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How to Find the Best Travel Insurance

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Table of Contents

What travel insurance covers

How much does travel insurance cost, types of travel insurance, how to get travel insurance, what to look for in travel insurance, best travel insurance comparison sites, which insurance company is best for travel insurance, when to skip travel insurance, travel insurance, recapped.

Travel insurance can cover medical expenses, emergencies, trip interruptions, baggage, rental cars and more.

Cost is affected by trip length, pre-existing medical conditions, depth of coverage, your age and add-ons.

You can get it through credit cards or third-party companies, & can shop on travel insurance comparison sites.

Before buying, evaluate risks, know existing coverage, obtain quotes online and review policy details warily.

Skip it if you buy flexible airfare and hotels, already have coverage or only book refundable activities.

Booking travel always carries some degree of uncertainty. Travel insurance provides a safety net so you can step out with confidence. You may not need travel insurance for inexpensive trips, but it can provide a sense of security when you prepay for pricey reservations, a big international trip or travel during cold and flu season, which can be unpredictable.

According to insurance comparison site Squaremouth, travelers in 2023 spent an average of $403 for comprehensive coverage, compared to $96 for medical-only policies. Comprehensive plans typically cost between 5% and 10% of the insured trip cost.

Since that price tag is no small amount, it helps to know how to shop smart for travel insurance. Here's how to find the right travel insurance plan for you and your next adventure.

Depending on the type of coverage you’re looking for, the chart below will help you determine what to look for when selecting a policy:

Depending on the policy, travel insurance reimburses you or offers services when something goes awry. There’s even coverage for the worst-case scenario: if you die in an accident while traveling. Accidental death coverage pays your beneficiary a lump sum in that case.

Before you buy, take a little time to get familiar with different types of travel insurance products, how it’s priced, and what it covers and excludes. If you’re traveling during these uncertain times, you’ll want to make sure that the policy you select covers coronavirus-related emergencies. Usually, the more thorough the coverage, the more it will cost.

Travel insurance costs vary depending on:

Length and cost of the trip: The longer and more expensive the trip, the higher the policy cost.

Cost of local health care: High health-care costs in your destination can drive up the price of trip insurance.

Medical conditions you want covered: Conditions you already have will increase the cost of travel insurance coverage.

Amount and breadth of coverage: The more risks a policy covers, the more it will cost.

Your age: Generally the older you are, the higher the price.

Any optional supplement you add to your policy : Cancel For Any Reason , Interrupt For Any Reason and more.

Keep these factors in mind when considering different travel insurance options.

You’ll find a wide selection of travel protection plans when you shop for a policy.

Typically, travel insurance is sold as a package, known as a comprehensive plan, which includes a variety of coverage.

Here are seven of the most common types of travel insurance:

Travel medical insurance

These plans provide health insurance while you’re away from home. Although in some ways these policies work like traditional health plans, generally you cannot use travel health insurance for routine medical events. For example, a routine medical checkup is usually not covered. In addition, these policies often include limitations on coverage and exclusions for pre-existing conditions.

Although most travel insurance plans cover many recreational activities, such as skiing and horseback riding, they often exclude adventure sports, such as skydiving or parasailing, or competition in organized sporting events. You may need to buy a special travel policy designed for adventure or competitive sports.

International travel insurance

Most likely, your U.S.-based medical insurance will not work while you’re traveling internationally, and Medicare does not provide any coverage once you leave the United States outside of a few very specific exemptions. If you plan on traveling abroad, purchasing travel medical insurance could make a lot of sense.

» Learn more: Travel medical insurance: Emergency coverage while you travel internationally

Trip cancellation, interruption and delay

Trip cancellation coverage reimburses you for prepaid, nonrefundable expenses if the tour operator goes out of business or you have to cancel the trip for one of the covered reasons outlined in the policy, such as:

Your own illness.

The illness or death of a family member who’s not traveling with you.

Natural disasters.

Trip interruption insurance covers the nonrefundable cost of the unused portion of the trip if it is interrupted due to a reason outlined in the policy.

Trip delay coverage reimburses you for expenses such as lodging and meals if you’re delayed during a trip (e.g., your flight gets canceled due to weather ).

Many package policies cover all three. These policies are different from the cancellation waivers that cruise lines and tour operators offer, the Insurance Information Institute says. Waivers are cheap, ranging from $40 to $60, and often include restrictions. For example, according to the institute, waivers might not refund your money if you cancel immediately before departure. Waivers are technically not insurance policies.

Some companies offer additional layers of coverage at extra cost. “Cancel For Any Reason” coverage will reimburse a large part of the trip cost, no matter why you back out. And some companies let you pay extra to cover pre-existing conditions if you cancel for medical reasons.

Some insurers and comparison sites let you customize a policy by choosing types of coverage a la carte. For example, TravelInsurance.com is a comparison site that provides quotes from different providers.

Baggage and personal belongings

How does lost luggage insurance work? This coverage reimburses you for baggage and personal belongings that are lost, stolen or damaged during the trip. Some plans also reimburse you for extra expenses if you experience a baggage delay for more than a certain period, such as 12 hours.

Your renters or homeowners insurance may cover personal belongings while you are traveling. It’s best to review your homeowners insurance policy to determine the level of coverage it provides so you do not end up paying for a benefit you already have.

» Learn more: Baggage insurance explained

Emergency medical assistance, evacuation and repatriation

This coverage pays medical expenses if you get sick or injured on a trip . Medical evacuation coverage pays for transporting you to the nearest hospital, and medical repatriation pays for flying you to your home country.

» Learn more: Can I get travel insurance for pre-existing medical conditions?

24-hour assistance

This service is included with many package plans. The insurer provides a 24-hour hotline that you can call when you need help, such as booking a flight after a missed connection, finding lost luggage, or locating a doctor or lawyer.

Generally, travel insurance companies do not cover sports or any activity that can be deemed risky. If you’re thinking of incorporating adventurous activities into your vacation, choose a plan that includes adventure sports coverage.

Most travel insurers cover a wide array of services, but the specific options vary. Some plans include concierge services, providing help with restaurant referrals, tee time reservations and more. Many services also offer information before the trip, such as required vaccinations. The only way to know what’s included is to read the policy.

» Learn more: Should you insure your cruise?

Accidental death and dismemberment insurance

This coverage pays a lump sum to your beneficiary, such as a family member, if you die in an accident while on the trip. Accidental death and dismemberment insurance policies also pay a portion of the sum to you if you lose a hand, foot, limb, eyesight, speech or hearing. Some plans apply only to accidental death in a plane.

This coverage may be duplicative if you already have sufficient life insurance, which pays out whether you die in an accident or from an illness. You may also already have accidental death and dismemberment insurance through work, so it's best to check your policies to ensure you’re not overpaying.

» Learn more: NerdWallet's guide to life insurance

Rental car coverage

Rental car insurance pays for repairing your rental car if it’s damaged in a wreck, by vandals or in a natural disaster. The coverage doesn't include liability insurance, which pays for damage to other vehicles or for the medical treatment of others if you cause an accident and are held responsible.

Ask your car insurance company whether your policy will cover you when renting cars on the trip. U.S. car insurance policies generally don’t cover you when driving in other countries, except Canada.

Car insurance requirements are complex because they vary among countries. You can usually purchase liability insurance from the rental car company. Learn about car insurance requirements by searching for auto insurance by country on the U.S. Embassy website .

» Learn more: Best credit cards for rental car coverage

A note about single vs. long-term policies

Single trip insurance plans are a great option for those going on a single trip for a specific length of time (e.g., a two-week vacation) and then returning home. The price of the policy is usually determined by the cost of the trip.

Long-term travel policies cover you for multiple trips, but there are limitations to how long you can be away from home, if you can return home during your travels and how many trips you can take. In addition, trip cancellation and interruption coverage is either not offered or capped at a dollar amount that can be significantly below the total cost of all the trips taken during the covered period.

Long-term travel insurance plans — often called 'multi-trip' or 'annual travel insurance' — are a suitable option for those who travel often and are satisfied with the amount of trip cancellation coverage for all the trips they take over the duration of the policy.

» Learn more: How annual (multi-trip) travel insurance works

Below, we include how to obtain travel insurance, along with the pros and cons of each option.

Some credit cards offer trip cancellation and rental car insurance if you use the card to book the trip or car.

When you book a trip with your credit card, depending on the card you use, you may already receive trip cancellation and interruption coverage.

» Learn more: 10 credit cards that provide travel insurance

Here are a handful of credit cards with travel insurance benefits.

on Chase's website

on American Express' website

• Trip delay: Up to $500 per ticket for delays more than 12 hours.

• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.

• Baggage delay: Up to $100 per day for five days.

• Lost luggage: Up to $3,000 per passenger.

• Travel accident: Up to $500,000.

• Rental car insurance: Up to $75,000.

• Trip delay: Up to $500 per ticket for delays more than 6 hours.

• Travel accident: Up to $1 million.

• Rental car insurance: Up to the actual cash value of the car.

• Trip delay: Up to $500 per trip for delays more than 6 hours.

• Trip cancellation: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

• Trip interruption: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.

Terms apply.

Pros: Coverage is free.

Cons: You can’t customize the insurance to meet your needs. Most credit cards offer secondary car rental insurance, which pays for the costs not covered by your regular car insurance plan.

Travel agents and travel reservation sites

You can buy travel insurance when you book your flight, hotel and car rental.

Pros: Buying is as quick and easy as clicking “yes” when you book reservations. Coverage is inexpensive.

Cons: You can’t customize the coverage.

» Learn more: Airline travel insurance vs. independent travel insurance

Travel insurance comparison sites

You can compare different policies and review quotes at once based on the trip search criteria you’ve input into the search form. Examples include marketplaces like Squaremouth or TravelInsurance.com.

Pros: You can choose a policy that fits your needs and compare policies and pricing in one place.

Cons: Comparing multiple policies takes time.

Travel insurance companies

You can purchase travel insurance directly from an insurance provider.

Pros: You can choose a policy that fits your needs. Many travel insurer websites also offer information to help you understand the coverage.

Cons: You’ll need to go to multiple websites to compare coverage and pricing.

» Learn more: The best travel insurance companies right now

Keep these tips in mind when you’re considering a trip insurance policy.

Evaluate the financial risks you face when traveling. Can you bear those costs yourself, or do you want insurance?

Examine what coverage you already have: Does your credit card offer travel insurance? Do you have renters or homeowners insurance to cover belongings? What is the deductible? Will your health plan cover you in all the locations where you travel?

Get quotes for trip insurance online. Choose a package of the benefits you need and compare prices for similar coverage among carriers.

Narrow your choices and then read the policy fine print to understand what’s covered, what’s excluded and the limits on coverage. You may find that the lowest-priced policy is too restrictive and that paying a little more gets you the coverage you need. Or you might find that the cheapest, most basic policy fits the bill.

If you don’t know which provider to go with, it makes sense to browse a list of plans on a travel insurance comparison site. These online marketplaces will often include plans from the best travel insurance companies along with customer reviews.

Squaremouth

Compare plans from more than 30 providers.

Over 86,000 customer reviews of insurers.

Under its Zero Complaint Guarantee, Squaremouth (a NerdWallet partner) will remove a provider if any customer complaint isn't resolved to its satisfaction.

Has a filter option to see policies that provide COVID-coverage.

TravelInsurance.com

Compare plans from 13 providers.

See good and poor customer ratings and reviews for each insurer when you receive quotes.

“Learning Center” includes travel insurance articles and travel tips, including important how-to information.

Quotes provided from each provider include a link to COVID-19 FAQs, making it easy for customers to review what’s covered or not.

InsureMyTrip

Compare plans from more than two dozen providers.

More than 70,000 customer reviews.

“Anytime Advocates” help customers navigate the claim process and will work on behalf of the customer to help with appealing a denied claim.

Includes a link to plans that offer COVID coverage.

Compare plans from 11 providers.

Search coverage by sporting activity, including ground, air and water sports.

Many types of plans available for students, visiting family members, new immigrants, those seeking COVID quarantine coverage and more.

Compare different insurance plans from 35 providers.

Over 5,600 customer reviews on Trustpilot, with an average 4.9 stars out of five.

Formerly known as AardvarkCompare, AARDY includes a “Travel Insurance 101” learning center to help customers understand various policies and benefits.

Quote search results page includes COVID-coverage highlighted in a different color to make it easier for customers to review related limits.

Whether you’re looking for an international travel insurance plan, emergency medical care, COVID coverage or a policy that includes extreme sports, these providers have you covered.

Our full analysis and more details about each organization can be found here: The Best Travel Insurance Companies Today .

Allianz Global Assistance .

Travel Guard by AIG .

USI Affinity Travel Insurance Services .

Travel Insured International .

World Nomads .

Berkshire Hathaway Travel Protection .

Travelex Insurance Services .

Seven Corners .

AXA Assistance USA .

There are a few scenarios when spending extra on travel insurance doesn't really make sense, like:

You booked flexible airline tickets.

Your hotel room has a good cancellation policy.

It's already included in your credit card.

You haven't booked any nonrefundable activities.

» Learn more: When you don't need travel insurance

Yes, especially for nonrefundable trips and travel during the COVID-era. Whether you purchase a comprehensive travel insurance policy or have travel insurance from your credit card, you shouldn't travel without having some sort of travel protection in place to safeguard you and your trip. Travel insurance can protect you in case of an unexpected emergency such as a canceled flight due to weather, a medical event that requires hospitalization, lost luggage and more.

There are many good travel insurance policies out there and a policy that may be great for you may not be good for someone else. Selecting the best plan depends on what coverage you would like and your trip details.

For example, World Nomads offers a comprehensive travel insurance policy that has excellent coverage for adventure sports. Allianz provides coverage for trips of varying lengths of time through its single trip plans and multi-trip plans. Some providers offer add-on options like Cancel For Any Reason travel insurance. If you’re not sure which plan to go with, consider looking at trip insurance comparison sites like Squaremouth or Insuremytrip.

Yes, you can. However, it's better to purchase it sooner rather than later, ideally right after booking your trip because the benefits begin as soon as you purchase a policy.

Let’s say you’re going on a trip in a month and a week before departure, you fall and break your leg. If you’ve purchased a travel insurance policy, you can use your trip cancellation benefits to get your nonrefundable deposit back.

Most comprehensive travel insurance plans offer trip cancellation, trip interruption, emergency medical and dental, medical evacuation, trip delay and lost luggage coverage. Many plans offer COVID coverage, but you’ll always want to check to ensure that the policy you choose provides that benefit if you’re traveling during these times. Some plans may also allow you to add features like Cancel For Any Reason travel insurance.

