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What Is Travel Insurance, and What Does It Cover?

What Is Travel Insurance?

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Travel insurance helps cover financial losses associated with surprise circumstances that could ruin a trip, including illness, injury, accidents, flight or other transportation delays, and other issues. This insurance costs 4%-10% of a trip’s price. So, for a $10,000 trip, trip insurance could cost between $400 and $1,000.

You may already have travel insurance coverage from your homeowners or renters insurance or your credit cards. Call your insurance agent to find out about your current travel coverage, and your credit card company to find out about any benefits you get when you purchase air or train tickets, rent a car, or book a hotel using the card. Many travel rewards cards come with built-in travel insurance and other travel benefits.

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