What To Look For In Travel Insurance For An International Trip

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If you’re thinking about a vacation, chances are you’re thinking about travel insurance. But what should you look for in travel insurance for an international trip?

That’s the question Kathryn Medina has been asking as she plans vacations in Borneo and Norway in 2021. “Travel insurance will be useful if I run into medical issues or travel disruptions unrelated to COVID-19,” says Medina, who owns a Silicon Valley design firm.

Does someone like Medina need insurance? Do you?

“Travel protection is more important than ever,” says Sherry Sutton, vice president of marketing for Travel Insured International. “But the important thing to remember is not every event is covered.’

Travel insurance may also include coverage you don’t need.

“For example, with many travel suppliers offering fully refundable trips, travelers may not need cancellation coverage from their travel insurance,” says Kasara Barto, a spokesperson for SquareMouth, a travel insurance provider.

Experts say it makes sense to insure your trip if you:

Paid more than $5,000 for your vacation
Used a credit card that doesn’t cover your trip
Are traveling internationally

“Travel insurance is a very important part of international travel,” says Shaun Taylor, owner of Moriti Safaris, an African-adventure company. “I believe it is a must-have for any traveler.”

How much of a “must-have”? Taylor won’t allow you to book one of his tours without insurance.

What Kind of Travel Insurance Do You Need for an Overseas Trip?

But what about international travel in an age of COVID-19? Here are the most important things to look for in travel insurance for an international trip:

Medical coverage
Pandemic coverage
Pre-existing medical conditions coverage
“Cancel for any reason” coverage

Travel insurance can also cover a variety of other problems. Many international travelers depend on coverage of these mishaps.

“People buy travel insurance for covering lost luggage, medical needs or extended delays causing missed connections,” says Michael Sheridan, who teaches tourism and hospitality management at Temple University.

Travel pros agree.

“You want a plan with both trip cancellation and trip interruption that includes items such as trip delay, bag loss and delay,” says Joshua Greenberg, a travel advisor with Ovation Travel Group. For international travel, he recommends the policies offered by Arch RoamRight because it covers many events that could happen when you’re abroad.

What’s the Difference Among Travel Insurance Coverages?

Travel insurance plans can include several varieties of coverage types. That’s important to know when you’re trying to determine what to look for in travel insurance for an international trip.

When you’re weighing a “good” policy against “better” one, look at the reimbursement percentages.

“Basic coverage is typically designed as a fixed benefit or limited program—one that pays a predetermined dollar amount for any covered expense,” says PK Rao, president of INF Visitor Care, a travel insurance provider. “These plans are much less expensive but will leave you exposed to high costs later on.”

He recommends a comprehensive plan, which pays a percentage of the total trip loss. That’s especially important when you’re trying to cover pre-existing medical conditions and you’re older. It gets even more complicated when dealing with the coronavirus.

“Although some carriers will cover COVID-19, complications resulting from pre-existing conditions may not be covered,” he says.

It’s worth asking what kind of support the travel plan offers.

“Do you have easy access to the company’s resources and customer assistance team, whenever you need them?” asks Daniel Durazo, a spokesperson for Allianz Travel.

A company like Allianz, for example, offers 24/7 assistance by phone and through its TravelSmart app. The app allows you to coordinate your care with the doctors treating you at your location. It also helps you get to a high-quality medical facility with appropriate treatment options.

Your Health Insurance Probably Doesn’t Cover You Abroad

One of the most important things to consider in travel insurance for an international trip is that your U.S. health insurance plan probably doesn’t cover you. It might, but you should check. Without the right travel medical insurance, if you get injured or sick, you’ll have to pay for your hospital visit.

“If you are leaving your home country, you at least need travel medical insurance because your insurance from home might not travel with you,” says Damian Tysdal, who hosts the Safe Travels podcast. “You can get travel medical either through a standalone travel medical policy or with a package trip insurance policy. The standalone plan just covers medical emergencies and evacuation. A package plan also includes coverage for cancellation, baggage and delays.”

The minimum recommended coverage amount for medical is $50,000 medical and $100,000 for evacuation, says Tysdal. A higher number is better because those limits can be quickly exhausted.

Look Out for These Two Gotchas

When it comes to what to look for in travel insurance, there are two gotchas.

