Travel insurance might give financial protection if you cancel an expensive, nonrefundable vacation for an acceptable cause. Travel insurance can also cover your medical expenditures if you have a medical emergency while abroad. However, occasionally you can get away with not purchasing it.
“Ultimately, the decision to purchase travel insurance should be based on your individual circumstances, including your destination, planned activities, health condition, and financial situation,” Rajeev Shrivastava, founder and CEO of insurance marketplace VisitorsCoverage, told Investopedia via email.
What Does Travel Insurance Cover?
Travel insurance coverage generally cover these five financial and health risks:
Trip Cancellations, Interruptions, and Delays
Illness, the death of a traveler’s family member, terrible weather, job loss, or a natural catastrophe are a few conditions that could trigger reimbursement of prepaid travel expenditures, such as aircraft tickets or emergency expenses. However, only causes listed by the insurance contract are covered, so evaluate exclusions.
Luggage and Rental Car Damage or Loss
A travel insurance coverage could cover lost, stolen, or damaged luggage, personal possessions, or motor rentals. In certain situations, the coverage can include repayment of expenditures (such as clothes) you needed to buy since you didn’t have your luggage. An car rental damage waiver covers a rented vehicle’s damage or theft.
Travel Health Insurance
Travel insurance kicks in for medical or dental emergencies when your usual U.S. health insurance doesn’t apply. Remember that even if a country offers a low-cost or free nationalized health system, you’ll pay out of pocket if you are not a citizen.
What Does Travel Insurance Not Cover?
A regular travel insurance policy won’t cover some cancelation reasons. For example, a normal travel insurance policy won’t give coverage if you decide to back out of a trip because you need to cut back on spending. You would need to acquire “cancel for any reason” (CFAR) coverage. Even CFAR has its own regulations, such as canceling within a particular time window.
Other losses that standard travel insurance may or may not cover include:
-
Costs linked with previous health disorders, pregnancy difficulties, or mental health issues
-
Injury expenses after participating in higher-risk sports such as rock climbing or skydiving
-
Trip disruption, cancellation, or other losses due to health and disease epidemics or natural catastrophes
-
Cancellations due to terrorism, civil upheaval, or any U.S. State Department warnings
Ask the insurer about exclusions to find out which exclusions apply, or study documents. You may be able to locate vacation health insurance coverage that won’t exclude your mountain-climbing injuries, for example.
Which Countries Require Travel Insurance?
Many nations don’t require travel or health insurance now that the COVID-19 epidemic is in retreat. However, future disease outbreaks can modify needs. Check the U.S. State Department’s website and destination government sites for the most recent information on health standards and suggestions.
For example, Thailand still requires tourists to carry $10,000 in travel medical insurance if they’re coming from a nation with pre-departure COVID testing. However, the United States doesn’t need pre-departure COVID testing, making the insurance unnecessary for Americans.
Some nations have blanket standards for coverage. Cuba compels U.S. airlines traveling from the U.S. to pay for each passenger’s health insurance. Every foreign tourist entering Saudi Arabia has government-supplied travel medical insurance for emergencies.
Read Also: Is Travel Insurance Worth the Cost? A Comprehensive Guide
When Is Travel Insurance Not Necessary?
Suppose you’re on a short trip in your own country and have appropriate health insurance. In such situation, you might not need travel insurance, according to Jason Eckhoff, founder and CEO of the BusinessClass.com travel website, as reported to Investopedia via email.
In addition, if you’re taking a trip with refundable costs—such as airfare—and can cancel it without being financially punished, then travel insurance may not be essential.
You may not need travel insurance if your credit card offers substantial perks. Travel credit cards and other credit cards may give the following coverages:
-
Trip cancellation insurance
-
Trip delay reimbursement
-
Emergency evacuation and transportation
-
Accidental death and dismemberment
-
Lost or delayed luggage refund
-
Auto damage waivers
-
Roadside emergency help
However, Jiten Puri, founder and CEO of insurance marketplace PolicyAdvisor.com, cautioned that this coverage can be restricted, such as offering only basic medical treatment or not covering trip cancellation or interruption.
When Is Travel Insurance Worth It?
David Leiter, creator of The World Travel Guy blog, said it’s typically a good idea to obtain travel insurance with adequate coverages if you’re:
Taking an expensive trip with nonrefundable charges
Traveling internationally
Visiting a rural region without simple access to medical care
Eckhoff recommends considering obtaining travel insurance if you:
Have a previous medical condition, as long as the coverage covers your needs
Are visiting a nation affected by political instability, natural catastrophes, or health hazards
Participate in higher-risk activities, increasing the risks of being hurt or ill
In addition to the above, the U.S. Centers for Disease Control and Prevention (CDC) suggests getting additional travel health insurance if you’re traveling for more than six months.
