Traveling is an exciting adventure, but it comes with its share of uncertainties. From flight cancellations to unexpected medical emergencies abroad, mishaps can disrupt your travel plans. This is where travel insurance steps in as a safety net, ensuring that you have peace of mind during your journeys. In this comprehensive guide, we’ll unlock the secrets to finding the best travel insurance that suits your needs.
To determine which insurance companies to emphasise, we considered the following factors:
- Broadness of coverage: We considered the number of plans each provider offers as well as the variety of our basic trip planner.
- Depth of coverage: We took into account the maximum caps for trip cancellation and trip interruption claims to get a sense of how much each carrier pays out for typical travel hiccups.
- Cost: We were able to establish an average cost for consumers to compare plan prices against by examining the expenses for basic coverage across several carriers.
- Ability can be customised: Standard plans can cover a lot of territory, but occasionally you need something a little more unique.
Best options for traveler’s insurance
Let’s examine our 14 suggestions for travel insurance in more detail.
Global Assistance from Allianz
What distinguishes Allianz Global Assistance:
- Plans for yearly and one-time trips.
- Plans are offered for both domestic and international travel.
- There is a standalone solution for damage to rented cars.
Here’s an excerpt from our analysis of Allianz Global Assistance:
“For single journeys, Allianz Global Assistance offers five different types of travel insurance, one of which is primarily focused on providing emergency medical care. Domestic travellers who want trip cancellation, interruption, and delay coverage but don’t want post-departure features like emergency medical or baggage loss might consider the OneTrip Cancellation Plus plan. The least expensive choice offered by Allianz is this one.
The cost of the Allianz Global Assistance’s basic coverage for our test trip was $91, or around $10 more than the national average.
AIG Travel Guard
Why Travel Guard by AIG is outstanding:
- There are three all-inclusive plans as well as a Pack N’ Go plan for hurried travellers who don’t want cancellation protection.
- There are options for annual plans, medical evacuation plans, and flight accident insurance.
- There is a business traveler’s plan.
- A pre-existing medical condition waiver is an add-on benefit of the Deluxe plan.
In our assessment of Travel Guard by AIG, we state:
There are some items that will not be covered by any of the plans, despite the fact that the Essential, Preferred, and Deluxe plans all give differing levels of coverage for your trip. Known occurrences, baggage loss involving eyeglasses, contact lenses, hearing aids, or false teeth, and vacations paid for with frequent flyer points or loyalty rewards programmes are a few examples.
Basic insurance from Travel Guard by AIG costs $119, or 32% more than the national average.
Services for USI Affinity Travel Insurance
Why USI Affinity Travel Insurance Services is outstanding:
- By policy name, insurance requirements, and traveller type, you can search for comprehensive plan types.
- Plans for medical care and evacuation during overseas travel.
- There is a single annual plan with two levels of coverage.
For our example trip, the USI Affinity Travel Insurance Services basic plan is comparable to the going rate in the sector.
Travel Insurance Worldwide
Why Travel Insured International is outstanding:
- plans that are both thorough and medical-only.
- Plans for travel cover missed and cancelled flights as well as lost or stolen luggage.
- Additionally, the cost of Travel Insurance International coverage is $72, which is less than usual.
Global Nomads
Why World Nomads is outstanding:
- options for complete international travel insurance.
- Adventure sports such as hiking, mountain biking, and scuba diving are included.
- protection for phones, laptops, and cameras.
Nerd Elina Geller outlines the following in her review of World Nomads:
“The Standard Plan ($81) is a good choice for those who are satisfied with trip cancellation and interruption coverage of $2,500 or less, do not require rental car damage protection, find the limits to be sufficient, and do not need coverage for certain adventure sports.”
Nearly on time, World Nomads coverage hits average.
The Berkshire Hathaway Travel Insurance
Why Berkshire Hathaway Travel Protection is outstanding:
- Cancellation, emergency medical coverage, and emergency travel support are included in the one complete and two comprehensive plans.
- Two of the schemes offer higher thresholds for missing luggage and reimbursement for missed connections.
- Adventure sports coverage, rental car collision, and other add-ons are available to customise the coverage.
The average cost of basic Berkshire Hathaway travel insurance is $81. A basic AirCare plan, however, costs just $29 and only offers fixed levels of coverage.
Services by Travelex Insurance
Why Travelex Insurance Services are outstanding:
- There are three complete blueprints available.
- You can choose your own coverage.
