Travel insurance is one of the most important things to buy for your trip — no matter how long you are going away for it is a must have.
As I was recently chastising a friend for never getting it, I realized as we talked he had a lot of misconceptions about what travel insurance really was. And, judging by the questions that make their way to my inbox each day, he’s not the only one.
I haven’t talked about travel insurance in a long time and want to address many of the concerns, questions, and misconceptions that have piled up over the years that, honestly, I should have written about ages ago (my bad!).
I always get travel insurance when I travel. For as little as $2.50 USD a day, it’s the most important thing you hope you’ll never need. After all, we get home insurance, life insurance, health insurance, and car insurance. Getting travel insurance is the same thing. You want to protect yourself against the unforeseen.
A friend recently got dengue fever and had to cancel a lot of her travel plans — but her travel insurance covered the hospital costs and reimbursed her expenses. Insurance was there when I popped an eardrum and lost luggage. It was there when another friend had to go home after her father died. It was there for these people too:
But not this person who decided not to get it:
Travel insurance is a must but since it is a confusing topic (try reading New York insurance law for fun. I did. Note: It’s not fun.) today I want to answer the common questions about travel insurance. These questions pop up in my inbox all the time and are the greatest points of confusion on the subject:
Note: There are few universal rules in travel insurance so be sure to read the fine print of your policy to find out the specifics of what is and isn’t covered. The below answers are no substitute for checking your actual policy! Policy wordings and conditions vary greatly from country to country, state to state, and company to company. So read them and be sure to go with the company that gives you what you need – there are many good insurance companies out there!
What the heck is travel insurance?
It’s emergency care when things unexpectedly go wrong. Depending on the policy you buy, it can be there for when your luggage is lost by the airline, when you fall hiking, pop an eardrum scuba diving, get a parasite overseas, or need to cancel or cut your trip short because your dad died. It’s designed to be there for accidents (both health and non-health related) and unexpected events you never thought could happen to you. It’s not a substitute for health insurance back home, an open checkbook to supplement your trip expenses, or a license to be foolish.
Is travel insurance just health insurance?
No, it’s so much more than that. While there is a medical component for sudden illnesses and accidental injuries, it can also cover you for trip cancellation, trip interruptions, loss or theft of your gear, and emergency transportation should you need to get to the nearest hospital fast.
Okay, but it’s like health insurance too, right? I can go see a doctor when I want?
Travel insurance is not a replacement for health insurance and should not be treated as such. It’s there for unexpected emergencies. Break a leg? Pop an eardrum? Get food poisoning or dengue? Travel insurance has you covered. Want to go see a doctor for a physical or get a new crown on your tooth? You’re on your own!
Can I get treated for an illness I already have?
Most travel insurance plans don’t cover pre-existing conditions. If you get sick on the road, yes, travel insurance is there for you. But if you need medication for an ongoing chronic disease or a medical condition you knew of before you bought the policy, you could be out of luck. Moreover, if you get sick under one policy and then you extend it or start a new policy, most insurers will consider your illness a pre-existing condition and won’t cover it under your new policy.
My credit card offers some protection. Isn’t that good enough?
Credit cards, even the best, offer very limited protection. Some offer coverage for lost or stolen items, medical expenses, and trip cancellation if you booked your trip with the card, but they may not cover you being airlifted home or anything else (always check. You may also not be covered unless you activate the policy before your trip.) And, if they do cover something, the coverage limit may be so low that you might be shocked when you have to pay the difference. Bottom line: don’t rely on credit card coverage for any more than lost or stolen items, and maybe not even that.
Unless you have an American Express Platinum… but not all of us roll that deep!
How does the insurance actually work? Do they mail me a card I can show the doctor?
If it’s a major medical emergency needing overnight hospitalization or emergency repatriation, then you (or someone else) would contact the emergency assistance team and they can help make arrangements and approve costs. For all other situations, including day admission to hospital, you need to claim reimbursement from your insurer. You pay out of pocket and then submit documentation to the insurance company after the fact (so no need for a card to show the doctor). Be sure to keep all documentation, file any necessary police reports, and save all receipts. Companies don’t reimburse you based on your word.
