How Does Travel Insurance Work?

Last updated on 03/11/2024

How Does Travel Insurance Work

Travel insurance is a safety net that you can purchase to help you protect your travel investment in case of unexpected events that have a negative impact on your travel plans. It works quite similarly to other insurance policies in the following ways:

Purchase travel insurance before anything actually happens to disrupt your trip. Once the event has occurred, like an act of terrorism, illness or severe weather, you can no longer purchase a plan to cover that or any related events.
Read the chosen plan carefully before buying it. You’ll want to understand exactly what your insurance company will cover and what they won’t.
Provide documentation of your issue while filing a claim. This documentation could be a medical bill, statement from the airline or a flight schedule depending on the situation.
Pay your own costs up-front (most likely). Travel insurance primarily works in a reimbursement structure. You will get reimbursed from the travel insurance company if they approve your claim.

Travel insurance is available for a wide variety of concerns, from delays or cancellation of your trip to medical and evacuation services. Frequently, travelers who are looking for plans end up buying comprehensive travel insurance plans. The right comprehensive plan can provide coverage for a number of things and will include varying levels of coverage for trip cancellation and interruption, some baggage loss and medical emergencies. Some will also offer additional or optional coverage such as a waiver of pre-existing conditions, accidental death or the Cancel for Any Reason benefit.

Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.

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Question:

If I buy medical insurance for the trip and I don't get to go on the trip, will I get my premium back? How close to the trip can I buy medical insurance?

- EMILY,

12/21/2023

Answer:

Yes, if you purchase a single trip medical policy and the trip is cancelled, you can request to have the policy cancelled and refunded prior to the effective date.

- MattG,

Customer Care insureMyTrip

12/27/2023

Question:

I'm using credit card points for some of my air travel. Are they insured based on dollar value?

- Hope,

05/04/2021

Answer:

The dollar value of points or miles cannot be insured. You can insure the taxes and fees you paid to redeem the points, as long as the taxes and fees are prepaid and non-refundable. Most providers will cover up to a specified amount for the re-deposit fee to re-deposit the points back in to your account if you had to cancel for a covered reason.

- MattG,

Customer Care insureMyTrip

05/05/2021

Question:

We prepaid for a trip to China and we are awaiting details on the flights. If the travel company cancels our tour for lack of interest, can we get our premium back if it's cancelled before the effective date of our travel policy?

- LauraB,

03/19/2018

Answer:

The effective date on the comprehensive policies is the day after you purchased the insurance. Typically, the insurance premium is only refundable within 10-15 days from when the insurance is purchased.

- MattG,

Customer Care insureMyTrip

03/22/2018

Question:

1-Is a deposit to reserve placement on a tour considered the first payment if the tour operator allows 30 cancellation before trip begins? 2- If hotel reservation is not prepaid and has a cancellation without penalty 7 days prior to trip. What is considered day of 1st payment to purchase trip insurance?

- Patricia,

10/06/2017

Answer:

The Initial Trip Payment is the very first time any money was exchanged for your trip, even if the amount is refundable at the time of payment.

- MattG,

Customer Care insureMyTrip

10/07/2017

Question:

I have put a deposit down on a river cruise trip for 2018. I know the dates of the cruise, but do not yet know the dates of the flight to and from the embarkation point. Should I just purchase insurance for the dates of the trip or should I estimate the dates of the flights and include those, too?

- Josie,

06/16/2017

Answer:

You can use estimated travel dates for now and once you know your exact dates you can contact us to update this. For the Trip Cost, you can insure what you have paid for to date and as you make subsequent payments or purchases towards the trip, you can contact us and update your existing policy accordingly.

- MattG,

Customer Care insureMyTrip

06/19/2017

Question:

the trip is all paid for but we are leaving only june 25--is this a problem to get insurance? also we are going to 2 separate places--how do I enter that?

- Agnes,

06/06/2017

Answer:

Please list the first destination or the destination where you are spending the most of your time in. You can purchase most policies up until the day before departure, however; you may not be eligible for some time sensitive benefits if you do not purchase within 10-30 days of the initial trip deposit/payment. Some time sensitive benefits are, but not limited to: Pre-Existing Condition Waiver, Financial Default, Terrorism, Cancel For Any Reason and Cancel For Work Reasons.

