I have never been a big fan of travel insurance, but I always buy them for international travel. Buying travel insurance is not as daunting as it sounds. I thought it might be helpful to step through how I shop for travel insurance, with an example of how much it cost for an upcoming trip.
1. Where Can I find travel insurance?
Note: I have no affiliate relationships with any of the companies listed below.
You can buy travel insurance from reputable sources, such as Amex’s Travel Insurance. I tend to use a consolidator website called insuremytrip.com for comparison shopping. I only buy travel insurance when I travel out of the country. Read on to find out why.
2. What Coverage Do I Look For?
The coverage you get depends on your personal needs. Personally, I don’t particularly care for flight delays or lost luggage coverage because they are mostly covered by travel credit cards.
When it comes to hotels, cancellation is a non-issue because I always book the most flexible rate.
Flight expenses, on the other hand, are less flexible. If you book your flights with miles, you also have to deal with the caveat that most policies provide limited coverage for the reinstatement of miles. Whereas some of the major airlines would charge you upwards of $150 to get your miles reinstated (for example, American Airlines), the reinstatement of miles coverage is often capped. I’ve seen policies with ridiculously low coverage cap at $50 or $100, so it’s important to understand that travel insurance won’t cover everything.
My Focus: Medical Coverage
I purchase travel insurance primarily for the medical coverage; this is the reason why I only buy insurance when traveling abroad. When traveling domestically, my health insurance provides the necessary coverage. When traveling internationally, I’d rather have primary medical coverage so I don’t have to deal with medical bills or complicated paperwork.
3. How Much Does It Cost?
With an upcoming trip to Europe, I opted for a comprehensive travel insurance coverage through IMG travel insurance.
| Name of Benefit | Maximum Benefit Per Insured |
| 1. Trip Interruption | Up to 150% of Trip cost insured |
| 2. Travel Delay | $1,000.00 |
| 3. Missed Connection | $500.00 |
| 4. Baggage/Personal Effects | $2,500.00 |
| 5. Baggage Delay | $500.00 |
| 6. Accident & Sickness Medical Expense | $500,000.00 |
| 7. Emergency Evacuation/Repatriation | $1,000,000.00 |
| 8. Common Carrier AD&D | $100,000.00 |
The insurance premium varies by individual, typically based on age.
- For a maximum trip cancellation coverage of $500, the per person individual policy costs $28.
- For the older travelers (over 60) in the group, the individual premium jumps to $51.
Travel insurance is a sunk cost and I hope I never have to make use of it. Still, sometimes things just don’t go the way you intend, and having the right insurance helps to provide some protection.
In the grand scheme of things, it’s a very small price to pay for a peace of mind.
Thank you, thank you, thank you! I’ve been looking for coverage that’s primary, but every blogger that links to insurance refuses to answer whether the company they suggest provides primary or secondary coverage. The ACA does cover medical abroad, but having primary travel coverage means a lot less hoops to jump through. Medivac can also be a huge worry if something really bad happens.
As somebody that takes these issues seriously I am surprised to learn that the ACA covers expenses out of the USA. I do not buy my coverage through an exchange , it is provided by my firm under a small group policy.
My understanding is that all policies have to comply with ACA rules so I might be duplicating coverage. Now I know to triple check that I am getting a primary policy to avoid hassles.
Since ACA is not an insurance company or policy but the rules that the policies have to follow, you may end up with duplicate coverage. This isn’t ideal, but better than not enough. My coverage is through a small group as well. One thing that I just discovered when I checked with IMG is that the multi-trip coverage is NOT primary coverage, but secondary. Just a FYI.
I can’t say I know all of the IMG’s product lines, so I’m not familiar with the their multi-trip product. Nor am I looking recommend specific companies or plans here. In fact, I used to buy another plan (depending on which one shows as providing “primary” coverage). Looking through my certificate, the plan says, “iTravelInsured LX”. Interestingly enough, the plan doesn’t show up on the consolidator site today (where it states primary coverage when I did the comparison). I don’t see anything on the website (or the certificate) that suggests anything other than primary coverage: https://www.itravelinsured.com/travel-insurance/travel-lx-insurance/plan-benefits (In fact, their “coverage… Read more »
It was the Patriot Plan with IMG. It did specifically say that the coverage was secondary, while individual trip plans didn’t say that.
Indeed, I tend to understand ACA as a set of rules that policies must abide with. I must state that some quick googling elicited the information that ACA does not offer coverage outside of the USA. I am not sure at this point and, as stated, always buy coverage.
Hmm. I’ll have to ask my insurance agent for more details, but I have personally called Blue Cross and they have specifically said that coverage works abroad.
I always buy travel insurance when travelling outside the US, While most people could survive a delay or lost bag uninsured, unexpected medial issues can lead to bankruptcy. I would pay more for primary because some companies will harass you to prove that you can not collect from your regular health insurance. I can also mention that I had a claim with the other option you mentioned and they required years of medical history and full release of all HIPPA controls before considering a claim for food poisoning. There was no hospitalization but there were expenses including an IV. It… Read more »
I think that the most concern of travelers that get travel insurance is the range of coverage a travel insurance for health. Since there are different coverage for each insurance it’s important that you know what insurance you will be getting. It’s best to get it while you are processing you visitor visa to other country there are travel agencies that offer visa assistance as well as travel insurance so you’ll be able to ask question when availing one.
Say your trip cost $4k, but you only need the medical insurance. Just insure a small amount – maybe $500 & you’ll get the same medical insurance as those who insure the entire $4k.
thanks a lot to share this very useful post for us