Travel Insurance Tips for Your Next Trip

No matter how much forethought goes into planning for a trip, no one is immune from unexpected circumstances. Indeed, fear of flight delays and cancellations, medical and personal emergencies, and even geopolitical conflicts has helped fuel a 46% increase in spending on travel insurance by American travelers since 2019, according to the U.S. Travel Insurance Association (USTIA).¹

"It's critical to understand the array of risks you may encounter—and choose coverage that aligns with your plans," says Robert Gallagher, head of North America at Zurich Cover-More and president of the USTIA.

Here, Robert helps outline some insurance considerations for your next holiday.

• Check your coverage before takeoff: Not all policies are created equal. So-called named perils policies cover only specified events and hazards, while exclusion policies cover anything not specifically excluded. For example, the trip cancellation benefits of some plans cover only airfare, so if you've booked tours or other extras, you may want a more comprehensive policy that covers prepaid costs should your trip get canceled.
• Protect yourself after departure: Ensure your policy has trip interruption benefits, which can help recoup nonrefundable expenses if a trip is cut short due to illness or injury. Some policies even include concierge-style services to help rebook flights, along with other assistance.
• Don't neglect your health: You'll also want to check whether your regular health insurance policy provides coverage if you travel outside of the U.S. For example, Original Medicare typically won't cover medical expenses incurred abroad—and many countries such as Argentina require that visitors show proof of medical coverage or risk being turned away.
• Maximize credit card and third-party coverage: While many credit cards include travel benefits for damaged or lost luggage, they may exclude medical coverage for injuries resulting from adventure sports and other high-risk activities such as horseback riding or scuba diving. In addition, some cards may have limits on rental car coverage in foreign countries, meaning you may need to purchase the collision damage waiver you might typically decline when traveling within the U.S.

Above all, study the policy language in detail, as misunderstandings can potentially cost you time and money. "It's imperative that you familiarize yourself with the terms and conditions of a policy before you buy so you understand what's covered—and what's not," Robert says.