{{Short description|Insurance that covers financial losses from events during travel}} thumb|Travel insurance vending machines in Japan '''Travel insurance''' is an insurance product for covering unexpected losses incurred while travelling, either internationally or domestically. Basic policies generally only cover emergency medical expenses while overseas, while comprehensive policies typically include coverage for trip cancellation, lost luggage, flight delays, public liability, and other expenses.
The United States Travel Insurance market valued at over $4B, protecting around 77 million people through around 49 million plans in 2022, according to the United States Travel Insurance Association.<ref>https://ustia.org/news/spending-for-travel-protection-coverage-reaches-over-4-billion/</ref>
Updated statistics indicate that U.S. travelers spent $5.56 billion on travel insurance in 2024, according to the 2022–2024 Travel Protection Market Study from the U.S. Travel Insurance Association (USTIA). In 2024, 86.97 million people were protected by 54.87 million plans provided by USTIA members.<ref>{{Cite web |title=Market Research - USTIA |url=https://ustia.org/resources/market-research/ |access-date=2025-07-01 |website=ustia.org/ |language=en-US}}</ref>
==Policy purchase==
=== Cost calculation === Travel insurance, are risk-based, and take into account a range of factors to determine whether a traveler can purchase a policy and what the premium will be. This generally includes destination countries or regions, the duration of the trip, the age of the travelers, and any optional benefits that they require coverage for such as pre-existing medical conditions, adventure sports, rental vehicle excess, cruising, or high-value electronics.<ref>{{Cite web|url=https://www.choice.com.au/travel/money/travel-insurance/buying-guides/insurance|title=How to buy the best travel insurance|date=2019-12-31|website=CHOICE|language=en-au|access-date=7 February 2020}}</ref> Some policies will also take into account the traveler's estimated value of their trip to determine price. A policy may be a single trip, covering the exact duration of the upcoming trip, or a "multi-trip" policy can cover an unlimited number of trips of limited duration within a year.<ref>{{Cite news|last=Kelleher|first=Suzanne|url=https://www.cntraveler.com/story/best-travel-insurance|title=12 Best Travel Insurance Policies and Why You Need Them|date=10 December 2019|work=Conde Nast Traveller|access-date=7 February 2020}}</ref>
=== Journey departure and return conditions === Most travel insurance policies must be purchased prior to departure from home, or from the first departure point (e.g. an airport), depending on the product. A smaller number of brands offer travel insurance for travelers who are already overseas and have forgotten to purchase travel insurance or have a policy that has expired.<ref>{{Cite news|last=McMah|first=Lauren|url=https://www.news.com.au/news/sneaky-way-aussie-expats-are-cheating-the-insurance-system/news-story/168743d0c234966f9a3aa1e8643a8124|title=Sneaky way Aussie expats are cheating the insurance system|date=19 April 2019|work=News.com.au|access-date=7 February 2020}}</ref> Most policies require ones to start and finish one's journey in one's country of residence. However, some policies offer coverage for one-way travel for people who are permanently relocating to another country.
=== Complimentary travel insurance === Some credit card issuers offer automatic travel insurance if travel arrangements are paid for using their credit cards, but these policies are generic and do not take into account personal requirements and circumstances.<ref>{{Cite news|url=https://www.heraldsun.com.au/moneysaverhq/the-dangers-of-credit-card-travel-insurance/news-story/58bda0f47380b23de5cda3646faa2285|title=The dangers of credit card travel insurance|date=6 April 2019|work=Herald Sun|access-date=7 February 2020}}</ref> This coverage can include benefits such as trip cancellation, lost luggage, and emergency medical assistance, adding a layer of protection for travellers at no additional cost. However, as these policies are often generic they may not be tailored to meet individual travel needs or specific circumstances.
==Common benefits==
=== Medical === In the event of minor injury or illness overseas, medical benefits offer coverage for visits to general practitioners, medicine, ambulance fees, and limited dentistry benefits. In the event of hospitalisation, most travel insurance policies include emergency assistance services, which can offer guarantees of payment to hospitals for treatment, liaise treating doctors, and organise transfers between hospitals or medical evacuations back to the insured person's country of origin.<ref>{{Cite news|last=Elsworth|first=Sophie|url=https://www.news.com.au/finance/money/budgeting/travellers-going-aboard-urged-to-be-insured-before-they-jet-off/news-story/4447967d0ebd02239b7a3aa5c36b6253|title=Travellers going aboard urged to be insured before they jet off|date=22 May 2017|work=News.com.au|access-date=7 February 2017}}</ref> More comprehensive policies include an emergency companion cover, so that a family member can remain with the insured person while in hospital.
