Travel Insurance Explained: How to Protect Your Holiday Travel Plans

As the holiday season approaches and winter settles upon us in Wisconsin and Minnesota, many people are planning trips to visit family or escape the cold for a bit of sunshine. Whether you’re flying to see loved ones, hitting the road for a long-distance holiday trip, or planning a warm-weather getaway, it’s important to consider how unexpected events could disrupt your plans. That’s where travel insurance comes in, offering protection and peace of mind before you even pack your bags.

What is Travel Insurance?

Travel insurance is designed to protect the financial investment you’ve made in your travel plans. It helps cover unexpected expenses such as trip cancellations, lost luggage, medical emergencies, or even travel delays. This type of coverage is especially valuable during the holiday season, when unpredictable weather, crowded airports, and longer road trips increase the chances of delays or interruptions. Having this added layer of protection can offer meaningful peace of mind before and during your travels.

What Does Travel Insurance Cover?

When deciding whether travel insurance is worth it, it’s essential to understand the core types of protection it provides. Most policies cover several key areas that help safeguard your trip and your wallet.

• Trip Cancellation or Interruption: One of the most common reasons travelers buy insurance is to protect against trip cancellations or delays. If a medical emergency, severe weather, or even a family issue forces you to cancel or cut your trip short, travel insurance can help recover the costs of non-refundable reservations, such as flights, hotels, and tours.
• Medical Coverage: If you’re traveling to remote areas or internationally, it’s essential to have coverage for medical emergencies. Travel insurance often includes emergency medical services, which can be crucial if you experience a sudden illness or injury. Some policies also cover emergency medical evacuation, potentially saving you from expensive out-of-pocket medical transport costs.
• Lost or Delayed Luggage: Holiday travel often comes with crowded airports and increased chances of lost or delayed luggage. Travel insurance can reimburse you for essential items if your luggage is delayed, lost, or stolen. This can be a lifesaver when your holiday gifts and cold-weather gear go missing!
• 24/7 Assistance: Most travel insurance policies offer around-the-clock customer service to help you deal with emergencies, rebook flights, or file claims. This can provide peace of mind, especially when you’re traveling far from home.

What Does Travel Insurance Not Cover?

While travel insurance can provide valuable protection, it’s equally important to understand what it doesn’t cover. Every policy includes exclusions and limitations that outline situations where your claim may not be approved. Knowing these details can help you avoid surprises and make sure you choose the right policy for your trip.

Pre-Existing Medical Conditions: Most standard policies do not cover medical issues related to pre-existing conditions, unless you purchase a waiver.

• A condition is typically considered “pre-existing” if you had symptoms, treatment, or changes in medication within a certain period (often 60–180 days) before purchasing the policy.
• If you need coverage for an ongoing health concern, look for a policy offering a Pre-Existing Condition Waiver and purchase it within the required timeframe.

Pandemics, Epidemics, or Outbreaks: Many policies exclude cancellations or medical costs related to pandemics or infectious disease outbreaks—unless you purchase upgraded coverage.

• After COVID-19, some insurers now offer epidemic-related protection, but it varies widely.
• Always check whether your policy treats pandemic-related issues as covered or excluded events.

Known Events or Foreseeable Circumstances: Travel insurance is meant to cover unexpected events. If a major storm, airline strike, or political unrest is already announced before you buy your policy, it may be considered a known event and your policy will not cover cancellations or delays caused by it.

Voluntary Cancellations or Changes: Standard policies do not cover cancellations for personal reasons—such as changing your mind, wanting to delay the trip, or deciding not to travel due to fear of getting sick.

Types of Travel Insurance

Travel insurance isn’t one-size-fits-all. Policies can vary widely depending on how often you travel, where you’re going, and the types of activities you plan to enjoy. Understanding the main policy types can help you choose coverage that fits your trip and your budget.

Single-Trip Policies: These policies cover one specific trip from start to finish. Single-trip plans typically include trip cancellation, medical coverage, baggage protection, and emergency assistance. They’re a great fit if:

• You travel occasionally
• You’re taking a once-a-year vacation
• You only need coverage for one set of dates and destinations

Annual or Multi-Trip Policies: Designed for frequent travelers, these plans cover an unlimited number of trips within a 12-month period. Although annual policies may have lower trip cancellation limits per trip, they can save money and time compared with buying multiple single-trip plans. They work well for:

• Business travelers
• Families who travel multiple times a year
• People who take frequent weekend getaways

Domestic Travel Insurance: While medical coverage may be less essential domestically (because your health insurance often applies), trip cancellation and interruption benefits can still provide meaningful protection. Domestic plans cover trips within the United States and are especially helpful when:

