It is more than common for U.S. residents to plan a vacation within their home country — over 2.29 billion Americans traveled domestically from 2020 to 2021. Domestic vacations are a popular form of travel where you can explore your own country of residence, but do you need travel insurance for domestic vacations?
While you may be more familiar with your home country than another destination, investing in travel insurance can be just as useful as if you were traveling internationally. Keep reading to learn about travel insurance for domestic vacations, including why it is important and how you can ensure you choose the best travel insurance policy for your next trip.
Emergency Medical Care For Domestic Vacations
Although your health insurance is more likely to work domestically than abroad, your coverage may not extend to doctors or hospitals in other parts of the country. Travel medical insurance can bridge coverage gaps by covering medical treatment costs if you are hurt or fall sick on vacation.
Covered emergencies typically include hospital charges, treatments such as surgeries or medicines, ambulance fees and emergency medical evacuations. Some policies also offer a waiver to cover issues related to pre-existing conditions.
Your insurance policy will offer medical coverage up to a certain amount — a minimum of $50,000 to $100,000 is recommended for most travelers. However, you can tailor your travel coverage based on your existing health insurance plan.
Comprehensive travel insurance also includes benefits if you become seriously injured or die during your trip, including medical evacuation coverage and repatriation of your remains. Some policies include the option to add coverage for accidental death and dismemberment, such as with life insurance.
Investing in travel medical insurance may be worthwhile if you would face out-of-network costs for treatment while traveling, are a senior traveler looking to complement Medicare coverage or have pre-existing conditions.
Insurance to Cover Baggage Loss, Delay or Damage
Your travel insurance policy will cover you In the event your baggage is lost, delayed or damaged for reasons outside your control. Your policy will include baggage coverage up to a maximum limit, which you can review when requesting travel insurance quotes.
Make sure to select an insurance policy with a high enough limit to cover the cost of your baggage and possessions. Providers may also offer reimbursem*nt if you experience a baggage delay and need to purchase additional items in the interim.
Some policies will also help you recoup lost travel documents. This coverage offers peace of mind in case something goes wrong with your luggage during a trip.
Insurance for Trip Cancellations and Interruptions
Travel insurance plans often include trip cancellation coverage, which reimburses you for prepaid, nonrefundable costs if your trip gets canceled for reasons outside your control. For example, if your flight is canceled due to a natural disaster or you experience a death in the family. This type of insurance typically refunds partial or full costs related to airfare and accommodations.
Your policy will include fine print with details surrounding the circ*mstances in which you can claim reimbursem*nt for a trip interruption, delay or cancellation. Many policies will cover events related to the unexpected death of a family member, natural disasters, legal reasons such as jury duty and more.
For more flexibility surrounding trip cancellations, you can also invest in cancel for any reason coverage. Also known as CFAR coverage, this policy add-on allows you to cancel a trip for reasons outside your policy.
Reimbursem*nt of Missed and Delayed Flights
If your flight gets delayed or you miss a connection, travel insurance can reimburse you for prepaid costs and additional expenses you incur due to the interruption. This means you can gain some of your initial trip payment back in the event of a delay or missed connection, but coverage only applies if interruptions occur for a covered reason.
Some trip insurance providers also offer travel assistance services to help you navigate issues while away, like if you need a last-minute hotel after experiencing a flight delay.
Understanding Policy Exclusions and Limitations
Like all types of insurance plans, travel protection comes with coverage exclusions and limitations. However, providers may offer some excluded items as add-on coverage for an additional cost. Examples of common exclusions include the following:
- Mental health-related costs
- Accidents, injuries or death due to drug or alcohol influence
- Injuries from high-risk sports or adventure activities
- Pre-existing medical conditions
- Rental car damage
It’s important to check your insurance benefits for exclusions and adjust your trip coverage if any limitations apply to your itinerary. Understanding the terms and conditions of your travel insurance policy can ensure it offers the level of coverage you need and you qualify for reimbursem*nt should you file a claim.
How Much Does Domestic Travel Insurance Cost?
Travel insurance costs depend on factors such as your personal details, where you are traveling to and the length of your stay. Generally, travel insurance ranges from $35 to $200 per trip. While some providers offer single-trip coverage for one-time travelers, others have multi-trip packages to insure multiple trips within a given timeframe. The best way to determine exact travel insurance costs is to request a quote directly from a provider.
Tips for Choosing the Right Travel Insurance Policy
The below tips can help you choose the right travel insurance coverage for your domestic vacation.
Check the Coverage You Already Have
In some cases, your credit card includes travel insurance coverage. Your health insurance benefits may also extend to your planned location of travel. We recommend speaking with your providers in advance to see what coverage you already have for a domestic vacation before purchasing an additional travel insurance policy.
Determine the Right Level of Coverage
When choosing any travel insurance policy, you want to make sure the coverage is sufficient for you and any traveling companions. This includes medical expenses, baggage loss and trip interruption coverages. For example, if you are planning on traveling with expensive items such as a camera, make sure your insurance will cover the value if something were to happen to your belongings.
Review Travel Insurance Customer Reviews
It’s important to make sure the travel insurance provider you select is reputable and reliable. Reading customer reviews on sites like the Better Business Bureau and Trustpilot is a good way to learn about customer experiences and the claims process.
