We researched 12 trip-protection policies and think that Travelex Travel Select is the best travel insurance plan. It comes with comprehensive coverage and we think it’s offered at a competitive price. Although your homeowners policy or health insurance may already cover perils covered by travel insurance, Travelex Travel Select goes beyond the standard. For trips that are cancelled, this policy covers up to 100 percent of the cost—150 percent if your trip is interrupted.
Our runner-up pick, Travel Guard Platinum, has trip-cancellation and -interruption coverage similar to our top recommendation. It offers $50,000 in medical coverage and its preexisting-conditions waiver is comparable to Travelex’s. When we priced the two policies, we found that Travel Guard Platinum was slightly more expensive. Additionally, while weather coverage is broad, Travel Guard’s coverage related to mechanical breakdowns is more specific—carriers have to implement complete cessation which results in a loss of 50 percent of your trip’s length. These specifics could make collection tougher in some cases.
What is travel insurance?
Travel insurance, sometimes referred to as trip-cancellation or -interruption insurance, provides reimbursements for specific “perils” that occur—and that are covered. Every policy is different. While one may cover weather delays, another may not. Reimbursements related to weather—if any at all—can also depend on the kind of weather and length of the delay outlined in a policy.
Typically, travel policies overlap and offer reimbursements for losses if: your trip is canceled or delayed (by you or a travel provider), your luggage is lost, you need medical attention overseas (or have to return to the US for treatment), or you die during a trip. Still, circumstances will vary by policy.
Websites that sell travel insurance usually have links to actual policies and plan summaries which outline specifics in detail. This is where you’ll find lists of perils covered and excluded by each policy. We don’t recommend making assumptions about coverage, especially if it isn’t listed under a policy. You may end up filing a claim only to have it rejected which can be disappointing and costly.
How we picked and tested
There are dozens of companies that sell travel insurance of some kind. We narrowed down our search to comprehensive policies that cover a variety of common perils, including medical problems and bad weather that may force you to cancel your trip.
Instead of a travel agent or provider (like a cruise line or airline), most experts recommend purchasing insurance from a third-party, independent website. Travel agents may be set on earning commission, or only have familiarity with a limited number of travel insurance companies. You want to take the safe route and buy coverage from a company that won’t go out of business and that offers insurance deemed worth it.
We researched companies with policies that were widely available on popular websites that sell travel insurance such as Squaremouth, InsureMyTrip, and QuoteWright.com. We found 12 leading travel insurers that offer a range of policies from basic to high end. Aside from the price, the difference in policies is often the level of coverage—for example, $15,000 in medical coverage for a basic plan vs. $100,000 for a plan on the higher end. Pricier plans may provide reimbursements for cancellations due to a recent terrorist attack, a basic plan may not.
Our criteria for finding the best travel insurance policy included: medical coverage of at least $50,000, a preexisting-conditions waiver, weather coverage, mechanical-breakdown coverage, coverage for children, coverage for job-related trip cancellations, 24/7 assistance, and coverage for terrorist incidents.
Preexisting-conditions waivers allow you to use a previously-diagnosed condition as a valid excuse for cancelling a trip—so long as you were fit the day you bought the policy, you bought enough insurance to cover the entire cost of the trip, and you bought the policy within 14-21 days of making your first payment toward your trip.
The best and most effective way to put a travel insurance policy to the test is to file a claim. Unfortunately, doing so for testing purposes would be committing insurance fraud. We tested insurance policies by poring over the fine print and evaluating the experiences of policyholders outlined on major sites including Travel Insurance Ratings & Reviews, InsureMyTrip, and Squaremouth. We looked into credible claim complaints from Better Business Bureau user reviews, particularly those which described frustrations with collecting money.
It isn’t unlikely for the company that administers a policy to have a different name than the company which backs the policy, so we also checked the financial health of each travel insurer.
Our pick
Travelex Travel Select’s policy allows for trip cancellations due to preexisting conditions if it’s purchased within 21 days of booking your trip. According to Squaremouth, Travelex will pay out up to $500,000 for physician-ordered evacuation back to the US. The policy offers $50,000 for physician-ordered medical or dental coverage. While most policies cover children up to 17- or 18-years-old, Travelex covers children up to the age of 21 and doesn’t require an additional fee. For families, this is a price advantage.
For trip cancellations, Travelex Travel Select reimburses up to 100 percent of your losses. In the case of “unforeseen events” such as a natural disaster or illness, Travelex covers up to 150 percent of your trip.
We’re confident in the financial strength of Travelex as the company received high ratings from Standard & Poor’s and A.M. Best. Travelex also has many positive reviews on major third-party travel-insurance rating sites including Travel Insurance Ratings & Reviews and InsureMyTrip.
We like this policy because mechanical breakdowns and weather coverage is broadly defined which means you’ll have a better chance at receiving a reimbursement for outrageous flight delays. Many policies cover flight delays of 12 hours or more—our pick doesn’t have a minimum time requirement for cancellations and interruptions on the part of your common carrier. Our pick’s delay coverage also offers up to $750 in incidentals—additional expenses like hotel stays, telephone calls, meals, or local transportation.
If a terrorist incident occurs within 30 days of your departure date, this policy will cover cancellations. Travelex’s policy includes coverage for some job-related excuses—if at no fault of your own you’re terminated from a job that you’ve held for at least one year, Travelex will pay out.
In order to get an idea of how the pricing of policies compared, we ran sample scenarios with different trips and travelers. In some instances, Travelex was slightly higher. Its policy was priced slightly lower in others, but overall, lines up with other major insurers.
Shop Now: Travelex Travel Select
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