It depends which credit card you have. Premium travel cards like the Chase Sapphire Reserve® and The Platinum Card® from American Express offer travel insurance benefits if you book a trip using your card or points.

However, the coverage provided by the credit cards is usually lower than if you purchased a standalone policy. Review the travel insurance benefits on your credit card and check that the limits are adequate before foregoing from purchasing a separate plan.

Let’s say you’re going on a trip in a month and a week before departure, you fall and break your leg. If you’ve purchased a travel insurance policy, you can use your

trip cancellation benefits

to get your nonrefundable deposit back.

It depends which credit card you have. Premium travel cards like the

Chase Sapphire Reserve®

The Platinum Card® from American Express

offer travel insurance benefits if you book a trip using your card or points.

Unpredictability is one of the mind-opening joys of travel, but travel insurance should contain no surprises. The time you spend to understand your options will be well worth the peace of mind as you embark on your next adventure.

Whether you’re seeking a single or a long-term policy, each travel insurance option offers different strengths and weaknesses. Choosing the right policy depends on your trip needs, your budget and how important various benefits are to you.

Keep reading

If you want to dig in deeper to world of travel insurance, these resources will point you in the right direction.

What is travel insurance?

How much is travel insurance?

Is travel insurance worth it?

What does travel insurance cover?

Does travel insurance cover COVID?

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

50,000 Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

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Is travel insurance worth it?

The right policy can protect your wallet, your belongings and your peace of mind..

Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.

You might have planned your next vacation, but consider travel insurance before you start packing. A comprehensive policy can protect you if the unexpected happens before or during your trip.

"Travel insurance is often an overlooked investment until the unforeseen happens," says Beth Godlin, president of Aon Affinity Travel Practice . "It's designed to give travelers peace of mind and financial protection against travel risks."

A policy doesn't have to be expensive, according to Godlin, and it can add a layer of protection and security.

Getting travel insurance

How do i get travel insurance, what does travel insurance cover, how much does travel insurance cost.

• Bottom line

There are many options in the travel insurance marketplace: Aggregator site Squaremouth lets you get price quotes from different carriers and, because it receives a commission from the insurance companies on its site, users aren't charged any additional fees.

Allianz has both single-trip and annual plans, with a Cancel For Any Reason (CFAR) policy that reimburses up to 80% of prepaid, non-refundable expenses — more than most similar plans on the market.

In addition to trip cancellation, Allianz's popular OneTrip Prime plan includes travel interruption, emergency medical care and emergency transportation. Children 17 and under are covered for free when traveling with a parent or grandparent.

AIG's Travel Guard® plans are great if you need to customize your coverage: The mid-range Travel Guard Preferred plan pays out 100% for trip cancellation and 150% for trip interruption, with up to $50,000 in coverage for medical expenses and up to $500,000 for emergency evacuation. There's even a payout of up to $1,000 if you miss your connection.

Travel Guard® Travel Insurance

The best way to estimate your costs is to request a quote

Policy highlights

Travel Guard offers a variety of plans to suit travel ranging from road trips to long cruises. For air travelers, Travel Guard can help assist with tracking baggage or covering lost or delayed baggage.

24/7 assistance available

If you're booking a trip with an aggregator site like Expedia , review the details of any travel policy that's offered. Plans are usually based on the elements of the trip (hotel, flight, rental car, etc.) and can differ every time you book.

Travel insurance typically costs between 4 and 10% of the overall price tag for your trip. The cost can vary:

• Plans with higher limits and more optional coverage cost more.
• A plan with a CFAR benefit can cost up to 40% more.
• Older travelers typically pay more because there's more of a likelihood of a claim being filed. 

Whichever plan you choose, read the fine print so you understand what you're paying for.

Travel insurance generally covers your expenses, your belongings and your well-being. When shopping for a policy, look for these benefits:

Trip cancellation

If your trip is canceled for a covered reason, a policy will often reimburse airline tickets, hotel rooms, rental cars, tours, cruises and other prepaid, non-refundable expenses. Covered situations can include illness or injury, the death of a family member or traveling companion, job loss, military deployment and even unplanned jury duty, according to Allianz's Daniel Durazo.

Cancellations can also be covered if a natural disaster, severe weather or airline strike prevents your carrier from getting you to your destination for at least 24 hours.

Cancel For Any Reason (CFAR) plans provide a lot more flexibility and typically reimburse 50% to 75% of your expenses. But they can bump up the cost by about 40%, said Durazo, and policyholders are still usually required to cancel no later than 48 hours before their scheduled departure. 

Trip delay 

Should you experience a hiccup in your plans, your policy can provide some relief: Food, lodging and local transportation are usually covered if a delay is due to severe weather, airline maintenance or civil unrest.

"For a traveler to be eligible, they must be delayed for the minimum amount of time listed on their policy," Squaremouth spokesperson Megan Moncrief said. "Some policies are very lenient and provide benefits for any length delay, while others list a length requirement — usually somewhere between three to 12 hours."

Daily payout limits range from $150 to $250 per traveler, Moncrief said, while the total policy limit can be anywhere from $500 to $2,000. Save any receipts to submit with your reimbursement claim.

Don't miss: The best credit cards with trip delay insurance

Trip interruption

Should you need to cut your trip short due to illness or injury, or if there's a family emergency back home, your policy may reimburse non-refundable expenses you forfeited.

It may also cover the cost of a one-way economy airline ticket home.

Baggage loss

Airlines are required to compensate passengers luggage lost in transit, but a travel insurance policy may have a higher benefit limit, and cover you if your bags, passport or other possessions are lost, damaged or stolen once you've gotten to your destination., The Platinum plan from AXA Assistance USA has a $3,000 benefit limit for lost luggage, well beyond the $1,700 that airlines are required to cover on international flights. AXA has offices in more than 50 countries, with multilingual operators available 24 hours a day to help reschedule flights, book hotels and make other arrangements.

AXA Assistance USA Travel Insurance

AXA Assistance USA offers several travel insurance policies that include travel interruption, trip cancellation, and the option of cancel for any reason (CFAR) coverage.

Travel insurance doesn't cover every loss: Cash is not reimbursable and many policies won't reimburse for expensive jewelry or heirloom items. Read your policy carefully to see what is included.

Medical expenses and emergency evacuation

If you travel within the U.S., your health insurance should cover any illness or injury you sustain. If you're traveling abroad, though, your plan may provide little or no coverage. The right travel insurance should cover doctors' fees and hospital bills, Durazo said. 

The provider can also help coordinate care and ensure you're at a medical facility that's up to U.S. standards.

An emergency medical evacuation can be a major expense, costing anywhere from $15,000 to over $200,000, Durazo added.

If you've spent money on nonrefundable airline tickets, tours and hotels, you could be at a loss if something goes awry. Travel insurance covers numerous scenarios, from a medical emergency to a tropical storm. It could be particularly useful if:

• You've spent a lot on prepaid, non-refundable expenses
• You're traveling internationally where your health insurance won't apply
• You're traveling to a remote area
• Your flight involves multiple connections or destinations

"When deciding if travel insurance is right for you, ask yourself how much you could stand to lose if you had to cancel at the last minute," said Godlin.

If you're not as concerned about risk, your credit card may offer built-in travel protection if you book with that card: Chase Sapphire Preferred® , Southwest Rapid Rewards® Plus Card and the  *American Express® Gold Card all come with trip cancellation and interruption coverage, among other benefits.

*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.

Please visit americanexpress.com/benefitsguide for more details.

Underwritten by New Hampshire Insurance Company, an AIG Company.

Chase Sapphire Reserve®

Earn 5X total points on flights and 10X total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025

Welcome bonus

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

Regular APR

22.49% - 29.49% variable

Balance transfer fee

5%, minimum $5

Foreign transaction fee

Credit needed.

Terms apply.

Read our Chase Sapphire Reserve® review.

Southwest Rapid Rewards® Plus Credit Card

Earn 2X points on Southwest® purchases, 2X points on local transit and commuting, including rideshare; 2X points on internet, cable and phone services; select streaming. 1X points on all other purchases

Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

21.49% - 28.49% variable

Foreign transaction fees

Excellent/Good

American Express® Gold Card

4X Membership Rewards® points at Restaurants (plus takeout and delivery in the U.S.) and at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X), 3X points on flights booked directly with airlines or on amextravel.com, 1X points on all other purchases

Earn 60,000 Membership Rewards® points after you spend $6,000 on eligible purchases with your new Card within the first 6 months of Card Membership.

Not applicable

See Pay Over Time APR

See rates and fees , terms apply.

Read our American Express® Gold Card review .

Research your card's travel benefits before making any purchases related to your trip.

Policies vary, but most comprehensive travel insurance plans cover travel cancellation and interruption, baggage loss, medical care and emergency transportation.

While the price for coverage varies, most policies cost between 4% and 10% of the trip's prepaid, non-refundable expenses.

When should I get travel insurance?

It's best to take out a policy within days of making your reservations.

Does travel insurance cover COVID-19?

If you contract COVID-19 before or on your trip, it may be covered by your policy's trip cancellation/interruption benefit . You'll likely have to confirm your test results with a diagnosis from a healthcare provider.

Bottom line 

Travel can be a wonderful experience, but it involves a lot of time, planning and money. Missing a single connection can have a cascade effect that impacts your flight, hotel room, dinner reservations and more. A good travel insurance policy can provide peace of mind so you can focus on your vacation.

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At CNBC Select, we work with experts with specialized knowledge and authority. For this story, we interviewed Beth Godlin, president of Aon, which provides custom travel insurance for tour operators, cruise lines, travel websites and others. We also spoke with former Squaremouth Megan Moncrief and Allianz communications director Daniel Durazo.

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12 Best Travel Insurance Policies and Why You Need Them

By Suzanne Rowan Kelleher

Condé Nast Traveler has partnered with CardRatings for our coverage of credit card products. Condé Nast Traveler and CardRatings may receive a commission from card issuers. We don't review or include all companies, or all available products. Moreover, the editorial content on this page was not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are entirely those of Condé Nast Traveler's editorial team.

You’ve purchased your flights and booked your hotel. Now, what about travel insurance? These days, it’s easy to add coverage to your trip, but what's the best travel insurance policy to buy? And is the extra cost always necessary?

When planning a trip, nobody loves imagining worst-case scenarios and everyone has a different risk tolerance. For a weekend road trip , you may be willing to cross your fingers and suck up your losses should something go awry. But what if you’re shelling out for a longer, more complex and more expensive trip? You’ll likely want peace of mind when your risk and financial investment are greater.

When do you need travel insurance?

There’s nothing like bad luck to turn you into an insurance evangelist. For travel writer Katherine Fan, the epiphany came after a thunderstorm disrupted her flight in Chicago . “My bags didn't make it to Italy for more than five days, and my travel insurance covered all the costs for replacement items as well as the alternative transportation I had to rebook because of the delay,” she says. “I'll never live without it now.”

In general, the older you are and the more remote your destination, the more crucial it is to buy travel insurance. Lou Desiderio, a communications executive from Long Island, New York, recalls the time his octogenarian father became ill during a European cruise , and doctors recommended that his parents return home immediately. His parents’ travel insurance covered the lion’s share of the $9,500 they subsequently racked up in medical costs, ground transportation, flights, hotel, and meals. “You always wonder if the cost of insurance is worth it,” says Desiderio. “In this instance, it was absolutely worth it.”

“Not all domestic health and medical insurance plans will follow you outside your home country,” says Justin Tysdal, CEO of Seven Corners , a travel insurance provider. “Something as simple as twisting your ankle in a foreign country may not be covered and could result in expensive medical bills.”

Simply having travel insurance can have side benefits, too. “One of the best hidden perks is the 24/7 global travel assistance provided by the plan,” says Stan Sandberg, CEO of TravelInsurance.com . The hotline can be helpful in dealing with a multitude of unexpected issues, from currency conversion or cash transfers to replacing passports or IDs to finding a local physician.

Where can you find a good policy?

Travel agencies, airlines, cruise lines, and tour operators often offer an optional insurance add-on, but these plans tend to have been run through the company’s legal team and contain more exclusions. Travel rewards credit cards also offer some built-in insurance benefits to their cardholders, like trip cancellation coverage, delayed baggage coverage, and trip interruption and delay coverage. But you’ll often be better served by a plan from a third-party insurer, which tend to offer more holistic plans.

The good news is that it has never been easier to buy exactly the type of travel insurance you need at a reasonable price. Most people buy comprehensive insurance for a single trip, but annual travel insurance plans that cover multiple trips in a one-year period are becoming more popular.

You can find some of the best travel insurance policies by visiting an insurance comparison site like TravelInsurance.com, InsureMyTrip.com or SquareMouth.com . Plug in your trip details and you’ll get instant quotes for multiple insurance plans that you can compare on price, coverage limitations, and other parameters. Be sure to read the policy details, as inclusions can vary from plan to plan but will end up making all the difference to your particular needs.

What’s it going to cost?

The cost of travel insurance depends on a variety of factors, including the price and length of the trip, your age, destination, and any optional add-ons. For your average domestic or international trip with flights and hotels , expect to pay anywhere from 3 to 7 percent of your trip’s cost, depending on inclusions.

So for a $2,000 trip, you might expect a typical comprehensive plan with trip cancellation, interruption, and delay, along with baggage loss and delay, and emergency medical coverage and evacuation to cost in the $100 ballpark. Some upgrades, like a “cancel for any reason” provision, will cost more.

When should you buy travel insurance?

Don’t procrastinate. “Some benefits and coverages are available only if you’ve purchased your policy within a short window, typically seven to 21 days from when you make the first payment towards your trip,” says Sandberg. Buy early and you may qualify for a pre-existing condition waiver or a ‘cancel for any reason’ upgrade.

It’s especially important not to delay buying travel insurance if you’re traveling to, say, the Caribbean during hurricane season. Once a major storm has been named, the window of opportunity slams shut, and you can no longer buy insurance for that hurricane. “If you purchase a policy after a storm is named, trip cancellation and trip interruption are excluded from coverage,” says Sandberg.

What’s not covered?

“Some people believe that a travel insurance plan is designed to give you the flexibility to cancel your trip for any reason whatsoever,” says Sandberg. “But the standard plan is not going to provide cancellation coverage for a change of heart or a relationship break-up or an outbreak of Zika in your destination.” If you need that flexibility, opt for the ‘cancel for any reason’ upgrade.

