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Are Refundable Airline Tickets or Flight Insurance Better for You?

Becky Hart | Feb 27, 2024

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You're about to purchase a flight, and the website asks, “Would you like to upgrade to a refundable ticket for an additional fee?” It seems like a good idea if you need to cancel your flight, but is it the best decision for you and your trip?

Paying extra for a refundable ticket isn’t necessarily a wrong choice, but it might leave you wanting more. At this point in the purchase of your tickets, many airlines may try to grab you with a sense of urgency and tempt you with convenience. Of course it depends on your situation, but rushing to a decision without knowing the facts of what you’re getting from the airline, and what kind of coverage you could get from travel insurance could lead to a case of buyer’s remorse.

Broader coverage with travel insurance

The refundable ticket you purchase from the airline typically provides reimbursement for the ticket itself, and most airlines will let you cancel your flight for any reason as long as you purchased the refundable ticket (which is often a more expensive option).

Your refundable airline ticket is just that, though — a ticket. Travel insurance through a provider like Seven Corners also protects you if you must cancel your trip for certain, covered reasons, and that protection may cover more than just a flight. For example, if your flight is cancelled and you can’t catch another flight until the next day, you could potentially lose money on a prepaid, nonrefundable vacation rental or excursion at your destination. Whereas your airline’s refundable ticket typically wouldn’t cover those prepaid, nonrefundable trip expenses, travel insurance could.

Optional Cancel for Any Reason (CFAR) coverage

Most trip insurance covers you for trip cancellation with a list of covered reasons, such as a sickness that keeps you from traveling or inclement weather that causes the airline to shut down for at least 48 hours. Trip Protection plans come with an optional benefit — Cancel for Any Reason (CFAR) .

This add-on benefit reimburses you for 75% of your nonrefundable trip cost if you need to cancel your trip, no matter what the reason is. At a time with so much unpredictability, many travelers find CFAR provides them with extra flexibility and confidence when planning their trips. They know that with CFAR, they won’t lose all of their prepaid, nonrefundable investment if they need to cancel unexpectedly for reasons such as fear of travel or simply changing their mind about taking their trip, two reasons that most likely would not otherwise be covered. And again, CFAR can protect your airfare as well as hotels, excursions, and more.

Customizable options

Seven Corners offers a variety of plans to help find your best match, often with the ability to customize your plan.

With our plans, you can also look for optional add-ons to give you more robust coverage based on your needs. You might choose to add the Optional Rental Car Damage benefit to a Trip Protection plan. If you select our Trip Protection USA plan, you can design your own plan by adding bundles for air travel, medical expense coverage, and more.

Emergency Accident & Sickness Medical Expense Coverage

Travel insurance can provide emergency medical expense coverage if you get sick or injured during your trip. This can be particularly important when traveling internationally as your domestic health insurance does not always cover you overseas. This coverage is not typically found with a refundable airline ticket.

Personal service

Like when we talked about how to buy the best insurance for your cruise , you may want to rely on experts in travel insurance when you have questions about protecting your flight expenses. Airlines do many things well, but they’re in the business of flying. Seven Corners is an expert in travel insurance.

It’s also important to know that all Seven Corners plans come with non-insurance 24/7 emergency travel assistance services. If you need help finding medical care during your trip or need translation services while abroad, Seven Corners Assist is there to help. Our personal service guarantee is with you from the moment you start talking with one of our licensed agents all the way until you return home.

When Should You Buy Travel Insurance for Flights?

For example, you might only be interested in protecting your airfare. Perhaps you’ll be staying with family and don’t have any expenses for accommodations or a rental car. If you don’t have any other travel expenses to protect, the refundable ticket, which provides 100% reimbursement when you meet the airline’s policy requirements, could be the better choice.

One final thought: It doesn’t have to be an all-or-nothing purchase. As much as we’d love to protect all of your travel arrangements, you could opt to purchase from both Seven Corners and your airline. One of our own employees recently did just that for a major vacation. The airline’s refundable ticket made more sense for her needs, but she also purchased trip protection for other aspects of her trip like her hotels, excursions, and a train ride at her destination.

Learn how to calculate trip costs for travel insurance »

Is Travel Insurance Worth It?

It’s best to expect the unexpected, and when we travel, that means expecting that some of your best-laid plans might not work out. Flight cancellations and delays, especially when you’re traveling during busy times of year like the holidays and summer vacation, can happen. When you’re worried about these disruptions and how they’ll impact your money, carefully consider how to best protect your trip and the money you spent on it.

Every traveler and every trip is unique. That’s why it’s best to look at the different options for travel insurance and choose the one that best fits your needs. We understand that sometimes that decision isn’t the most obvious, which is why Seven Corners’ sales team is made up entirely of licensed agents, ready to answer your questions and help you choose the right plan. Get a quick quote online or talk to our licensed experts today.

*Terms, conditions and limitations apply to all benefits mentioned above. Any Optional benefit, such as CFAR, comes at an additional cost. CFAR is not available to residents of NY. Please see your plan document for full details.

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Are plane tickets refundable? Your guide to the refund policies

If your travel plans aren’t set in stone, you know that buying an ultra-cheap fare could be a gamble. Getting a full refund for a ticket you didn’t use – seems like a great choice when you really need some flexibility. Of course, there are trade-offs between non-refundable and refundable airline tickets. So, how to get a positive answer to the big question: are plane tickets refundable?

In this article

The differences between refundable and non-refundable tickets, understanding refundable airline ticket policies, does travel insurance cover non-refundable flight changes, refundable tickets faqs.

When you buy a non-refundable ticket, if you don’t or can’t fly, the airlines aren’t obliged to give you your money back. Buying a refundable plane ticket lets you cancel your trip and have your money refunded.

What’s the catch? Price. A fully refundable ticket can cost a lot more than a non-refundable one . For instance, I searched a flight from LAX to NYC and found fully refundable fares on one flight that were twice the price of non-refundable ones. Some airlines may also charge a fee to issue your refund, while some may only give you a short window to request it.

Keep in mind that regardless of the type of ticket you buy, if an airline cancels your flight you are entitled to a refund. And in recent years, the major US carriers have done away with change or cancellation fees in many instances, so you can often change your flight and only pay the difference in fare.

Airlines have their own contracts of carriage, which govern how they treat refunds, cancellations, and other events. The US Department of Transportation (DOT) holds the airlines accountable to their own contracts. DOT does, however, maintain some regulations that protect travelers on all airlines.

For instance, the so-called “ 24-hour rule ” allows anyone, even if they hold a non-refundable ticket, to cancel a reservation and receive a full refund within 24 hours of the time they booked the flight, as long as the ticket was purchased at least seven days before the flight’s scheduled departure.

If you look across airline cancellation policies, you’ll see that many mention this 24-hour policy as a bonus or part of their customer commitment. It is, however, a federal requirement. The rule requires airlines to either refund travelers or allow them to hold the fare without paying for the ticket for 24 hours; they’re not required to offer both hold and refund options.

If you decide to cancel your flight and get refunded, you may pay a higher fare if you rebook later. The 24-hour rule only applies if you book your ticket directly with the airline. Beyond this, the general rule is that airlines will refund non-refundable tickets if the cancellation or significant change is their fault, but not if you decide not to fly – even if you get sick.

Common refund policies among major airlines

Although federal regulations require airlines to stick to the 24-hour rule, airlines have their own policies about the fees they charge for cancellations. Most airlines offer both refundable and non-refundable tickets. If you buy a non-refundable ticket, you can generally change your travel dates, and some airlines waive change fees. As always, it’s best to check with the carrier’s own policy to see what you’re entitled to.