What about Obamacare? How does that affect everything?
For Americans, the ACA, or “Obamacare,” covers you only in the United States, and travel insurance is not a replacement for health insurance nor does it get you out of its requirements. But if you are away from the United States for 330 days or more, you don’t need to get US-based health insurance. You also get a three-month grace period each year before you get charged a penalty. Be sure to contact a tax accountant or the ACA hotline number for more information.
I read reviews online. All these companies suck. What’s up with that?
Most people don’t read the fine print of their policy. (Who has ever read their iTunes agreement? Exactly.) People buy it, don’t read the exact wording, and make assumptions about coverage. So, when something goes wrong, they scream bloody murder when something isn’t covered or when lacking supporting documents to support their claim and write a nasty review online. (Most people don’t write good reviews when they are helped. On the Internet, we love to scream our displeasure but rarely our pleasure.)
Take online user reviews of insurance companies with a grain of salt. I’ve read them and most of the time, I think, “You didn’t read your policy!” I’m by no means an insurance company defender, but if you’re going in with no documentation, no proof you owned what you lost, or you want to make a claim for something that is specifically excluded on the policy, you should expect to get denied. Is the reimbursement process fun? No. It’s a lot of paperwork, but when you have all your ducks in a row, you get reimbursed. Reviews by users who didn’t read their policy doesn’t mean insurance is a bad idea. It just means people don’t follow instructions.
I got drunk and hurt myself. Will I be covered?
Possibly not. If you are doing something foolish (whether you’re drinking or not), insurance companies will want to know if putting yourself at unnecessary risk led to the injury. If, after investigating, they find you did, they can deny your claim. That’s not to say that they expect you to be sober your entire trip, but let’s just say you’re unlikely to get reimbursed if you’re tanked and decide that it would be a good idea to stand in the middle of the road and play chicken.
So don’t be foolish!
Does travel insurance cover me in my home country?
Some travel insurance can cover you at home. For example, World Nomads travel insurance covers you either 100 miles from your permanent address (for U.S. residents), outside your home province (if you’re Canadian), or outside your home country (for everyone else). It depends on your policy, and there are always conditions on when the coverage starts and ends and where you can travel to, so check this carefully first.
I’m a senior. What should I do?
Insurance companies don’t like covering seniors as they view them as high risk, thus it’s a lot harder for older travelers to find comprehensive coverage! For seniors, try the company Insure My Trip. They usually have a lot of good policies.
******
I’ve used travel insurance since I started traveling, and it’s helped me, my friends, and readers of this website. I can’t stress its importance enough.
I hope you never have to use your plan but, if you need to, you’ll be happy you bought it. Don’t avoid it because you read a bad review or think you’ll be OK. Travel insurance is a safeguard against the unexpected. Nobody ever expects the Spanish Inquisition — and no expects to get hit by a drunk backpacker driving a scooter in Thailand!
Like a responsible adult, be prepared. It’s worth it.
Scott
Matt is correct that everyone needs travel insurance. If you get sick in Europe for example it could costs thousands of dollars. Don’t forget your dealing with a insurance company. I personally have had issues with World Nomads losing the paperwork I sent them and continuing asking for copies of my passport and other documentation. So here are some suggestions to help in your claim process:
1. Make copies of all receipts. (They will lose them if you don’t).
2. Mail the information certified mail
3. Stay on top of your claim
Rachel
I don’t normally buy travel insurance, especially if it’s just a short trip, but recently when I learned my friend who went to India had to be taken to the clinic for an infection, (she too didn’t buy travel insurance) it didn’t cost her a lot of money, but what if it’s worse that than. We can never tell what might happen to us while we’re out there, so yeah, I guess it’s better to be ready than to be sorry.
Great tips! as always. 🙂
Ginger
Hey! Thanks for the post. However, I signed up for the bronze plan (cheapest one) with ACA and talked to the insurance rep who assured me that emergencies services were covered (past my deductible) in foreign countries and covered medevac in case of emergency. So really, travel insurance is good for trip cancellations, which for over $2k for travel insurance for the year seems worth it if you’re traveling on a low budget. If I was booking $10k+ safaris, then fine, maybe…but I’m not so convinced by your post. I’d be happy to be convinced if my rep for ACA didn’t tell me how I was covered overseas for emergencies.
