5 Tips on Buying Travel Insurance

With all the travel ups and downs and cancellations during the pandemic, travel insurance purchases surged. And even with things back to normal, an increasing number of travelers are opting to guarantee their trips, pushing the worldwide travel insurance spend to $31.2 billion in 2025, according to Grandview Research. Veteran travelers are buying it because they like the feeling of safety, and younger travelers are too, seeking policies that allow last-minute cancellation if plans change. 

No matter why you’re seeking travel insurance, most of us don’t make the best decisions under pressure, so it’s smart to weigh the pros and cons of travel insurance before you shop.

1. Find out what’s covered.

Travel insurance plans vary widely and are based on state regulations, according to AAA Travel Product Marketer Dona Ortega. Talk to counselors so you can determine what you need and what you don’t, and carefully read thorough any policy you’re considering. The travel insurance industry has rolled out policy enhancements to provide coverage due to cancellations, interruptions, and medical emergencies caused by a pandemic-related illness or issues such as mandatory quarantines. While most travelers worry about trip delays and cancellations, there are other issues that can affect your journey, so working with a travel consultant can be beneficial to ensure you’re properly covered.

2. Choose the right coverage for your trip.

Travel insurance plans can cover everything from RV road trips to international cruises and everything in between. Some policies cover events such as baggage loss, delays, theft or damage, missed connections, or even a missed or replaced port of call on a cruise. For road trips, consider whether you’d need to have your vehicle transported back home in case of an injury or illness—there’s a plan for that.

3. Buy at the right time.

While it depends on the coverage you choose, most travel policies require you to purchase travel insurance within 10 to 21 days after the day you book your trip, referred to as the original or initial booking. Others call for purchasing insurance when you’ve made the first deposit on your trip. Read the policy to make sure you’re within the required purchase period, and always review the end date of coverage for extended trips as additional coverage may need to be added.

4. Don’t forget medical coverage.

Ortega reminds travelers that most U.S. government medical plans and many personal health insurance plans don’t work outside the country. Additionally, some countries—including Argentina, Nepal, and Qatar—require proof of travel insurance medical coverage prior to visiting. A trip protection plan can provide important coverage benefits for emergency medical/dental needs, emergency medical transportation, and other medical services. Some plans cover preexisting medical conditions when certain criteria are met but check with the policy provider.

5. Read the fine print.

Make sure you understand the terms and exclusions of the travel insurance policy you select. Not every situation resulting in cancellation or delay of a trip may be covered. Check your policy closely for “qualified events” or “covered reasons.” The more qualified events (covered reasons) the policy offers, the better. Finally, keep receipts, emails, and other important documents because if you need to file a claim, you will probably need proof to back it up.