Are plane tickets refundable on Delta?

Delta sells both refundable and non-refundable tickets on domestic and international flights. You can cancel a non-refundable ticket and Delta won’t charge you a cancellation fee if you have a Delta Main Cabin ticket (i.e above Basic Economy) for travel within the US, Puerto Rico, and US Virgin Islands, or originating in the US and traveling anywhere in the world.

Rather than refunding your money, it will issue you a credit to store for a future flight (just remember that you’ll still have to pay any fare differences on future flights). It does charge cancellation fees on non-refundable tickets in basic economy , or for tickets that originate outside the US, and those fees start at $99.

Always check the airlines’ policies to see if they’ll issue a credit for future travel. But check the terms: Sometimes you’ll have only a certain amount of time to use your credit.

Are plane tickets refundable on American Airlines?

If you bought a refundable ticket on American Airlines , they will process your refund back to your original card within 7 days . Like most other airlines, American does not refund non-refundable tickets, but it does allow you to cancel without a fee and store the value of your ticket as trip credit, which is good for one year from the date of issue.

American doesn’t charge change fees for domestic flights or travel originating in North or South America unless you bought Basic Economy, where no changes are permitted. However, for changes in a ticket originating outside North or South America, they may charge fees up to $750.

Are plane tickets refundable on Frontier?

Frontier Airlines’ policy differs from other carriers in that its tickets are non-refundable . Beyond the federally mandated refund within 24 hours of purchase, Frontier has a strict cancellation policy. If you cancel your ticket after the 24-hour window, you’ll be charged a $99 fee for each direction and the value of your ticket will be held as a credit.

You can add on refundability through Frontier’s bundled “Works” program, which gives you full refundability, a checked bag (which you would normally pay for), reserved seats, and no-fee flight changes. The bundled perks programs start at $99 per direction and vary per ticket. You can only buy them directly from the airline.

If you don’t have a fully refundable ticket, you can buy travel insurance that covers things like unexpected illness or family emergencies. Typically, standard travel insurance covers cancellations for a good reason, but not If you simply change your mind. If you’re the type to change on a dime, look for a cancel-for-any-reason (CFAR) add-on , which will let you cancel for reasons beyond what most policies cover.

You’ll pay more for these, so it’s a good idea to compare the cost to buying a fully refundable ticket (CFAR often makes the most sense if you’re insuring a trip that includes multiple features, like flight, hotel, cruise, and so on). 

You may also want to check your credit card. If it has trip cancellation and interruption coverage, you could be reimbursed for the non-refundable amount of your trip.

Most airlines offer both refundable and non-refundable plane tickets, and each airline is free to establish its own rules and fees for cancellations and refunds. It’s always best to check an airline’s own policies before booking, as travel agencies or websites may have their own refund rules.

If you’d like more information on booking different kinds of fares or are looking to find out the differences between premium economy vs. economy seats and business class vs. first class flights , don’t forget to check the ultimate flight guide .

Yes, federal law mandates that airlines must give you a refund or hold your purchase within 24 hours of buying your ticket if it’s not for travel within a seven-day period and you bought it directly from the airline.

Consistent with the 24-hour rule, if you see a fare go on sale, you can cancel your ticket and buy a new one at a lower price. Some airlines offer limited price guarantees. Or if your flight is eligible for a free change or cancellation, you can have the airline issue you a travel credit which you then use for a lower-priced ticket.

Only fully refundable tickets will be refunded to your credit card (and some airlines charge a fee for this). Non-refundable tickets can be changed, sometimes with a fee, and their value is usually stored as a credit.

Airlines are not obliged to refund you if you cancel a non-refundable ticket for personal reasons, including being late or getting sick. Learning how early you need to get to the airport can be a life changer.

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Refundable vs. Non-Refundable Airline Tickets: Which One to Choose?

If you’re like most people, when it comes to booking an airline ticket, you see the option of booking a refundable or non-refundable airline ticket and hesitate deciding which one to choose.

Refundable airline tickets tend to be much more expensive, so you no doubt go for the cheaper option.

But is purchasing a non-refundable ticket the right choice, or should you splurge and enjoy the security of a refundable ticket?

Table of Contents

• 1.1 1. You Have an Unpredictable Schedule
• 1.2 2. You Have a Business
• 1.3 3. You Want to Upgrade
• 3 Non-Refundable Tickets Are Sometimes Refundable
• 4 Buying a Refundable Ticket vs. Travel Insurance

Why You Should Buy Refundable Airline Tickets

1. you have an unpredictable schedule.

If you have an unpredictable schedule, such as needing to travel around a sick relative or a family member who is due to give birth but are unsure exactly when, it can be beneficial to be able to have that flexibility when you need to change your plans at the last minute.

2. You Have a Business

If you have a business, you know that meetings and priorities can change, sometimes at the drop of the hat.

So yourself or your employees may occasionally need to be able to make changes and cancellations at the last minute with as little hassle as possible.

3. You Want to Upgrade

Airlines prioritize certain consumers when it comes to upgrades, namely travelers who spend more with the airline.

If you purchased a refundable ticket, you are more likely to be able to obtain an upgrade.

Why You Shouldn’t Buy Refundable Airline Tickets

The main reason not to buy refundable airline tickets is due to their high price.

Refundable airline tickets can cost at least 4x the price of non-refundable tickets.

Considering that the vast majority of travelers fly as intended when they book a ticket, it simply isn’t worth it for most.

Non-Refundable Tickets Are Sometimes Refundable

In some instances, non-refundable airline tickets are refundable – in the sense that you will receive your money back and not just a travel voucher from the airline.

• If your flight is cancelled or “significantly” delayed, you are entitled to a cash refund.
• If you booked your ticket at least seven days before departure, you can cancel the ticket within 24 hours of booking and receive a full refund.

Buying a Refundable Ticket vs. Travel Insurance

In many instances, it is better to purchase travel insurance instead of refundable airline tickets, as these tickets can cost 4x as much as non-refundable tickets.

The caveat is that a standard travel insurance policy only covers some reasons for cancellations, and there are several insurance exclusions you should know about before buying a policy.

Instead, you can add a Cancel For Any Reason upgrade to your insurance, which is true to name, and allows you to cancel in the event you don’t want to or can’t fly for any reason.

Keep in mind that not every trip insurer offers Cancel For Any Reason insurance, though.

Additionally, CFAR insurance:

• Won’t reimburse you with 100% of the price of the ticket (50-75%)
• A flight needs to be canceled no later than two days before scheduled departure
• You have a limited number of days after purchasing a non-refundable ticket to add the CFAR option.

Ella Dunham

Ella Dunham, a Freelance Travel Journalist and Marketing Manager, boasts an impressive career spanning eight years in the travel and tourism sectors.

Honored as one of "30 Under 30" by TTG Media (the world’s very first weekly travel trade newspaper), a "Tour Operator Travel Guru" and "Legend Award" winner, Ella is also a Fellow of the Institute of Travel, a Member of the Association of Women Travel Executives, has completed over 250 travel modules, and hosts travel-focused segments on national radio shows where she provides insights on travel regulations and destinations.

Ella has visited over 40 countries (with 10 more planned this year).

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July 9, 2024

Should You Get Travel Insurance? What You Should Know About Protecting Your Trips

Are you headed abroad for the summer? Planning a road trip before school starts again? You've put a lot of thought and planning into your vacation. And, you've spent a lot of money on flights, hotels, and more. Unexpected circumstances like injury, illness, flight delays or natural disasters could cut a trip short, leaving you with unforeseen costs. But there are insurance options that can protect your finances. 

