Travel Insurance Basics: What It Covers and Questions to Ask
Travel insurance can pay you back for a canceled trip or help with medical bills far from home. But policies vary a lot, and some common situations aren’t covered. Here’s a plain-English look based on consumer guidance from the National Association of Insurance Commissioners (NAIC), the group of state insurance regulators.
The Main Types of Coverage
- Trip cancellation, interruption or delay: Repays prepaid costs if you cancel or cut a trip short for a covered reason, such as illness, a family member’s hospital stay or severe weather.
- Travel medical: Pays for short-term care if you get sick or hurt while traveling. Ask whether you need the insurer’s approval before getting treatment.
- Medical evacuation: Pays to get you to a suitable hospital and, if needed, home.
- Baggage and personal items: Covers luggage that’s lost or delayed.
- Accidental death and dismemberment: Pays a set benefit after a serious accident on the trip.
“Cancel for Any Reason” Coverage
This add-on lets you cancel for any reason at all, but it costs more. It usually has to be bought within a set time after you book, typically repays only part of your costs, and generally requires you to insure all of your prepaid, nonrefundable trip expenses.
What’s Often Not Covered
- Pre-existing health conditions
- Pandemics
- Civil or political unrest at your destination
- Risky activities, such as bungee jumping or backcountry skiing
- Storms that were already named when you bought the policy
Check What You Already Have
Some credit cards include trip cancellation or lost-baggage coverage, so read your card’s benefits first. Your health plan may not cover you outside the country, so call and ask. If you have Medicare, see our guide to whether Medicare covers you when you travel abroad.
Questions to Ask Before You Buy
- What exactly counts as a covered reason to cancel?
- Are my health conditions excluded? Is there any way to have them covered?
- Do I need approval before I see a doctor or go to a hospital?
- What are the limits for medical care and evacuation?
- How do I file a claim, and what paperwork will I need?
Cost and Timing
As of June 2026, the NAIC says policies usually cost 5% to 10% of the total trip price, depending on what’s covered, the season, your destination and your age. Buying early can help. Your state insurance department can answer questions and confirm that a company or agent is licensed in your state.
This is general information, not insurance advice. Policies and state rules differ, so read the full policy before you buy.
More on Seniors Tips
- Does Medicare Cover You When You Travel Abroad?
- Airport Security With Medications and Medical Devices: A Calm Guide