“As far as medical coverage, people often believe a travel insurance plan will cover preventative services such as immunizations and annual check-ups,” says Tysdal. “But travel insurance is intended to cover illnesses and injuries that originate during a trip, and that’s why it’s relatively inexpensive.” Be careful about overindulging, too. “If you injure yourself as a result of being intoxicated beyond a legal limit, your travel insurance policy will not likely cover you,” says Sandberg. Ditto for drug use.

How easy is it to file a claim?

“Documentation is key,” says Meghan Walch, product manager for InsureMyTrip. If luggage is lost or items are stolen, file a report with the airline or police. You may need to provide original receipts for the stolen items in order to receive reimbursement up to the policy limits.“ Also, be aware that baggage coverage only offers coverage up to a set amount,” says Walch. “So, if you are carrying, say, a fancy $3,000 Nikon or Canon camera , you’ll likely need to buy additional insurance elsewhere or cover it under a homeowner's policy.” Note, also, that many plans specifically exclude computers and electronics.

What about car rental insurance?

It’s often possible to add car rental insurance, also known as the Collision Damage Waiver (CDW), to a comprehensive travel insurance plan, which can save you from a serious headache should you get into an accident while driving. “But the biggest mistake people make when renting a car is to waste money on duplicate coverage,” says Jonathan Weinberg, CEO of AutoSlash , the car rental deal-finding site. “The reality is that if you own your own vehicle and have car insurance, you are likely already covered when renting in the U.S.”

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And if you don’t own a car? “Your credit card may also cover you when renting,” says Weinberg. “It's always important to check to be sure, but why pay again for coverage you already have?” Indeed, paying for your rental with the right travel rewards credit card might cover your collision insurance, with some policies covering damage up to the value of the car. Travel outside the U.S. and Canada , though, and it’s a different story. “Most personal auto insurance policies will not cover a claim for damage to a rental outside the U.S. or Canada,” says Weinberg. “Likewise, different credit cards have different exclusions when it comes to covering damage to a rental car in a foreign country.”

Types of travel insurance

Most travelers opt for a comprehensive plan, but you should know what each type of coverage does, so you’ll know if a package truly fits your needs. Here’s a brief rundown of the main types of coverage.

Trip protection

Often known simply as “travel insurance,” this type of comprehensive package is the most common purchase.

Commonly covers: Reimbursement for money spent on your trip due to cancellations, interruptions, and delays; medical expenses if you become sick or injured and, if necessary, emergency medical evacuation and repatriation; and coverage for your belongings if lost, stolen, damaged, or delayed.

How to get it: Compare plans at Square Mouth , Seven Corners , InsureMyTrip.com , and TravelInsurance.com

Trip cancellation

This benefit can reimburse 100 percent of your trip cost—flights, hotels, cruises, and pre-paid activities—if you need to cancel for a covered reason.

Commonly covers: Unforeseen illness or injury; the death of you, a family member, or a traveling companion; terrorism; inclement weather; natural disasters.

Fine print: Some policies also include other covered reasons, such as jury duty or an employment layoff.

Trip interruption

You’ll be reimbursed for your costs if your trip is interrupted for a covered reason. The payout may exceed the total trip cost if you need to incur additional expenses to return home, but some policies limit coverage to a return flight home.

How to get it: Signing up for travel rewards cards like the Chase Sapphire Reserve can automatically give you this coverage for all trips booked on the card.

Learn more about signing up for the Chase Sapphire Reserve here .

Cancel for any reason

This upgrade provides reimbursement for 50 to 75 percent of prepaid and non-refundable trip payments if you cancel a trip for any reason not otherwise covered by your policy.

Watch out: You’ll be required to insure your trip’s entire cost, which will typically increase your premium by roughly 40 percent.

Fine print: Typically available for purchase up to seven to 21 days from the date you make your initial trip deposit. You must cancel the entire trip at least two to three days before your departure date.

Travel delay

If your trip is unexpectedly delayed by a designated amount of time (typically three to 12 hours, depending on the policy), this benefit provides a per-diem dollar amount (typically $150 to $200) that can be used for meals, hotels, and other necessary expenses during the delay.

Commonly covers: Inclement weather and mechanical breakdowns of “common carriers,” meaning public transportation such as planes, trains, or buses.

How to get it: Signing up for travel rewards cards like the Chase Sapphire Reserve can automatically give you this coverage for all trips booked on the card that meet the requirements.

Missed connection

You’ll be reimbursed for additional costs for you to catch up to your trip if you miss your departure due to a common carrier delay of a specified amount of time. It's usually an added feature of larger insurance packages.

Commonly covers: Inclement weather and mechanical breakdowns of common carriers.

Watch out: Some policies only reimburse if you need to catch up to a cruise or tour. Since the wording typically specifies public transportation delays, you would be out of luck if you’re driving and miss your connection because you got caught in traffic.

Baggage and personal items loss

You’ll be covered for lost, stolen, or damaged luggage. Expect limits in both overall coverage and per-item coverage. It's included with many travel rewards credit card benefits.

Watch out: While most policies cover your personal belongings throughout the entire trip, some will only cover luggage while it is checked with an airline or transportation carrier.

Baggage delay

If your luggage is delayed for a specified period of time—typically 12 or 24 hours—this coverage will reimburse you for any clothing, toiletries, and other essential items you need to purchase. Expect a maximum coverage amount per person, as well as a daily limit. It's also included as a cardholder benefit with many travel credit cards.

Emergency medical coverage

This covers the costs to treat a medical emergency, including treatment, hospitalization, and medication. This type of coverage is highly recommended for international trips and cruises.

Watch out: You would pay for medical care out-of-pocket, and then file a claim for reimbursement when you return home. In certain situations, an insurer might pre-authorize payment of medical bills, but it is not guaranteed.

How to get it: Browse medical coverage plans at Seven Corners .

Emergency evacuation coverage

This coverage is for transportation to the nearest medical facility in the event of a medical emergency during your trip. It's usually an add-on to larger medical coverage.

Commonly covers: If the treating physician recommends that you should return home for further medical attention, this benefit can also cover those transportation expenses. In the case of a death, repatriation can transport a traveler’s remains back home. It's usually an add-on to a larger travel insurance policy.

Pre-existing medical conditions waiver

Most policies have built-in exclusions for pre-existing conditions. So if you’ve been seriously ill in the past or need ongoing treatment, consider looking for a plan that offers a pre-existing condition exclusion waiver.

Fine print: You’ll need to purchase the plan within a few weeks from the date you make your initial trip payment.

Hazardous/adventure sports coverage

Are you an adrenaline junkie? Adventure activities such as heli-skiing, off-trail snowboarding, bungee jumping, wakeboarding, Jet Skiing, spelunking, rock climbing, and scuba diving are almost always excluded from coverage in most travel insurance plans.

Fine print: You can buy coverage as an optional upgrade, which is an especially smart bet if you’re planning an adventure trip outside the United States.

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Buying Travel Insurance from a 3rd party company vs. through a Travel Agent

Many travelers like the idea of purchasing their travel and travel protection as a single purchase with one company; however, this convenience and perceived cost savings may come at a price.

The term ‘travel insurance’ is often used loosely by travel agents and it can be confusing to travelers who want to purchase travel insurance. These plans may be referred to as ‘benefit services’, ‘waiver plans’ or ‘travel protection’, but they are not 100% travel insurance.

4 Reasons to be wary of purchasing travel insurance from your travel agent

There are a number of reasons to be wary when offered a protection plan by your travel agent, including:

• Travel agents earn extra money by selling travel insurance, but they may only offer the travel insurance plans that earn the best commissions
• Travel agents may have only a few plans to offer from a limited number of travel insurance providers
• While some travel agencies have at least one agent that is licensed to sell travel insurance, many travel agents are not licensed insurance agents
• A travel agent’s protection plans may or may not be backed by a legitimate underwriter

Travelers purchasing a ‘travel protection plan’ may not be aware of the differences between a travel protection or waiver plan purchased through a travel agent and a travel insurance plan purchased through a licensed travel insurance agent.

Differences between purchasing from a 3rd party company vs. a travel agent

While some travel agencies combine forces with a licensed travel insurance agent, it’s important to be sure the plan you are purchasing is what you really need. One way travel insurance supports this is by providing a  free look period  (usually 10-15 days), which you can use to review the policy and be sure you have the coverage you need. During this period, you can also make changes to the coverage or cancel the coverage (for a small fee).

How to avoid purchasing a fake travel plan

• First, it’s important to understand that travel insurance is a state-regulated industry, so you’ll have legal protection when you purchase from a state-licensed agent. Real travel insurance companies are backed by regulated underwriters and are rated by A.M. Best, a worldwide insurance rating and information agency.
• Second, it’s important to shop around. This is true of any one-click-to-buy-now plan you find online. Taking the time to compare the benefits and prices for plans offered by your travel agent with the plans offered by independent travel insurance companies is simple with a comparison engine (see  How to Compare Quotes with a Travel Insurance Comparison Site ).
• Last, it’s important to read the policy carefully (this is also recommended of travel insurance plans) before you commit to buying it. Most travel insurance companies offer a free review period (typically 10-14 days) and allow you to cancel for a refund (usually your plan cost minus a small processing fee). Travel agent protection plans may not allow the same review period.

If you decide to purchase through your travel agent, be sure to ask who you are to call while on your trip if you run into trouble. All travel insurance plans have  24/7 worldwide assistance services  that can help travelers in a number of ways.

• Some plans offered by travel agents may not be 100% travel insurance and those plans don’t provide the same level of coverage
• 3rd party travel insurance companies have a number of plans that can be compared side-by-side with a  comparison engine

Related topics

• What is the buying process?
• How much does travel insurance cost?
• 9 Coverages that might surprise you

DamianTysdal

Damian Tysdal is the founder of CoverTrip, and is a licensed agent for travel insurance (MA 1883287). He believes travel insurance should be easier to understand, and started the first travel insurance blog in 2006.

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The Traveler’s Guide to Airline Travel Insurance in 2024

Last Updated: September 29, 2023 January 3, 2024

Travel insurance is now easier to purchase than ever before, and today’s travelers have many options to choose from when it comes to protecting their trips. In recent years, single trip travel insurance has increased in popularity and is now easier than ever to obtain. Now, many airlines offer travel insurance to passengers as part of their checkout process. 

Plans offered by commercial airlines can differ greatly from one company to the next. Below we dive into the world of airline travel insurance, and break down some of the best plans offered by popular carriers. 

Understanding Airline Travel Insurance

One of the biggest misconceptions is that  the airlines themselves  are insuring the trip. Instead, many airlines partner with prominent travel insurance providers to provide passengers with travel protection. 

The policies offered through these partnerships are often fairly comprehensive, and cover a lot of the common travel disruptions you may encounter on a trip. Common inclusions in airline travel insurance include coverage for: 

• Flight delays
• Trip cancellations
• Missed connections
• Lost luggage
• Emergency Medical
• Medical Evacuation

As with any type of insurance policy, it’s important to read the fine print of these plans to understand what they cover.

How Does Airline Travel Insurance Differ From Third Party Travel Insurance?

Purchasing third-party travel insurance, also referred to as independent travel insurance, involves shopping around on your own to find a trip protection plan. This could include going directly to a provider or visiting a comparison site like Squaremouth. 

Buying a policy through your airline will always be the quickest option as it only adds a couple of clicks to the checkout process. However, sometimes it pays, or saves, to look around. 

Some other things to consider when deciding where to purchase insurance include: 

• Options: Airlines usually only offer one option for their customers. Shopping around, travelers can explore more than 100 different plans from top providers. 
• Coverage: Travelers that want more or less coverage than what their airline offers have few options to modify their policy. Most providers offer customers multiple plans with varying degrees of coverage. 
• Cost: Pricing can vary quite dramatically for travel insurance, even when coverage is similar. Shopping around lets you evaluate what different providers are charging. 

Airlines That Offer Travel Insurance in 2024

Many of the major airlines that operate across the United States offer some form of travel protection to their passengers. These plans are often available for purchase during the checkout process as an optional add-on. Some airlines also offer the option to retroactively add trip protection to your trip after making a booking. 

Below is a breakdown of various airline travel insurance policies that are current at the time of publishing this article. 

Please note that this is not an exhaustive list of every airline that offers travel insurance.

Alaska Airlines Travel Insurance

Alaska Airlines’ travel insurance plan is offered through Allianz Global Assistance . When creating a quote on their site for trip protection, the following coverage was presented: 

• Trip Cancellation: 100% of Trip Costs
• Trip Interruption: 100% of Trip Costs 
• Emergency Medical:  $10,000
• Medical Evacuation: $50,000
• Travel Delay: $150 with a 6 hour minimum delay
• Baggage Delay : $100 when bags are delayed more than 24 hours
• Baggage and Personal Item Loss: $500

Expert Tips: 

Most third party travel insurance premiums range between 5-10% of a travelers total insured trip cost. The premium for this policy was above average, equating to more than 10% of the total trip cost included in the quote. The medical coverage does not meet Squaremouth’s international travel insurance recommendations for medical coverage of $50,000 in Emergency Medical coverage and $100,000 in Medical Evacuation coverage. 

American Airlines Travel Insurance

American Airlines offers travel insurance through a partnership Allianz Global Assistance. According to American Airlines’ official website , Allianz offers multiple options to passengers with varying degrees of coverage. 

When creating a quote for travel insurance through American Airlines for this article, we were presented six different plans, with an option as low as $22. The most comprehensive plan, called “Travel Insurance II” offered the following benefits: 

• Change Fee Coverage: $250
• Baggage Delay: $100 when bags are delayed more than 24 hours

The above benefits are consistent with a comprehensive policy. However, the cost of the policy offered was 11.5% of the total trip cost, much more than comparable plans found through a third-party site. The medical coverage also does not meet Squaremouth’s international travel insurance recommendations for medical coverage. 

Delta Travel Insurance

Similar to the majority of airlines, Delta’s trip protection is also offered through a partnership with Allianz Global Assistance. 

The following plan was offered when creating a quote for an international trip: 

Similar to American Airlines’, the plan offered equated to 11.5% of the total trip cost. In general, comprehensive policies will fall between 5-10% of a traveler’s total insured trip cost. Like other policies mentioned in this article,  the medical coverage also does not meet Squaremouth’s international travel insurance recommendations for medical coverage. 

