Why You Should Get Travel Insurance & How It Works

The best travelers around the world use expat insurance and treat it as an essential step in planning their trips. But the obvious downside to purchasing travel insurance that’s often at the forefront of peoples’ minds is that it’ll be an additional cost to what might already be an expensive jaunt abroad. Another downside? Trying to figure out what it covers, and if it’s actually worth it.

No coverage for canceled flights? Ehhh...maybe not the best option in a Covid world.

However, the peace of mind you get from purchasing travel insurance will be unrivaled. Especially now, the Covid-19 pandemic is highlighting the need for people to get travel insurance when going abroad.

At any time, the unexpected could happen; your flight could be canceled, your luggage could get lost, emergency medical care might be needed, and so on. Save yourself a headache later on and find out how to use travel insurance, what’s covered, what is not covered, and learn how travel insurance works.

Download Our FREE Covid Travel eBook

How important is travel insurance?

Purchasing travel insurance is necessary to ensure you are traveling safely and have a back-up plan for emergencies. We get it, you’re already spending so much on your trip and you don’t want to pay for something more. However, buying expat insurance is crucial to ensuring a safe and enjoyable adventure!

Do I need travel insurance? Should I get travel insurance or can I go without it? Well, consider what will happen if you do not. Most likely, if you’re uninsured in the event of an emergency situation or extenuating circumstance, you will lose money and time you could have enjoyed at your destination.

Note: Even if you have insurance in the United States, this does not necessarily mean you have expat insurance. Most of the time, health insurance only covers you while you’re in the United States, not when you go abroad. Obtaining travel insurance before your trip ensures less stress and more assurance while traveling abroad.

Learn more—explore travel insurance requirements by destination!

How to use travel insurance

Learn how to file a claim and get reimbursed.

There are many different types of travel insurance plans to choose from with varying levels of coverage, just like when purchasing insurance in the United States.

First, you need to pick a provider and determine which plan works best for you and your trip. Next, you need to fully understand your coverage. Does your plan cover medical emergencies, missed flights, or illnesses? How does travel insurance work for trip cancellation? In which countries is your insurance accepted? These are essential questions you need to find the answers to when selecting your plan and learning about your coverage.

Another important aspect of using your travel and expat insurance is to learn how to submit a claim. This way, if or when an accident or incident occurs, you will be well prepared and equipped to file a claim with your provider.

Need extra help with this? Make sure to contact an agent beforehand to get help learning how to use your travel insurance and what exactly it covers. Also, make sure you know how to contact your insurance company while abroad.

Browse Travel Insurance on GoAbroad.com

What does travel insurance NOT cover?

With hundreds of providers and various tiers of coverage, there is no straight answer for what travel insurance does not cover. Typically though, there’s a positive correlation between how much a plan costs and how much it covers.

So, why even get travel insurance if it doesn’t cover everything? Fair question—but expat insurance can be very flexible. You don’t have to get the most expensive plan or the cheapest plan available; travelers have the option to only pay for the type of insurance they want.

For example, if you are traveling a short distance to a destination with mild weather, you may not need insurance that covers weather delays or cancellations. Essentially, you choose what you want to pay for, so it’s important to assess what quality of travel insurance you’re interested in purchasing.

Should I get travel insurance? 12 situations where you’ll need it

1. Pandemics and epidemics...duh

There’s no doubt that Covid has made it obvious how important travel insurance is.

Heard of a not-so-little thing called Covid-19? Of course, you have. In the wake of abruptly canceled flights, borders suddenly slammed shut, and a flurry of local and national travel restrictions that left travelers stranded all around the world, people now understand exactly why expat insurance is worth paying for.

Of course, when the world starts to return to pre-pandemic levels of travel, we’re unlikely to see another pandemic or epidemic immediately (we hope); however, now that we know that it can happen and how quickly it changes things, getting yourself insured for the unexpected seems like a no brainer. In 2020, many travelers used their insurance to get them home or out of Covid hotspots at little to no cost.

