Travel insurance can help you avoid expensive surprises, but many popular vacation activities aren’t covered. Here’s what you might still pay for

For many travelers, it provides peace of mind knowing they’re protected from huge, unexpected bills if things don’t go as planned.

But not every policy covers what you might expect. Some travelers are caught off guard when their claims are denied, leaving them responsible for expenses they thought were covered.

Here's what you need to know about travel insurance, common coverage gaps and how to ensure your trip is protected.

What does travel insurance cover?

According to the National Association of Insurance Commissioners, travel insurance usually costs between 5% to 10% of your total trip price. It’s available for both domestic and international vacations (2).

Common coverage includes:

• Trip cancellation, delay, or interruption: Covers costs if you get sick or your flight is delayed and you need to stay overnight.
• Baggage loss or delay: Covers stolen, lost, or damaged personal items.
• Travel medical insurance: Pays for medical care your primary insurance doesn't cover while you’re outside your provider network.
• Medical evacuation insurance: Covers the cost of transporting you to a licensed medical facility if a serious health issue arises abroad.
• Cancel for any reason coverage: Offers a partial refund if you need to cancel for reasons not included in standard trip cancellation policies.

Travel insurance can be well worth it. Medical evacuation alone can cost tens or even hundreds of thousands of dollars, and losing the value of your trip can be devastating. Paying 5% to 10% of your trip’s cost is a small price compared to losing 100% or paying $25,000 or more for an air ambulance (3).

What does travel insurance exclude?

While travel insurance covers many situations, it doesn't protect against every situation. USA Today recently listed several common vacation activities that may not be covered, including (4):

• Safaris
• Hiking
• Horseback riding
• Snow sports like skiing or snowboarding
• Scuba diving
• Hot air balloon ride
• Ziplining
• ATV or quad biking
• Bungee jumping
• Kayaking

These activities are often considered high risk, so many standard travel insurance policies exclude them.

How can you find the right travel insurance?

If you’re paying for travel insurance to avoid financial loss, it’s frustrating to discover certain activities or situations aren’t covered. The good news is you can still find a policy that meets your needs. It just takes a little research.

Here are some tips to help you choose the right plan:

• Identify the activities you'll be doing to understand your coverage needs
• Compare several policies from different agents or providers
• Read the fine print carefully to see what’s included, what’s excluded and whether there’s a coverage cap.
• Weigh the cost of the policy against the potential expenses if something goes wrong.
• Ask if you can buy add-on coverage, such as an adventure add-on, for an extra cost.
• Research what it would cost to go without coverage. For example, the price of a medical evacuation from a remote location if you’re injured or fall ill.

By taking these steps, you can make an informed decision about whether you need travel insurance, how much coverage to buy and whether your policy truly protects your next getaway.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

U.S. Transit Insurance Association (1); National Association of Insurance Commissioners (2); NAIC (3); USA Today (4).