Hawaiian Airlines Travel Insurance

Hawaiian Airlines is another carrier that offers its passengers Allianz Global Assistance trip protection. Similar to American Airlines, Hawaiian Airlines passengers have more than one policy to choose from. 

Their comprehensive policy, referred to as “Global Travel Protection,” featured the following benefits: 

The Hawaiian Airlines travel insurance policy that was displayed on the quote amounted to roughly 10% of the total trip cost used for the quote. The coverage lacked adequate medical coverage for most international trips. 

Southwest Airlines Travel Insurance

At the time of this article being published, Southwest does not offer travel insurance to its passengers. Travelers flying Southwest that want to protect their trip costs should consider using a third-party comparison site to compare policies from multiple providers. 

It’s important to note that Southwest does have a generous refund policy for travelers that no longer wish to travel. Under the policy, even nonrefundable tickets can be canceled in return for future flight credit. 

Spirit Airlines Travel Insurance

Unlike the majority of airlines in the United States, Spirit Airlines partners with Travel Guard to provide passengers with travel insurance. 

The following coverage was displayed when Squaremouth submitted a quote on Travel Guard’s website following a link on Spirit. 

• Trip Interruption: 125% of Trip Costs 
• Medical Evacuation: $20,000
• Travel Delay: $100 per day, $500 in total, with a 5 hour minimum delay
• Missed Connection: $500
• Baggage Delay: $500 when bags are delayed more than 24 hours
• Baggage and Personal Item Loss: $1,000

Compared to policies offered by other airlines, Spirit’s option provides travelers with more coverage for delays, cancellations, and lost luggage. With that said, the Medical Evacuation coverage is $30,000 less than most other carriers, and does not meet the recommended amount for international travel. 

The policy offered through Spirit is also one of the cheaper options, at under 10% of the total insured trip cost. 

United Airlines Travel Insurance

United is another airline that uses Travel Guard as its travel insurance partner. 

The following coverage was found when filling out a quote using links on United’s website: 

Coverage is almost identical to what’s offered by Spirit, but with slightly higher Medical Evacuation coverage. As with every other policy offered by airlines, there is still less-than-ideal medical coverage for international trips. 

How Much Does Airline Travel Insurance Cost?

From reviewing quotes from multiple airlines, the average comprehensive airline travel insurance policy will cost travelers anywhere from 9-12% of their total trip cost. Some airlines also offer less expensive options to passengers with less benefits and lower coverage.  The cost of airline travel insurance is high compared to third-party travel insurance. As a rule of thumb, most travel insurance policies will cost 5-10% of a trip’s total cost. Anything higher than that is considered expensive for travel insurance. 

Is Airline Travel Insurance Worth It in 2024?

Judging a policy’s worth depends on your specific situation. In reviewing policies for this article, Squaremouth found that policies offered by airlines generally cost more and offer less coverage compared to third-party travel insurance providers. 

However, you may find that the policies offered by your airline meet your needs as a traveler. In any case, Squaremouth would recommend shopping around and comparing plans from different providers before buying a policy directly through an airline. 

With little effort, you may find a cheaper policy that offers much more generous coverage. Many credit cards these days also provide travel protection as part of their benefits package to cardholders. If you have a travel card, we recommend assessing what coverage you already have before purchasing any additional coverage. 

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Personal Liability Insurance

International Personal Liability Insurance While Traveling

Before you leave for your next trip, one crucial consideration may be insurance that covers international personal liability. The benefit of personal liability is paid to cover expenses due to injury to a 3rd person or damage to that person’s property. For example, should you get into an accident where you are at fault for the above, the costs associated with that accident will be covered according to the policy terms and conditions.

Finding a travel medical policy that includes personal travel liability insurance is a challenge. It is an additional layer of risk for the underwriters and is hard to determine and, therefore, to put a price on.

What is Personal Liability Insurance

According to Wikipedia : “Liability insurance is designed to offer specific protection against third-party insurance claims, i.e., payment is not typically made to the insured, but rather to someone suffering a loss which is not a party to the insurance contract. In general, damage caused intentionally, as well as contractual liability, are not covered under liability insurance policies. When a claim is made, the insurance carrier has the duty (and right) to defend the insured. The legal costs of a defense typically do not affect policy limits unless the policy expressly states otherwise; this default rule is useful because defense costs tend to soar when cases go to trial.

Travel Insurance Plans that Include Personal Liability Benefits

Some providers that we work with include personal liability insurance. For a travel medical plan, I would recommend the Atlas Plan  ( Atlas – Free Quote ), which includes $10,000 of personal liability benefits with an option to add an additional amount of $90,000 (totaling $100,000 in liability coverage). Also, the Atlas plan provides the typical benefits you would expect in an international travel medical plan, including emergency medical, evacuation, etc.

• Emergency medical, evacuation, repatriation benefits
• Choose between the basic and more extensive coverage
• Meets Schengen visa insurance requirements
• 24/7 worldwide travel and emergency medical assistance

Another option for students : Patriot Exchange for International Study , which offers liability as an optional add-on to their standards plans.

Organizations, Companies or Non-Profits looking for Commercial Foreign General Liability for their international programs, see: International Commercial Liability Plans

Why Buy Personal Liability When Traveling

As with any insurance policy, the risks must be weighed against the costs. For a relatively small incremental cost, a plan with personal liability insurance offers additional protection should you injure another person or harm another person’s property.

Liability Coverage When Renting Property Abroad

If you are renting a property while abroad, you may be asked to show that you have liability coverage if anything should happen to the property while you are staying there. The Atlas Travel Insurance plan offers up to $25,000 (or up to $100,000 if additional coverage is selected) to offset the following types of court-entered eligible judgments or approved settlements incurred by the member: Damage/loss of a third party’s personal property; • Damage/loss of a related third party’s personal property.

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How to Buy Travel Insurance: What It Covers, When You Need It

UPDATE—November 7, 2023: It’s important for travelers to be aware that most travel-insurance policies do not cover loss due to war. Many insurance providers did cover claims due to the October 7 attack on Israel by Hamas because they deemed it a “terrorist incident”—but the ongoing fighting is not a covered reason for loss under policies purchased on or after that date, when it became a foreseeable event. For more details, see “Can I call off my trip for any reason and be reimbursed?” below. 

Travel insurance can be confusing—which is why we’ve received countless questions about it from readers. So we’ve created this primer that lays out the basics of travel insurance, including when you need it—and when you don’t.

What is travel insurance anyway?

Essentially, travel insurance serves two purposes, both financial. The first is to protect the investment you’ve already made—the cost of your trip—in the event that you need to cancel. The second is to cover future potential costs because of unforeseen events—for example, the cost of medical evacuation, should you get injured during your trip.

What does travel insurance cover?

Travel insurance policies cover some or all of the following (“comprehensive” policies cover most or all of these situations):

• Trip cancellation or interruption (if the reason for doing so is one allowed by that policy)
• Medical expenses, and sometimes evacuation (transportation to an appropriate medical facility)
• Expenses related to a trip delay and lost, stolen, damaged, or delayed baggage
• A lump-sum payment if you’re injured or killed while traveling
• Emergency assistance
• Financial default of the travel supplier

A policy kicks in only if your situation fits within its specific conditions (those are the pages of fine print at the back of every policy). You can’t, for instance, get your money back if you decide to cancel because your cousin dies; that’s because most policies cover cancellation due to the death of only certain close family members.

Here are three examples of how travel insurance can help. These are scenarios that a traveler might run into—and ways in which the right travel insurance policy could protect the traveler in each scenario. Remember that every policy’s benefits are different:

Beth is headed to the Caribbean during hurricane season, since she knows that prices are lower at that time of year and that the chance of a storm hitting any particular island is low. But a week before she leaves, Hurricane Peter wreaks havoc at her beachfront resort. Since Beth purchased an insurance policy with trip-cancellation coverage before the storm was named and her hotel is now uninhabitable, she can cancel the trip and get all of her money back.

Halfway through a hiking trip in the Alps, Joe slips and falls, breaking his ankle. Joe’s travel insurance policy has a medical expense limit of $10,000, so it covers some—but not all—of his medical bills. Because he can’t continue with his trip, his trip-interruption benefit reimburses him for the unused portion of his prepaid expenses.

While Amy is walking from the train station to her hotel, a thief steals her luggage. Amy’s insurance covers the value of the items in her luggage, up to her benefit limit of $750. Too bad she didn’t leave that diamond necklace at home, though; her policy will only reimburse up to $500 total for jewelry and electronics.

Do I really need travel insurance?

It depends on whether you’re making large nonrefundable advance payments, and whether you’re concerned about potential medical bills.

Are you reserving rooms at hotels that let you cancel up to 24 hours before check-in, and renting a car that you don’t have to pay for until you show up at the counter? In that case, don’t bother with a comprehensive policy that covers cancellation, since you’re not out-of-pocket for many expenses. (Even so, you may still want medical insurance, which is very affordable; you can get quotes for this coverage by entering $0 as your trip cost when researching policies online—see “Which policy should I buy?” below.)

Or are you prepaying for most of the pricey elements of your trip—hotels, private guides, transportation, a cruise—which often means that your deposit and subsequent payments are nonrefundable? In that case, you probably want travel insurance. When you choose a policy, consider the specific reasons you may end up filing a claim. For instance, most policies will cover Covid-related medical bills, but not all of them will cover the costs of isolating at your destination because you’re sick but not hospitalized.

Don’t I already have insurance?

You might. Some—but not all—medical plans, homeowners’ or renters’ insurance policies, and credit cards offer benefits to travelers. But Medicare, for instance, doesn’t cover members when they are overseas (though some Medigap plans do), and most health plans won’t cover evacuation (meaning, transportation to an adequate medical facility), which can be expensive if you’re somewhere remote. Check with your insurers to see what’s included.

Some premium credit cards include a level of protection. This coverage probably isn’t itself worth the card’s annual fee—but if you already have such a card, you should know what benefits it offers so that you don’t pay for redundant coverage. For example, Chase Sapphire Reserve (one of Wendy’s favorite credit cards for travelers ) has some good insurance benefits, but with set limits (so, for instance, you can get back only up to $10,000 per traveler and $20,000 per trip if you cancel a trip you paid for with the card—even if your African safari cost your family of four $15,000 per person).

Some travel firms and tour operators also include certain insurance coverage in all of their trips. Don’t waste your money buying coverage that’s already built into the cost of your trip. However, don’t assume that this coverage is comprehensive; depending on your circumstances, you might want to buy an additional policy.

How much does travel insurance cost?

Premiums for a comprehensive policy range from about four to 15 percent of your total trip cost. So if you and your spouse are spending $20,000 total on a week in France, expect to pay $400 to $1,500 per person for travel insurance.

Each premium is calculated based on the length and cost of the trip, where you’re going, and how old you are. For travelers above age 50, policies get significantly more expensive, while children can often be added to a parent’s plan for free: Travelex’s Travel Select Plan allows you to add any children under 18 to a parent’s or grandparent’s plan at no additional cost, while most Travel Guard plans include one child under 18 for every paying adult.

At what point during my trip planning should I buy travel insurance?

Purchase your policy as soon as you put down a deposit toward your trip. That’s because certain desirable benefits (e.g., coverage for cancellation because of pre-existing medical conditions, coverage for financial default of the travel supplier, a cancel-for-any-reason upgrade ) may kick in only if you buy your policy within 14 days or so of your initial trip payment. This is usually defined as the first payment that will go toward your trip cost and could be included in an insurance claim, not the separate planning fee that some travel designers charge.

Your premium will be lower if you cover only your nonrefundable costs; however, not covering the full amount of your payment(s) may invalidate coverage for pre-existing conditions. Requirements vary from one insurance provider to the next, so read a policy carefully when calculating the amount of coverage you need.

What is third-party travel insurance?

Some travel companies—cruise lines, tour operators, and the like—sell their own insurance or “protection” policies, whereas third-party insurance is sold by someone other than the travel company that is operating your trip. Third-party policies are usually a better choice: They pay you back in cash rather than trip credits, they can protect you in case the travel company goes out of business, and you can choose the plan with the coverage that best fits your specific circumstances.

My travel planner recommends that I purchase a policy through a specific insurer; should I follow their advice?

Some travel planners, tour companies, and outfitters have relationships with a particular insurance provider. They might push you to buy a certain type of insurance because they’ll earn a commission; on the other hand, their relationship with that insurer could benefit you if you have to file a claim. Wendy has seen many cases where Trusted Travel Experts on The WOW List , thanks to their relationship with a particular insurer, have been able to act as advocates for their travelers and get their claims paid.

Should I cover the cost of my flights too?

That depends. If you have to cancel your trip, you can usually put the cost of any unused airline tickets toward a future flight, sometimes minus a change fee. Calculate how much your premium will increase if you insure your flights; if the difference is less than the airline’s change fee, it’s worth insuring the flights. (You might also want to insure flights on any local carrier that you aren’t likely to fly with again—in which case a credit toward future travel would be worthless.)

What does it mean if a travel medical insurance plan is primary or secondary?

“Primary” means that the plan pays any bills first, without having to go through your home health insurance provider; “secondary” means the plan will only cover whatever you owe after you’ve filed a claim with your health insurance provider. You’ll typically get a bit more coverage per dollar with a secondary plan—but you’ll have to deal with more paperwork if you file a claim.

I have a medical condition. Will expenses related to it be covered?

Pre-existing conditions are generally excluded from coverage—but some plans will waive that exclusion if you purchase them soon after making the first payment on your trip (generally within 7 to 21 days of that initial deposit). You also usually have to insure the entire nonrefundable cost of your trip, including flights. Without coverage for pre-existing conditions, you’re on the hook for any expenses related to a condition that wasn’t medically stable at the time you booked.

How does travel insurance handle Covid?

Pretty much like any other illness. Most comprehensive policies will cover you if you test positive right before your trip and have to cancel, or if you come down with Covid during your trip and incur medical expenses. If you are sick enough to be hospitalized, a Medjet membership will get you home. If your symptoms are mild, some insurance policies will cover self-isolation costs under your “Trip Delay” benefit. There are often both daily and total limits to this benefit, so you may not be reimbursed for all of your additional hotel, meal, and airfare costs.

What if I’m hurt doing an adventure activity (say, bungee jumping)?

Most policies won’t cover injuries you receive while taking part in certain “hazardous activities”—a category that can include everything from skydiving and rock climbing to scuba diving and heli-skiing. Some plans will allow you to pay a higher premium to cover these activities. ( Dive Accident Insurance from the Divers Alert Network, for instance, covers most bills related to scuba-diving accidents.)