Should I get travel insurance? Before you buy a policy, ask yourself: 

• What are the chances you'll be impacted by severe weather or another event?
• How willing are you to take risks?
• How much are you willing to pay for a back-up plan?
• Do you have questionable health or is a loved one ill?

If you cannot afford to cancel and rebook your trip or your health insurance doesn't cover you abroad, you should consider travel insurance. You typically don't need travel insurance for short trips close to home.

How much does travel insurance cost?  Travel insurance usually costs between 4-8% of a trip's price, according to the U.S. Travel Insurance Association. Several factors fo into the cost like the policy holder's age, your destination, and the length of your trip. 

When should I buy travel insurance?  It is a good idea for policy holders to coverage when they book their trip.Travel insurance is intended to protect travelers against sudden and unforeseen events. Typically, if you buy travel insurance after a winter or tropical storm is named, your plan won't provide coverage for claims related to that event.

What are the different types of travel insurance?  There are several types of categories of travel insurance including:

• Trip cancellation.   Reimburses pre-paid travel expenses if you are prevented from taking your trip for a reason covered by your policy. It is typically included in every comprehensive policy. You will usually receive reimbursement if your trip is cancelled for: unexpected illness or injury of you or a traveling companion that deems you unfit to travel; hospitalization or death of non-traveling family member; weather or common carrier issues; unforeseen natural disaster at home or the destination; a legal obligation such as being called for jury duty or serving as a witness in court.
• Travel medical and major medical.  Provides protection if you become ill or injured while traveling. Travel medical insurance provides short-term medical coverage.
• Emergency medical evacuation.  Provides coverage for services such as air evacuation and medical transportation to the nearest adequate medical facility then home if warranted. This type of coverage is useful if you're traveling to a rural area without easy access to medical facilities.  In the event a person passes away during travel, repatriation coverage will cover for the insurer to handle the necessary transportation.
• Accidental death and dismemberment.  Provides coverage to beneficiaries if you die in an accident on the trip or pays a sum to you if you lose a hand, foot, limb or eyesight from an accident. Some plans only apply to an accident that occurs on an aircraft.
• Baggage loss.   Reimburses for loss of baggage or personal items. Check with your credit card company to find out if it coverages baggage loss. 
• Cancel For Any Reason (CFAR) policies .  These policies are more expensive and typically only reimburse you a percentage of your travel costs. The reason for cancellation is not relevant. There is usually a time frame for when cancellations are allowed, and you must insure all of your pre-paid and non-refundable expenses. CFAR policies are usually added as an extra option in addition to trip cancellation coverage.

Does travel insurance cover epidemics and pandemics? Travel insurance policies typically exclude epidemics and pandemics. According to Allianz Global Assistance, a travel insurance provider, "Trip cancellations and trip interruptions due to known, foreseeable, or expected events, epidemics, or fear of travel are generally not covered."

COVID-19 is a known event, meaning it is  not  likely that travel insurance policies will cover changes in plans or cancellations for that reason. Review your travel policy to find out which exclusions apply.

There may be coverage if a specific country imposes travel restrictions. Some airlines and tour companies will allow cancellations outside of an insurance policy. Additionally, travel policies with medical coverage may cover any illnesses or hospitalizations that occur during a trip, but you need to review your policy to see if your policy is one of them.

What do travel insurance policies cover?  Each type of insurance has its coverage limitations and exclusions. Be sure ask your agent or company about these before you buy a policy. 

• Travel cancellation:   Exclusions might include canceling your trip due to being detained by customs or having to cancel due to a work obligation. If your flight is delayed, you may or may not be covered. Some policies only cover trip cancellation claim if you lose more than 50% of your scheduled trip length due to a covered delay. You also must make a good faith effort to continue your travels using alternative means. A "Cancel for Any Reason" policy is an option for broader coverage but reimbursement is usually for less than the full cost of the trip.
• Travel medical and major medical insurance.  Find out if your policy requires you to obtain prior approval before seeking medical care. Also check if any pre-existing medical conditions will exclude you from coverage.
• Emergency medical evacuation/repatriation:  Coverage may not cover you if you're participating in an activity your insurer considers dangerous such as sky diving. There are specialty insurance products for some activities, such as SCUBA diving.

Will travel insurance cover my property if it is lost or stolen during a trip?  Most homeowners insurance policies cover personal property lost or stolen during a trip. Check with your insurer to see what they cover while you are traveling. If you have expensive items, you might want to add a  rider  to your current homeowners policy to cover them. 

About the National Association of Insurance Commissioners

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.

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Trip Delay, Trip Interruption and Trip Cancellation Insurance Explained

What does trip delay insurance cover?

The travel delay  benefit helps you get through short(ish), unexpected pauses in your travel plans. It can reimburse you for lost pre-paid expenses as well as eligible costs you incur because of the delay, including meals, accommodations, communication and transportation. Note that for such an event to be considered a delay, it must last for the minimum time stated in your plan. Also, the delay must have been caused by a covered reason as listed in your plan, such as a travel carrier delay or lost travel documents.

How does trip delay insurance work in real life? Let’s say your 6 p.m. flight to Orlando is grounded due to a storm, and the next available flight doesn’t leave until 9 a.m. the next morning. Here’s what trip delay insurance may cover:

• Your dinner and breakfast
• Your hotel room for the night
• Your cab ride to the hotel from the airport and back
• The cost of the hotel room you had booked for your first night in Orlando (if the hotel won’t refund your money)

There are limits, of course: travel delay benefits reimburse reasonable expenses up to the limit shown on your letter of confirmation, for example $200/day. Don’t expect your travel insurance to pay for a lavish sushi dinner and a stay at the Ritz-Carlton.

But wait: Why do you even need travel insurance for this scenario? Aren’t airlines supposed to pay for your hotel room and meals if your flight is delayed? Not necessarily.

Most U.S. airlines have agreed to provide travelers with a hotel voucher and/or meal voucher when they experience a controllable flight cancellation or delay of a certain length. A controllable delay/cancellation is one that was caused by a reason within the airline’s control, such as a crew shortage or a mechanical issue. If the delay/cancellation is caused by a reason out of the airline’s control, they’re not obligated to offer you anything other than a refund (if you choose not to fly) or a seat on a different flight. That’s why you need travel insurance!

What does trip interruption insurance cover?

A  trip interruption  occurs when a traveler must unexpectedly cut short their trip and return home. Additionally, interruption can cause you to stay at your destination longer than originally planned (not always a bad thing, right?) Trip interruption insurance can refund lost prepaid costs, minus any available refunds and up to the maximum benefit amount, and cover the cost of your extra accommodations and/or your trip home.

Trip interruption benefits only apply if the interruption is caused by a covered reason. Allianz Travel Insurance plans list many covered reasons for interrupting or canceling your trip. Some common covered reasons include the serious covered illness or injury of the traveler, traveling companion or a family member; a natural disaster that renders your home or your destination uninhabitable; and the cessation of services by your airline, cruise line or other carrier, causing you to miss more than half your trip.

Trip interruption insurance is essential for those travel emergencies you just can’t predict. Imagine you’re in the middle of a week-long  safari in the Serengeti  when you receive word that your mom has been hospitalized with pneumonia. You need to return home ASAP! With the help of the travel experts on our 24-hour assistance team, you can get on the first available flight out of Kilimanjaro and travel back to the U.S. Trip interruption insurance can help cover the cost of the flight and reimburse you for the unused portion of your safari.

One key condition to keep in mind with trip interruption is that, in order to take full advantage of the benefit, you need to inform all your travel suppliers (hotels, tour operators, etc.) within 72 hours of finding out your trip will be interrupted. So, in the heat of the moment, be sure to keep your cool and communicate your change of plans as needed.