- There are two flight insurance options.
For our sample trip, Travelex Insurance Services’ basic coverage cost $90, which is almost 11% higher than the national average.
Six different travel insurance policies are available from Travelex Insurance Services. There are two different flight plan alternatives, three different types of comprehensive plans, and a post-departure plan. According to our analysis of Travelex Insurance Services, its policies are underwritten by Zurich Insurance Group and Berkshire Hathaway Specialty Insurance Company.
Seven Points
Why Seven Corners is great:
- Plans that are comprehensive for both foreigners and Americans, including visitors and immigrants coming to the country.
- There are annual, medical-only, and student plans offered.
- The company’s options for annual travel insurance are highlighted in the NerdWallet Seven Corners evaluation.
“Travel Medical Annual Multi-Trip is the only annual policy that Seven Corners offers. Depending on how long you intend to spend away from home on any given vacation, the policy can be modified. You may take as many trips as you wish over the 364 days, provided that no single trip lasts longer than the choice you chose—30, 45, or 60 days.
Another plus: The basic coverage package from Seven Corners for our vacation to Spain cost $6 less than the national average, or about $75.
IMG
Why IMG is outstanding:
- International students, missionaries, and ship captains and crew members all have specialised medical insurance.
- adventurous travel insurance.
- Planned trip cancellations.
- Plans that offer COVID-19 coverage are indicated on the search results page.
Budget-conscious people might consider IMG as well because, in our test, its basic plans cost $22 less than the average. A rider for adventure sports is an add-on option.
USA AXA Assistance
Why AXA Assistance USA is outstanding:
- There are three complete blueprints available.
- Gold or Platinum plans can add optional insurance benefits, however they come in different forms. In addition to Cancel For Any Reason insurance, rental collision can be added to the Gold and Platinum plans, respectively. Silver-level policyholders are not eligible for add-ons.
You’ll pay $61 for the least expensive basic travel insurance plan with AXA Assistance USA. Be prepared to pay a little bit extra if you put on CFAR or rental car damage coverage.
AAA
Why AAA is outstanding:
- No membership in AAA is required to purchase a policy.
- coverage offered by the reputed organisation Allianz Global Assistance.
Allianz Global Assistance actually offers AAA travel insurance plans, but they come with AAA-only benefits like SmartBenefits, which pays for delayed bags without requiring purchase receipts, missed port of call coverage, which pays for costs incurred when a ship changes its itinerary or skips a scheduled stop, and rental vehicle return coverage in case an illness prevents you from doing it yourself.
You’ll pay $106 for the TripAssist Choice plan, which is around 24% more expensive than the standard.
The company’s annual and single-trip policies are highlighted in the NerdWallet review of AAA travel insurance. To obtain travel insurance, you don’t need to be a AAA member.
A Tin Leg
Why Tin Leg is great:
- several different plan alternatives for every price range.
- Some plans offer the option to include Cancel for Any Reason coverage.
Tin Leg’s Basic plan will cost you only $64 and save you $17 compared to the average coverage. There are eight different international travel insurance plans to pick from, but keep in mind that the most complete coverage will cost you significantly more.
According to our NerdWallet study, “There doesn’t seem to be much of a pattern or rationale as to which Tin Leg travel insurance plans give the greatest benefits or the biggest payments. For instance, a plan doesn’t necessarily offer you greater protections overall just because it is more expensive or has a name that seems better.
The only way to choose the plan that is ideal for you is to compare them all, review the plan’s specifics, and choose which features and coverages are most appropriate for you and your travel needs.
TravelSafe
Why TravelSafe is great:
- Both plans provide an add-on for rental car damage coverage.
- The TravelSafe Classic plan offers Cancel For Any Reason coverage as an add-on option.
The $79 Basic plan from TravelSafe is exactly average for our hypothetical vacation to Spain. Unfortunately, you must purchase the TravelSafe Classic package for $103 if you want to add CFAR coverage.
Additionally, unless you work as a travel agent, multi-trip or year plans are not offered.
Insurance HTH
Why HTH Insurance is outstanding:
- travel protection coverage and medical-only coverage.
- Long-term coverage for expats as well as group travel coverage are both offered.
HTH offers travel protection plans, single- and multi-trip medical insurance, and more. The $74 TripProtector Economy policy offers complete travel protection coverage at a rate that is $17 below average.
HTH collaborates with GeoBlue on its health insurance programmes. Even group travel insurance for teachers, personnel, religious missionaries, and business travellers is an option.
