Last year I traveled internationally and domestically every single month. Due to the frequency of my trips, I started thinking about travel insurance and whether it made sense for me.

I didn’t know that much about travel insurance other than the basics. These may include flight cancellation and lost luggage reimbursements. I was more interested in the medical coverage for accidents or an emergency. Getting hurt is scary enough but what if happens in a foreign country?

Also, the thought of a huge medical bill didn’t appeal to me either.

Then… randomly, I happened to watch a show on TV about shark attacks. The show featured a couple who traveled to the Dominican Republic and the woman got her arm bitten off by a shark.

Travel Insurance Comes in Handy if You Lose a Limb

The woman survived the attack but was rushed to the hospital where she nearly died from blood loss. While the story had a happy ending of her survival and recovery, the couple talked about the costs associated with the accident.

They didn’t have travel insurance so they were on the hook for thousands. Luckily, they received help from their friends and family. Even their church coordinated a fundraising event! All of this helped cover some of the costs. They also managed to negotiate some of the bills with the hospital.

Had they bought travel insurance, they would’ve been covered for up to a certain amount. For example, Allianz offers up to $25,000 for a lost limb.

While their story isn’t common, it does prove that anything can happen while you’re on vacation. From an unforeseen attack from a shark or a slip and fall while you’re walking down the street, you never know.

I was convinced I needed to learn more about travel insurance before my next trip.

What Exactly is Travel Insurance?

Travel insurance is an optional insurance you can buy that covers many travel-related mishaps. Some examples include flight cancellations and missed flights to getting hurt or sick while you’re traveling.

If you use a travel rewards credit card, you will most likely already be covered for some mishaps. These may include canceled flights due to bad weather, lost luggage, and even rental car insurance.

But your credit card company isn’t an insurance company, so what they cover is limited.

Because everyone’s travel needs are different, travel insurance may be worth it if you travel a lot and want to be fully covered if something were to go terribly wrong on your trip, like a flight cancellation or a serious injury.

8 Best Travel Insurance Companies to Consider

The companies mentioned in this list are ones that consistently and rank highly in travel insurance lists across the web, with A.M. Best ratings, and have glowing reviews by real customers.

Most insurance companies offer different plan packages depending on how much coverage you’d like.

The cost examples below were taken from each insurance company’s lowest-tiered pricing package. If you want at least $50,000 in medical cost coverage, you’d need to choose a higher plan.

Cost examples below were quoted based on a 30-year-old California resident who is traveling for 14 days to Australia. (Benefits and cost may vary by state.)

1. AXA Assistance USA

AXA Assistance USA is one of the largest financial companies and is part of AXA Group. They offer three comprehensive plans and consistently maintain a 4.5 out of 5 stars, with over 3,200 reviews on InsureMyTrip.com.

  • Example of cost:
    • $47
    • Medical: $25,000
    • Medevac: $100,000
    • Trip cancellation: 100% of the cost
    • Lost luggage: $750
    • Travel delay: $100/day or $500 maximum

2. Allianz

Allianz is a popular choice for getting travel insurance and is one of the more established insurance companies from this list.

The company consistently gets great reviews from consumers, including a 4.5-star rating from over 3,000 customers on ConsumerAffairs.com. They also offer pre-existing medical condition coverage.

  • Example of cost:
    • $58
    • Trip cancellation: $2,000
    • Medical: $10,000
    • Lost luggage: $500
    • Travel delay: $300

3. World Nomads

World Nomads is an Australian-based travel insurance company recommended by Lonely Planet.

I first heard about World Nomads from one of my favorite travel bloggers, NomadicMatt.com. World Nomads is best for backpackers or even digital nomads, who are always on the move. You can even extend coverage while you’re traveling.

  • Example of cost:
    • $80
    • Medical: $100,000
    • Trip cancellation: $2,500

4. AIG Travel Guard

AIG Travel Guard offers three tiers of plan packages including Silver, Gold, and Platinum. Silver is the least expensive option while Gold is the most popular.

Gold is great for international travelers or families. Platinum is the most expensive plan. All three plans give you 24/7 travel assistance.

  • Example of cost:
    • $61
    • Medical: $15,000 ($500 for dental)
    • Trip cancellation: Up to $100,000 for all three plans
    • Trip delay: $500 ($100/day)

5. Amex Assurance

Amex Assurance is owned by American Express offers exceptional, award-winning customer service. If you’re an American Express customer and purchase your ticket with your Amex card, you receive basic automatic travel insurance for local and international travel.

Unlike other travel insurance companies listed, you don’t have to go with any of their existing packages. You can customize and build your own plan, based on your travel needs.

  • Example of cost:
    • $59
    • Medical: Up to $5,000 ($750 for dental)
    • Baggage loss: Up to $250

6. IMG Global

IMG Global is known for offering specific plans for those who are addicted to thrilling adventures while on vacation. Plans are catered to remote or exotic locations.

Their TravelInsuredLX plan offers coverage for adventure or extreme sports and even has a $10,000 search and rescue allowance.

They don’t offer coverage for pre-existing medical conditions.

  • Example of cost:
    • $63
    • Medical: $150,000
    • Medevac: $500,000
    • Baggage loss: Up to $1,500
    • Trip cancellation: 100% of the trip cost
    • Missed connection: $500 per person

7. Travelex

Travelex is great for families because they insure kids under the age of 17 for free.

  • Example of cost:
    • $56
    • Medical: $15,000 (dental $500)
    • Medevac: $100,000 maximum
    • Baggage loss: $500
    • Trip delay: up to $500
    • Trip cancellation: 100% of the trip cost

8. TripAssure

TripAssure has been around since the 1960s and are now a part of the TripMate brand, which is huge in the travel insurance world. Because they are a part of such a large brand, they’re able to offer a variety of insurance products. They even offer worldwide travel services such as concierge.