• You’re making large non-refundable bookings
• Winter weather may cause delays
• You’re traveling for events or family gatherings that can’t easily be rescheduled

International Travel Insurance: International travel can come with higher risks and higher costs, making coverage more important. Because many U.S. health plans offer limited or no international coverage, this type of policy is highly recommended for travel abroad. International policies typically include:

• Emergency medical care
• Medical evacuation and repatriation
• Coverage for lost passports or documents
• Protection against delays or cancellations

Cruise and Travel Group Add-Ons: Cruise travel comes with its own set of risks, and some insurers offer cruise-specific coverage, such as:

• Missed port departures
• Itinerary changes
• Ship mechanical breakdowns
• Weather-related disruptions

If you’re traveling with a tour group or organized travel program, consider a travel group or tour add-on, which can include coverage for missed connection, tour operator bankruptcy, delayed group transportation, and group-specific itinerary changes.

These add-ons help protect your investment in cruises, tours, and multi-stop itineraries that may include tight schedules or multiple transportation providers.

How to Read the Fine Print (and Avoid Surprises)

Understanding exclusions is essential, but policies can be complex. Here’s how to make sense of the details:

1. Read the “Summary of Benefits” First: This short overview highlights coverage limits, deductibles, and major exclusions. It’s the easiest way to compare policies side by side.
2. Look for the Definitions Section: Terms like “pre-existing condition,” “reasonable and customary costs,” “known event,” or “terrorist incident” may differ by insurer. The definitions determine what is, and isn’t, covered.
3. Check Time-Sensitive Requirements: Some benefits (like pre-existing condition waivers or CFAR upgrades) must be purchased within a set number of days of your initial trip deposit.
4. Pay Attention to Coverage Limits: Even if something is covered, the benefit may have a limit. For example:
   • baggage coverage per item
   • daily caps for delay reimbursements
   • evacuation maximums
   • medical coverage ceilings
5. Review What’s Required for a Claim: Some claims require documentation like police reports, medical records, receipts, or proof of travel delay. Knowing this ahead of time makes it easier if something goes wrong.
6. When in Doubt, Ask Questions: If a situation or activity is important to your trip (cruises, adventure excursions, expensive personal items), contact the insurer to confirm it’s covered.

How Do I Choose the Correct Travel Insurance?

Travel insurance is especially valuable for certain types of trips, particularly those that are expensive, international, or require large non-refundable deposits. If you’re planning a long-distance getaway, a cruise, or an all-inclusive vacation, coverage can protect you from losing money if unexpected events force you to cancel or adjust your plans.

On the other hand, for short, inexpensive domestic trips, travel insurance may not always be necessary. If your bookings are mostly refundable or you’re traveling close to home, you may not need the same level of protection.

What to Look for When Choosing a Policy

When comparing travel insurance policies, take time to review exactly what each plan includes, especially in areas that matter most to your trip. Some policies provide broad coverage, while others limit benefits to specific situations.

Consider focusing on:

• Medical coverage and emergency evacuation: especially for international travel
• Trip cancellation and interruption: what qualifies as a covered reason
• Travel delays: required delay times and daily reimbursement limits
• Baggage protection: per-item and total coverage limits

If you’re unsure which policy fits your needs, an insurance agent can help you compare plans and understand the fine print.

Know the Requirements and Restrictions

Some policies only cover cancellations under very specific circumstances, so it’s important to know what documentation may be required (e.g., doctor’s notes, weather advisories, or proof of airline delays).
 Understanding this ahead of time helps prevent surprises during the claims process.

Check Your Credit Card Benefits First

Before purchasing a separate travel insurance policy, review what your credit card already offers. Many cards include limited protections such as:

• Lost or delayed luggage coverage
• Trip cancellation for qualifying events
• Rental car damage protection

If your card already provides adequate benefits for the type of trip you’re taking, you may not need additional insurance; or you might only need supplemental coverage.

Final Thoughts

Holiday travel can be exciting but unpredictable. Snowstorms, medical emergencies, and travel delays are common occurrences during this time of year, and travel insurance can help you avoid the financial burden of these disruptions. Whether you’re flying to see family or taking a much-needed vacation, thorough planning—including considering travel insurance—can give you peace of mind.

Before you head out this holiday season, take a moment to assess your travel plans and determine whether insurance is right for you. If you need help navigating your options, reach out to your insurance professional at Forward Insurance. We help you choose the right coverage to protect your holiday investment and ensure you can enjoy your trip worry-free.