Why Purchase Travel Insurance (And the Best Travel Insurance Companies)
Let’s face it: our vacation plans are subject to a lot of uncertainty. While it’s never any fun to dwell on what might happen during our travels, the reality is, sometimes we get sidelined by things like falling sick or losing our luggage. And that’s exactly where travel insurance comes in, offering protection against all these unforeseen (and unwanted) circumstances.
Keep reading for more reasons on why you should purchase travel insurance, as well as our recommendations for the top travel insurance companies to use for your next trip.
How popular is travel insurance?
According to the most recent figures available, Americans spent a whopping $3.8 billion on travel insurance in 2018. But as popular as insurance is, many travelers still hesitate to purchase it (out of fear of how much it’ll cost). The good news is, a basic policy — that covers trip cancellation, interruption, medical expenses, and baggage mishaps — makes up just 5-6% of your total travel expenses.
If that percentage sounds like a lot of money, keep in mind it’ll seem much more reasonable if you ever have to file a claim.
What does travel insurance cover?
These days, most travel insurance companies bundle popular coverage into a single policy. So with just one insurance plan, you’ll likely be covered for trip cancellation, trip interruption, medical expenses, baggage loss, and COVID-19.
1. Trip cancellation
If you’re ever forced to cancel a trip (for a reason mentioned in your policy), trip cancellation coverage will refund a portion of your non-refundable expenses. A few of the ‘covered’ reasons for trip cancellation include:
Sudden illness of a traveler
Serious, sudden illness of a family member
Attending the birth of a family member’s child
The death of a close family member
Natural disaster in your destination
That’s probably a long enough list to suit most travelers’ needs — but for anyone who’d like extra flexibility, Cancel for Any Reason (CFAR) insurance lets you file a claim regardless of why you have to cancel your trip.
2. Trip interruption
It’s no secret that life can throw us a curveball from time to time. From emergencies to accidents, sometimes our vacations don’t go exactly as planned. Thankfully, trip interruption coverage can protect you during a number of difficult circumstances.
A trip interruption policy reimburses you whenever unexpected events force you to return home. This type of insurance not only pays for non-refundable expenses (like hotel fees), but also pays for a return flight to your destination once the interruption is resolved.
3. Medical expenses
Should you suddenly become sick or injured on your travels, you’ll be glad you signed up for insurance to offset your medical bills (and help you get back on your feet). When you’re covered by an insurance plan, you won’t be responsible for the extreme out-of-pocket costs that can come from checking into a hospital.
Medical coverage is arguably the most important insurance for you to have, particularly if you’re traveling abroad. Travel medical insurance will reimburse you for exam fees, X-rays, surgeries, prescriptions, and more — no matter where you’re located around the world.
4. Baggage loss/delay
If you’ve ever arrived at your destination but your luggage was nowhere to be found, you know how frustrating this situation can be. While some baggage delays are a minor inconvenience, others can throw off your entire trip before it even gets started. Fortunately, you can buy coverage for both baggage loss and delay.
A typical baggage insurance policy covers all luggage and personal items during your stay — and during the outbound/inbound flights for your trip. In addition, your bags and belongings are protected against the risks of loss, theft, and damage (due to fire, water, etc).
5. COVID-19
It’s safe to say the pandemic caught us all by surprise — insurance companies included. And while it took some time to adjust, the majority of insurers have amended their policies to provide COVID-19 protection (which falls under trip cancellation and trip interruption coverage).
More specifically, you can file a claim due to your own or a close family member’s illness, border closings, and/or international quarantine rules. If any of these scenarios disrupt (or completely cancel) your trip, your insurance company should offer you financial compensation.
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9 best travel insurance companies
Today, there are over 6,000 businesses offering travel insurance services. These businesses range from insurance companies, to insurance agencies, to marketplace sites where you can compare multiple policies (before making any kind of commitment). So then, which of these 6,000+ options reign supreme? According to Money.com, these are the top 9 travel insurance companies for 2023.
1. Best for large groups: Seven Corners
Seven Corners has been an insurance innovator for over 3 decades now and continues to offer exceptional coverage for trip cancellation, medical expenses, and emergency evacuations. Not only does Seven Corners have a well-organized and user-friendly website, but they have flexible plans that can accommodate all different lengths (and types) of travel. But what really sets this company apart is its packages that are geared towards groups of 10 or more travelers.
