What is travel insurance and how does it work?

From flight delays and cancellations to lost luggage, travel troubles are more than inconvenient. They can also be costly. And that’s where travel insurance could help.

But what is travel insurance? What does it cover? And how do you decide what kind of travel insurance is right for you?

What you’ll learn:

• Travel insurance policies offer coverage for a variety of travel-related issues like flight cancellations, lost baggage and rental car damage.*

• Different kinds of travel insurance plans offer different types and levels of coverage. 

• Travel insurance is available through some credit cards, including most Capital One cards like Venture X and Venture.

People sometimes purchase travel insurance to protect themselves financially during a trip—and even before. It can offer a financial safety net if anything goes wrong, from relatively minor inconveniences to major issues.

Before you purchase travel insurance, it may help to research what it covers. And keep in mind that you may need to keep your receipts while traveling in case you need to file a claim.

Ultimately, that’s up to you. But it might be worth considering because even seasoned travelers might worry about unexpected events and expenses that could happen after they’ve been planning a trip for months.

Some travel insurance plans focus on specific things, like rental cars or health care. Others cover a wider variety of travel-related issues. Coverage can vary depending on the type of travel insurance and the plan, but here are some things travel insurance might include: 

• Flight cancellations or delays

• Trip cancellations due to injury or illness 

• Damaged or lost luggage 

• Medical emergencies while traveling

Some things typically won’t be covered by travel insurance, even under a comprehensive plan. It’s important to check the limitations, exclusions and fine print of each policy. According to the National Association of Insurance Commissioners, exclusions commonly include:

• Preexisting medical conditions

• High-risk activities like bungee jumping

• Pregnancy and childbirth

• Pandemics

• Civil and political unrest at the destination

Here are some of the most common types of travel insurance.

Comprehensive travel insurance plans offer a wide range of benefits under a single plan. These plans might include protections for things like trip interruptions or cancellations, baggage loss and even some medical expenses.

Sometimes things happen at the last minute that you can’t control, even if you plan well ahead. That’s where these forms of travel insurance can come in:

• Trip cancellation insurance reimburses some prepaid travel costs if you have to cancel your trip for covered reasons, which may include canceled flights, a traveler’s injury or illness, unforeseen natural disasters or a non-traveling loved one’s hospitalization or death. 

• Trip delay insurance covers the expenses you can incur during a significant delay, like food and lodging.

• Trip interruption coverage can compensate you for financial losses if you need to end your trip early. It might also cover expenses for the journey home.

• Cancel for any reason coverage is usually an add-on to trip cancellation insurance. These policies might cost more, but they cover cancellations for any reason.

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, providing short-term coverage in case of an accident or illness or even emergency evacuation to a medical facility.

Accidental death and dismemberment coverage can provide benefits to you or your beneficiaries if you lose a body part or die while on a trip.

Rental car insurance can help protect you from paying for things like collision damage, towing, repairs, theft or other problems. Some credit cards offer rental car insurance.

Baggage loss insurance could reimburse you if your luggage is lost, stolen, damaged or delayed.

If you decide you’d be a good candidate for travel insurance, you can compare policies and providers, benefits and prices. Make sure you find out what’s not included as well as what is. 

You can buy travel insurance through insurance companies and brokers, travel agents, travel reservation sites, airlines or cruise lines. Some travel credit cards might offer certain travel insurance protections, too, so it’s a good idea to check what your credit card covers.

When you’re ready, you’ll fill out an application. The provider decides whether to issue you a policy and how much to charge.

Travel insurance is sometimes offered through credit cards as part of their benefits, including some Capital One rewards credit cards. It generally offers coverage that’s similar to private travel insurance. 

Most Capital One Venture X and Venture cards offer travel insurance that includes protections like travel accident insurance and an auto rental collision damage waiver that could cover you for collision or theft.  

Credit card travel insurance coverage can vary by card, issuer and network. So be sure to check your plan before your trip. If you have travel insurance through a Capital One card, you can check your benefits guide for more information.

Here are answers to some frequently asked questions about travel insurance.

Going on a trip can be a major financial investment. The good news is that travel insurance could help protect that investment. Plus, it can give you peace of mind knowing that if certain things go wrong, you might not have to absorb the costs by yourself. 

Capital One travel and miles credit cards offer benefits like travel insurance. And they also reward cardholders for every purchase, every day. You can check if you’re pre-approved for a travel card, with no harm to your credit scores.

Who wouldn’t want to get the most out of their credit card? Here are some things to know about Capital One travel rewards credit cards: 

• Get a one-time 75,000-mile bonus with the Capital One Venture X card and receive an additional 10,000 bonus miles every year, starting on your first anniversary. View important rates and disclosures.

• Earn unlimited 2X miles per dollar on every purchase, every day and get 75,000 bonus miles upon sign-up with the Capital One Venture card. View important rates and disclosures.

• Earn unlimited 1.25X miles with no annual fee with the Venture One card from Capital One. View important rates and disclosures.

• Explore travel rewards card options by comparing Capital One Venture cards. 

• Learn how Venture X cardholders can get access to a worldwide network of airport lounges thanks to a complimentary Priority Pass membership.