NomadicMatt
Every health plan is different in the US (we have sooo many) but few health plans cover you overseas and rarely if ever on the bronze plan. I’ve looked into it a lot. Your plan could be an exception but I would look at the wording of your policy exactly. I’d bet money you aren’t as widely covered as your rep made it sound like.
NomadicMatt
You’re dead wrong here. First, I’m not paid by World Nomads. I love that company but you need to go with the company that best suits you and that might not be which is why I recommend others too (see my other post on travel insurance).
Second, that’s awesome your BCBS covers you. BCBS is not available in every state and every policy is different (which is why I said people need to check their policies to see what is and what isn’t covered). Moreover, the coverage limits might not be high and there could be restrictions on who you can see and can’t see. For example. my Harvard Pilgrim program does not cover me overseas. When NYT did a special on this, the reporter could only see approved doctors and anything out of plan would have to be covered out of pocket! You can’t make blanket statements about insurance.
Third, related to the credit cards: 1. Not everyone has these credit cards. 2. Credit card coverage only kicks in if you use THAT card for your trip. and 3. Coverage is not as complete on the health side. On the trip/property side yes, on the health side, no.
As I said, every plan is different and before you go purchase a plan you need to see what is and isn’t covered. While your situation may be different, it does not speak to the complex world of insurance as a whole.
Mark
The world nomads link at the bottom of the article- you receive nothing when people use that link…?
NomadicMatt
I do receive a commission off that widget, just like I do from Insure My Trip or one of the other countless companies I list on this website. There’s no redirect quid pro quo here. World Nomads’ referral program, like IMT, Expedia, T-Mobile, or Hostelworld, are all free to join and open to everyone. You get a little personalized link that you can use to track referrals. Referral links, if available, are all over this website. Whether or not companies have one is irrelevant to my referral. I’ve been using WM since 2004, well before I started blogging. Links or not, companies are here because they deserve to be (just look at the resources page. Over 50% of the links are non-referral links). But if a company has a link, I will use it.
It’s how this website stays big banner ad and sponsor free. Affiliate links are how most website monetize the free advice they give.
K. Renae P.
“Read the Policy’ should be in big, bold letters. You are correct that many of the complaints online seem to be from people who purchased a plan that didn’t fit their needs. Another thing I see is that they made a dumb traveler mistake then got angry because their policy didn’t cover things like leaving property unattended or having your phone in your pocket whilst swimming in the ocean.
It is important for the policy holder to know what services they are getting and what they are expected to do to get reimbursed. And reimbursement tends to be a lot of hoop jumping as it is with any policy agreement.
Informative post!
Nick
Hi Matt, thanks for all the info from this article, countless others, and also your book. I am an American leaving in February for a year long RTW trip. I have been researching insurance a lot lately and for my circumstances, I am having a hard time in seeing the value of ‘travel insurance’ like world nomads vs. ‘travel medical insurance’ such as IMG or HCC Atlas. The ‘travel medical insurance’ seems to be competitively priced with world nomads, even a bit cheaper.
Since I won’t be on any time constraints, I’m not really concerned too much about trip interruption or cancellation, etc. My baggage won’t be worth that terribly much money. On the other hand, I don’t want to only have emergency coverage. I want to be able to visit a doctor if I’m sick and have outpatient procedures if I need to. And since I’m quitting my job I’ll be giving up my US based coverage. (Actually, I should be able to get onto the Obamacare-expanded-Medicaid, but I’m not counting on that, and it covers nothing overseas anyways.)
Anyways, I was wondering if you had any critiques on my thoughts here. Do you have any knowledge of the travel medical insurance offered? And am I underestimating the need for the non-medical coverage?
Mia
I used to be a travel agent so I’ve seen a lot different things do wrong for people while travelling. Travel insurance becomes more important the longer you travel since more things can go wrong just as it could back home.
What’s important in insurance is different for everyone, but for me the most important is the emergency coverage. Say you were in a natural disaster like the earthquake in Nepal. You may not be able to get out and if you have a good insurer then they can help pay for accommodation costs while your stuck and organise for you to get an evacuated out (even on a military aircraft if that’s the only way).