What does trip cancellation insurance cover?

Trip cancellation  insurance covers situations when you must cancel your trip before you leave for a covered reason (generally, the same covered reasons that apply to trip interruption coverage.) Trip cancellation benefits can refund the prepaid, nonrefundable costs of your trip, such as airfare, cruise tickets, tour bookings and hotel reservations. Plus, if you prepaid for shared accommodations, and your travel companion needs to cancel their trip for a covered reason, you can be reimbursed additional accommodation fees, which is huge if you’re taking a cruise.

Similar to trip interruption, the 72-hour notification rule applies here as well. So be sure to let your airline, tour operator, cruise line and others know about the trip cancellation in a timely fashion.

What else should you know when your trip doesn't go as planned?

It’s possible for a trip delay to turn into a trip interruption if you’ve lost more than half the total length of your trip scheduled trip length due to a covered travel delay. Let’s say you’re about to about to leave for a five-day Caribbean cruise, but a blizzard grounds your Miami-bound plane for two days. By the time you get to Florida, your ship is long gone, and you can’t find a flight to its next port of call. You may be able to make a trip interruption claim.

Just remember that when your trip is delayed or interrupted, you need to do everything you can to continue your scheduled plans. Try to catch up with your cruise ship or tour group (our hotline staff can help). Document your efforts. Keep your receipts. And as we’ve mentioned, notify all your travel providers and your insurer as soon as possible once you cancel your trip. Here are some  tips on how to use your trip delay benefit —and how you know it’s time to cancel the trip.

Always read your plan documents carefully so you understand your coverage, and call Allianz Global Assistance if you have any questions. Travelers covered by our insurance plans can access 24-hour assistance anytime via the Allyz ® TravelSmart app or by calling 1-800-654-1908 (from the U.S.) or 1-804-281-5700 (collect). Wishing you safe—and uninterrupted—travels!

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• Tips For Dealing With a Trip Cancellation
• Travel Insurance for Cancelled Flights
• 5 Reasons Your Trip Cancellation Insurance Won't Cover You

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When plans go wrong: Your guide to booking refundable travel

In recent weeks, the travel industry has been rocked by disruptions that sound like they belong in action movies starring The Rock. With cruise ships quarantined for weeks on end, and entire countries shut out from interaction with the rest of the world, travelers around the world are asking us, "What are my options? Where can I go? Can I even travel at all?"

Related: Everything you need to know about traveling during the global coronavirus outbreak

We've published plenty of guides about safety , travel insurance and destinations that are still safe to visit . This one, however, tells you everything you'll want to know about planning a trip you might need to cancel on short notice — without forfeiting your entire vacation budget.

Travel insurance

Credit card trip protection does not apply to epidemics.

Unfortunately, the coronavirus is one of those major events that is not covered under most insurance policies, regardless of whether you have insurance through your credit card benefits, or if you purchased an independent insurance plan from a third-party underwriter.

Travel insurance providers have now declared COVID-19 to be a " foreseen event " — and once that happens, travelers can no longer purchase trip cancellation insurance benefits.

Purchase "cancel for any reason" travel insurance

That being said, it isn't all gloom and doom: You can still get your money back in the event of a travel disruption by purchasing a really good travel insurance plan. It's just going to cost you.

Related: When to purchase travel insurance vs. relying on credit card trip protection benefits

"Cancel for any reason" coverage means exactly that: Cancel because the coronavirus beat you to your vacation spot. Cancel because your significant other dumped you in the airport. Cancel because you feel like it. Whatever the reason, this level of coverage allows you the peace of mind of knowing that you can get your money back when plans go awry.

There are a few key points to note about this level of coverage:

• "Cancel for any reason" plans usually must be purchased within 14-21 days from when you made your initial trip payment. You can't purchase it last-minute.
• You can expect the plan to cost at least 10-12% of your total trip expenses.
• You may have to insure 100% of your trip costs in addition to canceling your trip at least 48 hours before departure time to receive a refund of up to 75% of the trip cost.

For additional guidance, check out our guide to independent travel insurance plans .

Cancel within 24 hours of booking

Frequent travelers know that you can cancel flights operating within or to the U.S. within 24 hours of booking , as long as you purchase seven days or more before the date of your departure. However, this rule is worth mentioning again, especially in the context of recent travel news.

The US Department of Transportation is the governing entity behind this policy, which means that foreign carriers are also required to adhere to this rule when you purchase a fare that arrives into the U.S.

But note that the no-penalty cancellation within the first 24 hours of booking only applies to flights booked more than seven days in advance, as this reader mistake story illustrates in excruciating detail. If you purchase your flight within that seven-day window, there are no refunds.

Book full-price flights

Look, we get it: Nobody wants to pay full price, especially if discount options are available. But sometimes, that full-price flight is exactly what you need for times when things go wrong, because those are the only tickets that are fully refundable without cancellation or change fees.

Related: The best ways to avoid flight change and cancellation fees

Book award flights for greater flexibility

Here at The Points Guy, we often tout the value of points and miles for getting outsized value on your travel. Whether it's for first-class travel for an out-of-pocket cash cost of a few dollars toward taxes and fees, or last-minute flights to see a family member in an emergency, points and miles are your biggest money saver in the travel game.

Related: Here's what your points and miles are worth this month

This principle holds true when it comes to cancelling award bookings as well: Most airlines and hotels offer more lenient rules when it comes to award reservations because they're refunding you in the company's loyalty currency. If you cancel in advance, you can usually request to redeposit your miles for a fee, depending on whether or not you hold elite status with the airline. United's top-tier elite 1K members , for instance, are eligible for full refunds on award mile redeposits up to the time of travel.

Just be sure to cancel before your flight is scheduled to depart: In some cases, those miles are forfeit the moment that flight takes off without you. In others, you'll have to pay a higher fee to have those miles reinstated to you; United, for instance, charges $125 to get your miles back after no-showing on a flight, even for top-tier elite members.

Book with Southwest

Ahh, Southwest: America's favorite family-friendly airline continues to set itself apart from the competition. Beyond the free checked bags and open seating, Southwest offers one of the best policies of all time: Cancel or change your flight at any time, and simply pay the difference. There are no penalty fees at any point, even if the fare goes up or down.

Related: You'll never pay change or cancellation fees on Southwest

When it comes to Southwest cancellations , here's what you need to know:

• For award travel, you get your Rapid Rewards points back immediately after you cancel. You will be refunded the points even if you no-show a flight (although it's good form to cancel as courtesy to the airline, and for other passengers who may be waiting standby).
• For flights paid in cash, you can get a full refund within 24 hours, as with most U.S. airlines; after that, you get the value of your ticket in the form of Southwest credit , which is valid for one year from the date of original booking. You must cancel more than 10 minutes before your scheduled departure time.

Book through an airline offering waivers for travel impacted by coronavirus

A number of airlines have begun offering waivers for travel booked over the next couple of months. If you're planning a trip but have been feeling hesitant over coronavirus concerns, consider booking with one of these airlines.

Here's what you need to know for U.S. airlines flying to Europe ; and here's what you need to know for domestic travel .

Related: These airlines and hotels are offering full refunds for bookings in coronavirus-impacted regions

Note that these waivers apply to travel that hasn't been booked yet; if you have a trip already on the books, consult our guide to independent travel insurance to learn more about your options .

Purchase Freebird flight protection for domestic flights

Freebird essentially works as a "$19 insurance" option for domestic flights: If your flight is canceled or delayed past a certain number of hours, Freebird will book you on the next flight of your choice that's headed to your destination — even if it's on another airline.