First, there’s the coronavirus. Many travel insurance companies tightened their coverage offerings after the pandemic started. In other words, your future travel insurance policy might not cover you for an outbreak.

“COVID-19 is a ‘foreseen event’ and certain coverages will not apply to many insurance plans,” warns Bob Winter, owner of Entourage Expeditions, a boutique tour company.

All the more reason to pay close attention to what is—and isn’t—covered. That’s because COVID-19 could rear its head during your next vacation. Generally, plans will cover you if you contract coronavirus while on your trip, but not if you have to cancel the trip because of another outbreak.

Travel advisors are still upset about the last COVID-19 outbreak. Diane Mason, a travel agent with Cruise Travel Planner, says travel insurance companies always promised that their products would cover the unexpected.

Some travel insurance companies, despite excluding epidemics and pandemics in their policies, nevertheless offered coverage for some coronavirus claims on a goodwill basis.

But not all did. “‘Which is very sad and a complete loss of faith in the insurance companies taking care of our clients,” says Mason.

The second gotcha? The exclusion of pre-existing medical conditions. Be aware of this if you want medical coverage for your trip and you have existing health concerns.

Beth Godlin, president of Aon Affinity Travel Practice, says that even if your policy has a pre-existing condition exclusion, it usually never applies to a non-traveling family member. So if a non-traveling parent falls ill, you can cancel the trip and get a refund.

Consider a “Cancel for Any Reason” Policy

A “cancel for any reason” feature in a travel insurance policy is the ultimate upgrade. As the name suggests, it allows you to cancel your trip for any reason and receive a partial refund—usually 50% or 75%.

“Travelers should consider adding ‘cancel for any reason’ to their plan so they can cancel a trip for any reason of their choosing,” says Jeremy Murchland, president of Seven Corners, a travel insurance provider.

“Cancel for any reason” policies are more expensive than the regular “named perils” policies (they can cost twice as much). And some travel insurance companies eliminated or restricted these policies after the coronavirus outbreak. But if you’re looking for more peace of mind, they’re a good bet.

“If you purchase a plan with a ‘cancel for any reason’ option, you don’t even need to worry about what will be covered and what won’t be covered,” explains Charles Breitbart, founder of the travel insurance site TripTins. “So, whether it would be COVID related or if you simply do not want to go on a trip any longer, you’ll be covered.”

Breitbart used his cancel for any reason policy to cancel his summer vacation. He adds, “It’s a great option.”

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Read the Policy Carefully

Travel insurance policies are riddled with exceptions—something else to keep in mind when you’re trying to figure out what to look for in travel insurance for an international trip. For example, say you want to rent a villa in Italy next summer. Some insurance policies cover rentals per person instead of per rental. They’ll reimburse you for only one person’s expenses, which means they potentially pay far less if there’s a problem that’s covered by the policy.

“If you are traveling with family, make sure that your travel insurance is on a per reservation basis as opposed to a per-person basis,” says Chris Carnicelli, CEO of Generali Global Assistance. “Under per reservation plans, up to 10 guests, including those family members who love spontaneous drop-ins, are automatically covered.”

Mind the Fine Print

Travel insurance is notorious for its fine print. And for an international trip, there can be a lot of fine print. “Make sure that you haven’t missed any critical facts,” advises Pamella Seay, a professor of legal studies at Florida Gulf Coast University.

She recalls a recent case involving a friend who was on a Baltic cruise. When her travel companion fell ill, she tried to file a claim on her insurance to cover the expenses of returning home early. The insurance company denied it because companions weren’t covered.

“If it had been her own domestic partner, the coverage would have applied,” says Seay.

Significant Differences Among Travel Insurance Providers

When it comes to travel insurance coverage—and particularly international trips—nothing is standard.

“Different insurance providers will cover these risks up to different levels—often wildly different,” says Martin Nolan, a senior director at Skyscanner, a travel comparison site. “And they’ll also vary in how much you might have to pay toward any claim that you make.”

But if there’s one thing experts agree on, it’s that you should have some coverage for your next international trip—now more than ever.

“For travelers planning to fly internationally in the near future, purchasing travel insurance will be the new normal,” says Chris Nielsen, the chief legal officer for AirHelp, which helps travelers get compensation for flight problems. “Our collective awareness of the risks and consequences of this pandemic has changed travel behavior on all levels.”