Travel disruptions can significantly derail your plans, particularly with the recent surge in cancellations due to severe weather. Between January 23 and January 26, over 5,000 flights were canceled because of a winter storm. In such circumstances, travel insurance can provide essential support, covering not only flight delays but also lost baggage, medical emergencies, and more.
After evaluating more than two dozen travel insurance companies, CNBC Select has identified the top providers based on affordability, coverage options, and customization available.
Best Travel Insurance Companies
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Best for Affordability: Faye – An online newcomer offering competitive rates and comprehensive coverage, including high limits for trip delays and pet care options.
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Best for Family Travel: AIG Travel Guard – Their plans include free coverage for one child under 17 when accompanied by an insured adult and offer flexible options like their Pack N’ Go plan for spontaneous trips.
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Best for Cancel for Any Reason: Allianz Travel – This provider allows reimbursement of up to 80% of nonrefundable costs, a significant edge over competitors.
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Best for Medical Coverage: USI Affinity – Offers comprehensive medical coverage and assistance for emergencies while traveling.
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Best for Cruises: Berkshire Hathaway Travel Protection – Their WaveCare plan provides substantial reimbursement for missed connections and medical coverage suited for maritime scenarios.
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Best for Customized Coverage: American Express Travel Insurance – Provides standard plans alongside tailor-made options catering to specific needs like travel interruption and emergency medical coverage.
Types of Coverage Offered
Travel insurance can cover various prepaid, non-refundable costs, including but not limited to:
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Trip Cancellation: Reimburses costs for non-refundable flights, hotels, and tours if cancelled for covered reasons.
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Trip Delay: Pays for essentials like food and lodging during significant delays.
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Trip Interruption: Covers early returns for emergencies or unplanned circumstances.
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Baggage Loss/Delay: Reimburses for expenses incurred due to lost or delayed baggage.
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Emergency Medical Coverage: Provides coverage for medical emergencies when international healthcare may not be substantial.
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Pre-existing Conditions Waiver: Allows certain conditions to be covered if the insurance is purchased shortly after the trip’s initial deposit.
Travel Insurance Costs
The cost of travel insurance typically ranges from 4% to 10% of the total trip cost, influenced by factors such as traveler’s age, trip length, and chosen coverage limits.
Saving on Travel Insurance
Key ways to save on insurance premiums include selecting lower coverage limits, considering annual plans for frequent travelers, and comparing quotes from various providers to find the best deal.
FAQs
Is travel insurance worth it?Travel insurance is advisable for trips involving significant non-refundable expenses, or if engaging in activities that pose higher risks.
What does travel insurance not cover?Standard policies often exclude foreseeable events such as epidemics and may not cover pre-existing conditions unless you obtain a waiver.
What is Cancel for Any Reason insurance?CFAR coverage allows travelers to cancel their trips for any reason, usually providing limited reimbursement (50% to 80%).
For travelers looking to protect their investments and ensure peace of mind, understanding the options available through travel insurance can make a significant difference.