International travel insurance: What it is and how it works
Travel insurance can be a financial safety net for any trip, whether you’re crossing state lines or international borders. But it might be more important for an international trip, when your plans can come with a bigger price tag.
So whether you’re planning the bucket-list adventure of a lifetime or a spontaneous birthday blowout, learn more about international travel insurance and the potential benefits it can offer.
What you’ll learn:
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International travel insurance can offer peace of mind and financial assistance should the unexpected disrupt your trip.
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Some of the most common types of international travel insurance are trip cancellation and health or medical insurance.
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The right insurance for you depends on many factors, including where you’re going, your health, your existing coverage and the level of risk you’re comfortable with.
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Travel insurance is available through some credit cards, including Venture X from Capital One.
Why do you need international travel insurance?
There are lots of reasons why you might want to buy travel insurance. Common ones are peace of mind and financial protection should something go wrong before or during a trip.
Some examples of situations where international travel insurance can help include:
- Compensation for cutting short or canceling a trip because of illness or injury
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Reimbursement for flight-delay expenses
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Coverage for medical assistance for sickness or injury
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Coverage for legal assistance after an accident
How does international travel insurance work?
You can buy travel insurance through insurance companies and brokers, travel agents, travel reservation sites, airlines or cruise lines. Some travel credit cards come with certain travel insurance protections, so it’s a good idea to check what yours covers.
Types of international travel insurance
Some of the most common types of international travel insurance include:
Trip cancellation and interruption or travel delay reimbursement
This insurance might reimburse some prepaid travel costs if you have to cancel your trip for things like physical illness or unforeseen natural disasters. It might also pay for food and lodging during a significant travel delay. Or it might cover expenses for the journey home if you need to end your trip early.
Travel health or medical insurance
If you’re traveling outside the U.S., health insurance plans and programs like Medicare and Medicaid might not cover medical care. Travel health insurance plans are designed to bridge the gap and could reimburse you for medical expenses, emergency medical evacuation and even repatriation of remains.
Other coverage
Rental car insurance can help protect you from paying for things like collision damage, towing, repairs, theft or other problems. And lost luggage insurance can reimburse you if your luggage is lost, stolen or damaged.
Before you buy either separately, you can see whether you’re covered internationally for lost luggage reimbursement or rental car insurance through your credit card. You might also be reimbursed for lost or stolen personal belongings through your homeowners or renters policy.
It’s also possible to tie many different types of international travel insurance into a comprehensive package. These plans might include protections for things like trip interruptions or cancellations, lost luggage reimbursement and even some medical expenses.
International travel insurance FAQ
Here are some frequently asked questions about international travel insurance.
How much does international travel insurance cost?
The price of international travel insurance can vary depending on the type of coverage, policyholder age and other factors. But charges are generally based on a percentage of the total cost of the trip. Most estimates put it at 4%-10%. Additional coverage can be more expensive.
If your card comes with international travel insurance, you could be covered just by booking and paying for a trip with the covered card.
Which travel insurance is best for foreign travel?
There’s no single insurance that’s best for all types of foreign travel. It might be more useful to think about it in terms of what’s best for you and your circumstances. You can compare policies and providers, prices and requirements, as well as whether your travel insurance covers things like:
- The regions you will visit
- Emergency medical care
- Travel and accommodation costs
- Preexisting conditions
- Activities you plan to engage in
What does travel insurance not cover?
You can check each policy’s terms and conditions, but standard travel insurance policies may not cover things like:
- Preexisting medical conditions
- High-risk activities like bungee jumping and skydiving
- Epidemics and pandemics
However, you may be able to find additional coverage that you can tailor to your needs. Keep in mind that it may cost extra and there may still be limitations, though. For example:
- Some providers can add a preexisting conditions waiver to their travel medical coverage.
- Extreme sports insurance can cover expenses related to injuries incurred during the activity.
- Cancel for any reason (CFAR) coverage is an add-on and covers cancellations for reasons not normally included in trip cancellation insurance.
Key takeaways: International travel insurance
International travel insurance can help cover expenses and provide peace of mind should things go wrong on a trip abroad. And a Capital One travel credit card could help you feel even more prepared for your journey. Several Capital One credit cards include travel-related insurance benefits. You can refer to your guide to benefits for terms, conditions and exclusions. Plus, Capital One doesn’t charge foreign transaction fees on any credit cards that it issues within the U.S. View important rates and disclosures.