In the event of death overseas, medical benefit sections typically include cover for repatriation of remains to the insured person's country of origin, or a funeral overseas.
=== Cancellation === Comprehensive travel insurance policies include cover for any cancellation fees or lost deposits relating to cancellation of the insured's person's trip for a range of unforeseen and unexpected circumstances. These include illness or injury, natural disasters and bad weather,<ref>{{Cite news|last1=Chang|first1=Charis|url=https://www.news.com.au/national/nsw-act/huge-delays-and-cancellations-at-sydney-airport-due-to-storms/news-story/ab730074b616df0e6e35ef9a1d6a975f|title=Huge delays and cancellations at Sydney Airport due to storms|date=28 November 2018|work=News.com.au|access-date=7 February 2020|last2=McMah|first2=Lauren}}</ref> strikes and riots,<ref>{{Cite news|last=Thornber|first=Lorna|url=https://www.stuff.co.nz/travel/news/114776943/tear-gas-and-cocktails-much-calm-amid-the-chaos-in-hong-kong-kiwis-say|title=Tear gas and cocktails: Much calm amid the chaos in Hong Kong, Kiwis say|date=7 August 2019|work=Stuff |access-date=7 February 2020}}</ref> hijacking, and family emergencies.<ref>{{Cite web|url=https://www.comparetravelinsurance.com.au/mediaroom/cancellation-cover|title=Understand Travel Insurance Cancellation Cover|website=Comparetravelinsurance.com.au|language=en|access-date=2020-02-07}}</ref> Depending on the policy, it may also include cancellation due to jury service, being made redundant from full-time employment, having annual leave revoked for those in the armed forces or emergency services, and prohibition of or advisory against travel by a government to a particular destination.
=== Alternative transport and travel expenses === Many policies include benefits for alternative transport, accommodation, and meal expenses if the transport provider is delayed by a certain period, provided any layover times met the criteria in the policy.<ref>{{Cite news|url=https://www.travelweekly.com.au/article/flight-delays-and-cancellations-whats-covered-by-travel-insurance/|title=Flight delays and cancellations: what's covered by travel insurance?|date=24 April 2018|work=Travel Weekly|access-date=7 February 2020}}</ref> Policies may also include a benefit to purchase essential items like clothing and toiletries in the event baggage is delayed by an airline.
=== Luggage === Luggage benefits cover for loss, damage or theft of personal effects during one's journey, including passports and other travel documents. It may also include limited benefits for theft of cash.<ref>{{Cite news|last=Schneider|first=Kate|url=https://www.news.com.au/travel/travel-advice/the-secret-side-of-travel-insurance/news-story/c283ce38a109d0bbf9ddc273b9efcdc9|title=The secret side of travel insurance|date=9 May 2014|work=News.com.au|access-date=7 February 2020}}</ref>
=== Public liability === This covers legal liability as a result of a claim made against the covered party for bodily injuries or damage to property of other persons.
==Optional benefits== In addition to their base policies, many providers offer coverage for declared pre-existing conditions (e.g. asthma, diabetes, cancer),<ref>{{Cite news|url=https://www.nzherald.co.nz/travel/news/article.cfm?c_id=7&objectid=12123893|title=Tips for insuring pre-existing medical conditions while travelling|date=12 September 2018|work=The New Zealand Herald |access-date=7 February 2020}}</ref> higher risk sports and activities (e.g. skiing, trekking at high altitudes, scuba diving),<ref>{{Cite news|last=McLaughlin|first=Ross|url=https://www.ctvnews.ca/vancouver/article/what-you-need-to-know-about-travel-insurance/|title=What you need to know about travel insurance|date=13 January 2020|work=CTV News|access-date=7 February 2020}}</ref> rental car damage,<ref>{{Cite news|last=Clement|first=Diana|url=https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11511779|title=Do your research to avoid car rental shocks|date=13 September 2015|work=The New Zealand Herald |access-date=7 February 2020}}</ref> and cruising.<ref>{{Cite news|last=Goldsbury|first=Louise|url=https://www.theaustralian.com.au/travel/cruise-travel-insurance-what-you-need-to-know/news-story/181afcd0f36a716b52428210e982437b|title=Take cover from mishaps at sea|date=15 November 2019|work=The Australian|access-date=7 February 2020}}</ref>
==Common exclusions== Insurance companies issuing will often exclude coverage for ongoing known events to new policies, and may announce long-term exclusions for specific events, such as volcanic activity from a currently active volcano.<ref>{{Cite news|last=Martin|first=Mina|url=https://www.insurancebusinessmag.com/au/news/breaking-news/bali-volcano-threat-highlights-importance-of-travel-insurance-79735.aspx|title=Bali volcano threat highlights importance of travel insurance|date=22 September 2017|work=Insurance Business Australia|access-date=7 February 2020}}</ref> As travel insurance is a risk-based product, many policies will exclude events which may be of a far-reaching and poorly quantified risk, such as pandemics and endemics,<ref>{{Cite news|last=Slessor|first=Camron|url=https://www.abc.net.au/news/2020-01-31/will-travel-insurance-cover-trip-cancelled-over-coronavirus/11912986|title=Coronavirus means airlines are changing their plans — but will travel insurance cover your cancelled trip to China?|date=2 February 2020|work=ABC News|access-date=7 February 2020}}</ref> acts of war, and terrorism.<ref>{{Cite news|last=Haynes|first=Jessica|url=https://www.abc.net.au/news/2017-05-29/will-your-travel-insurance-cover-you-in-a-terror-attack/8567866|title=Will travel insurance cover you in a terror attack?|date=29 May 2017|work=ABC News|access-date=7 February 2020}}</ref> Some policies exclude travel to certain countries, or parts of countries, where a greater risk is expected. These determinations are often made based on official government travel advice from organisations such as the US State Department or the Australian Department of Foreign Affairs.
