What a policy contains
A comprehensive travel policy is a bundle of separate coverages, each with its own limit: trip cancellation and interruption, emergency medical care, medical evacuation, baggage and delay. It typically costs four to ten percent of the insured trip cost depending on your age and the trip. Two parts justify the purchase: cancellation protects money you have already spent, and medical protects you against bills you cannot predict. The baggage and delay benefits are small.
Named reasons only
Standard cancellation coverage pays only for reasons listed in the policy: your illness or injury, that of a close relative, a death in the family, jury duty, a layoff, weather that shuts down the carrier. A change of heart, a breakup and a work deadline are not on the list. Cancel for any reason coverage is an upgrade that costs roughly forty to fifty percent more, reimburses only fifty to seventy-five percent of the trip, and generally must be bought within two to three weeks of your first deposit and used at least two days before departure. The waiver for pre-existing medical conditions carries a similar purchase window, which is the practical argument for buying when you book. Insurance also covers only the unforeseen. Once a hurricane has a name or a strike has a date, it is too late to insure against it.
The medical case
Most US health plans pay little or nothing abroad, and Medicare generally pays nothing outside the country. Foreign hospitals often want payment or a guarantee before treatment, and a medical evacuation flight can cost anywhere from tens of thousands of dollars to well over a hundred thousand. Ask your insurer before you decide. If the answer is poor, a medical-only travel policy is cheap and worth having even on an inexpensive trip. Check the exclusions, which commonly include scuba diving, skiing and motorbikes.
When to skip it
Skip it when the trip is cheap, refundable or both: a domestic flight you can change for a credit, hotels you can cancel the day before. Look at the card you paid with, since many travel cards include cancellation, delay and rental car coverage for trips charged to them. When you do buy, compare policies through a marketplace, because the box at airline checkout is usually the thinnest one on offer.
Tip If something goes wrong, call the insurer's assistance line before you pay for anything large, and collect paper as you go: the doctor's note, the airline's written delay notice, every receipt. Claims are decided on documents.
