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Dreaming of escaping to an exotic destination next year? Or planning a tour of a city in Europe? Many of us have wanderlust on our minds, and now is a good time to start planning travel insurance for 2023 trips and beyond. Here’s why.
Important Travel Medical Coverage Is in Your Favor
If you have a pre-existing medical condition that might cause you to cancel your future trip, purchase your travel insurance right away so that you can lock in coverage of the condition.
“Many travel insurance policies contain a pre-existing medical exclusion, which can be waived, by purchasing your travel insurance within a certain number of days of making an initial deposit on your trip,” says Scott Adamski, a spokesperson with AIG Travel.
Having this pre-existing condition exclusion waiver means that any trip cancellation due to the condition can be covered under your travel insurance policy, says Adamski. This can include a medical condition of yours, a traveling companion or any immediate family that you might need to stay home and care for.
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Travel Details Don’t Have to be Finalized
Because your 2023 plans are still months away, perhaps not all of your trip itinerary has been decided. Booking a trip with travel insurance early protects your plans even if they are being finalized.
“It’s worth noting that travelers can purchase a travel insurance policy even before they know every single element that might be included in their trip,” says Adamski.
For example, if you book a cruise for 2023 but haven’t yet booked the flight to get to your sail-away port, or if you haven’t purchased your shore excursions, you don’t have to wait until you know every single trip-related expense before you purchase a travel insurance policy.
“You only need one element of the trip in place—the down payment on your cruise, as a primary example—in order to purchase the policy,” says Adamski. “You can later build on that policy as you book additional elements of your trip, and pay the appropriate premium for the additional trip elements.”
This way, says Adamski, you can still take advantage of the pre-existing medical condition waiver. Buy insurance for the first element of your trip within 15 days.
Lock in Your Ability to Cancel for Any Reason
Trip cancellation insurance reimburses you 100% for prepaid and nonrefundable trip deposits that you lose—as long as you cancel for a reason listed in the policy. This list will generally include reasons such as:
- Your destination is uninhabitable because of a fire, natural disaster, flood, burglary or vandalism.
- A natural disaster makes your home uninhabitable.
- You need to attend the birth of a family member’s child.
- You or a family member gets an injury or serious illness. Not all plans cover Covid though. See our ratings of the best pandemic travel insurance if you want Covid coverage.
- There’s a terrorist event at your destination within 30 days of your arrival date.
- You lose your job through no fault of your own.
- Your airline, cruise line or other carrier stops service for at least 24 consecutive hours due to a strike, natural disaster, bad weather or FAA-mandated shutdown.
- You or a traveling companion legally separate or divorce
An add-on called cancel for any reason coverage lets you cancel and get partial reimbursem*nt for any reason. But you have to add it within 14 to 21 days of your first trip deposit (deadlines vary by travel insurance company).
Cancel for any reason insurance will add about 40% to your trip cost, but it buys you the ultimate flexibility to change your mind.
The Best Travel Insurance Benefits for a 2023 Trip
No matter how well you plan a trip, you can never predict what could go wrong, so you’ll want a travel insurance plan that bundles benefits for a wide range of problems, says Christina Tunnah, a spokesperson for World Nomads.
Essential coverage often includes:
- Trip cancellation and delay
- Travel medical expenses
- Emergency medical evacuation
- Baggage loss and damage
Most important, says Tunnah, is the travel medical expenses coverage because most U.S. health insurance plans won’t cover you outside the U.S. In addition, U.S. health plans generally don’t include emergency evacuation, which could be a lifesaver in a crisis.
FAQs
Travel insurance policies can help provide peace of mind and protection if anything unexpected happens on your trip. For example, if your trip gets interrupted for a covered reason or you get injured while you're away, the policy is designed to help cover those costs.
What is an example of a trip when buying travel insurance would be worth it? ›
It could be particularly useful if: You've spent a lot on prepaid, non-refundable expenses. You're traveling internationally where your health insurance won't apply. You're traveling to a remote area.
