What Does Travel Insurance Cover? (And 5 Other FAQs)

Whether you’re jetting around the globe or driving cross-country, a dream vacation is a big investment. Travel insurance can help you protect it. But if you’ve never bought travel insurance before, you might be wondering just how it works. The answers to these frequently asked questions will help.

1. Why should I buy travel insurance?

When planning your vacation, you imagine everything going perfectly. But reality can often derail your plans—from losing a suitcase to missing your cruise because of a delayed connecting flight to having a medical emergency overseas. Travel insurance helps protect your financial investment in  the wake of unforeseeable events like these—and many more.

2. What about COVID-19?

Travel insurance policies generally don’t cover trip cancellations due to known or foreseeable events—which includes the coronavirus pandemic—or the fear of travel. But AAA travel insurance partner Allianz Global Assistance has made certain temporary claim accommodations for travelers who are affected by COVID-19, including emergency medical care and trip cancellation or trip interruption benefits. Your AAA Travel Advisor can help you stay up to date on current coverage rules.

3. What does travel insurance cover?

The most common protections provided by travel insurance relate to trip cancellation, trip interruption and emergency medical transportation.

• Trip cancellation coverage reimburses prepaid nonrefundable expenses if you have to cancel your trip because of certain unforeseen events—including a covered illness, job loss and even acts of terror.

• Trip interruption coverage reimburses any remaining nonrefundable payments if you start a trip but can’t finish it because of a covered illness, death or other covered circumstances.

• Emergency medical transportation coverage arranges and pays for transport to a medical facility—or gets you back home to receive care—if you suffer a serious covered injury or illness during your trip.

Travel insurance can help in other situations, too. You can get benefits for lost, delayed or damaged luggage; expenses incurred if your trip is delayed; and even some emergency medical treatments not covered by your insurance policy when you’re abroad.

4. I’m just taking a road trip. Do I need travel insurance?

Most people associate travel insurance with overseas vacations, but you can also benefit from it if you’re hitting the road in a rental car. With rental car damage protection, you can be covered if your rented vehicle is stolen or damaged in a crash. Without it, you might have to pay the deductible on your own car insurance policy as well as a loss-of-use charge from the rental company. Rental car damage protection costs less than what you’d pay for protection from many rental car agencies, and it comes with trip interruption benefits.

5. How do I choose a travel insurance plan?

The level of benefits that’s right for you will depend on your specific situation, including your budget and destination. Also, think about what concerns you the most: last-minute interruptions or cancellations, or hiccups along the way, such as lost baggage or delayed flights. Your AAA Travel Advisor can help you choose a plan with the benefits that will best fit your needs.

6. What other resources are available?

With AAA travel insurance partner Allianz Global Assistance, you can call 24-Hour Hotline Assistance and be connected to a multilingual specialist who can help with a range of issues, from replacing a lost passport to locating emergency medical care. You can also find tools and resources from Allianz Global Assistance in the AAA Mobile app, including a medical translator and emergency phone numbers for hospitals and medical facilities around the world.