What Is Travel Insurance, and What Does It Cover?

 What Is Travel Insurance? Travel insurance is a type of insurance covering financial losses associated with traveling, and it can be useful protection for domestic or international travel. Whether you missed your flight to Florida, lost your bags in Berlin, or broke your ankle in Ankara, the best travel insurance companies can help remedy all kinds of travel mishap costs. KEY TAKEAWAYS Travel insurance can be purchased online, from your tour operator, or from other sources. The main categories of travel

 insurance include trip cancellation or interruption coverage, baggage and personal effects coverage, rental property and rental car coverage, medical coverage, and accidental death coverage. Coverage often includes 24/7 emergency services, such as replacing lost passports, cash wire assistance, and rebooking canceled flights. It's important to understand what's covered and what's not, and any limitations on coverage amounts and coverage requirements. Understanding Travel Insurance 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% to 10% of a trip's price. So, for a $10,000 trip, trip insurance could cost between $400 and $1,000.1 Premiums—or the price you pay for coverage—are based on the coverage type, your age, destination, trip cost, and more. Specialized policy riders focus on the needs of business travelers,

 athletes, and expatriates. 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. How Travel Insurance Works Travel insurance may be sold

 online by travel agents, travel suppliers (airlines, cruise lines), private insurance companies, or insurance brokers when booking your flight, accommodations, or car. Travel insurance companies include AIG Travel, Berkshire Hathaway Travel Protection, Generali Global Assistance, GeoBlue, Nationwide, and more. Typically, you'll purchase coverage shortly after initial bookings for lodging, flights, or other transportation, activities, and rental cars. Some policies may require you to do so to

 retain full coverage. Here are some terms to know for travel insurance. Primary and Secondary Coverage If you buy travel insurance, you may have concurrent insurance coverage, meaning you're covered under more than one policy. When the travel coverage is primary, the travel insurance reimburses you first without needing to make a claim through another company—and sparing you

 potentially increased policy rates. If the travel insurance coverage is secondary, you'll first need to attempt to file a claim with other coverage, such as an airline (lost baggage) or your own auto insurance (damaged car). Coverage Requirements There are usually stipulations spelled out on how you qualify for coverage. Your claim must fall under the types of coverage offered. For example, lost baggage insurance might include coverage for personal items, prescriptions, credit cards, and your passport or visa. You may also need to take extra steps to qualify for coverage, such as reporting the loss or theft to

 the police. Policy Coverage Limits This is the maximum amount you can receive for the claim. For example, you might only receive $500 per bag. You may not even receive more for expensive items such as jewelry or electronic devices. You might need to provide receipts for items over a certain amount. Without receipts, the insurer may only pay for repairs. Some coverage might require you to pay a deductible, or flat amount, before covering the remainder of your claim up to the limit. Exclusions These are the conditions under which your coverage will not cover the loss. Each policy differs. For example, your baggage damage coverage may not cover losses caused by animals. It may exclude

 coverage of bicycles, hearing aids or other medical devices, keys, and tickets, or seizure by a government or customs official. Pre-existing conditions may not be covered by travel medical insurance, or may only be covered if you buy a travel insurance plan within one to two weeks of booking your trip.2 Comprehensive Travel Insurance Comprehensive travel insurance includes many types of coverage listed below, bundled into one plan. Most commonly, comprehensive travel insura

nce bundles a 24-hour assistance line to help find doctors or get assistance in an emergency, reimburse you for trip cancellation, interruption and delay, baggage loss or delay, and medical expense and medical evacuation coverage.34 Alternatively, you can purchase each coverage type separately. This may be wise if you already have coverage through other insurance or can cover your losses in many cases. Trip Cancellation or Interruption Coverage This insurance reimburses a traveler for some or all prepaid, nonrefundable travel expenses, and comes in the following forms: Trip cancellation: Reimburses you for paid travel expenses if you can't travel for a preapproved reason. Travel dela

y: Reimburses you for expenses if you can't travel because of a delay. Trip interruption: Reimburses you for travel costs if your trip is cut short. Cancel for any reason (CFAR): Reimburses you for a portion of costs if you cancel the trip for any reason; typically more expensive than the other types listed above. With most of the above, acceptable cancellation and interruption causes and reimbursement amounts

 vary by provider. Acceptable reasons for a claim might include the following:5 Your illness Illness or death in your immediate family Sudden business conflicts Weather-related issues Legal obligations such as jury duty Bankruptcy You may need to pay more or meet more requirements to file a claim for a cancellation due to financial default, terrorism in your destination city, or work reasons. Note When traveling, register your travel plans with the State Department through its free travel registration

 website, the Smart Traveler Enrollment Program (STEP). The nearest embassy or consulate can contact you if there is a family, state, or national emergency. Damage and Baggage Losses Coverage Baggage and personal belongings being lost, stolen, or damaged is a frequent travel problem—and can quickly

 ruin a trip as you must shop for replacements. Baggage and personal effects coverage protects lost, stolen, or damaged belongings during travel to, in, and from a destination. However, many travel

 insurance policies pay for belongings only after you exhaust all other available claims. Baggage coverage may have many restrictions and exclusions, such as only covering up to $500 per item and $250 for each additional item. You may be able to increase or decrease amounts, shop around for coverage, or increase limits by paying more. For example, the insurance may not pay for lost and d