Travel Insurance: Compare Plans, Costs and Coverage

Trip cancellation reimburses 100% of nonrefundable costs if you can't travel for covered reasons like illness, job loss or severe weather. Standard plans cover 10 to 15 specific reasons and require documentation. Cancel-for-any-reason (CFAR) coverage lets you cancel for any reason and recover 50% to 90% of costs, though purchase deadlines apply.

Trip interruption pays for your unused trip days plus return costs if you come home early. You'll want this for trips over $5,000 or longer than two weeks. If you paid $3,000 for 10 days but came home after six days, you'd get roughly $1,200 back for the four unused days.

Emergency medical coverage ranges from $25,000 to $1 million. Get at least $100,000 for basic trips and $250,000 or more for adventure activities. Primary coverage pays before your health insurance does. Secondary coverage pays only after your primary insurer. You'll file two claims and wait longer for reimbursement.

Emergency evacuation transports you to proper medical facilities when local care falls short. In remote areas or developing countries, a medical flight can run $50,000 to $150,000. Aim for at least $500,000 in evacuation coverage; for destinations with limited medical infrastructure, $1 million is better.

Travel insurance excludes pre-existing medical conditions unless you buy coverage within 10 to 21 days of your initial trip deposit and you're medically stable at purchase. Lookback periods vary from 60 to 180 days. Buy early if you have any health concerns.

Adventure sports like scuba diving and skiing require additional premiums or an upgraded plan. Confirm coverage in your policy documents before booking. Baggage coverage protects lost or stolen items with $500 to $4,000 limits and per-item caps, but you'll need receipts and police reports for theft claims. Skip extra baggage coverage if your trip costs under $5,000 and you're not traveling with expensive gear.

Travel insurance costs vary widely by company for identical coverage. Get three to five quotes before buying. Price depends mainly on trip cost, your age, destination, number of travelers and coverage terms.

For travelers over 65, age drives the biggest cost differences. A 75-year-old pays three to five times more than someone aged 20 to 50 for the same coverage. A higher trip cost raises your premium, but the percentage you pay falls. You'll pay 12% to 18% on a $2,500 trip, compared to 8% to 12% on a $10,000 trip.

Travel insurance costs change little until age 50. Seniors pay more due to higher medical risk, with the steepest increases after age 70. Our best travel insurance for seniors guide breaks down company-specific options.