  • Example of cost:
    • $75
    • Medical: $50,00
    • Medevac: $500,000
    • Baggage loss: $1,500
    • Trip interruption: $2,500

Reasons Why Travel Insurance May Be Worth It

Travel insurance companies offer more than just health coverage. The plans are often comprehensive and involve a number of travel-related emergencies.

The following scenarios are generally what travel insurance may cover, but keep in mind you’d have to make sure it’s included in the package you purchase.

  • Health emergencies
  • Accidents or injuries
  • Lost luggage
  • Stolen luggage
  • Flight delays
  • Property damage
  • Bad weather that causes flight cancellations
  • You changed your mind and don’t feel like going on your trip
  • Illness preventing travel
  • You missed your connecting flight
  • You got laid off or fired from your job and can’t afford to go on the trip anymore
  • A wrecked rental car

What Travel Insurance Doesn’t Cover

In order to set yourself with the right expectations, it’s important to understand what travel insurance doesn’t cover. Scour through the details with a fine-toothed comb. Look out for the following:

  • Pre-existing conditions: This is this is different for all insurance companies and some may or may not accept a pre-existing medical condition.
  • Extreme travel: High-risk sports like skydiving, scuba, and bungee jumping (although some plans offer coverage for this as an optional add-on)
  • Medical tourism: This is traveling to a foreign country to receive a medical treatment

What to Think About When Choosing an Insurance Company

When looking through the list of the best travel insurance companies the most important thing to understand is what’s covered in the package.

Tip: When looking at medical coverage, consider one that’s at least $50,000 which may be enough to get you through at least one week in the hospital.

Consider the following:

  • Specific dollar amounts of what is covered
  • Your travel destination activities (i.e. will you be active and doing a lot of outdoor activities where the chances of getting hurt are higher?)

Here’s what a well-rounded plan would cover:

  • Emergency medical treatment and care
  • Medical evacuation (also known as medevac)
  • Trip cancellation/interruption reimbursement
  • Lost luggage
  • Worldwide assistance 24/7

Do People Actually Buy Travel Insurance?

I had talked to a few of my seasoned traveler friends and they seemed to have very polarizing views on this topic.

Some said it’s a must, especially if your adventures involve outdoor activities like surfing, hiking, or mountain climbing. Others said they just rely on their health insurance from home since some healthcare providers will cover some overseas emergency costs.

For other travel-related mishaps like lost luggage, they referred to their travel rewards credit cards as their “insurance,” since many credit card companies cover these issues.

What About my Credit Card?

Credit cards offer you some protection from things like lost baggage, trip cancellation due to bad weather, and rental car insurance. In order to be covered, you must use the credit card when you purchase the ticket.

So, if you travel a lot, should you purchase travel insurance or just rely on your credit card?

Scott Keyes, CEO of ScottsCheapFlights.com believes your credit is sufficient for travel-related issues such as flight cancellations.

He explained, “The insurance automatically provided by your credit card (assuming your credit card carries travel insurance) is more than plenty. Paying for additional insurance is rarely, if ever, useful, and can [actually] negate your ability to receive compensation from your credit card.”

However, your credit cards may not be sufficient enough to cover medical costs.

Does my U.S.-Based Health Insurance Work Overseas?

I’m a Kaiser member and called to find out about overseas coverage. The customer service rep said only the initial emergency trip to the hospital would be covered.

In the event I needed any type of follow-up treatments, I wouldn’t qualify. I’d have to return back home to receive them. They basically only cover the initial emergency cost and trip to the hospital.

This actually made me feel a lot better, should an emergency occur overseas. I thought travel insurance would be a great way to bridge the gap between complete coverage and what Kaiser offered.

When you call, these are relevant scenarios to ask about:

  • An emergency trip to the hospital
  • Hospital stays
  • Follow-up treatments and medication
  • Medevac

Tip: If you’re on the hunt for a new health insurance provider, HealthInsurance.net helps you find one.

Even if you don’t get travel insurance, be sure to have proper documentation with you when you travel. Bring copies of your health insurance and note any important customer service numbers you can call when you’re overseas. If you require prescription medication, make sure to have the proper paperwork for that.

What to Do After You Get Travel Insurance and Before Your Trip

As with any kind of insurance, it’s sometimes difficult to understand complicated insurance jargon and it can be confusing. There’s a reason why there are insurance reps who are happy to answer your questions.

Here are tips on what to do before the trip in case you experience a medical illness or injury:

  • Take photos of all your valuables (cameras, phone, passport)
  • Document your illness as soon as it happens and call your insurance company
  • Call the 24/7 customer service number as soon as the injury or emergency occurs

Is Travel Insurance for You?

As you can see from the list of travel insurance companies listed, the amount of medical coverage varies. This means you’ll have to prioritize what’s most important to you and find a company that offers the best price.

As Keyes’ suggested, contact customer service and ask about your travel benefits. When you call, ask about any potential travel benefits you may miss out on, if you do get travel insurance. (Note: this is only if you use a travel credit card.)

So did I ever end up getting travel insurance? I decided I would be OK without it because the frequency of my trips slowed down at the beginning of this year. However, I do plan on adding it to my overseas snowboarding trip this winter. I’ve narrowed down my top two choices to Allianz or World Nomad.

If you tend to travel frequently, travel medical insurance might be right for you. It’s great to have peace of mind in case you experience an accident or happen to miss a flight.

What appeals to you most about travel medical insurance? Chime in and let us know in the comments.

Join Our Newsletter

Get more content like this delivered to your email.