How to Research and Choose the Right Travel Insurance

Travel insurance is a recommended safety net for any trip, whether you're just off for a weekend getaway or embarking on a year-long adventure. However, one size does not fit all! What works for your friend may be all wrong for you depending on a variety of factors.

Here's a basic step-by-step guide to help you navigate the process of researching and selecting the best policy for your needs if your live in the United States. Rules in Canada and other countries may be different.

Step 1: Understand the Basics of Travel Insurance

Travel insurance typically covers:

• Trip Cancellation or Interruption: Reimbursement for non-refundable expenses if you must cancel or cut short your trip due to covered reasons.

• Medical Emergencies: Coverage for medical treatment and hospital stays while abroad.

• Emergency Evacuation: Transportation to the nearest medical facility or back home in case of serious illness or injury. This is particularly important for older travelers, as medical evacuation can be costly and is often not covered by standard health insurance policies.

• Repatriation of Remains: Coverage for the return of your body to your home country in the event of death while traveling. This is a critical consideration for older travelers or those with health concerns, as the cost of body shipping can be significant and imagine your loved ones dealing with expenses and the stress that is alleviated by adding this option.

• Baggage and Personal Belongings: Compensation for lost, stolen, or delayed luggage.

• Travel Delays: Coverage for additional expenses incurred due to delays.

Familiarize yourself with these basic coverages to identify what you might need.

Step 2: Evaluate What Coverage You May Already Have

Before purchasing a travel insurance policy, check what coverage you might already have:

• Credit Cards: Many credit cards offer travel insurance benefits, such as trip cancellation, baggage loss, and car rental damage if you use the card to purchase. Read the fine print to understand the extent of coverage and any limitations.

• Health Insurance: Your existing health insurance may cover medical emergencies abroad, but it’s important to confirm the details, including exclusions and whether emergency evacuation is included. For older travelers, note that Medicare generally does not provide coverage outside the United States, although some Medicare Advantage plans may offer limited international coverage.

• Homeowner's or Renter's Insurance: These policies may cover personal belongings, even while you’re traveling.

Step 3: Decide Between Per-Trip and Annual Coverage

• Per-Trip Insurance: Ideal for occasional travelers. It covers a single trip and is generally more affordable if you travel infrequently.

• Annual (Multi-Trip) Insurance: Best for frequent travelers. It provides coverage for multiple trips within a year, often at a lower cost per trip. However, note that annual policies typically have a maximum coverage limit per individual trip, such as 30 or 60 days, and a finite dollar amount annually of reimbursements. Be sure to verify these limits if you’re planning an extended trip.

Assess your travel frequency to determine which option suits you better.

Step 4: Consider Any Preexisting Medical Conditions

If you have a preexisting medical condition, look for policies that offer a waiver of preexisting conditions. This ensures your condition is covered if certain requirements are met, such as purchasing the policy within a specified period after booking your trip. Most policies have very specific periods of time, and rules on this topic.

Step 5: Identify Additional Coverage Needs

Depending on your trip, you may need additional coverage such as:

• Medical evacuation and repatriation - while most plans include this, it may not cover the entire cost or some tour companies require additional coverages.

• Adventure Sports Coverage: If you plan to participate in activities like skiing, scuba diving, or zip-lining.

• Cancel for Any Reason (CFAR): Offers greater flexibility to cancel your trip for reasons not typically covered.

• Rental Car Damage: If not covered by your credit card or auto insurance.

Step 6: Compare Policies

Use comparison websites like Aardy, Squaremouth, Forbes, or InsureMyTrip to:

• Compare coverage options and prices.

• Read customer reviews and ratings.

• Understand policy exclusions and limits.

• Choose a reputable insurer that has solid financial backing. Many large insurance carriers underwrite for travel insurers, so that is a consideration. Fly by night, low cost insurance can prove to be more hassle than it’s worth. Scams are out there.

**Note – these search engines are compensated by the carrier, so be aware! I am not endorsing any of these, just providing information.

Step 7: Read the Fine Print, Read the Fine Print, Read the Fine Print!

Carefully review the policy document to:

• Ensure it covers your specific needs.

• Understand claim procedures and documentation requirements.

• Check for exclusions, such as pandemics or acts of terrorism.

• Contact the company directly if you have questions.

I cannot impress upon you enough that what is in the fine print can make the difference of getting reimbursed or not. Remember insurance carriers make money when they don’t have to pay claims. That fine print is what might “bite you”.

Final Thoughts

Choosing the right travel insurance involves balancing cost with coverage. Start by identifying your needs, reviewing existing coverage, and then comparing policies to find the best fit. For older travelers, prioritizing robust medical coverage and emergency evacuation is essential. Keep in mind that insurance is a for-profit business, and the onus will be on you to provide the documentation for any claim. If you are using a trusted travel advisor, they will often have plans to suggest as well. With the right plan in place, you can travel with peace of mind knowing you’re protected against the unexpected.

*This is a basic informational guide and not legal, medical, or other advice. Your own personal insurance agent or trusted travel advisor/agent may be able to help you with specifics. I am not being compensated for this blog.

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