What It Means
Travel insurance is a policy that covers risks tied to a trip. The main kinds are trip cancellation, which repays prepaid costs when you cancel for a reason the policy lists; travel medical, which pays for short-term care if you get sick or hurt while away; and medical evacuation, which pays to move you to a hospital that can treat you. One policy can combine several of these.
Try It: Compare the Three Main Kinds of Coverage
Tap a kind of coverage to see what it pays for and when it's worth a look, based on State Department and NAIC guidance.
Prepaid trip costs when you cancel for a reason the policy lists, such as illness, severe weather or a problem with the airline.
Short-term medical care if you get sick or hurt on the trip. Policies run from 5 days up to a year.
Emergency transport to the nearest hospital that can treat you, and getting you home later if needed.
You've paid a lot up front that you can't get refunded.
Your health plan won't pay for care where you're going. Medicare and Medicaid don't pay overseas.
You'll be far from good hospitals, or your health plan won't pay for transport abroad.
How People Say It
- "Did you add the insurance when you booked the flights?"
- "The rental's nonrefundable, so we bought cancellation coverage."
- "Does our health plan even work in Mexico?"
The Breakdown
How to decide what to buy
- Ask your health planHealth insuranceA plan you pay a premium for that covers part of your medical costs, while you pay your own share through a deductible, copays and coinsurance. See more what it pays for outside the U.S. The State Department says Medicare and Medicaid don't pay for care overseas, and most U.S. health insurers won't pay to move you to a suitable hospital or back home.
- Add up what you've prepaid and can't get back. That's the amount trip cancellation coverage protects.
- Match coverage to the trip: a trip abroad points to travel medical and evacuation coverage, and a big nonrefundable deposit points to cancellation coverage.
- Read the policy's list of covered reasons before you pay, since cancellation coverage repays only for the reasons it names.
- Save the policy number and the insurer's emergency phone number where you can reach them during the trip.
Try it today. Call the number on your health insurance card and ask one question: what happens if someone in the family needs a hospital in the country you're visiting?
The three main kinds
| Coverage | What it pays for | Worth a look when |
|---|---|---|
| Trip cancellation | Prepaid costs if you cancel for a covered reason: illness or injury, a family member's hospitalization or death, severe weather, or problems with the airline, train or cruise line | You've paid a lot up front that you can't get back |
| Travel medical | Short-term care if you get sick or hurt while traveling, for 5 days up to a year depending on the policy | Your health plan won't cover you where you're going |
| Medical evacuation | Emergency transport to the nearest hospital that can treat you, and later transport home | You'll be somewhere remote or far from home |
Good to Know
The State Department recommends travel health insurance before a trip overseas and notes that Medicare and Medicaid don't pay for medical care outside the United States. Medicare.gov describes Medicare's coverage outside the U.S. as limited. Read a policy's exclusions before you buy it, and carry a copy on the trip.
FAQ
Does Medicare cover me when I travel abroad?
Only in limited cases. Medicare.gov describes its coverage outside the U.S. as limited and suggests a travel insurance policy if you want more, so check your plan before you book.
What does trip cancellation insurance cover?
It repays prepaid trip costs when you cancel for a reason the policy lists, such as illness or injury, a family member's hospitalization or death, severe weather, or problems with your airline, train or cruise line. A reason the policy doesn't name isn't covered.
What is medical evacuation coverage?
It pays for emergency transport to the nearest hospital that can treat you, and for getting you home later if needed. The State Department notes that most U.S. health insurers won't pay for this kind of transport overseas.
Do It in Buhata
Vault
Save the policy number and the insurer's emergency phone number in Vault (Plus) before you leave.
Open BuhataRelated Terms and Categories
- Travel budget
A plan for how much a trip will cost in total, split into travel, lodging, food, activities and a cushion, set before you book.
- Vacation planning
Working out where, when and how a trip will happen, including what it costs, how to save for it and what paperwork it needs, well before you leave.
- Passport for kids
A U.S. passport for a child under 16. The child applies in person on Form DS-11 with both parents' consent, and it's valid for 5 years.
- Health insurance
A plan you pay a premium for that covers part of your medical costs, while you pay your own share through a deductible, copays and coinsurance.
- Travel first aid kit
A small, packable kit of first aid supplies, medicines and health papers a family carries on a trip so minor problems can be handled away from home.
- Family vacation
A trip taken together by a parent or parents and their children, usually planned around school breaks, the children's ages and a shared budget.
Sources
U.S. Department of State, "Travel Insurance"; National Association of Insurance Commissioners (NAIC), "Travel Insurance"; NAIC, "Should I Get Travel Insurance?"; Medicare.gov, "Travel outside the U.S."
- travel.state.gov/en/international-travel/planning/guidance/insurance.html
- content.naic.org/insurance-topics/travel-insurance
- content.naic.org/article/should-i-get-travel-insurance
- www.medicare.gov/coverage/travel-outside-the-u.s.
Last updated .