Even if it’s a simple matter of your flight being cancelled by a storm your insurer can help pay extra accommodation cost (if it’s weather related most airlines won’t cover you).
This one is a bit morbid but is important nevertheless. What if you were to die overseas? While working as a travel agent a friends client died in an accident. The client didn’t have insurance and the family didn’t have enough money to bring the body home.
I’ve done a few RTW trips myself and always make sure I’m insured but as Matt said, make sure to read the fine print and know what you’re covered for.
Kat
Hey Nick, which one did you go with? I’m in the same situation and am deciding between IMG and HCC and would love to hear how your experience has been!
Jon Jovi
Thanks Matt! I\’m curious to know what did you mean by unless you have an American Express Platinum card? I recently obtained this card merely for the sign-up bonus. I was wondering what travel insurance does this card entails?
Lynn Howard
Great advice, Matt! As a hugs fan of yours I enjoy learning new edges to my traveling adventures. As far as traveling insurance goes – I never leave home without it. Why? It’s inexpensive and you’ll be so glad in a “worst case…”
Stevie on the Move
Did you ever need it? I’m now travelling without a health insurance since quite a while and I just stay healthy.
NomadicMatt
When you get in an accident, come back to me and ask that!
Tony
Credit card insurance in Australia, notably with various kinds of Visa and Amex (Gold upwards), seems quite comprehensive for the most part, and the payment requirements are not onerous. Covers your family along with you, too. Interestingly, I notice my HCH Health Fund also covers medical abroad. There is a limit on three months though, so this would not be suitable for lengthy trips.
Before you ask, yes, I have read all the policy documents (and I was a lawyer in a past incarnation).
To be honest, I was a bit doubtful about this “free” insurance, but I’ve read the documents and the offerings seem valid to me. Health/repatriation etc. are my main preoccupations as far as insurance goes, although the only claims I’ve ever made have been relatively minor property ones. Fortunately, the old days of carrying around $80K of gear are in the past for me!
I’d be interested to hear anybody else’s experience of CC insurance. Perhaps this is one of the few cases (very few) where Australians get a good deal?
NomadicMatt
Australia and other countries with much better health care industries and coverage are much better in helping their citizens when they’re abroad. In the US, we aren’t as lucky!
Steve Neiman
Matt,
Would be helpful for readers to know if you have a financial relationship with World Nomads? Would allow for us to make a more objective assessment since this kind of reads as a giant ad for that company.
Thanks,
Steve
NomadicMatt
I have no specific relationship with them. No more than I do with any of the companies listed throughout my site (except Intrepid). I have an affiliate link with them and lots of companies listed on this website. Anyone can apply for these programs. You sign up, grab a link, stick it on your site. I only mention them once in the article….on equal footing with Insure My Trip (which is also an affiliate link). I do use World Nomads as my primary insurance when I travel though.
But as I say in my note above, find the policy that works for you! World Nomads, Insure My trip, Clements, or anyone else!
Rindi
Worldnomads.com were awful! We used them for our RTW last year. They let us down twice. Never again.
Rob Erskine
How about an article about car insurance when renting outside of the US? I had good luck in Australia after a minor scrape but the rental agent would not honor the same company’s insurance in Croatia unless he put a $15,000 hold on my charge card.
It’s confusing and very expensive if you buy at the counter when picking up the car.
Mia
Car insurance is tricky because every country has it’s own rules and regulations on the industry. In some countries showing that you have insurance already is enough, in other they require you to buy a basic package and in others they put huge holds on your card. Don’t even get me started on renting a car in the US….
Liz
I am planning a trip to India and I had no idea this was a thing! Definitely doing it. Thank you! :):)
Denise
I now buy travel insurance to cover my rental car in Europe. Previously, I would rely on the car rental insurance provided by the credit card I was using to rent the car. However, in recent years I found that that insurance may not, and usually doesn’t, cover “loss of use”, the undercarriage, the side mirrors and the tires. Did you know that there is no spare tire in your European car rental and that you are solely responsible for those tires. Even though I stay at B&Bs and use miles for my flights, I always get travel insurance. It only costs me about $150 for the peace of mind.