2. Flight cancellations

Flights are expensive, especially if we’re talking about transatlantic or transpacific routes. Because of Covid-19, airlines have become a lot more flexible in terms of cancellations and rebooking. However, in case your flight gets canceled due to weather or other extenuating circumstances, it’s good to have travel insurance that’ll help you recoup losses on a flight you may need to buy to get home on time or to catch a connecting flight. 

3. Flight delays

Similar to cancellations, flight delays can cost a pretty penny, especially if it causes you to miss a connecting flight. Expat insurance will ensure you get your money back in case you need to book another flight ASAP to make your connection.

4. Missed flights or missed connecting flights

Are you gathering that travel insurance is important for frequent flyers? Certain tiers of travel insurance will cover you in case you miss a flight because you overslept or got stuck in traffic or a long TSA line. However, this tends to be a perk at higher tiers, so be sure to ask if your provider offers this benefit.

5. Terrorist attacks

This isn’t something any traveler wants to think about. However, if you’re headed to a part of the world where there’s currently political or civil unrest, it might be a good idea to get travel insurance that’ll cover your evacuation in case of a dangerous local event or threat of one. 

6. Civil or political unrest

Civil or political unrest can happen at any time depending on the political climate in your destination, and especially during times of national or local elections; do your research to find out if your destination is undergoing internal political strife. If you happen to be abroad during a sudden, major protest—or maybe an insurrection or coup d'etat—your travel insurance will cover your evacuation or last-minute flights if you feel unsafe or in danger.

7. Illness

If you get sick abroad, you’ll be *very* glad you invested in travel insurance.

It’s unlikely that your health care provider at home will cover you while you’re abroad (but be sure to ask!), which is why you’ll need expat insurance—especially right now. If you get Covid, Dengue, Malaria, or any other serious disease while you’re abroad, you need to have a way of covering hospital costs. Out-of-pocket expenses could be astronomical in some countries.

8. Major injury

Much like an illness could, a broken bone, burn, laceration, or any other bodily injury could cost you a ton out of pocket. Make sure that if you have adventure-type activities lined up (bungee jumping, zipline, windsurfing, etc.) You have travel insurance that’ll cover your medical expenses in case of an accident.

9. Lost luggage

Lost luggage is one of the worst feelings. In the event that your airline can’t reunite you with your possessions, it’s good to have travel insurance that’ll reimburse you the value of whatever was in your backpack or suitcase.

10. Returning home early

If your return flight is already booked and paid for, but you need to suddenly return home ASAP for a personal reason, such as the loss of a loved one, certain tiers of travel insurance will reimburse you for last-minute flights or canceled plans.

11. Natural disasters

Headed to a tropical country during typhoon season? Maybe you should get travel insurance. Some tiers of coverage will cover damages or evacuation in the event of hurricanes, earthquakes, wildfires, and more. Be sure to assess how prone your destination is to natural disasters when shopping for coverage.

12. Lost passport

Always keep your passport safe—but if something goes wrong, insurance can back you up.

A lost or stolen passport is a major headache when you’re abroad. You’ll need to get yourself to your nearest embassy or consulate in order to buy a new one, and if you need it ASAP, the short processing time won’t come cheap. You’ll be incredibly thankful to have an insurance provider that’ll cover or reimburse the cost of getting a new passport.

READ MORE: The Complete Guide to Health Insurance Abroad 

Expat insurance is an important investment

Protecting yourself while traveling is crucial, especially now. Purchasing health insurance is not only a safe decision, it’s also a very smart decision.

Traveling abroad is such an exciting adventure that gives you the chance to grow as a person and see the world. Protect yourself from the unknown and uncertainty of life overseas and look into getting travel insurance. With more peace of mind, you’ll be able to have a more enjoyable trip knowing you took the extra step to keep yourself safe.

Explore the Covid Travel Resource Hub on GoAbroad.com

DISCLAIMER: While our site doesn’t feature every company or product available in the market, we aim to be the most comprehensive resource for meaningful travel and provide thoughtful, valuable resources—whether that's written content, programs and travel experiences, or products and services for purchase. Our partners compensate us to promote their products and services. This may influence where those products appear on our site, but the decision to purchase is up to you. We do not represent any of our partners directly, including insurance providers, program providers, and other service providers. For more information, please click here.