The Benefits of Travel Insurance

Travel insurance protects your trip against medical emergencies, natural disasters and flight delays or cancellations — here’s what’s covered, what’s excluded and how to choose the right policy.

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Why Buy Travel Insurance?

Increased apprehension over health outbreaks, natural disasters and fear of terrorism have caused a rise in travelers’ desire to seek extra protection from travel insurance. These days it could feel like too high of a gamble to go without some kind of coverage.

“Travel insurance covers so many different scenarios in people’s lives,” said Wendy Marley, a AAA Northeast travel agent in the Newton, Massachussetts, branch. “It covers their family members, travel delays, missed ports of call for cruises or emergencies that happen while they are traveling.”

What Travel Insurance Covers

Hurricanes and Natural Disasters

June through November is a great time for travel deals, but it also happens to be hurricane season. Remember, insurance is designed to protect against the unexpected. Once a storm or weather event such as a wildfire or earthquake is tracked and/or named, it’s considered “known and foreseeable.” A policy purchased on or after the date the National Weather Service issues a warning will not cover losses related to the event.

Medical Emergencies

Unfortunately, no one’s immune to getting sick or hurt on vacation. Caroline Haylett, a AAA Northeast travel advisor in the Narragansett, R.I., branch recalls a trip where a grandfather traveling with a family of six fell ill in the Bahamas and was hospitalized for two weeks. “Not only did [travel insurance] pay for his medical bills and the transportation back to the U.S.,” Haylett said, “they also covered the accommodation for the entire family to stay abroad, as well as their airfare back home.”

Travel insurance ensures that any medical care you might need abroad does not get lost in translation. Many U.S. plans, including Medicare and Medicaid, do not cover international travel or out-of-country emergency medical transportation. Without coverage, a medical evacuation can cost more than $50,000.

Health Outbreaks

Most travel protection plans exclude losses caused directly or indirectly by an epidemic. Like storms, once a health alert is issued it is considered a “known event” and excluded from coverage.

Check cdc.gov/travel for all warning and alerts.

“Cancel anytime” or “cancel for any reason” insurance comes at an additional cost and provides the most options to travelers, but even these policies may include exclusions due to known events or an epidemic.

Marley has noticed an increased awareness of such travel insurance limits. “While people are more willing to take the insurance, they are more savvy in calculating their risk to the point where I send multi-levels of coverage policy quotes,” she said. “It still takes time to go over all of the benefits of insurance but most people come around once you do.”

Terrorism

Terror attacks can occur anywhere at any time, although the risk is higher in some places more than others. In order to be covered, a terror event must not occur within 25 miles of any city (U.S. or foreign) you are traveling to within 30 days of your certificate’s coverage effective date.

Before traveling anywhere abroad, check the State Department website for travel advisories on potential dangers related to health, politics and violence.

Delays and Cancellations

Delays and cancellations happen. In 2023, there were nearly 87,943 domestic flights canceled and over 1.3 million delayed, according to Bureau of Transportation Statistics. But the coverage that airlines and credit cards offer for these inconveniences is limited. With travel insurance, a covered delay can mean cash for rebooking fees, meals and accommodations. Similarly, if you are renting a car, you will get more for your dollar than what is provided by a standard car rental policy.

Tour Company Closes

What happens if the company you used to plan your trip goes out of business after you’ve already paid upfront expenses for your cruise, flight or excursions? If you make sure to secure travel insurance first, you’ll be less likely to have to pay for an experience you won’t have.

Things Travel Insurance Covers: Quick Reference Guide

Scenario	What’s Covered	Watch Out For
Hurricanes & Natural Disasters	Trip cancellation or interruption caused by storms, wildfires or earthquakes.	Buy your policy before the event is named or a warning is issued — coverage locks out once it’s “known and foreseeable.”
Medical Emergencies	Hospital bills, emergency transportation home and even lodging and airfare for family traveling with you.	Medicare and Medicaid typically don’t cover you abroad.
Health Outbreaks	Losses tied to health concerns, depending on your specific policy.	Once an epidemic alert is issued, it’s a “known event” and generally excluded — even under “cancel for any reason” plans.
Terrorism	Trip cancellation if an attack occurs near your destination.	The event must happen within 25 miles of your destination and within 30 days of your coverage start date to qualify.
Delays & Cancellations	Cash for rebooking fees, meals, accommodations and better car rental protection than standard policies offer.	Airline and credit card coverage alone is often limited — don’t assume you’re already protected.
Tour Company Closure	Reimbursement for prepaid expenses if your tour operator goes out of business.	Secure your policy early — before payment, ideally — to lock in this protection.

Travel Insurance Tips

Most people purchase the one-off insurance on a per-trip basis, but if you travel a lot throughout the year (two to three times per year), you should consider an annual plan. It may work out better for you cost-wise.

Keep in mind that the earlier you buy travel insurance, the bigger your coverage window. The best time to buy is as soon as you place your initial deposit or payment for vacation. And always read over your policy carefully, including the fine print. Talk to your AAA travel advisor if you have any questions.

Travel should be as stress-free as possible. Your biggest worry should be how many 3.4-ounce liquids you can fit into the 1-quart bag in your carry-on. Let your travel insurance take on the heavier burdens.

Common Travel Insurance Questions and Answers

When is the best time to buy travel insurance?

Purchase your policy as soon as you place your initial trip deposit. Buying early widens your coverage window and gets you protected before storms, outbreaks or other events become “known” and lose eligibility for coverage.

Does my credit card already cover travel delays and cancellations?

Credit card travel protections are usually limited compared to a dedicated policy. Standalone travel insurance typically covers more of your rebooking fees, meals and accommodations during a delay.

What’s the difference between standard travel insurance and “cancel for any reason” coverage?

Standard policies only reimburse you for specific covered reasons, like illness or a natural disaster. “Cancel for any reason” coverage costs more but lets you cancel for personal reasons — though it still excludes known events like a named storm or declared epidemic.

Does travel insurance cover pre-existing medical conditions?

Some plans offer a pre-existing condition waiver, but only if you buy your policy within a specific window after your initial trip payment, often 14 to 21 days. Check your policy’s fine print or ask a travel advisor to confirm your timeline.

Is travel insurance worth it for a domestic trip?

Yes. Even within the U.S., travel insurance can reimburse cancellation costs, cover delays and protect against a tour operator going out of business. Medical coverage matters less domestically if your health insurance already travels with you, but trip-cost protection still applies.

How do I file a travel insurance claim?

Contact your insurance provider directly as soon as the issue occurs. Keep receipts, medical records and documentation of the delay or cancellation, since you’ll need them to support your claim.

You’ve Read About It — Now Experience It

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Last updated on July 24, 2026 by AAA Staff