What does travel insurance cover?
Several Minnesotans are among those stranded in Mexico after security forces killed a drug cartel boss, sparking violent clashes. The deadly conflict south of the border might have some travelers second-guessing their upcoming trips.
Traveling is stressful, especially flying. So many things are out of your control, like the weather or plane issues
You could also suddenly get sick prior to the trip or get hurt while on it. All these "what ifs" could be costly. That's where travel insurance can help.
"Travel insurance will help provide reimbursement for travel expenses you incur if your trip gets interrupted, delayed, or canceled," said Clint Hinderson, a travel expert with The Points Guy, a travel website.
That sounds reassuring, but not all interruptions, delays or cancellations are created equal.
So, what does travel insurance cover?
"It will cover potential cancellation as long as you buy it within a period of time. It can cover medical emergencies. It can cover trip delays, flight delays. It can also cover things like baggage delays and loss," said Rupa Mehta, CEO of Squaremouth, a travel insurance comparison website.
The list of what's not covered is much longer, including what happened this month in Puerto Vallarta, Mexico. War, civil unrest, natural disasters, alcohol and drug-related injuries, and extreme sports and activities are excluded from coverage.
"The biggest mistake people make is not reading the fine print. You really got to know what your policy does and does not cover," said Henderson.
If you're someone who doesn't want to worry about what's covered, you can opt to pay for cancel for any reason and interruption for any reason" coverage.
"Even if there are a lot of these exclusions listed, they'll cover up to a certain percentage of your trip, no matter what. Cancel for any reason works before the trip and interrupt for any reason kicks in after you start your trip," said Mehta.
Both experts warn this type of coverage is more expensive, while only covering about 50-75% of your trip cost if used.
When buying travel insurance, Squaremouth states people can expect to spend about 4-10% of their trip cost, depending on how extensive a policy they choose.
In 2024, about 86.97 million Americans secured travel insurance, spending roughly $5.56 billion to protect their trips, according to the U.S. Travel Insurance Association.
Let's say you've done your research, got quotes and read the fine print. Now the question is, when is the right time to buy travel insurance? The answer is the earlier, the better. Mehta said right after booking flights, hotels and buying event tickets is the best time to consider if insurance is a good fit.
"We would always recommend purchasing travel insurance if you're traveling internationally, because whether it's a U.S. health care plan or Medicare, you're unlikely to be covered abroad," said Mehta.
Henderson is hesitant to spend on travel insurance, but there are unique instances when he feels there could be value.
"If I was spending big money on a once-in-a-lifetime trip, a safari, something like that, then I might splurge on insurance," he said.
Many travel credit cards offer complimentary travel insurance if you use them to book your trip. The cards include Chase Sapphire Preferred, Delta Sky Miles Gold, Capitol One Venture X and more.