What is covered by travel insurance?
Many trip protections are included in the majority of travel insurance policies, including accidental death and dismemberment, lost or delayed luggage, emergency medical care and evacuation, and trip interruption, delay, or cancellation.
These safeguards might assist you in preparing for unforeseen travel delays and costs as well as assist you in recovering money spent in advance when making a significant trip.
For instance, most travel insurance policies will pay for an additional hotel stay or cab fare if your flight is delayed or cancelled. If you need to cancel your trip due to an occurrence that is covered by your travel insurance, you may be able to recover expenses like pre-paid hotel and rental car reservations.
If the airline misplaces your bags, plans may be able to cover the cost of any valuables you packed.
Many all-inclusive travel insurance plans also include medical coverage, which acts as an insurance policy in the event that you get sick or hurt while travelling and must pay expenses that your domestic health insurance plan does not cover.
Travel insurance safeguards prevent you from having to take a financial blow because of unforeseen circumstances that arise while you are travelling, much like health insurance and vehicle insurance save you from having to spend significant out-of-pocket costs when you become sick or crash a car.
What does travel insurance not cover?
The majority of unanticipated situations are covered by standard travel insurance policies, but as you compare options, take your unique demands into account. There are several common coverages that are excluded, even if every plan is different.
storm is a name. If you bought the insurance after the storm was named, you usually cannot get coverage for it. To put it another way, if you have a trip to the Caribbean planned for September 25 and a hurricane forms on September 20, you typically won’t be able to purchase a travel insurance plan on September 21 in an effort to get your money back.
Whether specific annoyances are met. A vacation can also go wrong if you give up too soon; a short (or even multiple-hour) flight delay is probably not enough to force you to cancel the rest of your trip and receive a refund from your plan. Review the conditions that apply to trip cancellation, trip interruption claims, etc. under your specific plan.
What is the price of travel insurance?
Costs of travel insurance might vary greatly. Your age, the length of your vacation, and the location will all have an impact on the final cost of your plan.
Additionally, pricing will depend on the extent of the coverage you require, if you add specialised insurance (such pre-existing conditions coverage or Cancel for Any Reason coverage), whether you intend to engage in extreme activities, and other aspects.
Travel insurance can cost up to 10% of the total trip cost. If something goes wrong, it may be worth the price because many of the plans offer reimbursements of up to 100% of the trip cost (or more) for unforeseen events like trip cancellation or interruption.
Is travel insurance necessary?
It varies. Take into account the upcoming elements that could influence your choice. You have a credit card that provides some travel insurance, you are young and healthy, all of your reservations are refundable or cancellable without incurring fees, your flights are nonstop, and you are not checking bags. Travel insurance might not be required in that situation.
On the other hand, it’s a good idea to purchase travel insurance if you paid a sizable sum of money in advance for a non-refundable African safari, you’re taking a Caribbean cruise during a hurricane season, or you’re travelling to an area where medical expenses are expensive.
How to pick the top travel insurance coverage
The finest travel insurance plan to choose will depend on your specific requirements, worries, preferences, and financial constraints.
- health insurance. If having enough medical coverage while travelling is a top priority, you may want to seek for policies that include high limits for medical emergencies and medical evacuation.
- complicated travel schedule. Prioritising a plan with the finest coverages for trip cancellations or interruptions may be at the top of your list if your itinerary includes numerous aeroplane connections, hotels that have been pre-paid, and deposits for activities you cannot get back.
- Travel ambiguity. Choose a plan with a Cancel For Any Reason coverage option if you’re on the fence about taking a trip altogether and have nonrefundable reservations because it can help you recover 50% to 75% of the expenditures. This puts the choice of whether to travel fully in your hands and contributes to your peace of mind.
- car leases. A collision damage waiver is frequently something to think about if you’re renting a car.
What will be the most popular travel locations in 2023?
According to Squaremouth, a NerdWallet partner, the top 10 insured locations in 2023 are as follows.
- Mexico.
- Italy.
- Israel.
- Bahamas.
- France.
- Costa Rican.
- Spain.
- Japan.
- Antarctica.
- Canada.
Travellers spent around 25.53% more in 2022 than they did before to the coronavirus outbreak on their vacations. According to NerdWallet study, as of May 2023, travel costs are 18% more than they were before the pandemic. Each fact supports the idea that you should safeguard your travel expenses as you prepare for your upcoming vacation.