- MattG,

Customer Care insureMyTrip

06/06/2017

Question:

Traveling by plane and cruise ship with excursion tours and hotel. Will travel insurance cover all things? What is the basis of the fee?

- aliciaM,

06/04/2017

Answer:

You can insure all prepaid non-refundable travel arrangements except the cost of your own time share or the cost to obtain a visa or passport. The rates are based on the trip cost, the ages of the travelers as of today, and the duration of the trip.

- MattG,

Customer Care insureMyTrip

06/05/2017

Question:

I have paid for a flight in full as this was required by Emerites. I did book through an agent. I am now trying to get travel insurance and am told that I am covered only from the day I leave until I return. What about the cost of my flight if I cant go for any reason? Is that prepaid fare covered?

- IreneC,

04/26/2017

Answer:

You can insure all prepaid non-refundable travel arrangements prior to departure, including the cost of your airfare. You are only going to be covered to cancel if you are cancelling for a specified covered reason listed in the policy certificate, unless you had Cancel for Any Reason. The number one covered reason for Trip Cancellation and Trip Interruption is the unforeseen illness or injury of you or a traveling companion that deems you unfit to travel, by order of a licensed physician; or the unforeseen hospitalization or death of a family member. To see all of the covered reasons to cancel or interrupt your trip, please click on the dollar amount that appears under the words "Trip Cancellation" when viewing a quote. There are 3 conditions that must be met to purchase a Cancel For Any Reason Rider as follows: Purchase the policy within 10 - 21 days of First Trip Payment; Insure ALL prepaid and non-refundable travel expenses prior to departure; Trip arrangements must be canceled more than 48 -72 hours prior to the departure date. If you meet all 3 of these conditions, most of the policies will reimburse you 75% of your trip costs, unless otherwise noted.

- MattG,

Customer Care insureMyTrip

04/26/2017

Question:

If i am going to travel in dec 17 will i pay more now if i insure now in feb 17

- caty,

02/23/2017

Answer:

The rates can increase or decrease closer to departure, it all depends on the provider, and generally we can only guarantee the rate you see until 11:59 PM ET the date the quote is generated.

- MattG,

Customer Care insureMyTrip

02/23/2017

Question:

Family member illness/ death at home while I am on a trip abroad. What type of coverage is this?

- Adrianne,

02/02/2017

Answer:

Trip Interruption reimburses the unused portion of your trip if you had to return home for a specified covered reason listed in the policy certificate. The number one covered reason for Trip Cancellation and Trip Interruption is the unforeseen illness or injury of you or a traveling companion that deems you unfit to travel, by order of a licensed physician; or the unforeseen hospitalization or death of a family member. To see all of the covered reasons to cancel or interrupt your trip, please click on the dollar amount that appears under the words "Trip Cancellation" when viewing a quote.

- MattG,

Customer Care insureMyTrip

02/06/2017

Question:

Recently, a scheduled 15-hr. international journey turned into a 33-hr. ordeal. One international flight was cancelled by the airlines which re-booked us on the next flight but we then missed the connecting domestic flight necessitating an overnight delay before we could catch a morning flight. In what ways could travel insurance have made up for this miserable experience?

- PetS,

02/02/2017

Answer:

Trip Interruption and Travel Delay offers coverage which reimburses prepaid non-refundable travel arrangements if you are interrupted or delayed for specified reasons. It would be best to run a quote and view a provider's policy certificate to get a better idea on what is covered and not covered.

- MattG,

Customer Care insureMyTrip

02/06/2017

Question:

Do you offer an annual policy for travel insurance?

- Gladys or MauriceD,

11/30/2013

Answer:

Unfortunately, at this time we only offer package plans on a per trip basis. We do, however, have several annual travel medical plans.

- Lynne,

Customer Care insureMyTrip

12/01/2013

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How Does Travel Insurance Work?

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