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Travel insurance

Travel insurance is coverage for unforeseen risks and losses while traveling. Depending on the policy, it provides financial protection in such cases as

  • lost or stolen luggage;
  • emergency medical expenses (treatment and/or evacuation services);
  • flight delays, cancellations, and other travel or accommodation disruptions;
  • canceling or delaying the trip (a so-called cancel-for-any-reason or CFAR);
  • rental car damage or loss while on a trip;
  • accidental damage to a vacation rental property; and so on.

Travel insurance usually doesn’t cover 

  • injuries incurred during extreme sports, illegal/dangerous activities, or alcohol/drug use; 
  • travel to high-risk destinations; 
  • fear of flying; 
  • pre-existing conditions; 
  • known storms, epidemics, and acts of war;
  • routine dental care;
  • psychological care, etc.

The cost of travel insurance varies depending on multiple factors such as trip destination and duration, coverage included in the package, traveler’s age, level of risk, and so on. On average, the insurance can cost from 4 to 8 percent of a trip’s price.

Travelers can buy insurance from travel agents, travel suppliers (e.g., airlines, cruise lines), insurance companies, or insurance brokers. Besides, some credit card companies include travel insurance in their packages.

Some of the popular global travel insurance providers are Allianz Travel, AXA, AIG, Trawick International, etc.