2025 Travel Insurance: Standard Coverage Explained
Understanding Travel Insurance
Travel insurance protects consumers from unanticipated circumstances that influence their travels and cause financial damage. It covers simple annoyances like flight delays and significant disruptions like medical problems or trip cancellations. According to a 2024 AAA travel poll, the most valuable travel insurance benefit cited by 88% of respondents was a trip cancellation refund.
Standard Coverage Overview
Usually, standard travel insurance combines numerous essential features. Though specifics vary depending on the provider, everyday items are trip cancellation, trip interruption, baggage difficulties (lost, damaged, delayed), medical crises and evacuation, and 24-hour assistance services. Squaremouth claims that whilst medical-only coverage was $96, the average cost of a comprehensive travel insurance plan in 2023 was $403. Usually, comprehensive plans account for 5% to 10% of the insured travel expenses.
Trip Cancellation/Interruption
Should you cancel your trip for a covered reason—such as illness, extreme weather, or family emergency—travel cancellation returns prepaid, nonrefundable expenditures. Travel interruption covers comparable costs if your vacation is interrupted after it starts. Travelers with trip cancellation coverage bought plans an average of 53 days before their trip in 2024, according to Squaremouth; those without coverage acquired policy nearer departure (16 days prior).
Baggage Coverage
This protection covers delayed, damaged, or lost luggage. Should your bags be delayed or repay you for the worth of lost or damaged luggage, it can help you pay for the replacement of necessary items. According to experts, eighty-five percent of missing items are found 48 hours later. DOT rules, however, cap airline responsibility for lost baggage at $3,300 domestically and $1,500 internationally and mandate documentation of lost item value.
Medical Coverage & Evacuation
Particularly useful for overseas travel where your domestic health insurance might not be applicable, travel medical insurance pays for medical expenditures incurred during your journey. Emergency evacuation pays for the sometimes outrageous medical transportation expenses to a suitable facility or back home. A New York Times story on the rising costs of emergency transportation—especially considering the complexity of the epidemic—showcased in 2024 the average price of medical evacuation coverage: $100,000.
24/7 Assistance Services
Most standard plans offer 24/7 assistance services. These services can help with various travel emergencies, including rebooking flights, replacing lost documents (passports, visas), providing medical referrals, offering legal assistance, and arranging emergency cash transfers.
Exclusions & Limitations
Standard policies contain many exclusions and restrictions. Typical exclusions are pre-existing medical illnesses (often waived if you acquire the policy quickly after booking and meet other criteria), foreseen occurrences (e.g., named storms, scheduled strikes), high-risk activities (e.g., skydiving), and cancellations due to travel anxiety. Coverage limitations define the maximum the policy will pay for a given loss.
Cost Factors & Considerations
Your age, trip length, destination, overall trip cost, and coverage quantities you select all affect the price of travel insurance. By 2025, the average international travel insurance policy will cost $310, claims Squaremouth. Usually paying more, older visitors reflect their more excellent heath issue risk profile. Based on Squaremouth, 80% of insured passengers in 2025 were 45 or older—up 11% from 2024.
Choosing the Right Plan
Choosing the correct strategy requires serious thought about your particular journey and situation. Review your risk tolerance, vacation expenses, destination, intended activities, and any current coverage—from credit cards. Consider whether add-ons like "cancel for any reason" coverage are worth the additional expense. The most significant value and coverage depend on comparing quotations from several sources.
| Provider | Plan Name | Trip Cancellation | Trip Interruption | Trip Delay | Missed Connection | Baggage & Personal Effects Loss | Baggage Delay | Medical Expenses | Emergency Evacuation & Repatriation | Accidental Death & Dismemberment | Cancel For Any Reason (CFAR) | Pre-existing Medical Condition Waiver | Rental Car Damage | Other Notable Benefits/Features |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Travelex | Ultimate | 100% of trip cost (up to $50,000) | 150% of trip cost (up to $75,000) | $2,000 ($250 per day max) | $750 | $2,000 ($500 per item limit) | $500 | $250,000* | $1,000,000 | $25,000 | Available (75% of insured trip cost up to $7,500) | Included if purchased within 21 days of first trip payment and full trip cost is insured | Available ($50,000 with $100 deductible) | Kids-included pricing, Trip Inconvenience coverage |
| Travelex | Advantage | 100% of trip cost (up to $10,000) | 125% of trip cost (up to $12,500) | $1,000 ($250 per day max) | $500 | $1,000 ($500 per item limit) | $200 | $50,000 | $250,000 | $20,000 | Not Available | Not included | Available ($50,000 with $100 deductible) | Six optional upgrades available, including Adventure Activities, Rental Car Damage, and Accidental Death for Air Travel. |
| Travelex | Essential | 100% of trip cost (up to $10,000) | 100% of trip cost (up to $10,000) | $600 ($200 per day max) | $150 | $750 ($500 per item limit) | $200 | $25,000 | $200,000 | $10,000 | Not Available | Not included | Available ($50,000 with $100 deductible) | Secondary coverage (except for CT residents) |