What is the purpose of travel insurance to help you save for a vacation? ›
Travel insurance is coverage designed to protect against risks and financial losses that could happen while traveling. The risks range from minor inconveniences such as missed airline connections and delayed luggage all the way to more serious issues including injuries or major illness.
Is travel insurance mandatory for USA 2023? ›
Answering the question, “Is travel insurance mandatory for the USA,” you must understand that while travel insurance isn't mandatory for visiting the USA, it is highly advisable. Considering the exorbitant medical costs and the likelihood of an extended trip, it's wise to prioritise your security and well-being.
What does travel insurance not cover? ›
Most travel insurance policies won't pay out if you're negligent while under the influence of alcohol or drugs, and have an accident or have property stolen.
When should I get travel insurance? ›
When to buy travel insurance can depend on the trip or trips you're taking and the kind of policy you choose to suit them. Usually, though, it's best to get cover in place for your holiday as soon as you've booked or made a financial commitment to it.
What is a good amount of travel insurance? ›
Every plan is different, but the coverage amounts and benefits may vary. Determine how much you really need. For example, SquareMouth recommends international travelers get around $50,000 in Emergency Medical coverage and $100,000 for cruises or travel to remote areas.
What is the most common travel insurance claim? ›
By far, the most common and often most significant travel insurance claim is for medical emergencies. A sudden illness or injury during your trip can not only ruin your plans but also cause a severe financial strain.
What does insurance cover on a trip? ›
So, what does travel insurance cover? Here's the very short answer: Cancellations, medical expenses, evacuations, loss or delays, and 24/7 assistance. These are the 5 basic types of coverage provided with vacation insurance.
What is the average cost of travel insurance? ›
The average cost of a standard travel insurance policy is $221, according to research conducted by the MarketWatch Guides team. However, the destination, number of travelers, trip price and more can affect the exact cost of a policy.
But even if your trip isn't 100% refundable, insurance may not be necessary. For example, a cheap flight and hotel stay may not be worth covering, though you may still want to purchase travel insurance for medical situations.
Does travel insurance cover non-refundable flights? ›
That's where travel insurance comes in. Travel insurance offers the assurance that you'll get reimbursed for non-refundable travel costs from a travel insurance provider. Frequent or business travelers also benefit from this safety net for flight cancellations.
Do I need travel insurance for Europe from USA? ›
Since your U.S. medical coverage will not apply overseas, you also need international health insurance that covers surprise medical expenses and medical evacuation. If you're searching for the best Europe travel insurance that money can buy, consider the following plans and all they have to offer.
How to get a travel insurance? ›
You can get it through credit cards or third-party companies, & can shop on travel insurance comparison sites. Before buying, evaluate risks, know existing coverage, obtain quotes online and review policy details warily.
Is it mandatory to get travel insurance for USA? ›
No, while travel insurance is not mandatory for travelling to the USA from India, its importance cannot be overstated. The myriad uncertainties associated with international travel make it a wise investment.
What does travelers insurance usually cover? ›
If your trip is impacted by a covered reason, such as personal illness, illness or death of a family member, natural disaster, job loss, tour company going out of business, terrorist attack or flight issues, this coverage typically can reimburse you for prepaid travel costs or additional expenses.
What is travel insurance for and does everyone need it? ›
Travel insurance can minimize the considerable financial risks of traveling: accidents, illness, missed flights, canceled tours, lost baggage, theft, terrorism, travel-company bankruptcies, emergency evacuation, and getting your body home if you die.
Does it matter when you get travel insurance? ›
Buy travel insurance as soon as you know your travel dates. That way you're covered if your trip is cancelled before you even leave or if you're unable to travel at all.
Do you need travel health insurance? ›
Travel health insurance is especially important if you have an existing health condition, are traveling for more than 6 months, or doing adventure activities such as scuba diving or hang gliding. Check if your current health care covers emergencies that happen while traveling.
