What Does Travel Insurance Actually Cover?

What Does Travel Insurance Actually Cover?
Travel insurance is probably the most boring topic when it comes to planning a trip. Nobody wants to focus on the worst-case scenario before they even leave home.

Plus, researching insurance is just plain tedious. There is a lot of fine print to scour, requiring you to read over the minutiae of each insurance plan before you pick the one that’s best for you. It’s a hassle.

But it’s also the most important thing you can do before a trip too. Should something terrible happen while you’re on the road, you want to have the confidence that your insurance plan will cover you.

While unfortunate travel events are few and far between, it’s always better to be safe than sorry. Medical bills aren’t cheap. Emergency evacuations cost tens of thousands of dollars. Unless you have a stockpile of disposable income, chances are you’ll want to buy travel insurance for your next trip.

There are a lot of misconceptions about travel insurance, so you’ll also want to learn everything you can about your plan and the company that is covering you.

• Will your plan cover pre-existing conditions?

• Is there an age limit or a limit on how long you can be out of your home country?

• Will you be able to see doctors for non-emergency visits? What about dental coverage?

To help you make sense of it all, I’ll go over what is ACTUALLY covered by reputable travel insurance plans, so you know what to look for.

What Travel Insurance DOES Cover

Medical Emergencies
Chances are when you think of travel insurance, you’re picturing a medical emergency. While accidents or serious illnesses while traveling abroad are rare, here’s what you can expect to be covered by a reputable insurance company:

Your hospitalization fees
Surgery costs
Outpatient treatment costs

Visits to registered medical practitioners (relating to your emergency injury)

Prescribed medicines (relating to the injury)

Medical evacuation (usually this is just to a local medical facility unless you have a more comprehensive plan. See below for more on evacuation.)

Emergency Evacuation
Medical evacuations due to accidents or natural disasters can cost upwards of $500,000 USD. Naturally, this is where having a solid insurance plan comes in handy. Most insurance plans will evacuate you to “the nearest acceptable facility” in case of injury or natural disaster. Contrary to popular belief, they don’t have to send you home.

In some cases, you will be repatriated back to your home country if your doctor thinks it necessary though this is rare and usually only occurs in cases where local medical staff can’t provide the assistance you need. That’s why companies like Medjet exist as they ensure you get home and not just to a nearby “acceptable” facility.

Dental Emergencies
As with other medical emergencies, what’s covered here is accidental injury and sudden pain. For example, chipped teeth or a sudden infection.

General checkups are not covered, nor is major dental work that doesn’t relate to an injury or accident sustained abroad. If you just want your teeth cleaned or a new filling, you’ll have to pay for that out of pocket.
Most policies have limited dental coverage when compared to the rest of your medical emergency coverage (usually, it’s under $1,000 USD).

Death Overseas
I know it’s never fun thinking about something like this happening, but knowing that you’re covered will give you and your loved ones’ peace of mind.

Should the worst happen, most insurance plans will cover the costs of a family member coming to get your body to take it home. Some policies will also include cremation services or burial overseas, should that be preferred.

Common exclusions would include death from alcohol or illicit narcotics, suicide, or pre-existing conditions not covered by the plan.

Policies usually offer between $5,000-50,000 USD in death/dismemberment coverage. However, many companies also include no coverage for this. If it’s a priority for you, be sure to purchase a policy from a company that includes death and dismemberment coverage.

Flight Delays and Cancellations
If your flight gets delayed or canceled, you can apply for compensation from your travel insurance provider (assuming the airline doesn’t provide coverage for you). As long as the cancellation or delay is not your fault, you can apply for reimbursement. However, if you miss your flight because you slept in, that doesn’t count as a valid reason!

Be sure to keep all emails, receipts, and correspondence from your airline regarding the delay or cancellation, as you’ll need them to verify your claim and get reimbursed.

Trip Cancellation
If you need to cancel your trip — either before you depart or during your trip — for a verified medical reason, the death of a close relative, or the death of your travel partner, you can apply to get reimbursed from your insurance company.

To verify your claim, be sure to get a note from your doctor if you’re canceling due to illness. If you’re canceling due to a death, you’ll need to submit a copy of the death certificate (as well as other supporting documentation).
Coverage is usually limited to a couple thousand dollars — unless you have a premium plan. For example, World Nomad’s Explorer Plan offers upwards of $10,000 USD in trip cancelation coverage while their Standard Plan offers $2,500 USD.

Lost or Stolen Property
If your bags get stolen while you’re traveling, most travel insurance companies will reimburse you for some or all of the items (there are usually limits on gear like laptops and cameras unless you buy a comprehensive plan with additional coverage). Be sure to file a police report as it will be necessary for making a claim.

Coverage will usually include compensation for delayed baggage or baggage that’s damaged in transit as well.
If your wallet or passport is stolen, some plans will cover the cost of having a new passport or credit card mailed to you (this usually will depend on your residency). If your wallet is stolen with cash in it, you won’t be able to claim the missing cash.

Damaged or Stolen Gear
Most travel insurance plans include coverage for lost or stolen gear, such as laptops, cameras, and mobile phones. However, these high-ticket items usually have a cap on how much you’ll get back (usually under $500 USD per item).

If you’re traveling with expensive gear, you’ll want to pay for supplementary coverage to make sure it’s sufficiently covered. Be sure you have receipts for all your gear as well. Keep copies of them in your inbox so if something happens, you can file your claim without having to track down copies.

What Travel Insurance Does NOT Cover

While every plan is different, here is a list of the most common things that will not usually be covered by your standard or basic travel insurance plan:

Accidents sustained while participating in extreme activities, like hang gliding, paragliding, or bungee jumping (though you can often upgrade to plans that do cover those activities)

Technical climbing or alpine hiking (again, some plans can be upgraded to cover these activities)

Alcohol- or drug-related incidents (including death)
Carelessness in handling your possessions/baggage

Pre-existing conditions. For example, if you have diabetes and need to buy more insulin, you won’t be covered

General checkups for non-emergencies
Stolen cash

Missed flights or connections for reasons under your control

A few other notes about standard policies:

If civil unrest makes your destination unsafe but your government hasn’t called for an evacuation, most insurance companies won’t evacuate you. 

Changing your mind about your trip, unfriending or breaking up with your travel partner, and pre-existing medical conditions don’t qualify for most trip cancellation plans
If your visa is refused, you likely won’t be reimbursed if you decide to cancel your trip.

Before you buy a plan anywhere, be sure to read the fine print regarding pandemics and COVID-19. Make sure you fully understand what is and is not included so you can take appropriate action should a situation arise. When in doubt, call them and speak to a representative. Don’t risk your health on assumptions!

Reprinted courtesy of nomadicmatt.com