The days leading up to a trip are often filled with laundry and packing. If you're heading abroad, there are even more things to remember, from your passport to plane tickets to plug adapters. Before your next adventure, be sure to squeeze in one more important task: researching travel insurance. Thankfully, it’s something you can check off your to-do list well in advance.
The importance of reviewing your existing travel insurance coverage
If you booked your trip with a travel rewards credit card, you likely already have some level of travel insurance. Many rewards cards cover expenses—such as meals and lodging—if your trip is delayed overnight, and some also help with unexpected disruptions such as delayed flights or lost luggage.
For example, the AAA Visa Signature Credit Card provides travel and emergency assistance services, which include access to a 24/7 multilingual call center that can help coordinate services during travel emergencies anywhere in the world.
But credit cards typically do not cover medical emergencies. If you become ill or injured while traveling, your credit card likely won't cover those medical costs. And if you’re outside the US, your domestic health insurance plan may not provide coverage, either.
Why you may need to expand your travel insurance coverage
To protect yourself from potentially high out-of-pocket medical costs, consider purchasing a separate travel insurance policy with emergency medical benefits.
These policies can provide up to $500,000 in primary emergency medical coverage per person, covering everything from diagnostic tests and prescriptions to hospital stays and even surgery. Many plans also include coverage for medical costs related to COVID-19. If your condition requires more specialized care than what’s available locally, some policies will even cover the cost of medical evacuation to a suitable hospital.
These stand-alone policies often overlap with some of the protections offered by your credit card, but they may also provide stronger or more flexible benefits. For example, while a credit card may consider a trip “delayed” after 12 hours, a stand-alone policy may offer benefits after only six hours.
Where to purchase travel insurance
When booking a hotel or airfare, you’ve probably seen an option to add “trip protection.” These add-on policies are underwritten by third-party insurance providers and can be convenient, but they often come with coverage limits. For example, medical coverage could be capped at just $50,000, which might not be enough for a serious illness or injury abroad.
Instead of purchasing this limited coverage at checkout, consider declining it and buying a more comprehensive travel insurance policy directly from a provider such as Allianz. This gives you more control over the coverage levels and options. AAA Travel Advisors can assist you in selecting the right plan, or you can compare options and get an insurance quote online at AAA.
Travel insurance cautions and additional tips
- Always read the fine print. Policies vary widely—and terms, exclusions, and limits can differ significantly. For example, coverage for baggage may not include sporting equipment, and many medical plans exclude preexisting conditions.
- Know what’s excluded. Most policies will not cover preexisting medical conditions unless specific criteria are met, and some exclude certain activities or destinations. Your AAA Travel Advisor can help you understand what is (and isn’t) covered.
- Pay attention to payout limits. Some benefits have a per-day limit. For example, your baggage delay coverage might offer $500 total but only allow $100 per day in reimbursement.
- Buy early—ideally within 14 days of your first trip payment. Purchasing travel insurance within this window often allows you to qualify for the most comprehensive coverage, including preexisting condition waivers and options like Cancel for Any Reason (CFAR) coverage.
- Medical evacuation coverage matters. Ensure your policy includes emergency medical transportation, especially if you're traveling to a remote area or a country with limited healthcare.
- Document everything. If you need to file a claim, you’ll need receipts, medical reports, and/or airline documentation. Keep a record of any incidents or expenses.
- Work with a trusted advisor. Travel insurance can be complex. AAA Travel Advisors can help you compare policies and select one that fits your specific travel plans and risk profile.
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While credit card coverage may be sufficient for certain travel disruptions (especially on domestic trips), it typically won’t cover medical emergencies abroad. Before purchasing a separate policy, review the benefits offered by your credit card and health insurance provider to understand any existing coverage. Then, consider adding an affordable travel insurance plan that covers emergency medical care when traveling outside your home country.
This extra step can help you enjoy a worry-free holiday, knowing that a hefty medical bill won't be one of the unexpected souvenirs you bring home.