Other common exclusions in travel insurance policies include:
* Undeclared pre-existing medical conditions * Unlicensed operation of a motorcycle<ref>{{Cite news|last=Flanagan|first=Tom|url=https://au.news.yahoo.com/man-wakes-from-coma-after-bali-bucks-scooter-crash-005203326.html|title=Man wakes from coma weeks after buck's party tragedy|date=10 October 2019|work=Yahoo! News|access-date=7 February 2020}}</ref> * Travelling for the purpose of receiving medical treatment * Elective surgery or treatment<ref>{{Cite news|last=Martin|first=Josh|url=https://www.stuff.co.nz/travel/travel-troubles/106717562/new-phones-and-free-nose-jobs-botched-travel-insurance-claims-are-not-a-victimless-crime|title=New phones and free nose jobs: Botched travel insurance claims are not a victimless crime|date=31 August 2018|work=Stuff |access-date=7 February 2020}}</ref> * Injury or illness caused by reckless activity such as careless driving, use of alcohol, use of recreational drugs * Leaving belongings unattended * Participating in high risk sports and activities (such as scuba diving, extreme sports) * Travelling against government advice and recommendations
==Compulsory travel insurance== Certain countries require foreign visitors have proof of sufficient travel insurance as a condition for granting a visa or of approving visa-free entry. This includes travelers heading to several countries. In some cases, travel insurance is required<ref>{{Cite news |last=Elliott |first=Christopher |date=12 October 2025 |title=Travel Insurance Is Becoming Mandatory In More Destinations. Here's What You Need To Know |url=https://www.forbes.com/sites/christopherelliott/2025/10/12/travel-insurance-is-becoming-mandatory-in-more-destinations-heres-what-you-need-to-know/ |access-date=12 October 2025 |work=Forbes}}</ref> simply for entry into a country. In other cases, it is required as part of a visa application, such as for a UAE visa or Schengen visa. When travel insurance is mandatory, there is often a set of criteria that the policy must meet. Policy requirements are typically set by governing bodies, such as the European Union, in the case of Schengen visa applications. Cuba, Turkey and Belarus. Thailand<ref>{{Cite news|last=Morris|first=Hugh|url=https://www.telegraph.co.uk/travel/news/thailand-compulsory-travel-insurance/|title=Thailand mulls compulsory travel insurance for all visitors|date=4 July 2019|work=The Telegraph|access-date=7 February 2020}}</ref> and Egypt<ref>{{Cite news|last=Godfrey|first=Kara|url=https://www.express.co.uk/travel/articles/1009939/egypt-news-compulsory-travel-insurance-holidays-2018|title=Travelling to Egypt? New mandatory rules for tourists could soon be introduced|date=31 August 2018|work=Daily Express|access-date=7 February 2020}}</ref> have announced plans to introduce similar requirements. Tour companies and cruise providers may also require passengers possess a minimum level of travel insurance before the traveller can commence their journey.
==See also== *Visitor health insurance
==References== {{Reflist}}
==External links== {{Wikivoyage}} * [https://www.gov.uk/foreign-travel-insurance Travel Insurance Advice UK] from the British Foreign & Commonwealth Office * [https://travel.gc.ca/ Travel Advisories CA] from Canadian Government * [https://web.archive.org/web/20130603052847/http://smartraveller.gov.au/tips/insurance.html Travel Insurance Advice AU] from Australian Government * [https://policyholder.gov.in/why-buy-travel-insurance Travel Insurance Advice IN] from Indian Government
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Category:Travel insurance