Tove Svendson 
Travel insurance might give financial protection if you cancel an expensive, nonrefundable vacation for an acceptable cause. Travel insurance can also cover your medical expenditures if you have a medical emergency while abroad. However, occasionally you can get away with not purchasing it.
“Ultimately, the decision to purchase travel insurance should be based on your individual circumstances, including your destination, planned activities, health condition, and financial situation,” Rajeev Shrivastava, founder and CEO of insurance marketplace VisitorsCoverage, told Investopedia via email.
What Does Travel Insurance Cover?
Travel insurance coverage generally cover these five financial and health risks:
Trip Cancellations, Interruptions, and Delays
Illness, the death of a traveler’s family member, terrible weather, job loss, or a natural catastrophe are a few conditions that could trigger reimbursement of prepaid travel expenditures, such as aircraft tickets or emergency expenses. However, only causes listed by the insurance contract are covered, so evaluate exclusions.
Luggage and Rental Car Damage or Loss
A travel insurance coverage could cover lost, stolen, or damaged luggage, personal possessions, or motor rentals. In certain situations, the coverage can include repayment of expenditures (such as clothes) you needed to buy since you didn’t have your luggage. An car rental damage waiver covers a rented vehicle’s damage or theft.
Travel Health Insurance
Travel insurance kicks in for medical or dental emergencies when your usual U.S. health insurance doesn’t apply. Remember that even if a country offers a low-cost or free nationalized health system, you’ll pay out of pocket if you are not a citizen.
What Does Travel Insurance Not Cover?
A regular travel insurance policy won’t cover some cancelation reasons. For example, a normal travel insurance policy won’t give coverage if you decide to back out of a trip because you need to cut back on spending. You would need to acquire “cancel for any reason” (CFAR) coverage. Even CFAR has its own regulations, such as canceling within a particular time window.
Other losses that standard travel insurance may or may not cover include:
Costs linked with previous health disorders, pregnancy difficulties, or mental health issues
Injury expenses after participating in higher-risk sports such as rock climbing or skydiving
Trip disruption, cancellation, or other losses due to health and disease epidemics or natural catastrophes
Cancellations due to terrorism, civil upheaval, or any U.S. State Department warnings
Ask the insurer about exclusions to find out which exclusions apply, or study documents. You may be able to locate vacation health insurance coverage that won’t exclude your mountain-climbing injuries, for example.
Which Countries Require Travel Insurance?
Many nations don’t require travel or health insurance now that the COVID-19 epidemic is in retreat. However, future disease outbreaks can modify needs. Check the U.S. State Department’s website and destination government sites for the most recent information on health standards and suggestions.
For example, Thailand still requires tourists to carry $10,000 in travel medical insurance if they’re coming from a nation with pre-departure COVID testing. However, the United States doesn’t need pre-departure COVID testing, making the insurance unnecessary for Americans.
Some nations have blanket standards for coverage. Cuba compels U.S. airlines traveling from the U.S. to pay for each passenger’s health insurance. Every foreign tourist entering Saudi Arabia has government-supplied travel medical insurance for emergencies.
Read Also: Is Travel Insurance Worth the Cost? A Comprehensive Guide
When Is Travel Insurance Not Necessary?
Suppose you’re on a short trip in your own country and have appropriate health insurance. In such situation, you might not need travel insurance, according to Jason Eckhoff, founder and CEO of the BusinessClass.com travel website, as reported to Investopedia via email.
In addition, if you’re taking a trip with refundable costs—such as airfare—and can cancel it without being financially punished, then travel insurance may not be essential.
You may not need travel insurance if your credit card offers substantial perks. Travel credit cards and other credit cards may give the following coverages:
Trip cancellation insurance
Trip delay reimbursement
Emergency evacuation and transportation
Accidental death and dismemberment
Lost or delayed luggage refund
Auto damage waivers
Roadside emergency help
However, Jiten Puri, founder and CEO of insurance marketplace PolicyAdvisor.com, cautioned that this coverage can be restricted, such as offering only basic medical treatment or not covering trip cancellation or interruption.
When Is Travel Insurance Worth It?
David Leiter, creator of The World Travel Guy blog, said it’s typically a good idea to obtain travel insurance with adequate coverages if you’re:
Taking an expensive trip with nonrefundable charges
Traveling internationally
Visiting a rural region without simple access to medical care
Eckhoff recommends considering obtaining travel insurance if you:
Have a previous medical condition, as long as the coverage covers your needs
Are visiting a nation affected by political instability, natural catastrophes, or health hazards
Participate in higher-risk activities, increasing the risks of being hurt or ill
In addition to the above, the U.S. Centers for Disease Control and Prevention (CDC) suggests getting additional travel health insurance if you’re traveling for more than six months.