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Travel Insurance, Explained

When you book a hotel or flight, you may be asked: Would you like to purchase travel insurance?
While travel insurance isn't a necessity, it can be a good idea. Here's what you need to know.
What Does Travel Insurance Cover?
Depending on the policy you choose, travel insurance can cover a wide variety of losses, such as:
- Emergency medical or dental care while abroad. Some travel insurance policies cover medical expenses while overseas that your normal health insurance policy might not cover.
- Lost or damaged luggage. Some travel insurance policies cover the cost of replacing items in lost or stolen luggage.
- Trip cancellation. If you need to cancel a hotel stay, flight, rental car reservation, or cruise within a week or two of your trip, some companies only offer a partial refund. And that's if they offer a refund at all. Trip cancellation insurance replaces these lost refunds if you need to cancel at the last minute. Keep in mind, a standard trip cancellation insurance policy typically only covers cancellations due to sickness, death, or other situations outside of your control. You may have to pay extra for “cancel for any reason" coverage, which kicks in no matter your reason for canceling the trip.
- Trip interruption. Some policies reimburse any pre-paid, nonrefundable expenses if you need to cut your trip short. Typically, the reason for interruption must fall within a small set of pre-defined reasons, such as the death, illness, or injury of you, an immediate family member, or a traveling companion.
- Trip delays and missed connections. Some policies cover expenses when you miss a flight or cruise because of a delay on another flight or an accident on the way to the airport.
You can often buy travel insurance directly through your travel agency, hotel, airline, or resort. Don't see what you want? Many insurance companies also offer stand-alone travel insurance policies. If you purchase a stand-alone policy, you can purchase coverage for a single trip or all the trips you take during the year.1
Do I Need Travel Insurance?
The cost of travel insurance can vary widely. It depends on:
- The type of coverage you choose.
- Your age.
- The number of travelers in your party.
- The length of your trip
- Where you're traveling.
According to ValuePenguin, the average cost of travel insurance in the U.S. was $148 for a single trip.2 But is it worth it? Here are some questions to consider.
The cost of travel insurance varies depending on the level of coverage, your age, the length of your trip, and where you're traveling.
Are You Traveling In The U.S. Or Internationally?
Traveling within the U.S. typically costs less than traveling abroad. This means your out-of-pocket losses are usually lower if you must cancel your trip at the last minute. In that case, you may want to skip the cost of purchasing travel insurance.
If you're traveling out of the country, your trip may cost more. This makes insurance more important. Also, your health insurance might not cover you outside the U.S. Even if they do cover customary and reasonable hospital costs while you're abroad, most don't cover medical evacuations3 back to the U.S.
Do Debit And Credit Cards Provide Some Coverage?
Some credit cards, including the Synovus Travel Rewards Visa Credit Card, include travel insurance benefits. For example, your credit card company might cover your non-refundable expenses if you have to cancel your trip. You just need to make sure you pay for those expenses with that credit card to access that coverage.
Credit cards may also cover you for:
- Medical evacuation.
- Medical bills not covered by your insurance.
- Lost luggage.
- Damage to a rental car.
Not all credit cards offer these perks. that's why it's key to read the card's terms and conditions to see what is — and isn't — included. Some debit cards, such as the Synovus Visa Business Debit Card provide travel and emergency assistance services offer benefits such as assistance with visas or immunizations, or even emergency transportation.
Are There Travel Restrictions At Your Destination (Or Could There Be Soon)?
The COVID-19 pandemic changed many travel plans. And travel guidelines, restrictions, and recommendations continue to evolve. For example:
- Some countries don't allow U.S. tourists.
- Some require a negative COVID-19 test to enter.
- Some require quarantines and health screenings upon arrival.
- Some allow exceptions for fully vaccinated travelers.4
Countries can change their rules at any time.
Most standard travel insurance policies cover losses for canceling your trip due to contracting COVID-19. But you may not be covered if you cancel your trip due to COVID-19 fears — unless you have “cancel for any reason" coverage. Some plans cover cancellations if you're unable to access the place where you planned to travel.
In any event, it's important to read the policy's terms and conditions because some travel insurance policies specifically exclude coverage for pandemics or COVID-19.5
You may not need to buy travel insurance if you're already covered for most situations through your credit card's travel benefits. If you purchase separate travel insurance, be sure to read the fine print. This ensures you get the coverage you need and don't pay for a plan that doesn't include everything you thought it would.
Important disclosure information
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
- Nationwide, “How to Buy Travel Insurance," accessed July 29, 2021. Back
- Chris Moon, “Average Cost of Travel Insurance by Policy, Age and Insurer," ValuePenguin, updated September 27, 2020, accessed July 29, 2021. Back
- U.S. Department of State, “Your Health Abroad," updated September 13, 2018, accessed July 29, 2021. Back
- Forrest Brown and Brekke Fletcher, “Find Out Which Countries Are Welcoming US Tourists Back," CNN, updated July 19, 2021, accessed July 30, 2021. Back
- New York State Department of Financial Services, “Coronavirus(COVID-19) and Travel Insurance FAQs," accessed July 30, 2021. Back
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