Top 10 Essential Travel Insurance Tips for First-Time Travelers

Imagine, you’ve tasted airplane food for the first time and seen a city from bird’s eye view. When you land, you find out your upcoming transfer flight has been canceled due to inclement weather. You’re stuck at the layover for days and need to pay extra accommodation expenses.

Travel insurance acts as a financial safety net. In case of travel delays, medical emergencies, lost baggage, and other issues, insurance kicks in to reimburse you for your troubles. Let’s go over the top 10 travel insurance tips every first-time traveler should know.

Tip 1: Understand the Basics of Travel Insurance

What is covered?

Travel insurance policies typically cover:

Trip cancellation: If your trip gets canceled due to a covered reason, you can receive a reimbursement for your nonrefundable, prepaid expenses (e.g. hotels and flights). Covered reasons include: illness or injury, death of a family member, jury duty, and unexpected severe weather. You can even get Cancel For Any Reason (CFAR) insurance for more secure coverage.

Medical emergencies: Just in case you get unexpectedly injured or ill while traveling, travel insurance can reimburse you for urgent medical bills. Travel health insurance can cover hospital stays, medical treatment, and other relevant costs. When traveling abroad, most U.S. health insurance policies do not provide coverage.

Lost luggage: Losing your suitcase or personal belongings as you travel by a common carrier is more common than first-time travelers might think. Travel insurance can reimburse you for the value of your lost, damaged, or stolen baggage. If you’re bringing along valuables with you on your trip, consider upping your baggage coverage amount.

What is not covered?

Pre-existing conditions: Recent injuries, illnesses, and other health conditions will be excluded from standard coverage. To obtain coverage for pre-existing conditions, travelers will need a pre-existing condition waiver. These waivers can be obtained if you buy a suitable travel insurance within two weeks of paying for your trip.

High-risk activities: Mountain climbing, white water rafting, and other activities are classified as high-risk by insurance companies. These extreme sports are excluded from standard travel insurance policies. If you want coverage, you will need an adventure sports coverage add-on.

Medical tourism: Many people travel solely for cosmetic surgeries and other medical procedures. Travel insurance does not cover medically unnecessary or planned medical expenses. Dental expenses are typically also capped at a lower coverage limit.

Foreseen issues: Usually, problems that are expected and reasonably predictable will not be covered by insurance. For example, if a storm like Hurricane Debby has been named already, don’t expect travel insurance to cover any claims caused by the storm. Buying insurance early can help you obtain more robust trip cancellation insurance.

Other exclusions: Criminal activities, drug use, mental health care, routine dental procedures, and other claims are typically excluded from policies. Read your policy terms thoroughly to find out what exactly is excluded.

Tip 2: Assess Your Travel Needs

Consider your destination

Your destination can affect what travel insurance is best for you. High-risk destinations may benefit from more extensive coverage. For first-time travelers headed to remote locations, make sure to consider medical evacuation insurance.

If you expect to come home before going on more trips within the year, you might benefit from an annual travel insurance policy. This type of multi-trip policy is generally more cost-effective for those who plan to travel more than once a year.

If you’re going on a particular type of trip, such as a cruise, search for specialized insurance options.

Type of traveler you are

If you’re a solo traveler, think about what your trip will involve and how much coverage you need. Solo travelers are often responsible for all the trip-related expenses, which means anything that goes wrong could pose a greater financial burden.

Families should consider family and group travel insurance plans. Buying together means a cheaper overall travel insurance cost. However, note that tailoring your policy is harder if you’re buying for a group.

Adventure seekers should consider adventure sports insurance and other specialized coverage options. Default travel insurance policies will likely not give you the coverage necessary for extreme sports and risky activities.

Tip 3: Choose the Right Coverage Amount

Coverage limits refer to the maximum amount your insurance will reimburse you for valid claims. When it comes to travel insurance, the main two policy limits are for medical coverage and trip cancellation insurance. Let’s go over how to decide on a coverage amount for travel insurance.

Medical coverage

It’s typically a good idea to obtain at least $50,000 in travel medical coverage. This way, a solid amount of an emergency medical bill can be covered, protecting your financial stability so you can focus on recovering.

First-time travelers and those traveling internationally may want to increase their coverage amount to $100,000. The greater coverage can provide valuable peace of mind.

Trip Cancellation and Interruption

Travelers usually want to insure their entire trip’s nonrefundable, prepaid expenses. Assess how much you’re spending on your trip and how much investment you would lose if you had to cancel your trip.

Tip 4: Compare Different Policies

Make sure to shop around for different insurance options. Travel insurance can cost between 4% to 16% of your overall trip expenses. First-time travelers may want to be more selective about their travel insurance to ensure better financial protection for any unexpected incidents. Look at policy:

• Cost
• Add-ons available
• Coverage types
• Discounts and bundles
• Insurer reputation

Compare quotes and policies to find what works best for you. If you have any questions about a policy or what kind of insurance you’ll need as a first-time traveler, consult with an insurance or travel expert for individualized guidance.

