaving them responsible for expenses they thought were covered.
Here’s what you need to know about travel insurance, common coverage gaps, and how to ensure your trip is protected.
According to the National Association of Insurance Commissioners, travel insurance typically costs between 5% and 10% of the total trip price. It is available for both domestic and international holidays (2).
Common coverage includes:
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Trip cancellation, delay or interruption: It covers the costs if you get sick or your flight is delayed and you need to stay overnight.
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Lost or delayed luggage: Covers stolen, lost or damaged personal items.
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Travel medical insurance: Pay for medical care that your primary insurance doesn’t cover while you’re outside your provider network.
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Medical evacuation insurance: It covers the cost of transporting you to an approved medical facility if a serious health problem arises abroad.
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Cancel coverage for any reason: Offers a partial refund if you need to cancel for reasons not included in standard trip cancellation policies.
Travel insurance can be worth it. Medical evacuation alone can cost tens or even hundreds of thousands of dollars, and losing the value of your trip can be devastating. Paying 5% to 10% of the cost of your trip is a small price compared to losing 100% or paying $25,000 or more for an air ambulance (3).