Book low-budget flights you don't mind abandoning if necessary

Most frequent fliers don't celebrate low-cost carriers for either comfort or convenience. Instead, budget airlines usually win on one front alone — cost. The reason is simple: If you just need to get from Point A to Point B, a good fare on a low-cost carrier can cost less than a tank of gas. Similarly, if you're planning a trip but don't want to drop cash on a travel insurance plan, purchasing a budget fare may make more sense than paying for a full-fare ticket you may have to abandon.

Book directly through hotels with liberal cancellation policies

Each chain, brand and property has its own rules and guidelines , and sometimes different room rates will even incur varying cancellation times and dates — some lower-cost fares, for instance, often include a nonrefundable clause. Others like to get tricky; sometimes an individual property will request greater advance-notice windows despite its parent company policies. Make sure you read the fine print carefully, and ideally more than once, before hitting "confirm", for peace of mind.

And if unique circumstances are working against you so that last-minute cancellation is inevitable, keep in mind a cardinal rule of travel: It never hurts to ask for what you want (in this case, a refund) — nicely, courteously and with no sense of entitlement for what you hope to accomplish.

Skip third-party agencies

I'm primarily a Hotels.com girl, simply because most of my personal stays are haphazard enough that I don't have the opportunity to build up much elite status. Hotels.com makes it really easy for me to earn points on each of those random nights here and there, and aggregate all of that hard-earned effort into one free night per 10 nights of paid stays.

But when it comes to online travel agencies (OTAs) like Hotels.com, Expedia or Priceline which purchase travel in bulk, these companies have little to no negotiating power with the hotels that actually offer room inventory. Moreover, OTAs aren't as incentivized to help you because if you cancel, they lose out as well, unlike hotels under a chain which at least will want to earn your long-term business. Moreover, most of the best rates through Hotels.com or Expedia will include a nonrefundable clause because you're trading your flexibility for the guarantee that they'll earn your money.

It's important to note that credit card travel portals like Chase Ultimate Rewards , American Express Membership Rewards and Citi Thank You all count as third-party agencies in the eyes of the hotel. Basically, if you didn't purchase your room in person or through a hotel representative or website, you aren't that hotel's direct customer.

So if you need to be able to get out of your travel plans quickly, book directly through the hotel. As mentioned above, you'll have a much better chance of asking for what you want — and getting it.

Use hotel points to book award redemptions with more flexibility

As a general rule, you can get your miles redeposited to your account when you cancel hotel award bookings, as long as you do so enough in advance of your stay. Better yet, most hotels also don't charge redeposit fees on award bookings, unlike airlines.

Like the section above says, most properties require a 48-hour advance notice , but you'll also want to read the fine print carefully here as well.

Try booking an Airbnb instead of a hotel

Hotels across the board tend to be more strict about refunds and no-shows. But individual Airbnb hosts have control over their own cancellation policies.

Related: The best credit cards for booking Airbnbs

You are neither guaranteed nor entitled to a refund in the event that you need to cancel, particularly when it's last-minute. But it never hurts to ask very nicely, and it always helps to offer some kind of explanation, especially if the reason you can't make it is out of your control. For instance, if your flight is canceled and you have no way of getting to your destination, it makes logical sense that you won't be able to make it to your Airbnb.

Tip: Each Airbnb property includes that host's cancellation policy at the very bottom of the listing page.

You can read more about Airbnb's cancellation policies here .

Rental cars

Book car rentals with free cancellation.

When it comes to booking rental cars , a lot of companies out there want your business. But the industry as a whole can include a lot of hidden fees throughout the booking process, and it isn't always clear what is and isn't mandatory.

Related: Here's how AutoSlash stands out amongst rental car booking sites

Fortunately, you can price-shop and you can generally cancel rental car reservations without penalty, since you don't pay at the time of booking; you pay at pickup. (Of course, this is a great time to read the fine print on your particular booking, just in case.) However, it's still courteous to call and notify the rental car company if you know you won't be picking up the car you reserved. This frees up your designated vehicle for another customer who may need it to get home.

Related: How to score the perfect car rental

Check their cancellation policies or ask for credit toward future trips

As coronavirus fears sweep around the world, cruise companies are offering waivers, no-fee cancellations, deeply discounted sales and credit toward future trips for potential passengers looking to cancel their trips.

Windstar Cruises published a generous new booking policy in late February, allowing travelers cancel their cruises up to 15 days in advance of a trip without paying the [normally steep] cancellation penalties. "The new Travel Assurance Booking Policy is an extra effort to ensure travelers feel comfortable booking a well-deserved cruise vacation now without fearing loss should they need to cancel."

Bottom line

At the end of the day, having to cancel a trip you were excited to take is a huge stinking bummer, regardless of the reason. But following these tips will help ensure that the ache is only felt in your heart — not in your wallet.

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Sometimes travel plans don’t go as expected. For this reason, many travelers purchase a travel insurance policy before a trip begins. Travel insurance can help you avoid losing money by reimbursing you for pre-paid travel costs for covered incidents when your travel plans get disrupted, and you qualify for a covered reason.

While travel insurance can be beneficial, you may wonder, can you cancel travel insurance and get a refund if you change your mind? In some situations, you may be able to cancel your travel insurance policy and get an insurance premium refund. We’ve outlined the essential details below so you know what to expect if you need a refund.

» Learn more: What to know before buying travel insurance

Can you get a travel insurance refund?

Yes, getting a travel insurance refund is possible, depending on when you cancel the policy. To qualify for a premium refund, most insurance companies require the policy to be canceled during the review period outlined in the policy terms.

Otherwise, you won’t be eligible for a refund on your travel insurance. That’s why paying attention to this timeline is essential when buying coverage.

Some insurers call this timeframe a money-back guarantee period, while others call it a review or free look period. The timing varies by policy and insurer, but it’s often between 10 to 15 days.

This period gives travelers time to review the policy documents to ensure it meets their coverage needs. If your travel insurance policy has a money-back guarantee or review period, you can cancel for any reason and receive a full refund within the timeframe if you haven’t filed a claim or departed for your trip yet.

But you won’t get a premium refund if you cancel your policy after the review period. Reviewing the policy terms before purchasing a travel insurance policy is recommended so you know what to expect before buying coverage. You can find details regarding this review timeline in the policy paperwork.

To qualify for a refund when canceling your policy during the review period outlined in your travel insurance policy, you must not have filed a claim or started your trip yet.

» Learn more: What is travel insurance?

Do you qualify for a refund if your trip is delayed or canceled?

You may wonder, is travel insurance refundable if the trip is canceled? Many comprehensive travel insurance policies include trip delay, trip interruption and trip cancellation coverage.

You must meet the conditions of the coverage outlined in your policy and have a covered reason to qualify for reimbursement for prepaid, nonrefundable trip costs or additional trip expenses that occur due to covered delays, interruptions, and cancellations. But you won’t be eligible for a refund of travel insurance policy premiums.

» Learn more: Trip cancellation insurance explained

CFAR travel insurance add-on offers greater flexibility

If you want a more flexible solution, you may want to add Cancel For Any Reason travel insurance (CFAR) coverage to your travel insurance policy.

Some travelers prefer the added protection that CFAR coverage offers. This supplemental coverage costs extra but provides more flexibility for cancellations. However, not every insurance company offers it. You should also be aware that many insurance providers require this coverage to be purchased within a set number of days of making your initial trip payment.

CFAR coverage can provide a partial refund for eligible nonrefundable prepaid travel expenses. You can cancel for any reason, as the name suggests, but you must cancel within the timeframe listed in your policy.