Lisa Chupity
My husband and I are traveling to New Zealand next April. I plan on getting trip insurance. I have Multiple Sclerosis which is in remission, right now (more or less), and this is one of those pre-existing conditions I expect will throw a monkey wrench into the application. We’re 57 years of age – not quite seniors – and I’m wondering if I should go for Insure My Trip?
NomadicMatt
You might have more luck finding a plan with them or another company if you want coverage to include your MS.
Jessica
NZ has quite a different system to America. We have ACC which covers accidents, even to foreigners, but they still recommend getting travel insurance. Also because we have ACC you can’t sue anyone if you have an accident.
Yvonne
After successfully winning a claim with Allianz and numerous requests for info about travel insurance we wrote the book on it!
The biggest piece of advice is \”Read the fine print\” before you buy, know what you are covered for and document every step if you need to make a claim. Our experience was that the underwriters will drag there feet and look for any loophole to delay or decline the claim. Document it and if necessary quote their small print to them.
Traveling Rockhopper
Travel insurance is very important, but I think mostly people don’t care so much about it, until…
Chris
If you are planning on doing a lot of car hiring while travelling (usually the cheapest way to get around if there’s a group of you) travel insurance that covers your excess (deductible in the US) is very worthwhile. We hired cars for over 100 days over seven month of travelling and the money saved not having to get the hire companies’ extended insurance (which quite often costs more than the car hire itself) paid for about 70% of our travel insurance.
Roberta Kent
Thanks for the tips! The article mentions it costs about $2.50 a day. I’m getting a quote of at least $74 for a week long trip to Panama. Any ideas why that is so high?
NomadicMatt
“As little as $2.50 a day.” It depends on who you are using, where you’re from, etc. etc. so without more information I can’t say but feel free to email for help.
Mandi
I am planning a 3 month road trip around the US, very similar to what you did on your book tour. I will be doing it solo and either staying with friends/family or couch surfing (CS community is AMAZZZING), anyway I of course have health insurance now, will I be covered on my trip around the US or do I still need travel insurance? If I am taking my own car and am traveling in my own country, whats the benefit to travel insurance? Thanks Matt!
Christy
Great post and sharing! I’ve always gotten travel insurance and thankfully have never had to use it, but I feel much safer having it! I lead retreats in exotic locations and make it mandatory for my guests to get travel insurance. No idea if they actually do but my hope is they will see the importance.
Emily
Like Nick (who commented on December 8), I am also an American that is planning on a traveling for an extended period of time and will forfeit the health insurance I currently have through my job. My biggest concern is also the medical aspect of the insurance plan. I continually read that travel insurance is not a replacement for health insurance, but am having trouble seeing what benefit can be gained from paying the very expensive premiums to maintain US coverage while I would not reap any of the benefits overseas. What solution do you recommend for an American leaving the country for an indefinite period of time?
NomadicMatt
Travel insurance is for emergency care. If you want something that’s more like everyday health insurance, you can get expat insurance from like Cigna, Clements, Aetna….they all over something. It’s expensive though!
Andrew Peterson
Hey Nomadic Matt,
My wife and I are about to leave for 6-8 months of travel around the world…we currently live in California. My question is…when we leave CA, do we need to keep a US based medical insurance plan? Can we cancel our plan before we leave and rely on Travel Insurance? I\’m confused about all of the implications with coverage and the new laws around Obamacare…. Thanks for any insight/help. Read all of your posts on Insurance abroad, but did not find an answer.
Carolina J
I’m buying travel insurance. Your article was very helpful. I used to buy from the company where I booked my trip. I’m going to purchase via online from now on.. thank you!
Heather
Thanks for the info, I found it helpful. If there are any Canadians looking for insurance, I just booked with World Escapades which covers similarly and is cheaper. I almost went with World Nomads but the price difference got me!
thanks,
Heather
Monica
It really depends on what type of coverage you need. The equivalent of an all inclusive cover (medical + non-medical + trip cancellation) for World Escapades costs USD140 for 2 weeks while at World Nomads it’s only USD65. You should really do your homework before committing yourself.
