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Texas Department of Insurance
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November 4, 2021

Should you get travel insurance?

Taking a trip this holiday season? More people are considering travel insurance as part of their vacation planning. The US Travel Insurance Association explains what insurance covers.

Is trip insurance necessary?

Think about what you’d have to pay for if you had to cut your trip short due to an injury or illness. Could you pay for another plane ticket? Or could you afford to be evacuated for medical reasons? If your flight is delayed, could you book another night at a hotel?  If not, consider travel insurance.

What are some types of travel insurance?

Comprehensive plans reimburse things you already paid for, like a flight, a cruise, or a hotel deposit. Some offer non-insurance services, like a 24-hour assistance line that can help you coordinate medical care, call your family back home, or provide translation, security, or legal assistance.

Another option is “cancel for any reason” or CFAR coverage, which lets you cancel for any reason or even no reason. It costs more, but this coverage will reimburse 50% to 75% of the cost of your trip.

Do policies cover you if your plans change because of a viral outbreak?

Only “cover for any reason” policies would cover you. Always check the terms and conditions. Sometimes things like a quarantine, loss of a job, or a government-mandated airport shutdown would be covered, but not a pandemic itself.

Will your health insurance cover injuries or sickness when you’re away, or is there other coverage you should check out?

A comprehensive travel insurance policy can help. Keep in mind Medicare and Medicare supplements generally don’t cover expenses outside the United States.

How much is travel insurance?

It’s about 5% to 10% of your trip cost. “Cancel for any reason” coverage may cost 40% to 70% more.

What other ways can you cover losses when you travel?

Contact your airline and your hotel before you cancel a trip. They may let you change your trip without penalty or waive penalties. You could get a refund or future credits. Check with travel suppliers before you file a travel insurance claim.