Travel insurance is on the radar for many travelers this year thanks to rising travel costs, unpredictable weather events (including sargassum), and hectic airport experiences.
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In short, what used to constitute an easy, hands-off vacation isn’t quite as seamless. The financial risks involved in travel have increased… but the scope of most travel insurance policies hasn’t.
In other words, only a CFAR (or Cancel For Any Reason) policy or an IFAR (Interruption For Any Reason) policy is guaranteed to cover you for any and all mishaps. But not too many travelers know that. Instead, most of us find out the hard way that our travel policy is far from comprehensive.
If you’re considering purchasing insurance for an upcoming trip, keep a lookout for what travel insurance doesn’t cover. It’s just as important as thinking about what you want covered.
Just a note: This article covers standard policies across the travel insurance industry, but always read the fine print before you purchase or decline a policy. Each insurance group has a slightly different approach to coverage.
Generally speaking, travel insurance covers medical emergencies and/or repatriation, along with emergency assistance—and that’s about it. If you want a more robust policy, go for a comprehensive policy, which covers many outcomes listed below.
What travel insurance doesn’t cover: 9 important factors to consider
Pre-existing medical issues & pregnancy care
Let’s say you opt for medical travel insurance that will cover doctor’s visits, emergency care, and evacuation. That should cover any visit to the hospital, right? In reality, travel insurance doesn’t cover pre-existing medical conditions, which are some of the most common causes for doctor’s visits on vacation. If you’re pregnant, know that basic medical travel insurance also doesn’t cover any type of check-ups or prenatal care.
Injuries from extreme activities
Basic travel insurance won’t cover any losses incurred during extreme activities, such as skydiving, base jumping, or even something a little more relaxed, like four-wheeling or ATVing. If you like to go on these types of adrenaline-fueled tours during your vacations, go for an adventure sports or hazardous sports rider. You can usually add them on to existing policies.
Lost baggage
Lost baggage isn’t covered by most insurance policies. You won’t be compensated for the suitcase, your personal belongings, or the purchases you make on vacation to replace your lost items. Bit of a bummer. However, stolen luggage is covered by many policies. Do with that information what you will.
Hurricanes & other natural disasters
Welcome to one of the most complex and often infuriating questions about travel insurance—does it cover cancellations, delays, and other outcomes that stem from extreme weather? The answer comes down to timing. If you booked your trip before a major hurricane or blizzard forms, you’re covered.
In many cases, so long as you booked before a major storm is named, you will receive compensation. Just know that if the weather event isn’t powerful enough to earn a name from meteorologists and has received warnings for evacuations, etc.
Labor strikes
Labor strikes often impact travel. Air Canada had a major strike last year that impacted North American flight routes, for example. I’ve also had a handful of Italian vacations impacted by train strikes. Oftentimes, these strikes are scheduled ahead of time… meaning that if you bought your train tickets from Milan to Rome a day after ItaliaRail schedules a strike, you’re out of luck. Insurance companies will consider the strike a known event.
Trip cancellations—even for medical reasons
Unless you have a CFAR policy or comprehensive travel insurance that includes a trip cancellation policy, don’t expect to receive reimbursement for trip cancellations. Usually, a comprehensive policy covers non-refundable reimbursements for cancellations due to the death of a loved one, illness or injury, job loss, natural disasters, and more. However, many insurance companies require thorough documentation—so be prepared to advocate for yourself if you need to cancel a trip, even with a cancellation policy.
Fear of travel, such as due to conflict
Let’s say you had a trip planned to Dubai in March of this year, but you canceled at the last minute due to the conflict in Iran. Does a basic travel insurance policy cover your non-refundable costs? Once again, the fine print is complicated.
Even a comprehensive policy doesn’t usually cover ‘civil unrest’, which is categorized as part of a ‘known threat’, especially if you’re in a ‘high-risk’ area. Usually, the US Department of State’s official warnings are the North Star for travel insurance companies when deciding whether or not to cover a trip to a high-risk area.
Or traveling to a non-advised zone
Speaking of traveling to a high-risk zone, don’t expect much coverage from travel insurance companies if you have to cancel a trip to a conflict zone or need help when you’re there. For Americans, that means not visiting Level 4 zones, which are dictated by the Department of State. If you’re visiting an area that’s prone to conflict, go for a high-risk travel policy for comprehensive coverage.
Problems stemming from illegal activity
Did you have a few too many Mai Thais and crash your moto in Bangkok? Even medical travel insurance won’t cover your treatment if the company discovers that you were inebriated during the ride. And that doesn’t just go for alcohol. If insurance companies know that you were taking substances when you were injured, they won’t buck up much for your treatment, regardless of your policy.