Will insurance pay for me to come home if I get sick or injured on the road?

Not usually. Most policies will pay for transportation to what they consider to be the nearest adequate medical facility (such transport is known as medical evacuation)—but that could be thousands of miles from your loved ones and the doctors you trust. If you want to know that you can get home , you’ll need to purchase additional coverage from a company such as Medjet , which arranges and pays for transportation from a hospital in your destination to one back home. For more details, read What Medical Evacuation Coverage Do You Need?

Can I call off my trip for any reason and be reimbursed?

No. Each policy defines the allowable reasons for which you can cancel and get your money back. To cancel your trip because of a terrorist attack, for instance, the attack typically has to happen in a city listed on your itinerary—not just anywhere in the country you’re visiting.

You can purchase additional “Cancel For Any Reason” (CFAR) coverage, but it’s pricey, and even then, you’ll generally only be reimbursed 50% to 75% of your trip cost. As with pre-existing condition benefits, you usually have to purchase CFAR coverage soon after your initial trip deposit; you also have to insure the total cost of the trip, and you must cancel more than 48 hours prior to your departure. Read more about CFAR coverage in our article  “Cancel For Any Reason” Travel Insurance: What It Is and How It Works .

What if the State Department issues a Level 4 “Do Not Travel” advisory for my destination, and I want to cancel my trip?

Standard travel-insurance policies rarely cover cancellation due to war, border closures, lockdowns, or government travel warnings/advisories. (But also note that the 21 countries currently with a Level 4 advisory are not common travel destinations right now, but rather places like Russia and Afghanistan.) Some insurance providers offer “Cancel For Any Reason” (CFAR) coverage; for the pros and cons of that, read “Cancel For Any Reason” Travel Insurance: What It Is and How It Works . If security is a concern, consider a MedjetHorizon membership, which includes access to a Crisis Response Center if at any point during a trip you feel that your safety may be threatened—because of a political incident, terror attack, or other crisis.

How do I protect myself against the travel company I’m working with going out of business?

If you paid by credit card—which we always recommend—your first step should be to file a billing dispute with the credit-card company. The Fair Credit Billing Act stipulates that you are protected against charges for goods or services you do not receive. If you can prove that’s the case, those charges will be credited back to your account.

Some third-party travel insurance policies also cover trip cancellation due to financial default—meaning that an airline, tour operator, cruise line, or other supplier ceases operations, leaving you without a trip. (Travel insurance usually will not cover you if the company declares bankruptcy or if you booked via a travel agency or other intermediary that goes out of business.)  Click here to read more about insurance coverage for financial default . As with pre-existing medical conditions, financial default clauses often require that you purchase the insurance soon after making your first payment, and the coverage typically doesn’t start until 10 to 14 days after you’ve purchased the policy.

Here are a couple of examples: Let’s say you’ve booked a Mediterranean cruise and flights to Venice, where you’ll board the ship. The day after paying your initial deposit, you insured the entire purchase with a carrier that protects against financial default. Two days before you’re due to leave, your airline goes belly-up, and all other flights to Venice from your hometown are booked, so you’re unable to make it to the ship. Your insurance provider reimburses you for the costs of your flights and the cruise you missed.

In another scenario, let’s say you’ve booked a trip to see the Pyramids in Egypt. A month after putting down a deposit on the trip, it occurs to you to insure your considerable investment. A few weeks before your departure, your Egypt tour operator ceases operations, and it turns out that none of your in-country arrangements have been confirmed or paid for. Even though your insurance policy covers financial default, it won’t pay out in this case because you didn’t purchase the policy within 15 days of your initial trip payment.

Should I pay for the car-rental upgrade to my comprehensive insurance policy?

Pay attention to when that benefit kicks in; coverage through your rental agency may be better tuned to the likeliest risks in your destination. For instance, when I rented a car in Iceland, my Travelex policy upgrade would cover me only for damage due to collision, vandalism, windstorm, fire, hail, or flood. Hertz’s options, on the other hand, included coverage for damage from gravel or ash—both far more common than vandals in Iceland.

I travel frequently. Is an annual travel-insurance plan a better choice than individual policies for each trip?

Many annual plans do not cover trip cancellation and thus are missing the coverage you want when you have significant nonrefundable expenses. Also keep in mind that annual plans limit you to the same coverage for all of your trips. For example, say you take a few shorter trips a year that cost $5,000, and one large trip that costs $25,000. An annual plan with a trip-cancellation benefit limit of $15,000 means that you’ll be overinsured for your shorter trips, and underinsured for your larger one.

Which policy should I buy?

It would be so easy if one size fit all—but it doesn’t. To know which policy is right for you, think about what keeps you up at night. Are you most concerned about testing positive for Covid a day before your trip? Or about having to fly home early because a loved one there falls ill? Or deciding to cancel your trip because of a terrorist attack at your destination—or even one in an entirely different country?

Several websites allow you to input your details and compare multiple policies at once, narrowing in on which one is right for you: Check out TravelInsurance.com , InsureMyTrip , SquareMouth.com , and, if you just want medical coverage and don’t need cancellation protection, Medical.TravelInsurance.com . Before you purchase any policy, though, it’s important to get on the phone with that insurer and ask how their policies would work, if the hypothetical reasons why you’re considering travel insurance (e.g., you end up hospitalized with Covid in your destination) were to actually occur.

The insurance that we’ve received the best traveler feedback about is Travelex’s Travel Select policy. It operates as primary coverage, allows a wide range of reasons to cancel, and, based on the feedback we’ve heard, is relatively likely to reimburse you quickly.  This policy must be purchased at least 14 days before your trip starts (this is waived for last-minute trips if you are still within 15 days of your first trip payment). Travelex also offers an optional “Cancel for Any Reason” upgrade that must be bought within two weeks after making your first trip payment.

Transparency disclosure:   Medjet is a sponsor of WendyPerrin.com. That’s because Wendy has had a membership herself since her kids were little and believes in it. Travelex Insurance Services pays WendyPerrin.com a referral fee when a policy is purchased through this link . Wendy chooses Travelex because it has generous policies (see above) and good customer service. (Travelex Insurance Services is not related in any way to the defunct currency-exchange business Travelex.) When you use the links in this article for your insurance/assistance purchases, it allows us to continue the rigorous and honest work we do on behalf of consumers, as well as to continue our Get a Personalized Trip Recommendation service. Thank you for your support.

Be a smarter traveler: Sign up for Wendy’s weekly newsletter  to stay in the know. Read  real travelers’ reviews , then use the black CONTACT buttons on  Wendy’s WOW List  to reach out to the right local fixer for your trip.

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19 Comments

Travel insurance from Travelex or similar vs. Chase Sapphire card insurance. We are about to put down a deposit on a significantly costly 2022 2 week trip in Morocco , using a WOW expert, and now deciding on Travel Insurance. We use the Visa Chase Sapphire card for all travel expenses, deposits, air, everything but Tips! We used them in Kenya 3 years ago where storms caused some accomodation changes and they were excellent in returning monies for a lost night. Do you think the Sapphire card insurance coverage is sufficient to replace a good Travel Insurance plan (we do have Medjet insurance as well)

Chase’s Sapphire Preferred card does include coverage for trip cancellation or interruption–if you fall sick before or during your trip, for example. Do keep in mind, though, that Chase covers only up to $10,000 per person and $20,000 per trip in pre-paid, nonrefundable expenses. If you’re spending more than that, they will not reimburse you in full.

What Chase does not include is coverage for medical expenses. For that, you’ll want to purchase a separate travel insurance policy. Since you already have the trip cancellation/interruption coverage through Chase, you don’t need a comprehensive policy that covers both cancellation and medical bills. Instead, you can use a site such as travelinsurance.com to look for a less expensive policy that is targeted to medical expenses.

Medjet is a useful layer on top of travel insurance: While the latter covers the cost of getting you to a hospital and getting treated there, Medjet will pay for you to be flown from that hospital in Morocco to one close to home. Travel insurance generally doesn’t cover evacuation back to the U.S.

Do you like MedJet better than Global Rescue? We switched last year because GR will pick up from the “field” (e.g., in remote areas of Botswana, where we went last summer, or in Antarctic (where we’re going this winter)), whereas MJ picks up only from a hospital and not from Antarctic… Very much value your opinion as we need to renew this week. Thanks!

Brook here, Wendy’s deputy. We recommend a combination of travel insurance (which covers evacuation from the field) and Medjet. Most travel insurance policies cover getting you from remote Botswana–or from a cruise ship headed to Antarctica–to the nearest hospital. In fact, most tour operators in Antarctica require that travelers have at least $1 million in evacuation insurance for exactly that reason.

We’ve heard that if you call Global Rescue because you’re in distress in remote Botswana, they will come get you, but they may ask for your credit-card information. And if they determine that your injury/illness would not have resulted in “serious permanent injury or death” had they not come to get you, you could be on the hook for that evacuation bill. If you have travel insurance and Medjet, the insurance pays for your transfer (ambulance, air ambulance, etc.) from the field to a medical facility, and then Medjet pays for you to be brought to a medical facility of your choice close to home.

In the case of a cruise ship, Global Rescue’s terms and conditions specifically state that you must disembark before they rescue you. (Typically, a travel insurance’s evacuation policy will send a helicopter if the ship can’t make it back to port in time. If things are truly dire, the coast guard will get involved.)

So we believe that Medjet best fills the gap between travel insurance’s evacuation coverage and the desire to be hospitalized close to home. Does that make sense?

Anyone have experience with World Nomads for trip insurance?

We went to Hawaii in January and traveled there on Hawaiian Airlines. While booking the trip, I checked the box to accept their travel insurance and a policy was issued by Allianz. That’s a mistake I won’t make again. During the trip, my wife developed a severe ear infection and was put on antibiotics and told not to fly until January 11th. We were scheduled to leave on the 10th. I contacted Allianz and was told that the delay would be covered by insurance since it was for a covered medical reason. The airline charged $200/person to reschedule the flights (outrageous), plus we had an extra night in the hotel, extra day on the rental car and meals. I submitted all of the documentation to Allianz and waited. Finally, they approved the coverage, but for less than 1/2 the amount claimed. Basically, they said that policy only covered the airline portion of the additional cost. Fortunately, our Citibank American Airlines Platinum MasterCard will cover the rest, but if it were not for that card, we’d be out of luck. So, the lesson we learned the hard way is:

1. Never accept the airlines travel insurance, and 2. Make sure that you use a credit card with travel benefits like the one we used.

For our upcoming trip to Scandinavia, we took out insurance through Exeter International, who offers insurance through Travel Guard at a nice discount. I checked that policy and it does cover most things that could occur. Per your recommendation, we have also signed up for a MedJet policy – just in case. Another thing we learned is that there’s no need to insure the full trip through a private insurer like Allianz or Travel Guard. Since our credit card covers up to $5,000 per person, all we have to do is cover the amount of the trip above $10,000 which ends up being a substantial savings (I’m now 72 and the rates are high for senior citizens).

Great article as usual, Wendy! We are traveling in 5 weeks to SE Asia and the Maldives with a TTE and using Travelguard. We have used them for many years. We have pre existing conditions and use the gold plan with upgraded evacuation since Cambodia, Laos and Maldives have subpar medical care if something serious happens. We have been extremely happy with them as in the recent past on a trip to Mexico my husband had a medical issue. We were also in Indonesia diving ten years ago and I had DCS and thank God we had not only Travelguard but Dan insurance for diving. I needed an air ambulance to Singapore for recompression, hotel for a week since you can’t fly after recompression and they paid for everything including for biz class home. The bill would have been over 100K otherwise. We would never ever travel without some type of trip insurance.

Further to Medicare … Medicare Part C plans, also known as Medicare Advantage, are administered directly by insurance companies and provide ALL of the benefits in Medicare Parts A and B. Some also include Part D pharmacy benefits. It’s quite possible to get a plan which costs $0 because they price their basic premiums to match what is already being taken by one’s Part B Medicare premiums (and it’s transparent to the user).

Being a public/private partnership, the companies need to compete by adding services to the basic requirements. For the traveller this means most of the plans (maybe all?) do cover international medical expenses with a minimal deductible (mine is $75). Plus, not being a trip by trip plan (it’s an annual plan), pre-existing conditions become essentially not a factor.

We add a $200-250 annual Medevac plan, which includes the travel assistance angle, and are comfortably covered as a general matter. We self-insure things like interruptions, delays, and baggage.

That leaves only trip cancellation and we purchase individual trip cancellation insurance as needed on a case by case basis. We usually get in writing from major suppliers that in the event of cancellation we can get a better deal than their standard (such as rebooking at no additional cost). The medium and smaller operators are often more than willing to do so.

Any advice for travelers traveling on flights to the U.S. from the Middle East? With low limits on coverage for items like cameras and electronics, which must now be packed in your luggage vs. carry-on, are there supplemental insurance plans available to cover these items?

I would like to add a comment you did not mention about MedJet Assist, which I carry. Not only are the travel expenses of the injured person to fly to the hospital of his choice covered, but those of a companion as well. Frequently a companion’s trip is disrupted, and the cost of the companion to live in a location close to a hospital far from home can be both disruptive and expensive,. The value of two people returning to a home location should then be considered.

Medjet will pay for your travel companion’s flight home in some circumstances, but not all. Sometimes Medjet brings a member home in an air ambulance (a medically outfitted private plane); when that’s the case, a companion is welcome to accompany the patient–though it might be a tight fit (this isn’t like riding in Larry Ellison’s private jet). If the patient is healthy enough, Medjet will pay for them to take a commercial flight home in business class, accompanied by a medical escort. When that’s the case, Medjet will pay for a travel companion’s economy ticket; the companion is responsible for the difference in fares if they want to upgrade to business class as well.

Brook Wilkinson Reporter and Traveler Advocate WendyPerrin.com

Travel Guard has a “hospital of choice” option which is slightly more expensive than regular evacuation coverage. Sometimes it can be purchased as a stand alone but is included in the platinum plan . If you have the “hospital of choice”, I don’t think you need medjet.

Yes, Travel Guard does have an optional “hospital of choice” upgrade that can be added to Gold or Platinum plans for an additional cost. This upgrade allows the insured to choose to be taken to any facility of their choice with adequate medical care (so in other words, the best hospital close to home), but only if a doctor deems the evacuation to be “medically necessary.” Medjet, on the other hand, will fly you to a hospital near home as soon as you’ve been hospitalized and are judged fit to fly. They don’t have fine print about whether an evacuation is “medically necessary” or whether the current facility is providing “adequate medical treatment.” If you say you want to go home, and a doctor says you can, they’ll take you.