Canceling the day of, for example, is usually not allowed. Many insurers require travelers to cancel at least two days before their trip to qualify for a partial refund.

» Learn more: The guide to Cancel for Any Reason travel insurance

Reasons why a traveler might cancel their travel insurance policy

Some travelers cancel their travel insurance policy because it doesn’t meet their needs. During the review period mentioned above, travelers should review the terms and conditions to ensure the chosen policy meets their expectations and is a good fit for their trip.

But that’s not the only reason a traveler might consider canceling their policy. Some travelers may wish to cancel their insurance policy if they’ve decided they no longer want to take a trip due to work schedule changes, sickness or other personal reasons.

To cancel and be eligible for reasons like sickness or job schedule changes, travelers need CFAR coverage in their travel insurance policy to receive a partial refund for eligible prepaid trip costs.

» Learn more: How to find the best travel insurance

How to cancel a travel insurance policy

Contact your insurance company directly to cancel your travel insurance policy. Some insurance providers allow you to cancel your coverage online or by phone. But some insurers require policyholders to cancel their insurance policy in writing. Your best bet is to check with your insurer to learn more about the cancellation process.

Final thoughts regarding a travel insurance refund

If you plan to purchase a travel insurance policy for your next trip, review all policy terms so you can decide early on if it’s the right coverage for you. You will also want to know the outlined timeline to cancel if necessary.

If you want to boost your coverage and be eligible for a partial refund if you get sick or change your plans before departing for your trip, you may want to consider adding CFAR coverage to your policy. Doing this can give you greater peace of mind and more flexibility.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024 :

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Travel℠.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

50,000 Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

What is the difference between trip insurance and a refundable ticket?

1. what is trip insurance, 2. what is a refundable ticket, 3. is trip insurance the same as flight insurance, 4. can i get a refundable ticket if i already have trip insurance, 5. what factors should i consider when choosing between trip insurance and a refundable ticket, 1. does trip insurance cover cancellation due to covid-19, 2. can i purchase trip insurance after booking my trip, 3. will trip insurance cover trip cancellation if i change my mind, 4. are refundable tickets always more expensive than non-refundable tickets, 5. can i get a refund for a non-refundable ticket with trip insurance, 6. can i get a refundable ticket for any type of trip, 7. can i get a refundable ticket for a one-way journey, 8. how long does it take to receive a refund for a refundable ticket, 9. can i change my travel dates with a refundable ticket, 10. do i need to provide a reason when canceling a refundable ticket, 11. is trip insurance necessary for domestic travel, 12. does trip insurance cover lost baggage, what is the difference between trip insurance and a refundable ticket.

Trip insurance and refundable tickets are two different options that travelers can consider when it comes to protecting their travel plans and investment. While both serve the purpose of providing some level of financial security, they offer different benefits and coverage. Understanding the difference between trip insurance and a refundable ticket can help travelers make an informed decision that aligns with their specific needs and preferences.

Trip insurance, also known as travel insurance, is a type of coverage that protects travelers against unexpected events or circumstances that may disrupt or cancel their trip. It typically involves a one-time premium payment and provides financial reimbursement for expenses incurred due to trip cancellation, trip interruption, travel delays, lost baggage, medical emergencies, and other covered incidents.

With trip insurance, travelers can receive compensation for non-refundable expenses such as flights, accommodation, tours, and other prepaid arrangements, in case their trip is cancelled or cut short due to unforeseen events, such as illness, injury, natural disasters, or even the bankruptcy of a travel service provider.

A refundable ticket, on the other hand, refers to an airline ticket that allows travelers to cancel or change their reservation without incurring additional fees or penalties. Unlike non-refundable tickets, which usually come at a lower price but have strict cancellation policies, refundable tickets offer greater flexibility and the option to get a full or partial refund if travel plans change or are cancelled.

Refundable tickets are often more expensive than non-refundable tickets, as they offer the convenience of being able to modify or cancel the reservation without financial consequences. They are particularly suitable for travelers who have uncertain or changing itineraries, or for those who cannot foresee potential disruptions and want the peace of mind that comes with the ability to make changes or receive a refund if necessary.

Trip insurance and flight insurance are terms that are sometimes used interchangeably, but they can have different meanings depending on the context. In general, trip insurance is a broader type of coverage that includes protection for various aspects of a trip, including flights, accommodations, and other prepaid expenses.

Flight insurance, however, specifically refers to insurance coverage that focuses solely on the flight portion of the trip. It typically provides financial compensation for flight-related mishaps such as trip cancellations, delays, missed connections, or lost baggage. While trip insurance often includes flight coverage, flight insurance is a more specific subset of travel insurance.

Yes, it is possible to have both trip insurance and a refundable ticket. In fact, some travelers opt for this dual protection to ensure maximum flexibility and coverage. Having trip insurance offers comprehensive protection for various aspects of the trip, while a refundable ticket protects against potential changes or cancellations specifically related to the flight reservation.

By combining both trip insurance and a refundable ticket, travelers can have greater peace of mind knowing that they have financial safeguards in place for any unexpected circumstances that could arise before or during their trip. This offers them the option to receive reimbursement for non-refundable expenses and the freedom to modify or cancel their flight reservation without incurring additional fees.

When deciding between trip insurance and a refundable ticket, several factors should be taken into account:

1. Trip Cancellation Policy: Assess the likelihood of cancelling or changing your travel plans and consider the associated fees or penalties of a non-refundable ticket. 2. Trip Length and Destination: Longer trips or trips to remote or volatile destinations may have a higher risk of disruptions or unforeseen events. 3. Traveler’s Health and Age: Pre-existing medical conditions or age-related health concerns may increase the need for medical coverage during the trip. 4. Cost and Budget: Evaluate the cost of trip insurance premiums and the price difference between refundable and non-refundable tickets, keeping your budget in mind. 5. Flexibility and Peace of Mind: Consider the importance of flexibility and the peace of mind that comes with being able to modify or cancel your travel plans without financial consequences.

Taking these factors into consideration, you can determine which option best suits your needs and preferences, ensuring that your travel plans are protected and your investment is secure.

Frequently Asked Questions (FAQs)

Yes, some trip insurance policies provide coverage for trip cancellations due to COVID-19-related reasons, such as illness, travel restrictions, or quarantine requirements.

In most cases, trip insurance needs to be purchased within a specified timeframe after booking your trip, usually within a week or two. However, it is advisable to check with the insurance provider for specific details and requirements.

No, trip insurance generally does not cover trip cancellation due to a change of mind or personal reasons unrelated to the specified covered reasons stated in the policy.

Yes, refundable tickets tend to be more expensive than non-refundable tickets, as they offer the flexibility to cancel or modify the reservation without incurring additional fees or penalties.

Trip insurance may provide reimbursement for non-refundable expenses if the cancellation or interruption of the trip is due to a covered reason specified in the policy, such as illness, injury, or other unforeseen circumstances.

Refundable tickets are typically available for most types of trips, including domestic and international flights, but they may have certain restrictions depending on the airline’s policies and fare classifications.

Yes, refundable tickets are available for one-way journeys, although they might not always be offered by all airlines or at the same fare level as round-trip refundable tickets.

The time it takes to receive a refund for a refundable ticket varies depending on the airline and payment method. It can take anywhere from a few days to several weeks for the refunded amount to be processed and credited back to the original form of payment.

Yes, refundable tickets usually allow travelers to change their travel dates without incurring any additional fees or penalties.

Generally, no reason needs to be provided when canceling a refundable ticket. However, it is advisable to check with the specific airline’s policies, as some might require a reason for cancellation.

