Travel insurance is a temporary policy used to insure travel-related risks such as trip cancellation, trip interruption, lost baggage, medical emergencies, and more. Travel insurance policies can be purchased easily online, and are generally issued via email.
Every traveler should at least consider travel insurance so they are informed and aware of their risks while traveling, and solutions to insure against these risks.
What is travel insurance?
Travel insurance is the general term for an insurance policy, which can be purchased for the length of your trip, that covers travel-related risks such as:
- Trip Cancellation
- Baggage loss, theft, or damage
- Medical emergencies
- Dental emergencies
- Emergency evacuations
- Baggage delays
- Travel delay
- Accidental death coverage and more, depending on the company.
The essential purpose of a travel insurance policy is to cover unexpected financial losses while traveling. You have homeowners insurance to cover home-related financial losses, and auto insurance to cover car-related financial losses. The same holds true for travel insurance.
There are a variety of situations you can encounter while traveling that result in financial loss, from an unexpected trip to the hospital with a sprained ankle to a digital camera snatched by a thief.
For example: You have been planning an African safari for over a year, but a week before you leave your husband becomes ill and is unable to travel. Canceling your trip at the last minute could result in lost airfare, tour expenses, or lodging costs. For a trip like this, it could easily total $10,000.
What are the different types of travel insurance?
Travel insurance can include a wide variety of insurance products, from the general purpose package policy to a specialized coverage policy. Insurance companies have designed specialized policies for several types of trips, and for several types of traveler. Here are a few examples:
Package Policy, aka Travel Insurance - This is the most common type, and covers trip cancellation, trip interruption, lost/stolen/damaged baggage, emergency medical treatment, medical evacuation, missed flights, and delayed baggage. Some package policies have additional coverage for damaged rental cars, identity theft, flight accident coverage, and more.
This type of insurance covers most travelers' needs, and is a good overall plan. It includes comprehensive coverage for the full variety of risks. The following plans are more specialized, usually focusing on 1 or a few specific coverages.
Travel Medical - This is a temporary medical insurance policy for those traveling abroad. This type of plan typically does not include trip cancellation, delayed flights, baggage, and the other coverage seen above in the Package Plan. Travel medical policies are intended for medical emergencies and medical evacuations. This type of plan is for travelers staying abroad for extended periods of time and have the need for medical insurance. It is also purchased by travelers who are fairly certain they do not need the other coverages, and simply need medical coverage while overseas.
Multi-Trip Annual - These policies provide annual medical coverage for multiple trips throughout the year. It is typically used by a traveler who will be abroad several times a year, and does not need the trip cancellation, baggage, and other basic coverages of a package policy. Annual policies usually have a trip length restriction of either 15, 30 or 70 days. Furthermore, some annual plans include coverage for evacuation, flight, accidental death, limited baggage, and trip interruption (but it's no substitution for a package plan)
Business Package Policy - These policies are designed for individual business travelers, or even companies with traveling employees. These policies provide coverage for multiple business trips throughout the year or a single business trip. They typically offer coverage similar to a package plan, but they can also provide for baggage and business-related items including the costs of trade shows and business conferences as well as the expense of lost, stolen and /or damaged laptops, cell phones and booth exhibits.
Medical Evacuation - These specialized policies provide protection for travelers in the event they become seriously ill or injured while traveling, and need to be transported to the nearest appropriate care facility or, on some plans, to your hospital of choice. The expense of moving an injured person can be quite high, which accounts for the use of a medical evacuation policy. They can also include coverage for repatriation of mortal remains.
Major Medical -These are designed for travelers who are going abroad for a longer period of time, usually at least 6 months, and require more permanent insurance. These plans provide comprehensive medical protection including emergency medical treatment, wellness care and optional prescription drug coverage. It is designed to replicate the coverage you receive at home. Like most major medical policies, these plans contain both in and out of network coverage, deductibles and co-payments and have the added travel benefits of accidental death and emergency medical evacuation protection.
Flight Accident - These policies are designed for travelers going on a single trip, and it provides coverage for flight accident insurance which is a form of accidental death coverage while flying (see below).
Accidental Death - AD & D policies (Accidental Death & Dismemberment) are designed for travelers going on a single trip, or can be written on an annual basis for individuals, businesses or groups. These policies provide protection in the event of a loss of life, or a dismemberment injury sustained while traveling.
Who needs travel insurance?
As you see from the variety of policy types listed above, there is a travel insurance plan for every type of trip and traveler. But, who really needs to purchase travel insurance?
For 90% of travelers, you can start with two important questions:
- Can you afford to lose your non-refundable trip expenses in the event of a loss?
- If you are leaving your home country, does your medical insurance follow you?
Answering the two questions above will provide a good starting point to determine if you need travel insurance for your next trip. Even though there are many aspects to deciding if you need trip insurance, the answers to these two questions can help guide you to the right decision.
