What does travel insurance cover? A benefit-by-benefit guide
Most policies combine trip protection with emergency medical benefits, but the details vary a lot. Here is what each benefit is designed to pay for, and where people tend to assume more than they have.
By the StarHolidays Editorial Team Updated 5 min read
Key takeaways
- Comprehensive plans usually bundle cancellation, interruption, medical, evacuation, baggage and delay benefits.
- A cancellation claim generally needs a reason listed in the policy, so "I changed my mind" will not qualify.
- Trip cancellation cover may not pay any medical bills, so check that you have both if you need both.
- Limits, sub-limits and deductibles decide how much you actually get back.
On this page
The short answer
A comprehensive travel policy usually covers two things: the money you spent on the trip, and the costs of an emergency during it. The CDC separates these into trip cancellation or disruption insurance, travel health insurance and medical evacuation insurance. It specifically warns that trip cancellation cover may not pay for medical care overseas, so don't assume one implies the other.
Here's how the common benefits compare.
| Benefit | Typically pays for | Commonly does not pay for |
|---|---|---|
| Trip cancellation | Prepaid, non-refundable costs when a covered reason stops you leaving | Changing your mind, known events |
| Trip interruption | Unused trip costs and extra travel home | Cutting a trip short by choice |
| Trip delay | Meals and hotels after a qualifying delay | Short delays, costs without receipts |
| Emergency medical | Treatment for sudden illness or injury | Routine care, undeclared conditions |
| Medical evacuation | Transport to suitable care or home | Moves you choose that aren't medically necessary |
| Baggage loss | Lost or stolen items, up to limits | Expensive items above sub-limits |
| Baggage delay | Essentials while your bags catch up | Delays shorter than the policy threshold |
Trip cancellation: protecting money you've spent
If a covered event stops you from traveling, this benefit refunds what you've paid and can't get back. The key word is covered. Policies usually list reasons such as serious illness or injury affecting you, a travel companion or a close relative. Whether a particular reason is included depends on the wording, so read that list rather than a summary.
Example: you prepay $4,000 for a tour, and a broken ankle stops you from going a week before departure. With doctor's evidence, cancellation cover could refund the non-refundable part. If instead you simply decide the weather forecast looks bad, a standard policy generally won't pay. Only a cancel for any reason upgrade is designed to deal with that. For the details, see our trip cancellation guide.
Trip interruption and delay: when plans fall apart midway
Interruption cover helps when a covered event forces you home early, or holds you up partway through. It usually pays for the unused portion of the trip and may help with the additional cost of getting back.
Delay cover is smaller. It pays reasonable costs such as a meal and a hotel room after a delay of a specified length, and policies set this threshold differently. Read more in trip interruption and delay insurance.
Emergency medical: often the most important part
This pays for treatment if you become ill or are injured during your trip. The CDC notes that travelers will likely have to pay out of pocket for care in another country, and some national systems don't cover non-citizens. A good medical benefit addresses both problems, ideally with a 24-hour assistance team that can talk to the hospital about payment.
Pay attention to whether your plan is primary or secondary, what deductible applies and whether your planned activities are included. See our travel medical insurance guide.
Medical evacuation: the expensive one
If the local hospital can't treat you, evacuation cover pays to move you to one that can, and sometimes all the way home. The CDC says an evacuation could cost more than $100,000. The US State Department puts an air ambulance back to the US at roughly $20,000 to $200,000, depending on the location and the patient's condition. Most people could not comfortably absorb that bill, which is why this is the benefit we'd least want to go without on a long-haul trip. Read our medical evacuation guide.
Baggage: useful, but limited
Baggage cover pays for lost, stolen or damaged belongings up to a limit, and usually has sub-limits per item and for valuables. Delay cover pays for essentials while your bags are missing. Don't count on it for an expensive camera or laptop: see our baggage insurance guide for ways around that.
What's often left out
Each policy has its own list, but these are the usual suspects, covered in full in our guide to travel insurance exclusions:
- Pre-existing medical conditions that were not declared or accepted
- Risky activities not named in the policy, or that require an add-on
- Incidents linked to alcohol or drugs
- Riding a scooter or motorbike without the right license, or at all, under some policies
- Travel to places your government advises against visiting
- Events that were already known when you bought the policy
How limits change what you receive
Three figures decide your payout, and they're worth checking together.
- The limit is the maximum for that benefit.
- The sub-limit is a smaller cap inside that limit, perhaps per item or per day.
- The deductible, or excess, is the part you pay first.
Example: you have a $1,500 baggage limit, a $300 single-item limit and a $100 deductible. If your $900 camera is stolen, the single-item limit could reduce your claim to $300, minus the deductible, depending on the policy's order of calculation. That leaves about $200 from a $1,500 headline benefit.
Before you buy: list the three most expensive things that could go wrong on this trip. Then find the limit and sub-limit for each one. It takes ten minutes and tells you more than any star rating.
Frequently asked questions
Does travel insurance cover flight cancellations?
It can, but only for covered reasons. A policy may reimburse you when a covered event such as illness forces you to cancel, and some include cover for certain carrier problems. Your first step is to ask the airline for a refund or rebooking, since you can't generally claim for money the airline will return.
Does travel insurance cover COVID-19?
Some policies treat it like any other illness, while others limit it. Check the wording on both medical treatment and cancellation, and ask whether cover applies if you have to quarantine.
Does travel insurance cover theft?
Baggage cover usually includes theft, subject to limits and conditions. Expect to need a police report made promptly, and be aware that insurers may refuse claims for items left unattended.
Is dental treatment covered?
Many medical benefits include emergency dental care, often with a low sub-limit and only for pain relief or accidental damage. Routine dental work is generally not covered.