Trip Insurance: What To Look For

anonymous tourists showing us passports on street on sunny day
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Pre 2020, I was a person who generally preferred to travel without giving any thought to adding insurance onto my trip. I thought that if anything happened to me, the coverage provided by my credit card would be good enough. In 2022, my outlook has completely shifted.

Why Would I Need Insurance?

The primary answer is because in the post 2020 world, you never know what might happen.

As an example, I’d like to point out that if you are traveling internationally, the moment you set a toe outside of the U.S. border, you are no longer covered by your medical insurance.

This means that if there are any problems, YOU are expected to pay for any x-rays, hospital visits, doctor bills, etc. And these can add up VERY quickly and cost you upwards of thousands.

As another example, I had a friend who unfortunately tested positive for Covid before they returned to the U.S. They were required to quarantine for 14 days. To their horror…they were responsible for paying for the hotel room, food, and testing. Their resort did have a special Covid rate, however, they ended up paying an extra three thousand dollars they hadn’t counted on.

You Mentioned Your Credit Card Might Offer Some Coverage?

Yes. Depending on your credit card, some BASIC insurance might be offered, but you’ll have to read the Terms and Conditions carefully.

For example: the card I use for travel is the Chase Sapphire Preferred. When you book your flight and hotel, in order to be covered by the insurance offered by Chase, you must use the credit card. Otherwise, you are not covered. Other items to consider are delays…for the CSP, coverage only kicks in after 12 hours.

You’ll want to check with your card issuer for specifics. Consequently, I’d recommend purchasing additional insurance.

What Does Trip Insurance Cover?

Generally, most policies cover the following:

  • Trip cancellation
  • Trip interruption
  • Trip delay
  • Emergency medical visit
  • Lost or delayed baggage insurance.
  • Rental car of the last two years, many policies have chosen to NOT include Covid 19. Instead, they’ve made it a separate type of coverage or a higher priced policy.

Ensure you read the fine print carefully and that quarantine is included.

Where Should I Look?

I’m going to direct you to look at the lists compiled by Forbes and Nerd Wallet. They are both reputable websites that have posted information about the best travel insurance as of October 2022.

How Much Does It Cost?

That depends on how much insurance you want, for how long, for how many people, and where you are going…it can range drastically from as little as $50 to as high as $1000. Shop around and compare quotes and deductibles.