Great work! It hits all of the important notes in this industry. This primer should be required reading for travel agents! Until only recently, travelers’ only options were the “one-size-fits-all” plans offered by a single insurance company as a “YES or NO” check-box at checkout or by a travel agent. Travelers today have a choice and can compare and buy travel insurance on their own through comparison sites–think hotels.com or kayak for travel insurance! It’s the only way to price shop and compare plans across multiple insurance companies. It also empowers the consumer to get the right benefits at the right price for every trip, every time!

I also have AMEX Platinum, I am interested in the response to Kathy’s post. Is my wife, who does not have the platinum card covered?

I always love your posts. We are going on a trip to Morocco this fall, so this info on travel insurance is very helpful. We love MedjetAssist. Fortunately, we haven’t had to use it yet.

I believe American Express Platinum Card holders automatically have Global Assist included in the annual fee, where one would be returned (flown) home if ill or injured in a faraway destination? And I think that does not need to be a trip planned by American Express, but rather any trip? I am a platinum card member, and prefer not to to pay for MedJet if I am already covered by a similar plan on AmExp, but even asking AmExp, never sure about this. Your comments on the AmEx plan? Thank you Kathy

Amex’s Global Assist is a separate program from Medjet: It’s a hotline that you can call if you want advice before your trip, or need help in certain situations while you’re traveling. For instance, Global Assist will help you replace a lost passport, or find the nearest ATM. But it definitely won’t do anything close to flying you home if you’re ill or injured. Thanks for writing,

If you are travelling to a country where getting a visa might be tricky, be sure to understand what your insurance covers if the visa is not issued. Recently going to Iran, there was a delay in getting the visa resulting in thousands of dollars of flight changes, that my insurance would not cover.

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What does cruise travel insurance cover? And does it pay to buy cruise travel insurance?

The answer is not always clear-cut, as we'll discuss in this guide. But consider this: It's not always smooth seas when it comes to cruising. Even the best-laid plans for a cruise vacation can sometimes be thrown off course by an unexpected event.

You might need to cancel a cruise in advance due to the sudden onset of an illness, such as COVID-19 or the flu. Or, maybe you fall ill during the cruise and need emergency medical attention. Maybe your flight to your ship gets canceled, and you miss the vessel's departure. Or your ship is late arriving in port at the end of a voyage, and you miss your flight home.

In all of these situations, you might benefit from having cruise travel insurance — keyword "might."

Cruise insurance policies vary widely, and not every policy covers every type of mishap. That's why it always pays to read the fine print in a travel insurance policy before you purchase it to know what you're getting in advance.

It's also why you should read this introduction to everything you need to know about cruise insurance. It has many details, but the next time something unexpected happens on your cruise vacation, you'll be glad to be educated and covered by a comprehensive travel insurance policy.

What does travel insurance cover when you cruise?

The typical cruise insurance policy covers a wide range of circumstances that can go wrong in conjunction with a vacation at sea — both before and during the sailing.

For starters, policies often will reimburse you for the cost of canceling a cruise due to a last-minute crisis. They will also often cover costs related to an interruption of a cruise (maybe your ship breaks down, requiring you to fly home mid-voyage ). These two elements are known as trip-cancellation and trip-interruption insurance, and they are bundled into a typical travel insurance policy.

Some policies will also cover out-of-pocket costs related to a flight delay or cancellation that results in you missing your cruise departure (for instance, the cost of catching up to the ship at its next port). Expenses related to baggage delays and loss are often covered as well.

But perhaps most importantly, many travel insurance policies will cover medical expenses you incur while on a cruise. Some will even cover the cost of evacuating from a foreign destination if you are in the midst of a medical crisis.

Travel insurance giant Allianz Global Assistance reports that 53% of all cruise-related "billing reasons" for claims are because of illness for the insured person, while 14% are for an injury. Another 8% are for the illness of a family member, 4% for the death of a family member and 4% for the illness of a traveling companion, among other reasons.

Those percentages include illness and accidents that happen to cruisers just before a trip, making travel impossible. But, in many cases, such claims result from illness and injuries that occur during voyages.

"People often take risks during vacation that they might not take back home, whether riding a jet ski, zipping around on a motorized scooter in a city they don't know well or hiking unfamiliar terrain," James Page, senior vice president and chief administration officer of AIG Travel, told TPG .

Some policies also cover the financial default of a travel provider. In such cases, if your cruise line goes out of business before you sail, you could get all — or at least some — of your money back.

Cruise travel insurance policies don't cover everything. For instance, standard travel insurers generally will not reimburse you for the cost of a cruise you cancel due to worries about an outbreak of an illness. That's true even if a U.S. government agency such as the U.S. Centers for Disease Control and Prevention issues a recommendation that you don't cruise due to an illness outbreak, as it did during the COVID-19 pandemic .

If you want the ultimate flexibility to cancel for such a reason or any other, you'll want to look into a more expensive cancel for any reason travel insurance upgrade.

Related: Avoiding outbreaks isn't covered by most travel insurance policies

Where to find a cruise travel insurance policy

You can buy a travel insurance policy directly from your cruise line when booking your trip or through your travel agent (if you're using one, which often is a good idea when booking a cruise). You also can go directly to a third-party travel insurance provider or a travel-insurance aggregator site, such as InsureMyTrip or TravelInsurance . Your credit card might even give you some travel protections.

Here's what you need to know about each type of cruise travel insurance.

Third-party insurance companies

Third-party insurance companies that specialize in writing travel insurance include AIG Travel, Allianz Travel Insurance, Travelex Insurance and American Express Travel Insurance.

One reason to use a travel agent or a travel aggregator: They can help you find a policy that offers added coverage specific to cruising.

Related: The Points Guy's guide to the best travel insurance companies

"Many plans now offer benefits that will specifically appeal to cruise travelers, such as missed connection, missed port-of-call and cruise disablement coverage," Stan Sandberg, cofounder of TravelInsurance.com, said.

Missed connection coverage reimburses cruisers for a set dollar amount if they need to rebook travel to catch up with their cruise at the next port. Missed port-of-call coverage pays a benefit if the cruise ship misses a scheduled port of call due to weather, a natural disaster or a mechanical breakdown.

Cruise disablement coverage pays a benefit if the traveler is confined on a ship for more than five hours without power, food, water or restrooms.

As noted, policies vary widely. It's a good idea to compare plans and make sure the one you buy has the elements that are most important to you. One size doesn't fit all.

Credit cards with travel benefits

Some premium credit cards offer valuable travel protections comparable to what you might get from a standard travel insurance plan. For example, the travel insurance provided when you pay for travel with select cards can reimburse you for expenses if your baggage is damaged, you're stranded overnight due to a flight delay or cancellation, or you have to return home to handle a family medical emergency.

The Chase Sapphire Reserve card, for example, offers trip delay reimbursement, trip cancellation and interruption insurance, emergency medical coverage and even medical evacuation coverage , among other benefits. And yes, cruise lines are considered common carriers just like airlines.

If you're planning to rely on a card like the Chase Sapphire Reserve or The Platinum Card® from American Express * (among others) for travel insurance, just be sure to recheck your card's benefits and limits carefully against regular travel insurance. You must pay for at least part — and sometimes all — of the trip with that credit card to take advantage of its protections.

*Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Visit americanexpress.com/benefitsguide for details. Policies are underwritten by New Hampshire Insurance Company, an AIG Company.

Related: The best credit cards for booking cruises

Find out if your credit card protection includes travel accident insurance or covers preexisting medical conditions, and figure out when it will pay you back. Other questions to ask: What are the coverage limits? Will you have to pay for a foreign hospital bill upfront and then seek reimbursement later?

Cruise lines

Cruise lines often ask consumers booking a cruise to buy the line's own protection at the time of purchase. If specifics about the coverage are lacking, always ask the line for details in advance, review coverage perks and limits; then, compare those to one or two independent travel insurance policies or your credit card's insurance benefits.

Related: A beginners guide to picking a cruise line

Cruise line travel insurance policies sometimes have quirks. Many cruise companies will only offer a travel voucher or credit for future use in the event of a covered cancellation, not an outright refund.

Also, financial default may not be a covered event in a cruise line-sold policy, but it's typically covered with plans from third-party travel insurance companies.

Cruise line policies also can be more restrictive.

"Cruise line insurance seems to have become better and has more widespread coverage than in the past, but it typically won't cover air or pre- and post-travel [arrangements] unless those elements are purchased through [the line]," said Debra Kerper, a Cruise Planners travel adviser from Carrollton, Texas, who books travel and sells private insurance. "This is when private insurance coverage becomes so very important."

How much does cruise insurance cost?

Expect to pay anywhere from 4% to 8% of your total prepaid, nonrefundable trip expenses for a travel insurance policy. That's a wide range, we know, but it reflects the wide range of products out there.

You'll also find some basic plans that cost even less than 4% of your trip expenses, while some super-premium plans that cover just about any conceivable issue can cost as much as 12% of your trip expenses.

Related: What's included in your cruise fare?

All reputable insurance companies will offer a "free-look period" during which you can receive a 100% refund on your premium. This allows you to review the policy you've selected and return it for any reason within the period allotted — usually for a small administration fee of less than $10.

Under normal circumstances, you don't need to purchase a so-called "cancel for any reason" add-on to your cruise travel insurance policy unless you really need the flexibility. The upgrades are significantly more expensive.

You can receive a quote and purchase a policy online in minutes with any credit card. Although you may think travel insurance should code as "travel" when paid on a credit card and thus be eligible for bonus points on certain cards, that isn't always the case. Your points earnings will depend on the individual underwriter's merchant code. When in doubt, expect the purchase to fall under the insurance category for earnings.

Should I buy travel insurance for a cruise?

Whether you buy travel insurance is a personal decision that will depend on many factors. Would you be willing to absorb the loss of canceling a cruise on short notice due to an illness or accident? Could you afford an evacuation flight from a far-off port if you suddenly became seriously ill? Only you can answer those sorts of questions.

Here are some things to consider as you make that decision.

You might not be covered by regular medical insurance while cruising

If you're a U.S. citizen traveling internationally (which will be the case for most cruises), you may find that most private medical insurance plans in the U.S. won't cover you.

Additionally, Original Medicare only covers people traveling outside U.S. borders in limited circumstances.

While certain Medicare Supplement Plans do have some foreign emergency medical benefits, not all do. Be sure to talk to your Medical Supplemental Plan provider to see if you're covered, what's covered, what the limits are and how the bill is paid.

Also note that, in some countries (particularly those in Central and South America), travelers may not be discharged from a hospital until their bill is paid in full.

Related: Trip wrecked: 7 ways to prepare for any kind of travel disaster

Plus, if you have a medical incident overseas, you could find yourself stuck in a shared hospital room without air conditioning or a private bathroom. The level of care may not be what you expect.

"For people traveling internationally, it's crucial to know beforehand where to go for any treatment … and how they're going to pay for that treatment," Page said.

Getting evacuated for a medical condition is expensive

Most airlines won't accept seriously ill passengers, those carrying bulky medical equipment or those requiring a full medical team.

Even a low-cost weekend getaway on a cruise to the Bahamas out of Miami can turn costly if you suffer a serious accident or illness requiring medical treatment or an emergency medical evacuation.

Related: Do cruise ships have doctors, nurses, medical centers or hospitals?

Being flown back to the U.S. from a far-flung overseas location in a private, medically equipped aircraft, with a professional medical team on board, can run between $70,000 and $180,000, according to Mike Hallman, president and CEO of Medjet, a medical transport membership company.

"Domestic transports, which we cover as well, can cost upwards of $30,000," Hallman said.

Without proof of medical evacuation coverage, foreign providers will also want that money upfront. Hallman said that regular travel insurance will typically get you to an acceptable overseas hospital and even to a higher-level care facility if "medically necessary." Alternatively, medical evacuation coverage means you can fly home to your own hospital, doctors and family — without claim forms, cost caps on transports or surprise bills.

The tandem approach — buying both travel insurance and a separate medevac transport membership — is a good option, Hallman said.

"We always recommend travel insurance, as it covers trip interruption, which is important, as well as medical coverage for the hospital and treatment costs," he said. "We pick up where they leave off."

You can't predict the weather

Cruising is a great way to explore multiple destinations in one trip. But it's good to remember that unexpected delays, interruptions or cancellations due to weather can happen during cruises, particularly during hurricane seasons in places such as the Caribbean and Asia (where hurricanes are called typhoons).

During a typical hurricane season (June 1 to Nov. 30), Allianz pays about 6,000 claims from customers whose travel plans in the Caribbean, Gulf of Mexico and southeastern U.S. are affected by the storms, according to a spokesperson for Allianz Global Assistance USA.

If you're hoping to insure against a storm-related disaster, it's good to buy travel insurance as early as possible. Once a storm or hurricane is named, it's too late to buy travel insurance to cover it.

Of course, cruise lines will move ships away from a weather threat. When the port lineup is adjusted or the cruise shortened, the company will offer the guest an onboard credit, onboard gift or future cruise credit rather than any refund. It depends on the circumstances of that specific voyage. You won't be able to make a claim on your cruise travel insurance policy just for a minor itinerary change .

Related: Everything you need to know about cruising during hurricane season

Costs can mount quickly when things go wrong

Even if the cruise line does provide a full or partial refund or cruise credit for an itinerary change or some other interruption, travelers could have to swallow the cost of other travel elements not purchased through the line. That could include nonrefundable flights , prepaid resort or hotel nights, nonrefundable tour fees and more.

Travel insurance can cover those, plus help with flight delays or cancellations, baggage loss or theft.

If a winter storm causes you to miss your flight to where the ship is boarding , "travel insurance could help you get to the next port to join the cruise, so you don't miss your entire trip," Page said.

In fact, 13% of "billing reasons" for claims to Allianz are for common carrier delays (such as a flight delay), while weather and natural disaster-related claims account for about 3%.

The government probably won't bail you out

While cruise ships have medical facilities, they're usually not equipped to treat serious illnesses. If you experience a serious medical problem on a vessel, you may have to get off the ship in a foreign port to seek treatment at a hospital. In such a case, if you don't have medical evacuation insurance, you may then find yourself stranded in that port awaiting a medical evacuation.

Don't expect Uncle Sam to step in and help foot the bill.

