Peter Greenberg: What Does My Travel Insurance Cover?

By: Peter Greenberg | Source: AARP.org | 2009-07-10

Q: Dear Peter, I always purchase travel insurance for emergency health and accident events. I am not really sure what else it covers. Does it cover small events like lost luggage that arrives three days late?

–Chava
Brooklyn, N.Y.

A: How much or how little your travel-insurance policy covers depends on the fine print of the policy. There are dozens of types of travel-insurance policies—some that cover a great deal, and some very little. Some companies also offer optional add-ons and riders to cover things that standard policies don't.

However, the "standard" type of plan, known as an all-in-one policy (or package plan), generally covers trip cancellation, medical emergencies, baggage-delay insurance, and theft coverage. Some policies that are medically oriented also throw in a few other types of coverage, such as for lost or delayed baggage.

The reason it is important to read the fine print is because the dreaded asterisk may reveal that your lost-luggage coverage may exclude items such as sunglasses, medications, and car keys. Or your delayed-baggage coverage may only reimburse you for $50 worth of items if your baggage doesn't get to you in time—which doesn't go far if you're stuck in Zurich with only the clothes on your back.

A good resource is InsureMyTrip.com, which provides summaries of dozens of insurance policies.

Some credit cards also cover trips paid for with the card, and they automatically offer coverage for lost bags, roadside assistance, and medical care for some injuries. Other cards let you buy coverage on a per-trip basis. But the same rule applies: Read the fine print.