1. Can you afford to lose your non-refundable trip expenses in the event of a loss?
If you answered "No", you should consider trip cancellation/interruption coverage, available with a package plan. Even though there are several "side benefits" to a package plan such as coverage for lost baggage or identity theft protection, the primary expenses for your trip are airfare, hotel, and tour costs. If you are unable to take your trip, you are at risk of losing your pre-paid, non-refundable expenses.
2. If you are leaving your home country, does your medical insurance follow you?
If you answered "No" to this question, you should look into travel medical and emergency medical evacuation coverage, available both by itself or within a package policy. Most health insurance plans, including Medicare, don't cover you while traveling abroad. If you have a medical emergency like a broken leg or sudden illness, you will need medical care in a foreign country. A travel insurance plan with medical coverage would provide payment for medical treatment expenses and any evacuation expenses as well.
Both of the above situations are covered with a package policy, which is why these types of travel insurance plans are so popular.
What are the different travel insurance companies?
These are the major travel insurance companies; including providers of package policies, emergency evacuation plans, and travel medical plans. (Listed in alphabetical order)
Access America
Access America is the travel insurance brand of World Access Service Corp. Headquartered in Richmond, Virginia, World Access was founded in 1983 with a mission to provide access to American-style healthcare to those traveling abroad. Their product line features a variety of plans, including standard package plans, a "last minute trip" plan and rental car protection plan, and a medical evacuation only plan. They work with some of the best brands in the business like AAA, Orbitz, American Airlines, Delta Airlines, Disney Cruise Line, and Best Western.
AIG Travel Guard
With more than 20 years of industry experience, AIG Travel Guard is America's leading travel insurance plan provider. We specialize in providing innovative travel insurance, assistance and emergency travel service plans for millions of travelers and thousands of companies throughout the world. Our industry-leading, comprehensive travel insurance plans are distributed by more than 12,000 travel companies through virtually every distribution channel in the travel industry. AIG Travel Guard is a subsidiary of AIG Travel, Inc., a member company of American International Group, Inc.
American Express
When you insure your trip with Global Travel Shield, you get the added peace of mind of knowing you have first-rate insurance coverage that is offered by American Express Travel Related Services Company. American Express has been one of the world's most trusted providers of travel services, with an enduring commitment to outstanding customer service.
CSA Travel Protection
CSA Travel Protection provides consumer-focused travel insurance, 24-hour emergency assistance services, and convenient concierge services. Since 1991, domestic and worldwide travelers have entrusted CSA to safeguard them against unexpected events. Whether you're traveling domestic or abroad, CSA protects your travel investment with exceptional customer service & product performance.
Global Alert!
Global Alert! offers two levels of travel protection allowing travelers to select the specific coverages, depending on needs. Their Preferred product provides Medical Expense/Emergency Assistance, Trip Cancellation and Interruption, Travel Delay, Baggage and Baggage Delay and Cancel For Any Reason Benefit. The Preferred Plus plan adds increased levels of protection and Rental Car Damage coverage.
Global Underwriters
Global Underwriters has become an industry leader in the development, administration, and marketing of international life and health insurance products. Their portfolio of international insurance plans provide peace of mind and security to thousands of travelers and international businesses.
The Diplomat series of international health insurance policies was custom designed to provide the benefits most important to international travelers at competitive prices. Beyond their exceptional medical coverage, they also provide generous benefits for medical evacuation, emergency reunion, and accidental death or dismemberment.
HTH Worldwide
HTH Worldwide applies expertise to bring innovative healthcare services and insurance to international travel, study and commerce. Each year hundreds of thousands of leisure and business travelers as well as international students and scholars protect themselves, their families and their travel plans with HTH. Their programs combine comprehensive, competitively priced insurance products with critical travel health information, security information and unique medical assistance services.
International Medical Group (IMG)
International Medical Group (IMG) is a worldwide leader in designing, distributing and administering global healthcare benefits. Their clients include international vacationers, business executives and consultants, missionary groups, expatriates, professional entertainers and athletes, government entities, schools and universities, professional marine captains and crew, and local and third country nationals.
M.H.Ross (Travel Insurance Services)
M.H. Ross Travel Insurance Services is pleased to bring you Enhanced Travel Protection. When you select M.H. Ross Travel Insurance Services as your travel insurance provider, you have a team of experienced specialists and technical experts in the travel industry working together to provide you with prompt and professional service. They strive to anticipate your needs and solve your problems before they occur.
MEDEX
For more than a quarter of a century, MEDEX has been dedicated to serving the needs of international travelers and expatriates. Over this span, MEDEX has grown to become a recognized leader in the travel assistance and international medical insurance marketplace. Operating from a centralized operations center in the United States, MEDEX has worldwide coverage, global medical assistance expertise, and an unsurpassed network of more than 350,000 providers... including its Physician Advisors, International Centers of Excellence, credentialed air ambulance resources, specialized security providers, and preferred provider organizations.