While trip insurance is not mandatory for domestic travel, it can still provide valuable coverage for unexpected events, delays, or medical emergencies that may occur during your trip.

Yes, trip insurance often includes coverage for lost or delayed baggage, providing reimbursement for essential items and helping with the process of locating and recovering lost luggage.

Please note that the FAQs provided above are for informational purposes only and may vary depending on the specific insurance policies, airlines, and travel providers. It is always recommended to read and understand the terms and conditions of any insurance policy or ticket purchase before making a decision.

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Do I need travel insurance for my summer vacation? It's complicated.

• Travel insurance can be complicated, but it's worth it if you have travel expenses that insurance would cover.
• You might not need travel insurance if you're taking a driving vacation and staying in a place where lodging is free.
• If you're leaving the country, you'll likely need travel insurance.

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If you're planning to travel somewhere this summer, you're probably thinking of buying travel insurance.

Kingsley Hopkins is. He's headed to Portugal and Iceland with his girlfriend, and he wants to make sure he's covered for things like medical emergencies or trip disruptions, "or if a volcano erupts," he said.

Check out   Elliott Confidential , the newsletter the travel industry doesn't want you to read. Each issue is filled with breaking news, deep insights, and exclusive strategies for becoming a better traveler. But don't tell anyone!

But getting the right travel insurance can be complicated. There's no one-size-fits-all policy, and Hopkins, an assistant editor at a book publishing company in New York, has been spending a lot of time thinking about how to protect his summer vacation.

Learn more: Best travel insurance

Chances are, so have you.

Why finding the right travel insurance is so hard

Most surveys suggest this will be a record summer for travel. How much of a record? Demand is so high that some airlines are afraid they will run out of planes. Now that's busy.

At the same time, danger and uncertainty are lurking everywhere – wars in Europe and the Middle East, the usual slate of natural disasters like hurricanes and maybe a volcano or two. It's no wonder people are giving some serious thought to insurance. 

Older travelers are particularly worried. And they should be, said PK Rao, CEO of INF Visitor Care . Claims by travelers over age 50 spike during the summer months.

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Try this pro trick for an affordable and stress-free summer vacation

"According to our claim data, medical emergencies tend to uptick during the summer, especially for those going on trips that involve outdoor activities," he said.

But there are so many choices out there, including credit card coverage, medical evacuation membership programs and stand-alone travel insurance. What should you get?

You need peace of mind 

But don't just reflexively start shopping for a travel insurance policy this summer. Instead, look for peace of mind – knowing that if something goes wrong, you'll be taken care of.

"Knowing you're protected from unforeseen travel mishaps – like delays, lost baggage and even medical emergencies – can make the trip that much more enjoyable,” said Daniel Durazo, a spokesman for Allianz Partners USA .

As it turns out, there are several ways to get the peace of mind you need. And there are times when you can safely skip travel insurance.

This is when you don't need insurance

Here's when you can skip travel insurance, according to experts:

◾ If you already have coverage. "You may already have travel coverage through your benefits at work, your credit card, or through group benefits with an organization," said Jiten Puri, CEO of PolicyAdvisor.com. If you do, there's no need to buy more coverage. You're all set.

◾ If you're not traveling far. If you're taking a driving vacation and staying in a place where lodging is free, like a relative's sofa, then there's not much to insure. "If you already have health insurance, it may cover you for a domestic trip, so you don't need to think about health insurance coverage," said Joe Cronin, CEO of International Citizens Insurance .

◾ If your trip isn't insurable. Traditional travel insurance covers conventional trips with prepaid, nonrefundable components like airline tickets and hotel stays. You might find that you either already have coverage through your medical insurance, or the trip is essentially uninsurable.

So think twice before saying "yes" to optional travel insurance that your online travel agency may offer you when you're booking a trip. You might not need it.

Here's when you need travel insurance

But most travelers should consider some kind of travel insurance coverage this summer. Here's when you need the extra coverage:

◾ If you have travel expenses that insurance would cover. "If you have many prepaid, nonrefundable expenses, it's best to take out travel insurance," said Lauren Gumport, a spokeswoman for Faye Travel Insurance ."This includes things like flights, hotel rooms, tickets and activities." The more conventional your vacation, the likelier travel insurance is to cover almost every aspect of your summer vacation.

◾ If you're leaving the country. "Your regular medical insurance might not extend coverage beyond your home borders," said John Rose, chief risk and security officer at ALTOUR . Also, many countries require travel insurance for entrance. They include Bermuda, Qatar, Sri Lanka, and some European countries.

◾ If you can't afford to lose your trip. "When considering travel insurance for your summer trip, evaluate whether you can afford to lose your vacation investment due to unforeseen circumstances like illness, weather disruptions, or emergencies," explained Robert Gallagher, president of the US Travel Insurance Association (USTIA). "Can you afford the financial risk if you miss your cruise departure because of covered flight delays? What if you have to cut your trip short because of illness?"  

One of the most common mistakes travelers make is assuming their credit card will cover them. For example, I found that my credit card only covered my rental car as secondary insurance, which made it completely useless when I rented a car in Tampa recently. I had to buy a standalone policy from Allianz to cover the vehicle.

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How one traveler insured his summer vacation

So, how did Hopkins handle his travel insurance needs? Well, as I mentioned – it's complicated.

Hopkins said he always buys some travel insurance before he takes a trip, "but how much, and what I cover, varies," he explained.

He decided that his path to peace of mind in this case was to spend a few extra dollars: He made fully refundable flight and hotel reservations, just in case something went wrong. That would eliminate a lengthy claim with his travel insurance company or credit card.

But he still needed at least $50,000 in medical coverage with emergency evacuation because of his active schedule.

"We’re going to be doing a lot of hiking in Iceland," he said. "And you just never know." 

At the beginning of the year, he decided to buy an annual Medjet Horizon plan, a membership that would get him from a hospital in Portugal or Iceland to a hospital at home, in case something happened. 

For insurance, Hopkins checked TravelInsurance.com to find an affordable travel insurance policy. He found coverage through Trawick International that pays up to $50,000 in medical expenses and up to $200,000 for an evacuation.

"I’ve heard good things about them," he said. "Hopefully, we won’t need any of it."

How do I insure my trips?

I'm on the road about 360 days a year, so I'm always thinking about peace of mind. I currently use a Wells Fargo credit card with lots of travel benefits, and I have long-term policies through Faye and Cigna, which have worked fairly well. I also am a long-time Medjet Horizon member. If I rent a car, I turn to Allianz for my primary coverage.

I know – that's a lot of peace of mind. 

But I've also run into trouble and had to use many of those benefits. Medjet got me back home during the pandemic. Cigna covered me after a serious ski accident in Switzerland. My old Allianz policy took care of my medical expenses when I had to see a doctor in Santa Fe, New Mexico, a few years ago.

Like I always say, when it comes to having enough insurance, better safe than sorry.

Christopher Elliott  is an author, consumer advocate, and journalist. He founded  Elliott Advocacy , a nonprofit organization that helps solve consumer problems. He publishes  Elliott Confidential , a travel newsletter, and the  Elliott Report , a news site about customer service. If you need help with a consumer problem, you can  reach him here  or email him at  [email protected] .

The Key Points at the top of this article were created with the assistance of Artificial Intelligence (AI) and reviewed by a journalist before publication. No other parts of the article were generated using AI. Learn more .

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Trip Protection and Travel Insurance: Are They the Same Thing?

Used interchangeably, the two phrases are technically dissimilar. So, the industry is still educating travel agents about the differences. Photo: Shutterstock

If you asked the average travel agent and traveler to describe the difference between travel protection and travel insurance, you probably would get as many different answers as the different individuals you spoke to.