Tip 5: Pay Attention to the Fine Print

When traveling for the first time, buying travel insurance can be confusing. The main points to be aware of in a travel insurance plan include:

Exclusions and limitations: Insurance policies don’t cover everything. Watch out for restrictions and exclusions, such as age limits, pre-existing conditions, claim filing deadlines, and activities.

Claims process: It’s best to read over the claims process before you go on your trip. That way, you’ll know of any timely filing limits (e.g. 90 days post-incident) and conditions. No traveler wants to have to read through an entire insurance packet in the middle of their trip, while also dealing with the incident at hand.

Deductibles and limits: The deductible is how much you need to pay out-of-pocket before insurance kicks in. The policy limit is the maximum amount of coverage you can receive for a valid claim. A higher deductible and lower limit will mean a cheaper policy. Choose terms that align with your needs and risk tolerance.

Travel rewards programs: If you used miles or rewards points to book your trip, your policy may not reimburse you for the cost if the trip gets canceled. If you’re using a credit card travel insurance policy or rewards program for your trip, read the fine print so the benefits do not clash with each other.

Tip 6: Consider Purchasing Insurance Early

Buying travel insurance early provides better coverage. Don’t delay – buying too late could mean gaps in coverage and losing out on time-sensitive benefits, such as:

• Discounts
• Pre-existing condition coverage
• Coverage for natural disasters and serious events that haven’t occurred yet
• CFAR coverage

Usually, buying travel insurance within 14 to 21 days of booking your trip gives you enough time to compare plans and obtain comprehensive insurance coverage.

Tip 7: Don’t Rely Solely on Credit Card Insurance

Limits of credit card coverage

Many credit card issuers offer travel rewards with travel insurance. However, beware of the limitations of credit card insurance for travel. There may be gaps in coverage that lead to you being vulnerable while traveling. For example, credit card insurance is usually characterized by the following limitations.

Lower coverage amount: Credit card travel insurance comes with lower coverage amounts. First-time travelers want potential serious incidents to be covered, but the low policy limits mean that there might be insufficient protection.

Lack of customization: Credit card insurance usually tries to be one-size-fits-all, but that’s just not ideal for all travelers. If you face any unique challenges or risks, credit card insurance can be lacking.

No pre-existing condition coverage: Credit card insurance usually does not offer coverage for pre-existing conditions.

Activation requirements: In almost all cases, you must have paid for the entire trip using your credit card in order to obtain the credit card insurance benefits. Other requirements may also exist, making the coverage more troublesome than it may appear at first glance.

What add-ons to consider

If it’s your first time traveling, it can be helpful to purchase additional travel insurance. Better coverage means better financial protection and peace of mind. You can focus on enjoying your trip as opposed to worrying about the costs of any unexpected incidents.

Other situations where extra coverage helps include when you’re:

• Traveling solo
• Traveling to a remote location
• Staying abroad for a long time
• Going to a high-risk area
• Partaking in extreme sports
• Prone to sickness or injuries

Tip 8: Know the Difference Between Domestic and International Coverage

Domestic Travel Insurance

If you’re traveling domestically, you might not need that much travel insurance depending on your trip details. See what your existing health insurance policy covers when you’re traveling domestically.

If you’ve purchased a costly vacation package or booked expensive, non-refundable events, then you might want a comprehensive travel insurance plan. Travel insurance is a good idea for domestic:

• Destination weddings
• Luxury resort stays
• Theme park visits
• Cruises

International Travel Insurance

International travel opens you up to a wide range of new, costly risks. If a traveler gets injured or sick and requires emergency evacuation, the cost of an air ambulance could exceed $100,000. First-time travelers who are heading abroad should consider travel medical insurance, as well as medical evacuation insurance.

Tip 9: Understand the Importance of Medical Evacuation Coverage

What is Medical Evacuation?

Medical evacuation (AKA medevac) is the emergency transport of someone who needs to be relocated, such as if they need urgent medical assistance. This is particularly important if you’re headed to a remote or high-risk area.

Medevac services include:

• Airlifts
• Transportation of family and friends to your location
• Transportation to your home country
• Medical escorts (e.g. nurses)
• Repatriation of remains

Double check the minimum coverage amounts of your medical evacuation coverage and ensure your travel insurance policy includes enough medevac insurance. Evacuation insurance can protect you from hundreds of thousands of potential expenses.

Tip 10: Keep a Copy of Your Policy with You

Like with all types of insurance, it’s a good idea to keep digital and physical copies on your person while traveling. Accessible insurance information during a crisis can be extremely helpful.

What documents should you bring when traveling for the first time?

Travelers should keep the following information on their person, such as in a bag, while traveling. This is especially important if you’re traveling solo.

• Emergency contacts
• Insurance provider details
• Critical medical info (e.g. allergies, medications, and existing medical conditions)
• Info about the embassy, consulate, and other local contacts
• Travel itinerary

Conclusion

As you prepare for your first trip, keep the following about travel insurance in mind:

• Buying early = better coverage
• Prioritize medical and emergency evacuation insurance
• Know common exclusions like pre-existing conditions & adventure sports
• Consider add-ons and specialized policies for extra insurance
• Compare insurance policies to find the best one

Check out our expertly ranked list of best travel insurance companies today. Compare insurance policies to ensure a safe first-time travel experience.