Travel insurance
Travel insurance covers listed financial risks tied to a planned trip, such as covered trip cancellation or interruption, lost baggage, travel medical costs, emergency evacuation, repatriation of remains or rental-vehicle damage. It pays only for the events the policy names, within stated limits and subject to exclusions, conditions, deductibles and state law.
Also called: trip insurance
Travel insurance is a bundle of separate benefits, and each one pays only when its own listed event happens. The NAIC Travel Insurance Model Act (opens in a new tab) defines it as insurance for "personal risks incident to planned travel," and your policy schedule shows which of those risks your plan includes and what each pays.
How an evacuation benefit pays
Emergency medical evacuation by air ambulance can cost between $20,000 and $200,000, depending on the location and the medical condition, according to the U.S. Department of State (opens in a new tab). Most regular health plans do not pay for special medical evacuation back to the United States, which can leave that bill with the traveler unless another benefit applies.
Here is how a bill at the top of that range would work under an example evacuation limit:
Hover or tap a row to highlight it.
| Item | Amount |
|---|---|
| Air ambulance bill | $200,000 |
| Emergency evacuation limit (example) | $200,000 |
| Deductible (example) | $0 |
| Paid by the insurer | $200,000 |
| Left for the traveler on the covered evacuation bill | $0 |
The arithmetic is $200,000 minus a $0 deductible, so the insurer pays the full bill. Excluded treatment, a companion's travel or any cost above the limit stays with the traveler. Without evacuation coverage, the traveler could owe the whole $200,000. The limit and deductible in this example are illustrations, so check the real figures on your benefits schedule.
Common benefits and what each changes
Benefits differ widely by policy, according to the Department of State (opens in a new tab):
- Trip cancellation reimburses covered, nonrefundable prepaid costs when a listed event keeps you from leaving, up to the policy's trip-cost limit.
- Trip interruption pays covered extra costs or unused prepaid costs when a trip that has started must be cut short.
- Travel delay may pay for meals, lodging or transport after a covered delay, after a waiting period and up to a daily or total limit.
- Baggage and personal effects cover loss, theft or damage, subject to a total limit, per-item limits and valuation rules.
- Travel medical coverage pays covered medical costs during the trip, subject to limits, deductibles, coinsurance and coordination rules.
- Emergency medical evacuation and repatriation of remains pay covered transport, often only with medical necessity and approval from the assistance provider.
- Rental-vehicle damage may cover damage to a rental car, subject to territory and vehicle-type conditions.
- Single-trip or annual multi-trip coverage covers one itinerary or several trips in a policy period.
- Primary or secondary coverage pays first or only after other insurance.
A cancellation fee waiver or a travel assistance service is not insurance under the NAIC model, so read carefully when a plan promises you can cancel for any reason.
Travel insurance and health insurance
Health insurance pays for covered medical care under its own network, territory and cost-sharing rules, and it generally does not cover trip cancellation, baggage, travel delay or repatriation. Travel medical insurance is narrower: it may cover emergency treatment abroad, evacuation and repatriation, but it can exclude routine care, pre-existing conditions, planned treatment and activities the policy does not list. Medicare and Medicaid do not pay for medical care outside the United States, according to the Department of State (opens in a new tab), so ask your health insurer what it covers abroad.
Where you see the term
Travel insurance usually comes as its own product, so you meet it in a travel-insurance quote, application, policy, certificate, confirmation or benefits schedule. It can also appear in a renewal notice for an annual plan, a claim letter or an explanation of benefits.
It is not a standard section of auto, homeowners, renters, life or business policies, although those can overlap with a trip. Auto insurance may cover some rental-car damage, and homeowners or renters insurance may cover belongings away from home, each under its own limits.
Connecticut and New York rules
In Connecticut, travel insurance is defined as coverage under an individual, group or master policy for trip or event cancellation or interruption, baggage loss, damage to accommodations or rental vehicles, or sickness, accident, disability or death during travel, under Conn. Gen. Stat. § 38a-398 (opens in a new tab). Selling it requires a limited-lines travel license, while a designated travel retailer may share general information, process applications and collect premiums, according to the Connecticut Insurance Department (opens in a new tab). A policy issued in Connecticut on or after October 1, 2021, cannot exclude coverage because the insured's spouse, child, dependent relative in the household or traveling companion dies by suicide, under Conn. Gen. Stat. § 38a-398a (opens in a new tab).
In New York, Insurance Law § 3452 (opens in a new tab) allows group travel policies covering trip cancellation, interruption, baggage and personal effects when limited to a specific trip. Cancellation and interruption triggers must be fortuitous and reasonably expected to cause the cancellation, benefits may reimburse only losses actually incurred, and "change of mind" coverage is not insurance, according to a DFS legal opinion (opens in a new tab).
Questions to ask an agent or insurer
- Which events trigger cancellation or interruption benefits, and which are excluded? Cancellation coverage is tied to listed events, not every reason for changing plans.
- What is the maximum payment, and is it per person, per trip, per item, per day or for the whole policy? Sublimits cap each reimbursement.
- Does the policy cover emergency treatment, evacuation and repatriation at every destination and for every planned activity? Health insurance may not cover care or evacuation abroad.
- How are pre-existing conditions handled, and is there a purchase deadline or notice requirement? Those rules can decide whether a medical cancellation or treatment claim is paid.
- Is this product insurance, a cancellation fee waiver, a travel assistance service or a mix? Waivers and assistance services give different rights than insurance.
Frequently asked questions
These come up when booking a trip and when something goes wrong on one.
Does travel insurance pay for any cancellation?
Usually no. A cancellation benefit pays when one of the policy's listed events causes the cancellation, and a change of mind generally does not qualify.
Is travel assistance the same as travel insurance?
No. Assistance services can arrange medical referrals, translation, emergency messages or reservations, but they are not insurance unless the contract transfers risk and promises payment for a covered event, according to the NAIC model act (opens in a new tab).
Will travel insurance pay full price for lost luggage?
Not always. Baggage coverage can carry a total limit, per-item limits, depreciation rules and documentation requirements, so keep receipts.
Who do I contact first if something happens during the trip?
The claim instructions name the contact, which may be the insurer, its assistance provider, the travel supplier or another insurer. Evacuation often requires the assistance provider's approval before transport.