The U.S. Department of State's Bureau of Consular Affairs clearly states the importance of buying travel insurance.

"The U.S. government does not provide medical insurance for U.S. citizens overseas," the bureau says on the website. "We do not pay medical bills. You should purchase insurance before you travel."

You may need more assistance than you think

If you're injured or become severely ill during a cruise, especially in a foreign country, it may be difficult to access help without the assistance of trained professionals that comes with many insurance plans.

Many travel insurance companies provide around-the-clock assistance with locating overseas clinics and pharmacies, getting to a doctor or hospital, refilling lost or depleted prescriptions, assisting with up-front payments to hospitals, and arranging flight changes so you can get home.

Travel insurance companies also can arrange for an air ambulance, a nurse escort, oxygen and a lie-flat seat on a flight home if your medical condition warrants it.

You want to be careful if you have preexisting conditions

When you cruise, it's important to be fully covered, which means having comprehensive medical coverage that includes any preexisting conditions. Otherwise, if you head into a doctor's office overseas, have any tests completed, or visit an urgent care center or emergency room, you might not be covered.

Here, timing is extremely important. Cruisers seeking coverage of preexisting conditions, as well as cancel for any reason insurance, generally must book within seven to 21 days of the first payment they make for a trip. The timing varies by insurer.

Bottom line

Cruise insurance isn't for every traveler — or even for every sailing. It's not inexpensive. However, it can bring a lot of peace of mind if you're about to head out to sea. Do your homework, compare plans and always assess the risks.

Planning a cruise? Start with these stories:

• The 5 most desirable cabin locations on any cruise ship
• The 8 worst cabin locations on any cruise ship
• A quick guide to the most popular cruise lines
• 21 tips and tricks that will make your cruise go smoothly
• Top ways cruisers waste money
• 12 best cruises for people who never want to grow up
• The ultimate guide to what to pack for a cruise

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Travel Insurance Including Third Party Liability

Need personal liability included in your travel insurance we compare companies which offer this as standard., personal liability travel insurance that can cover winter sports.

• Up to £5 million personal liability
• Optional winter sports cover
• There is personal liability cover for damage to temporary accommodation which is a legal requirement in France
• They can cover personal liability whilst participating in ski hosting, leading, teaching or lecturing on a non-professional and voluntary basis.

www.mpibrokers.com

• Up to £2 million personal liability cover
• Option to add winter sports
• Winter sports option includes cover for equipment and your lift pass
• Family policy available
• Annual or Single Trip Policies with extra discounts when purchased through MoneyMaxim

www.columbus-direct.com

• Policies available for over 75s
• Ski Insurance policy option
• Ski insurance includes ski pack to cover prepaid ski lessons and lift pass
• Can take ski insurance upgrade to cover equipment up to £2000.

www.insurewithease.com

• Up to £2 million in personal liability cover
• Winter Sports Insurance
• Up to £500 winter sports equipment cover
• Winter sports comes as standard if you purchase a comprehensive annual travel insurance policy with Staysure.

www.staysure.co.uk

Personal Liability Travel Insurance which can include cover for pre-existing illness

• 10% voucher code (MAX10) for MoneyMaxim users - use online or on phone
• Company can suggest the best policies dependent on the severity of your condition and other medical conditions

www.JustTravelCover.com

• Up to £2 million in personal liability cover with Diamond policies
• Online screening for pre existing medical conditions
• Covers over 75s on senior citizens policy

www.insurefortravel.com

• Multiple choices of cover level
• Over 220 pre existing medical conditions covered free
• Travel insurance for the over 50s with a medical condition
• Long-stay policies available

Third Party Liability Insurance - also known as Personal Liability Insurance or Private Liability Insurance - can be an essential part of your travel insurance. Third Party Liability Insurance covers claims made against you by a third party for injuries to themselves or damage to their property.

When might I need third party liability insurance with travel insurance?

Any insurance is about protecting you should the unfortunate occur and personal liability insurance is no different. If you were out hiking, stumbled and pulled someone else over as you fell, that person could make a claim against you for any injuries they sustain. Third party liability insurance can also cover you should you inadvertently cause major damage to your holiday accommodation. Some sporting activities may also require you to have third party liability cover.

Will my travel insurance cover third party liability if I am skiing?

Travel insurers that offer winter sports cover often include personal liability as standard. Do always check that you have the right cover for the winter sports you will be taking part in as cover can vary. Some insurers will not cover off-piste skiing and others will not cover more adventurous winter activities. You will also need to make sure you have the right equipment. Italy, for example, has made third party liability insurance compulsory for skiing in their resorts and children under 18 must wear a helmet.

What is not covered by personal liability insurance?

There are often exclusions from liability cover and you should read these carefully before purchasing any policy. Commonly claims for accidents involving a motorised vehicle are excluded. If you are driving a car you should ensure you have adequate car insurance. This exclusion would also mean that accidents involving jet skis, skimobiles or skidoos are also not covered.

Other areas which are often excluded are where a weapon such as a firearm is involved, or when injuries or damages were caused by an animal. If you were taking part in an illegal activity at the time of the incident, you are also not likely to be covered.

Which travel insurers offer personal liability insurance

If you click the Get a Quote button above you will be offered a range of Travel Insurance policies - click through to the policy documents for each policy and you will be able to find the cover offered by each.

We also detail companies in the boxes on this page which offer a good level of cover for third party liability insurance. Compare policies here or through our standard.travel insurance comparison page. If you have any questions or would like further assistance regarding your travel insurance then please contact us for further assistance. We will be delighted to help you.

This content was last reviewed on 20/12/2023

Image courtesy of: Pixabay

Moneymaxim aims to inform its visitors through its journalistic sourced information, but things change rapidly in our market and we cannot guarantee everything will be perfectly up to date. Please do be aware you use the information at your own risk, that the information provided is not financial advice and that your own independent research is essential to make sure that any product or service used is right for your circumstances. We cannot accept liability for any decision you take as a result of information provided on moneymaxim. This service is free to you but to operate this service moneymaxim may receive commissions from the partners you are referred to.

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The Pros and Cons of Third-Party Auto Insurance Cover  

Kindly share this story:

Third-Party Auto Insurance Pros   :

• Affordability: Third-party Auto Insurance typically comes at a lower premium compared to Comprehensive Coverage. This makes it an attractive option for budget-conscious vehicle owners who still want to comply with legal requirements.
• Legal Compliance: In Nigeria, vehicle owners must have at least Third-party Auto Insurance coverage. Opting for this type of insurance ensures compliance with the law, preventing potential legal issues and penalties.
• Basic Coverage: While Third-party Insurance doesn’t cover damages to your vehicle, it provides coverage for damages or injuries caused to third parties in an accident. This basic coverage can still offer significant financial protection in case of liabilities arising from accidents.
• Quick and Easy Process: Many reputable insurance providers offer a streamlined process for acquiring Third-party Auto Insurance. The application process is typically straightforward, allowing for quick issuance of policies.
• Peace of Mind: Having any form of Insurance coverage, even if it’s Third-party, can provide peace of mind knowing that you have some level of protection in case of unforeseen events on the road.

Third-Party Auto Insurance Cons:

• Limited Coverage: The most significant drawback of Third-party Auto Insurance is its limited coverage. It only covers damages or injuries to third parties involved in an accident caused by the insured driver. Any damages to the insured vehicle or injuries sustained by the insured driver are not covered.
• No Protection for Vehicles: Unlike Comprehensive Insurance, which covers damages to the insured vehicle from various perils such as theft, fire, or natural disasters, Third-party Insurance offers no such protection. Vehicle owners opting for Third-party Cover must bear the cost of repairs or replacements themselves in case of damages.
• Risk of Financial Loss: In the event of an accident where the insured driver’s vehicle sustains damages, opting for Third-party Insurance leaves the vehicle owner vulnerable to significant financial losses. Repairing or replacing a vehicle can be costly without insurance coverage.
• Limited Add-Ons: Third-party Auto Insurance policies typically offer minimal or no add-on coverage options. This means that vehicle owners cannot enhance their policy with additional features such as roadside assistance or car rental coverage, which are often available with most Comprehensive Insurance Plans.
• Potential Disputes: Since Third-party Insurance primarily deals with liabilities towards third parties, there may be disputes or legal complexities regarding the extent of coverage or fault determination in accidents. Resolving such disputes can be time-consuming and may involve legal proceedings.

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I've been on 50 cruises. Here are 5 things I wish I'd known before sailing in the Mediterranean.

• I've been on 50 cruises around the world and took my first Mediterranean route last year.
• Picking the right time of the season to go can make a big difference in your trip.
• Before packing, I always check to see if any of the experiences I've booked have a dress code.

As someone who's taken over 50 cruises all over the world, I know firsthand how popular cruising is this year. But one seabound itinerary people often forget to add to their bucket lists is a Mediterranean cruise .

The dreamy ships take passengers around European destinations like Spain, France, Italy, and Greece.

After taking my first Mediterranean cruise last year, here's what I think everyone should know before booking the route.

Going early or late in the sailing season means fewer crowds and better weather.

Many cruise lines, like Virgin, Celebrity, and Disney, start the Mediterranean season in early spring and sail through early fall.

Going early or late in the season usually means you'll have more tolerable weather and smaller crowds in some of the big destinations like Athens .

I made the mistake of going on my Mediterranean cruise at the end of May (over Memorial Day weekend).

Some ports of call, like Nice, France, were easy to get around, but others like Rome were packed to the gills. I wanted the day to end before we even made it to the Vatican on our tour.

Arriving at your embarkation port early is key to having a smooth sailing.

My biggest tip for any cruise — but especially for Americans traveling to Europe for a Mediterranean cruise — is to arrive at your embarkation city at least a day before your sailing starts.

This gives you plenty of time to ensure you make it to the port, especially with the airline delays that typically spike in the summer. The boat isn't going to wait for you i f you don't land on time

Even though it means paying for lodging and likely a few meals before boarding the boat, getting a good night's sleep before a jam-packed vacation is worth it to me.

As a bonus, arriving early also gives you a chance to explore the city.

Be sure to pack at least one shirt with sleeves and bottoms that cover your knees.

Some of the major European tourist destinations have strict dress codes — typically everyone must at least cover their shoulders and knees out of respect.

If you're planning on checking out Vatican Ci t y in Italy or the Meteora monasteries in Greece, b e sure to pack at least one outfit that fits the bill.

Most cruise ships have laundry services (self-serve or valet), so you can wear the same dress-code-approved outfit for a few excursion days if needed.

Food tours are a great way to see a city, taste local dishes, and learn some history.

If you're looking for a unique excursion that still gives you the highlights of a European city, I recommend booking a food tour . I've done tours in places like Amsterdam, Budapest, and Paris, and I've never been disappointed.

Food tours can be booked through third-party travel operators, like TripAdvisor or Viator, and offer the chance to see some of the major landmarks of a city, try local dishes, and learn some history all in one outing.

The tours are usually led by locals, which means the guides can also give you some good recommendations if you have time before you need to return to the ship.

Consider booking tours through third-party sites.

Mediterranean cruises can last anywhere from seven days to two weeks, depending on the company and itinerary. Booking every excursion through the cruise line can add up, but luckily, there are typically more affordable options through third-party companies.

But I only book with third-party operators if the ship docks right at the city I want to explore because I never want to miss the all-aboard time.

For example, on my Mediterranean cruise last summer, the ship anchored at Cannes, and I was able to keep my eye on it throughout my excursion.

If the ship docks in a secondary location and you have to travel to the big tourist destinations , I always book excursions through the cruise line. For instance, the day my family and I explored Rome, the ship docked in Civitavecchia, Italy, and we had to take a two-hour bus ride into the city.

Booking with the cruise company guarantees your return to the ship, even if your excursion runs late.

• Main content

What Is Third-Party Auto Insurance?

Y ou're on the hook if you're at fault for hitting a driver with your vehicle. That's where third-party insurance, or liability insurance , comes in. Third-party auto insurance pays for costs when you're at fault for damaging another person or property.

If you're a car owner in the United States, you're legally required to purchase third-party auto insurance. Notable exceptions include residents of New Hampshire, Arizona, and Virginia.

What does third-party auto insurance cover?

Third-party insurance covers people and property damage done to third parties.

• It covers people whom you injure in the event of an accident. Medical bills, lost wages, and suffering caused by the accident are all covered.
• It covers property you damage in the event of an accident. That includes vehicles, fences, and other structures damaged due to the accident.
• It covers legal fees. If a victim sues you for injuring them, third-party auto insurance pays for legal expenses needed to resolve the case.

How much does third-party auto insurance cost?

In 2019, the average annual cost for U.S. third-party auto insurance was $650.35, according to the National Association of Insurance Commissioners. The cost of insurance varies by policy and state. It also depends on where a person lives, their age, and other factors.

Before anything else, check how much damage your state requires you to cover with your third-party policy in the event of an accident. Each state has its minimums , ranging from $5,000 to $25,000 in damages.

Read more: check out our picks for the best car insurance companies

You can buy more or less third-party coverage. How much you pay for coverage depends on how much car insurance you need .

What is not covered by third-party auto insurance?

Third-party insurance is the bare minimum required to hit the road legally. It covers damage you cause to people and property, but there are many things it doesn't cover:

• It doesn't cover damage to your body. Third-party insurance only covers third parties.
• It doesn't cover damage to your vehicle or property. Third-party insurance only covers third-party property.
• It doesn't cover anything above your policy maximum. If your third-party insurance has a $10,000 limit, and you're on the hook for $15,000 in damages, you are responsible for covering the $5,000 difference.

If you're unable to pay tens of thousands of dollars in the event of an accident, consider purchasing more than the bare minimum insurance required by your state.

Other types of car insurance

You may want to take out policies that cover damage to your body, damage to your vehicle, or non-crash-related expenses, like auto theft. These policies can plug up the potentially money-draining holes left uncovered by third-party auto insurance.

• Personal injury policies cover damage done to you in the event of an accident.
• Collision policies cover damage to your vehicle in the event of an accident.
• Comprehensive policies cover losses that aren't crash-related, like theft and vandalism.

How much you pay for insurance depends on many personal and financial factors. The best car insurance companies will offer you the most bang for your buck.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we've researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review  today to get started.

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CTP Insurance In Victoria: Here’s How It Works

Updated: Apr 16, 2024, 10:10am

Reviewed By

Table of Contents

What is ctp insurance, what does ctp insurance in victoria cover, what does ctp in victoria not cover, how does ctp work in victoria, how much is ctp in victoria, frequently asked questions (faqs).