2. Best for emergency support services: Generali Global Assistance
The team at Generali Global Assistance prides themselves on “personal service and global reach.” On top of providing standout insurance packages and emergency support services, this company also offers customers major peace of mind (which is pretty hard to put a price tag on). While Generali Global is a great choice for a number of reasons, it’s probably best known for its 24-hour assistance that helps travelers in the most difficult of circumstances.
3. Best for adventure sports: World Nomads
Insurance plans from World Nomads are designed by digital nomads, for digital nomads — which means they offer practical, applicable coverage for remote workers and full-time travelers. Depending on your upcoming itinerary, you can build either a short-term or long-term policy to suit your travel needs. Another highlight of World Nomads insurance is their Explorer coverage, which protects you if/when adventure sports are on your travel to-do list.
Disclosure: World Nomads provides travel insurance for travelers in over 100 countries. As an affiliate, we receive a fee when you get a quote from World Nomads using this link. We do not represent World Nomads. This is information only and not a recommendation to buy travel insurance.
4. Best for families with children: Travelex
Travelex has a wide range of insurance coverage, from trip cancellation and interruption, to emergency medical services, to 24/7 assistance whenever (and wherever) you need it. Better yet, Travelex customers receive payouts up to 5x faster than the industry average — so if you ever have to file a claim, you know you’re in good hands. This is also a smart choice for anyone who’s traveling with children and needs insurance that can cover the whole family.
5. Best for cruise insurance: Nationwide
Nationwide is a leader in the world of travel insurance thanks to its comprehensive policies and customizable plans. Along with its single-trip and multi-trip options, Nationwide offers cruise insurance, as well. With this cruise coverage, you’re protected for certain events that happen while traveling by ship — think itinerary changes and mechanical breakdowns.
6. Best for business travel: Allianz
Allianz provides quality business travel insurance to customers from all over the world. In fact, Allianz helps more than 55 million people “answer the call of adventure with confidence every year.” One of the best parts about this company is their Allianz Care plans, which are designed for professionals who live and work overseas. If you’re looking for an insurance provider with broad coverage and a recognizable name, Allianz could be a great fit for you.
7. Best for add-ons: AIG Travel Guard®
AIG Travel Guard® travel insurance has you covered whether you’re planning a weekend getaway, an adventure vacation, or a month-long holiday somewhere warm. In other words, Travel Guard® plans are applicable for every type of travel and every size of budget. When you sign up with AIG, you’ll get assistance for trip cancellations, lost bags, health emergencies, and a whole lot more. Plus, you can even spring for add-ons like rental vehicle coverage, too.
8. Best for long-term international insurance: HTH Travel Insurance
If you’ve got plans to leave the country for several weeks (or months) at a time, you’ll need insurance that fits the bill for long-term international travel. Luckily, HTH Travel Insurance offers just that kind of coverage. You have a choice between either the Xplorer or Navigator plan, both of which can meet your needs while you’re living abroad. We’re talking about worldwide medical coverage and support services that’ll have your back even when you’re far from home.
9. Best for comparing quotes: TravelInsurance.com
TravelInsurance.com makes it easy to invest in quality coverage at an affordable price. That’s because this platform helps you compare rates and packages from multiple companies (so you can find the one that’s right for you). All you have to do is enter your trip details on their website, and TravelInsurance.com will give you a rundown of everything available. If you see a plan you like, you can make a secure purchase and receive instant confirmation of your coverage.
Travel insurance common FAQs
What is the typical cost of travel insurance?
Although travel insurance costs can vary, they typically amount to 5-6% of your total trip expenses. So if you’re planning a $5,000 getaway, you can expect to pay around $250 for travel insurance. With that said, there are plans that’ll cost more (or less) depending on the level of coverage you need or the destinations you’re traveling to.
Does travel insurance increase as you age?
Many travelers are curious whether their age will affect travel insurance rates. The short answer is, yes — as your age goes up, so does the amount you’ll pay for insurance. On the bright side, this logic also works in reverse. Meaning, some insurance companies offer lower rates on comprehensive policies if you’re traveling with minors in tow.
What is the best company for travel insurance?
Today, some of the top companies for travel insurance include World Nomads, Seven Corners, Nationwide, and Allianz. While each company has their own unique plans and policies, they’re all super reputable, reliable providers you can count on to come to your rescue.