Consider Policy Deductibles and Exclusions
Depending on the type of coverage you select, your travel insurance policy may include a deductible. Should you file a travel insurance claim on your insurance, the deductible is the amount you will have to pay before your travel insurance kicks in. Considering the price of your deductible beforehand can help ensure you can afford the payment if you have to file a claim.
Also check that your policy does not include any exclusions that could limit your coverage and that the coverage limits meet your travel needs.
Filing a Travel Insurance Claim
The following steps outline the general process should you need to file a claim on your travel insurance. Your experience may vary depending on your provider.
Contact Your Insurance Provider
The first step you’ll need to take to file a claim is to contact your insurance provider. Your policy information should include details regarding which number to call in the event of any incident. You may also be able to file a claim online. Keep this information handy during your trip.
Provide Your Policy Number and Incident Details
Once you contact your insurance, it will likely ask for your policy number, which you can find in your policy documents, and details of the incident. This information will help your provider develop a better understanding of your coverage and necessary next steps.
Submit a Claims Form and Supporting Evidence
Your travel insurance provider will send you a claims form to complete and submit alongside any evidence related to your incident, such as purchase receipts. Make sure you have copies of all submitted documentation should you need to refer back to the claim in the future.
Is It Worth It To Purchase Travel Insurance For a Domestic Trip?
Purchasing travel insurance for your domestic vacation can ensure you have coverage in case of unforeseen events, like travel delays, canceled flights or lost baggage. While there are many benefits to investing in trip protection, it is ultimately up to you to decide if a policy is worth it for your travels. Travel insurance for a domestic vacation can not only provide peace of mind but also help mitigate financial loss if you experience a trip interruption.
Purchasing a policy from leading companies such as Allianz, AXA Assistance USA or Travelex can ensure you receive comprehensive coverage from a reputable provider. We recommend requesting free quotes from at least three companies before selecting a policy.
Frequently Asked Questions About Domestic Travel Insurance
Most standard travel insurance policies for domestic trips will cover flight cancellations and delays. You can also receive compensation from your airline if flights get interrupted for reasons outside your control.
There are a variety of travel insurance companies that offer domestic vacation policies, and the best option for you depends on your coverage needs and budget. We suggest researching the top travel insurance providers and comparing policies to make an informed decision as to which is the best. Or if you’re on a budget, check out the most affordable travel insurance options.
Many travel insurance policies cover certain costs if you get COVID while traveling, such as quarantine and medical expenses. However, we suggest checking with your provider to determine the exact details of your policy’s COVID-19 coverage.
Like with domestic travel, purchasing trip protection for an international destination is up to you. However, some countries may require you to purchase travel insurance as an entry requirement. Regardless, travel insurance can help cover medical costs abroad and offer other benefits if the unexpected happens during your international trip.
Methodology: Our System for Ranking the Best Travel Insurance Companies
Our team surveyed dozens of travel insurance providers and created a scoring system to judge each company based on coverage, quality and service. We also collected sample quotes from each company, both over the phone and on the internet, to simulate an authentic customer experience. Here are the factors we take into consideration when rating providers:
- Cost (10%): To determine a baseline average travel insurance cost, we gathered quotes from each travel insurance company based on different traveler profiles. Travel insurance companies at or below our calculated average cost of $221 earn full points in this category. Specifically, we obtained quotes for the following trips
- A 30-year-old couple taking a $5,000 vacation to Mexico.
- A family of four taking an $8,000 vacation to Mexico.
- A 65-year-old couple taking a $7,000 vacation to the United Kingdom.
- A 30-year-old couple taking a $7,000 trip to the United Kingdom.
- A 19-year-old taking a $2,000 trip to France.
- A 27-year-old couple taking a $1,200 trip to Greece.
- A 51-year-old couple taking a $2,000 trip to Spain.
- Plan availability (10%): We look for insurers with a variety of travel insurance plans and the ability to customize a policy with coverage upgrades.
- Coverage details (29%): We review the baseline coverage each company offers in its cheapest comprehensive plan. A provider with robust coverage earns full points, including baggage delay and loss, COVID-19 coverage, emergency evacuation and medical coverage, trip delay and cancellation coverage, and more. Companies also receive points for offering a variety of policy add-ons like accidental death and dismemberment, extreme sports, valuable items, cancel for any reason coverage and more.
- Coverage times and amounts (34%): We compare each company’s waiting periods and maximum reimbursem*nt amounts for baggage, travel and weather delays. Companies that offer customers reimbursem*nt after fewer than 12 hours of delays earn full points in this category. We also reward travel insurance providers that cover more than 100% of trip costs in the event of cancellations or interruptions.
- Company service and reviews (17%): We look for indicators that a company is well-prepared to respond to customer needs. Companies with an established global resource network, 24/7 emergency hotline, mobile app, multiple ways to file a claim and concierge services score higher in this category. We assess reputation by evaluating consumer reviews, third-party financial strength and customer experience ratings, specifically from AM Best and the Better Business Bureau (BBB).
For more information, read our full travel insurance methodology.
A.M. Best Disclaimer
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