Posing the question to Google, you won’t find easy answers. Travel Insurance Review, one of the highest results on Google’s Search Engine Result Page (SERP) for the question, directs the user to a page discussing the difference between travel insurance and travel assistance.

A page from the Generali Global Assistance website says, “Travel protection plans provide assistance services in addition to insurance coverages.” (Generali offers services like emergency assistance services, on-demand medical care, and identity theft resolution.)

But depending on who is offering the coverage and how they are applying it, definitions abound. “People are confused about travel insurance,” said Geoff Millar, co-owner of Ultimate Travel, in Gilbert, Arizona. “There are so many types out there, and each one can be a little different in what they do or don’t cover.”

“I think many agents are confused about insurance, let alone clients,” said Helen Prochilo, owner, Promal Vacations.

A recent article by consumer advocate Christopher Elliott points out the level of confusion.

“Travel insurance is an actual insurance product underwritten by large insurance companies and regulated by state insurance agencies,” Elliott writes, while trip protection plans have traditionally been much riskier propositions for consumers, and could be full of exclusions.

A trip protection plan – which could be offered by an online travel agency, a tour operator, or other travel company – might only cover a portion of a trip and not reimburse a traveler for a cancellation, instead issuing a credit for future travel.

Bud Geissler, Travel Insured’s national group sales account manager, has been in travel for more than 20 years, including 18 years working with student group tours – and he can attest to Elliott’s main points.

“The massive disruption on 9/11 started the travel and tour industry down a path of product innovation,” Geissler told Travel Market Report. Since that day, he has witnessed both tour operators and insurance companies realizing there were gaps in coverage that an event like grounding all airlines didn’t cover. Over time, the industry began to layer in more “travel protection” that wasn’t related directly to reimbursing someone for a canceled tour or airline tickets they couldn’t use.

“While we might provide a refund to a traveler because flights were grounded, what about elements of a trip that weren’t part of a tour package, like admissions to museums, or tickets for a musical or play?” Geissler recalled. As insurance and “protection plans” evolved, the differences weren’t always made clear to agents and consumers, Geissler said.

In his recent article, Elliott noted how, in many cases, “protection plans were backed by tour operators instead of highly rated insurance underwriters. So, if a tour operator ran into financial difficulties, it might mean your trip ‘protection’ was worthless.” Consumers are still digging themselves out of personal experiences that may have incorrectly influenced their understanding of the terms.

Another contributing factor, Millar believes, is that because travel insurance is well-regulated, many travel insurance companies want to dissuade travel advisors from getting too deep into the details of insurance plans.

“There have been many issues between agents and clients concerning travel insurance – what it covers or does not cover. Some of those issues have led to lawsuits,” Millar said.

There are distinctions So, what are the differences? For traditional insurance companies “the simplest answer is that travel protection is inclusive of insurance,” said Joe Mason, chief marketing officer, Allianz Partners.

“Let’s start with travel insurance. If you’re coming over to visit me in Paris, and something comes up and you can’t make the trip, you’re glad you have travel insurance, because you would be reimbursed if your cancellation is due to a covered reason,” Mason said.

“Now, once the plane leaves the runway, the broader elements of travel protection come into play,” Mason said, continuing to use his Paris example to describe the differences.

“You get to Paris, but you get sick a few days in, and you need to go to a hospital. Or work says they need you back, and you have to return home earlier than your original return date. Or there is an unsafe situation, and you need assistance on the ground. All of these would fall under travel protection.”

Mason believes consumers are increasingly viewing broader “travel insurance” services as part of their overall “travel protection coverage” because of products like Allianz’s TravelSmart app.

“TravelSmart has helped us reveal the benefits because they are more readily accessible, have more functionality and utility, right there in the traveler’s hand,” Mason said. “More consumers are understanding the value proposition goes broader.”

Allianz works through the media, influencers, and travel agents to better educate consumers about travel insurance in general, said Dan Durazo, Allianz director, marketing and communications, USA. “It’s not a fast process,” he said.

“Do we think that we have completely educated travel agents and consumers? I don’t think so,” Mason added. “I think there is a lot more room for us to expand the conversation.”

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4 Reasons That Buying Travel Insurance Will Save You in the Long Run

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While traveling is a great opportunity for relaxation and exploration, it’s no secret that travel comes with many potential risks. From losing luggage to delayed flights to unexpected illness, a variety of things can quickly turn south while traveling. Because of this, many travel and insurance experts recommend travel insurance.

If you can’t afford to lose any money that was invested in an extensive vacation, travel insurance may be a beneficial resource. Here are the reasons experts say consumers may need travel insurance .

If You’re Traveling Overseas

Most domestic health insurance plans don’t cover you if you travel internationally. Therefore, if you get sick or injured, you will have to pay any medical expenses out of pocket.

“For serious conditions like broken bones or a heart attack, paying for hospitalization yourself might not be financially possible,” said Jeremy Murchland, president of Seven Corners Inc. , a travel insurance provider. 

Additionally, even if the country you’re traveling to has universal healthcare, this does not automatically mean you are eligible for free medical care.

“Those services are intended for citizens of that country, not tourists and visitors,” Murchland said. “Even though medical treatment may be less expensive than in the U.S., it’s best not to depend on the universal healthcare system as free treatment is not guaranteed.”

Furthermore, some countries require you to have travel insurance.

“For example, Cuba, Turkey, Thailand and the UAE all require travel insurance for certain visa types, but even if it isn’t required, having at least a basic travel insurance plan is always a smart idea, especially if you’re traveling with children,” said Erika Kullberg, attorney, personal finance expert and creator of Erika.com .

If You Have Preexisting Health Conditions

Some travel insurance plans offer protection for preexisting health conditions as well as medical costs from sickness or injuries.

“While this is often a concern for older travelers, preexisting conditions coverage might be important to travelers of any age, particularly if they suffer from chronic pain and illness,” Murchland said.

Trip Protection Benefits

Many factors, such as lost luggage and flight delays, can heavily impact both your travel plans and your finances. However, travel insurance often comes with trip protection benefits that can reimburse travelers for these exact situations.

“Losing baggage during transit is a nightmare, but a good travel insurance policy can provide compensation for lost, stolen or even delayed baggage items,” Kullberg said. “You can also be covered for any costs incurred due to travel delays, such as food and accommodation expenses.”

Flexibility With Changing Plans

One never knows when unexpected events may require you to change or reschedule your travel plans. Travel insurance offers flexibility when it comes to accommodating these unprecedented situations.

“If you need to cancel at the last minute due to illness or emergency, you can be reimbursed for typically nonrefundable trip costs,” Kullberg said.

“Optional benefits like Cancel for Any Reason (CFAR) and Interruption for Any Reason (IFAR) give you added flexibility to change your plans and still have some of your trip expenses reimbursed, no matter the reason for that change,” Murchland said.

Additional Benefits of Travel Insurance

While the cost of travel insurance ultimately depends on many factors, such as the cost of your trip, investing in travel insurance may be pricey. However, this cost is still a lot lower than the money one may lose when they aren’t reimbursed for a canceled or rescheduled trip.

“In some instances, a $100 policy could save you thousands if you face a cancellation,” Murchland said.

Additionally, for those who like to travel stress-free, travel insurance may be a great benefit.

“Some travelers aren’t bothered at all by the unknown, while others get nervous about a long list of hypothetical things that could go wrong before or during vacation,” Murchland said. “If you fit into the group that tries to avoid risk, you’ll love travel insurance. Instead of stressing about all the what-ifs, you can travel with peace of mind knowing that your coverage will protect your money, health and belongings if the unexpected happens.”

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