If you own a car in Victoria, you’ll pay for Compulsory Third Party (CTP) insurance at the same time as your rego.

CTP, or the Transport Accident Charge (TAC) premium, as it’s known in Victoria, is the most basic form of car insurance available in Australia and is mandatory. It covers you or another driver causing someone else injury when using your vehicle.  You can read more in our guide to the Best CTP Insurance for Australians .

In Victoria, it additionally covers the care of you, or someone else, if injured as the at-fault driver in a motor accident. The requirements for taking out CTP differ between states. We explain what you need to know if you’re in Victoria.

Related: CTP Insurance in NSW: The Complete Guide

Injuring someone or taking a life is one of the most devastating possible outcomes of a motor accident, and is something that can have lifelong implications, including monetary.

In Australia, CTP insurance will cover you, or another driver of your vehicle, if liable for such an incident, compensating and covering the medical care of the injured individual, whether they be a pedestrian, passenger or another driver or rider of a vehicle. In cases where the individual has died, their family can receive a payout. TAC in Victoria is a no-fault insurance scheme which means drivers who are at-fault in an accident can also claim for medical care and support.

Without the TAC in place as a legal requirement, an at-fault driver would have to cover any resulting costs from an accident, out of pocket. Last year, tens of thousands of drivers were able to fall back on the TAC scheme, as it supported 43,000 individuals. Meanwhile, fatal cases are on the rise as 295 lives were lost on Victoria’s roads last year—an increase of 22.4% on the year before.

Those injured in an accident can make a TAC claim for:

• Medical care
• Rehabilitation services, to help them while they recover
• The replacement or repair of damaged glasses or dentures
• Income support if they’re unable to work due to their injuries
• Return to work support for them and their employer
• A lump sum payment if they’re are eligible for compensation
• The cost of the application fee to obtain a Medical Treatment Visa if needed.

The scheme can also help parents to be with children who have been hospitalised after an accident, and pay out if they’ve lost more than five days in wages, due to hospital visits. Other benefits include financial support for dependents, travel and accommodation cover for family members visiting hospitalised individuals if they live more than 100 km away, and cover for counselling services, and funeral costs, if someone dies as the result of an accident.

TAC doesn’t extend to damage done to property, your car or someone else’s. For damage, you can choose to take out one of three forms of additional cover:

• Third party property damage : The most basic type of optional car insurance covering damage you’ve caused to someone else’s vehicle or property, if you’re liable for it.
• Third party, fire and theft : The next level up in insurance from third party property damage, it provides the same cover, but also extends to damage to your own car, caused by fire or theft .
• Comprehensive : This is typically the most expensive type of cover, but can offer the most peace of mind, as it provides the widest range of benefits, including car hire while your vehicle is being repaired, or a replacement for your car if it’s written off following an incident .

All vehicle owners in Victoria automatically pay the TAC as part of their rego fee. They can do this online , choosing a three, six or 12-month term before needing to renew it.

As the TAC insurance scheme is owned by the Victorian government, and provided by its Transport Accident Commission, drivers are not offered a variety of insurers to choose between, as in certain other parts of Australia, namely NSW, QLD, SA and ACT. Without private insurers competing in the market, drivers in Victoria have a set price to pay for cover and do not have access to added benefits private insurers sometimes offer such as discounts on their other products i.e. home insurance and other types of car insurance.

You pay your CTP Insurance at the time of registration. Our guide to CTP insurance explains how the cover works across Australia.

You can currently expect to pay the following as your TAC, depending on where you live:

• $552.20 High-risk zone
• $496.10 Medium-risk zone
• $430.10 Low-risk zone

These costs, as stated on the vic.gov.au site, apply to passenger vehicles, depending on whether the owner’s address is deemed high, medium or low risk, according to postcode. You can find out more information about postcode classification.

How can I claim on TAC?

To make a TAC claim, you can use the online lodgement form or call 1300 654 329, Monday to Friday, between 8.30am and 5pm, to speak to someone from the Transport Accident Commission. Alternatively, some hospitals can lodge a claim on your behalf.

You should first have all relevant information to do with the accident, your injury and income to hand. You will need written detail of your injuries in the form of either a:

• Hospital discharge summary
• Signed Certificate of Capacity
• Medical certificate
• Letter from your doctor or allied health professional with your injuries listed.

Additionally, you should provide the name and contact details of the health professional you have seen, or the hospital you attended.

You should provide your bank details, and employment or income details if you have had, or will have, at least five days off work due to the accident.

How is the TAC calculated?

The amount you pay as your TAC will be based on:

• Your vehicle type and use i.e. whether it’s a passenger vehicle or other type of motor vehicle.
• Your postcode—this determines whether you’re in a low, medium or high risk zone.
• Any eligible discounts if for example, you’re a pensioner, concession card holder or an apprentice in an eligible trade.

When do I pay CTP Insurance in Victoria?

You pay your annual CTP insurance whenever your first register your car and upon renewal of that registration each year.

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I have been writing for newspapers, magazines and online publications for over 10 years. My passion is providing, in a way that is easily accessible and digestible to all, the knowledge needed for readers to not only manage their finances, but financially flourish.

Drivers urged to 'carefully check the small print' when on the road or risk £10,000 insurance charge

WATCH: Stephen Dixon gives top tip for slashing car insurance

By Hemma Visavadia

Published: 19/04/2024

Updated: 19/04/2024

Motorhome insurance should also cover costs of vehicle being written off

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Experts are urging drivers to make sure they have the correct insurance before travelling abroad or they could face huge charges.

As the summer approaches, motorhome owners and campervan owners need to ensure their vehicle has significant insurance cover to allow them to drive in the EU, as without this, they can risk hefty fines.

While some owners may have a comprehensive policy, some insurers don’t cover as extensively for travel abroad with drivers urged to check their cover before hitting the road.

Insurance should not only include costs of a collision or damage to another vehicle, but also cover damage or even total write-off costs to the motorhome itself.

Do you have a story you'd like to share? Get in touch by emailing [email protected]

Motorhomes must have at least third party insurance to travel across Europe

Owners must manually extend their policy to include comprehensive cover for damage sustained abroad with drivers warned to not assume it is included.

The average cost of a new motorhome in the UK is around £60,000, but the average cost of a motorhome damage claim is roughly £10,150.

Dan Dawson, underwriting manager at Ripe Motorhome Insurance, said: “For motorhome and campervan owners, confusion around this particular policy detail is all too common – and it can be financially devastating in the event of an accident.

“Many of us will be excited to take a well-earned break this year but discovering that your policy doesn’t adequately cover you for damage can be very upsetting.”

Dawson warned that comprehensive doesn’t always mean comprehensive, which can leave motorhome owners stranded and paying for damage themselves.

He added: “We would therefore urge all motorhome and campervan owners to carefully check the small print of their documents or reach out to their provider for clarity.”

Before travelling abroad with a motorhome, drivers must register commercial trailers over 750kg and all trailers over 3,500kg gross weight before towing them through some European countries.

Depending on which country is travelled to, drivers may be required to get a separate green for motorhomes and anything towed by a motorised vehicle, including caravans and trailers.

These cards are usually issued by the vehicle insurer for a small fee to cover administration costs but drivers should double-check the rules and whether the policy covers this before travelling.

From September 2021, motorhomes alongside other vehicles are required to display a UK sticker on vehicles.

As for insurance cover, drivers are encouraged to check they are protected for breakdown roadside assistance, vehicle and passenger repatriation, continuation of holiday travel or accommodation.

Drivers should also have extensive medical cover and ski cover if they are going to mountainous areas for an adventure holiday.

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Motorhomes generally cost around £60,000

According to the Caravan Club, motorhome insurance can provide cover towards the cost of repairs or replacements if a motorhome is damaged in an accident, fire or is stolen.

It detailed: “It must always provide cover for your legal liability towards third parties, so you're covered if you have an accident causing damage or injury to any other person, vehicle, animal or property.

“Third-party insurance is a minimum legal requirement if you have a motorhome that is being stored or used on the road.”

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A simple guide to car insurance and 6 ways to cut your premium

Get the lowdown on insuring a car - from the mysteries of a no claims bonus to the different types of cover.

Running a car is more expensive than ever, so it's really important to keep your costs down. If you haven't bought outright, then you'll have to budget for your monthly finance payments; then there's fuel or charging, road tax , servicing, maintenance and repairs. Other expenses include breakdown cover, parking fees and permits, and tolls.

However, one of the biggest costs is insurance, and premiums are soaring. The cost of car insurance has surged by 46% in a year adding £292 to the average annual cost.

The punishing increase has taken the average annual premium up to £892, according to the Compare the Market comparison site. 

What is car insurance?

Car insurance protects you if your car is involved in an accident, stolen, vandalised or damaged by fire. As well as covering your car, motor insurance covers you for any damage you might cause to other vehicles, other people’s property, and injuries to other people. 

Why do I need car insurance?

You must have motor insurance to drive your vehicle on UK roads. It protects you, your vehicle and other motorists against liability in case there is an accident. It provides financial compensation to cover any injuries caused to people or their property.

Penalties for driving without insurance range from a fine and at least six points on your licence, to being disqualified from driving. The police can also seize, and in some cases, destroy the vehicle that’s being driven uninsured. 

Different types of motor insurance cover explained:

Third party .

This cover is the minimum legal requirement. It makes sure that compensation is available for injury to other people (including your passengers) or damage to other people's property resulting from an accident caused by you. It doesn't cover any of your costs as the result of an accident. 

Third party fire and theft

Providing the same cover as third party only, TFT also insures you should your vehicle be damaged by fire or is stolen.

Comprehensive

This provides the same cover as third party fire and theft. However, it also covers you should your vehicle be damaged in an accident. Additions to this level of cover can include providing a courtesy car while your car is being repaired, legal expenses and roadside recovery. 

How much does car insurance cost?

The premium your pay to insure your car will depend on a number of factors including the type of vehicle you drive (the less powerful the better), whether you use your car for business, pleasure or commuting, your age, driving history and where you live.

Voluntary excess is also important. This is the amount you’re willing to pay towards the cost of a claim, in addition to the Compulsory excess. A higher figure will help to cut your premium, but only set a voluntary excess amount you're confident you'd be able to pay.

Adding an additional driver to your policy, such as your partner, could also lower your premium. However, adding young or inexperienced drivers would probably increase it.

Why car insurance is going up?

There are various reasons why the cost of insuring a car has soared over the past year especially.

Inflation is a major factor because it has pushed up the cost of repairs, replacement parts, energy costs and even the price of paint. 

The cost to replace written-off vehicles has also increased as the average price of new cars has risen.

There's also an argument that today's sophisticated cars are helping to fuel insurance price hikes because their repair costs are higher. A simple bumper replacement now involves the replacement of expensive sensors for everything from parking to autonomous emergency braking (AEB). 

Are EVs more expensive to insure?

There is growing evidence that drivers of electric vehicles are being charged more to insure their cars than owners of conventional cars with petrol and diesel engines. Again, there are many reasons why electric car premiums have been hit harder.

One of the biggest ones is that EVs tend to be higher value, which means that insurers assume repair parts or fully replacing the car will cost them more. 

RELATED:  6 things you need to know before buying your first electric car  

Also, younger drivers have traditionally chosen cheaper, older, slower, smaller-engined cars. However, EVs are more expensive, newer, more powerful and faster, which means that they are at a higher risk of being involved in an accident. 

EVs are also built with advanced technology and parts, meaning they're more expensive to repair or replace in the event of a claim. Some EVs take longer to fix too or require specialist mechanics, while the high cost of repairing and replacing batteries meaning EVs are more commonly written off.  

What is a No Claims Bonus?

Also known as a No Claim Discount (NCD), a No Claims Bonus (NCB) is a discount your insurer can apply to the price of your car insurance policy to recognise your claim-free driving history.

The amount of money varies for each insurer, but the more consecutive years you go without making a claim, the greater the discount you might get. 

Car insurance groups explained

Cars are placed in insurance groups, also known as insurance bands, to help calculate the cost of insurance policies. Broadly speaking, the lower the number, the cheaper a vehicle is to insure.

There are 50 car insurance groups. Cars in insurance Group 1 are the cheapest to insure, while vehicles in Group 50 are the most expensive to insure.

Small cars, such as the Skoda Citigo, Kia Picanto, Hyundai i10 and Volkswagen Up!, tend to be in the cheapest groups. Family cars including the Nissan Qashqai range between 11-25, while a Tesla Model Y falls into groups 46-50. 

Ways to lower your annual premium

There are things you can do to cut the cost of your car insurance. Here are six of the best:

Choose the right car

When you're choosing your next car, check what it will cost to insure. The basic rule of thumb is that the more impressive the vehicle, the more it will cost to insure. Not only will it attract thieves and vandals, it will cost more to repair and is more likely to be involved in an accident because it's likely to be powerful and fast. 

Pay upfront 

When you find a car insurance policy that ticks all the right boxes, you'll probably be given the opportunity to pay in one lump sum or in monthly instalments. If possible, pay upfront because by paying monthly you are effectively taking out a loan from the insurer with added interest rates.  

Shop around

One of the best ways to find cheaper car insurance is by shopping around and comparing prices in the weeks before your renewal. Use comparison websites like Go.Compare, MoneySuperMarket and Compare the Market, and if you find a cheaper price don't be afraid to go back to your insurer and ask it to match or lower the price. The golden rule is never to allow your policy to auto-renew. Even if you don't find a cheaper quote elsewhere, the odds are that you will be offered a better deal with your existing insurer if you tell them you're thinking of switching. 

Drive sensibly

Avoid accidents and speeding fines because these will impact your policy. Whether an accident is your fault or not, making a claim will usually lead to an increase in your car insurance premium the following year. Insurance companies also take a dim view of points on your licence because they suggest a higher risk of accidents and claims.  

Location, location, location

Insurance companies assess crimes relating to car theft, fire and vandalism in your area, so changing your address could affect the cost of your car insurance premium. Insurers will also offer you a more affordable premium if you keep your car in a secure garage on a driveway overnight, rather than on the road. 

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Mileage matters

Most people estimate their mileage when getting a car insurance quote, but it's not that difficult to get a more accurate figure, which could help lower your premium. Check your MOT history online or using recent certificates. They will show your mileage from previous years. Car insurance premiums are usually cheaper for those who drive fewer miles, because the more miles you drive, the greater the chance of having an accident.

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