Edwina Golombek
I had been taking out World Nomad Insurance for years and it wasn’t until I had a Stroke whilst traveling that I realised what a disgusting company they are..could not contact them when the emergency arose and they did EVERYTHING to not pay my claim..I received NO assistance for having to travel home over land and sea with someone accompanying me..they made my ordeal a million times worse.. they eventually paid the hospital and a little for my expenses but it was their bloody mindedness which I will never forget..it wasn’t until I made comments on their fb page that I got results… I had lost my speech so was relying on others to help me try to contact them…Lonely Planet when I told them couldn’t care less..
Brian
Hi Edwina, which travel insurance would you recommend other that World Nomad?
Adriane
It happened to me on a 6 month backpacking trip! I was in the middle of Easter Island when I had a gallbladder attack. Turns out I had to get the sucker removed when I flew back to Santiago.
Had the surgery there in mainland Chile and World Nomads took care of the rest! Thank god we got the insurance before leaving or we would have been stuck with a huge (over 10 grand) bill.
Max
The choice of options is bewildering and the ease with which you can make a policy purchase online is fantastic but can also be dangerous if you are not clear on what the policy exemptions are. I know it is dull but if you are going out of country on a long trip, take a few minutes to read through exactly what your cover provides.
Most of us i suspect buy on price but the lower the price the lower the level of cover. Nothing more annoying then needing your policy on holiday for medical or theft /loss reasons, then finding you are not covered for that specific circumstance.
Diane
We are rarely in the US… usually no more than 2-3 weeks a year now. I’m wondering if ACA will let you off the hook about insurance. I know you posted about it above but wondering if it would still hold true. We have carried insurance in the US but have been looking at other options.
Mary
Hey Matt and team,
I’m located in WA state and I’m trying to buy multi-trip travel insurance that will last me the entire year. I have previously bought this kind of policy while located in the state of OH. But I’m finding that most companies do not offer multi-trip policies to residents of WA. Can you help me figure out why or who might offer this kind of coverage? Thanks!
S
While World Nomads insurance is great, it does not seem to cover lost luggage, trip cancellation, missed connection etc. How is this a good insurance then? Perhaps I only face this problem because my country of permanent residence is India?
Eva
Thanks – everything I needed to know. Travelling to Beijing and knew it was a necessity but just wanted to know why exactly.
BJ
Hi Matt, I’ve been traveling now for over 12mths and have been insured up till now but my insurance company in New Zealand won’t insure me past 12mths from leaving my own country. Do you know of a provider that will? Thanks for any suggestions!
Kim
check out BUPA
Gowri
Really nice tips in which to avoid any health issue problems. And i think definitely it will be useful for many people so that they can utilize their ability with what they can. And please keep update like this.
Jay
Hi,
I would like to check if infected by virus during the trip and the insured person pass away, can this scenario be claimed under death benefit?
Thanks.
Miggy
Thank you for this very helpful article! However, I have a question I can’t seem to find the answer to.
My wife and I will be traveling to Europe from the Philippines this year and the insurance company told us that we need to purchase 29 days worth of insurance though our total amount of travel time is only 15 days. Is it really necessary to purchase twice the amount of days we’ll be gone for?
Thank you.
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Wanita Loureiro
HI
my son went to phuket in november 2017 he was bitten by an insect in phuket.we called the doctor to the hotel room.they treated him there.when we came back to our country he has gotten worst since. did all the rest reqiured by our hospital can not diagnose the cause. will the travel insurance cover this.
he is on his medical health insurance in south africa and its depleted from all the treatment and hospitalizations. will the travel insurance cover this and the test is still ongoing to find the cause.will they pay him back what is medical health insurance covered
Helen
I recently injured my knee whilst travelling. It turned out to be a torn cartilage and fractured tibia. I could not get MRI whilst in Caribbean. Dr advised wait til I got home in new few days. Insurance company advises they only pay for expenses paid whilst overseas. Does this mean all my future treatment, physio, possible operation in Australia is not now covered. I do not have private health insurance as I am an old age pensioner but thought my overseas injury should be covered by Travel insurance as I have overseas doctor report confirming this.