The 2 Most Popular Types of Travel Insurance (2024)

FAQs

What are the two 2 basic types of travel insurance? ›

What type of travel insurance do I need? There are two main types of travel insurance: trip protection plans and travel medical plans.

Over 94% of travel insurance sales are Vacation Plans

Vacation plans include coverage for: Canceled trips. Interrupted trips. Medical emergencies.

By far, the most common and often most significant travel insurance claim is for medical emergencies. A sudden illness or injury during your trip can not only ruin your plans but also cause a severe financial strain.

Yes, it is possible, and sometimes smart, to purchase multiple travel insurance policies for the same trip.

Although there are many insurance policy types, some of the most common are life, health, homeowners, and auto.

Allianz is a popular choice among business travelers due to its AllTrips Executive travel insurance policy with coverage for lost, stolen or damaged business equipment and rental car insurance. Earning 4.1 out of 5 stars, our expert reviewers think Allianz is a great choice for international travel insurance.

Your travel insurance should always include the following cover: medical expenses and cover for getting you home if you're injured or fall ill abroad. personal injury and cover for accidents or damage caused by you. cover for lost or damaged items.

Cost: Travel insurance will add to the overall cost of your trip. Some may choose to forgo it to save money, especially on shorter or less expensive trips. Exclusions and Limitations: Policies may have various exclusions and limitations, so it's essential to read the fine print.

Every plan is different, but the coverage amounts and benefits may vary. Determine how much you really need. For example, SquareMouth recommends international travelers get around $50,000 in Emergency Medical coverage and $100,000 for cruises or travel to remote areas.

What is a Common Carrier in travel insurance? ›

A Common Carrier is typically defined as any public and ticketed transportation, such as a flight, bus or train. Coverage is generally excluded if a traveler is driving their own vehicle, piloting their own plane, or acting as crew.

Benefits and drawbacks of annual travel insurance

✔ An annual policy can be better value for money. Depending on your age and where you're travelling to, it can work out cheaper than buying individual single trip policies for each trip you take.

Although Primary Medical Insurance is not always superior to Secondary coverage, it can make payment easier if you have to make a claim. It's better to deal with only one insurance carrier (Primary) than two (Secondary).

Travel insurance can be useful, but it's not always necessary. The key to knowing if you need travel insurance is figuring out your specific risks for any given vacation, then deciding if you can buy coverage that adequately protects you from any financial losses and pitfalls that might occur.

Basic travel insurance (medical only)

Basic policies still cover your health and medical emergencies. They usually don't cover your property or cancellation costs. If they do, the conditions are more restrictive, and claim limits are much lower. Usually, they have a much higher excess than comprehensive policies.

Claims due to known, foreseeable, or expected events, epidemics, government prohibitions, warnings, or travel advisories or fear of travel are generally not covered (coverage can vary by state.)

The main types of travel insurance include trip cancellation or interruption coverage, baggage and personal effects coverage, medical expense coverage, and accidental death or flight accident coverage.