MedjetAssist
MedjetAssist is a privately held company, backed by a powerful and reputable investment team with strong ties to the world of aviation, finance, government, and real estate. In operation since 1991, MedjetAssist is responsible for more than 95,000 lives within its membership program and maintains a global presence with ICU-equipped air ambulance affiliates around the world. The program is backed by Lloyds of London.
MultiNational Underwriters
MultiNational Underwriters, Inc. (MNU) was established in 1998. It quickly became a recognized leader in the field of international health insurance, offering a complete portfolio of health and life insurance products to customers in over 130 countries. Sensing the increasing acceptance of the Internet as a medium for commercial transactions, MNU was among the first to make insurance products and services available via the World Wide Web. This innovation has continued to evolve and, at present, MNU customers can review coverage options, obtain quotes, purchase insurance and receive their insurance documents - all electronically, without human intervention, 24 hours a day. Today, many thousands of international insurance professionals host MNU's electronic tools on their websites, and this number continues to grow.
On Call International
On Call International is the premier travel assistance provider in North America. On duty for more than seven million North Americans traveling worldwide, On Call performs more emergency medical transportations within the leisure travel market than any other company in North America.
RBC Travel Protection
RBC Insurance is the insurance specialist of RBC Financial Group, one of North America's leading diversified financial services companies. Through RBC Travel Insurance Company, millions of travelers have benefited from trip cancellation, comprehensive medical and other protection for over 35 years. Our products are some of the most highly recognized and progressive in the travel insurance industry. We're also proud to offer you access to one of North America's largest and most experienced travel emergency assistance networks - guaranteeing 24/7 personal, multilingual service from anywhere in the world. In fact, we receive over 500 calls a day, every day of the year. And each day, we handle about 70 interventions, from all around the world, helping customers solve emergencies and get home safely.
Seven Corners
Seven Corners, Inc. began offering international medical insurance to the worldwide community in 1993. The company was founded by international insurance professionals with a strong commitment to customer service and a belief that the public deserved reliability when purchasing international insurance. Travel, whether it is domestic or international, brings with it a certain degree of risk. Regardless of where in the world you intend to venture, Seven Corners, Inc. will be there to support and assist you. From issuing ID Cards the same day to providing 24-hour multilingual assistance services, Seven Corners, Inc. is dedicated to the service and travels of our clientele.
Travel Insured International
Travel Insured Internationalis one of today's most recognized full service travel insurance companies, serving the traveling public since 1994. Our goal is to protect our customers with high quality products that meet their needs. Travel Insured customers travel with confidence knowing that we provide the very best customer service, 24 hours a day, every day, all year long. Today's traveler must be equipped with the finest travel protection whether traveling at home or abroad. The Worldwide Trip Protector program is our primary product that consists of a competitive package of benefits which includes trip cancellation/interruption/delay, baggage, emergency medical/evacuation/repatriation, optional flight accident, and pre-existing condition waiver. Travel Insured International provides a full range of services for its customers. Our proprietary agency management, premium accounting, policy issue, and claim systems are all integrated, which allows us to rapidly add new products and services, and manage claims. We support our distributors with a dedicated sales team, in-house marketing, and professional and courteous claims and customer service representatives.
Travelex
Travelex Insurance Services is a leading provider of retail travel insurance in North America. Travelex offers a variety of travel protection plans that provide comprehensive coverage to travelers through more than 7,000 independent travel agencies across the U.S., in airports and online. Our core protection plans are Travel Plus and TraveLite. Travel Plus is a comprehensive package offering the most popular features and benefits including trip cancellation/ interruption, bankruptcy and terrorism protection. It offers superior coverage levels for all-inclusive or FIT vacations. TraveLite offers comprehensive protection with lower benefit limits for the price-conscious traveler. Travel Health and Baggage is available through both Travel Plus and TraveLite, offering key protection at a lower cost. Travelex also offers Flight Plus and Annual Travel Protection Plans - which provide single and multi-trip coverage respectively, Wholesale Programs, Professional Liability (E & O) Coverage, Automatic Flight Insurance and the online ordering of Foreign Travel Cash through My Travel Wallet.
TravelSafe
TravelSafe Insurance, a division of the Chester Perfetto Agency, Inc. has become the gold standard in travel insurance products through innovation, experience and excellent customer service. Since 1971, we have marketed and administered the most comprehensive policies available in the industry and are leading the way in developing new solutions for the insurance needs of individuals and families throughout the United States and Canada. Our products are underwritten by the most reputable and respected insurance companies in the business. Whether you are traveling close to home or around the world, TravelSafe will provide the security and peace of mind you need to enjoy your trip.
TruTravel Insurance
Why do Americans purchase travel protection? According to the US Travel Insurance Association (UStiA): Peace of mind, protection against the unexpected, and concern over losing the financial investment in a trip. TruTravel Insurance's products address these three concerns. The portfolio of travel insurance and services products is designed to offer innovative coverage allowing travelers to buy the plan that fits their budget.
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