Does PayPal provide American consumers with travel insurance?
PayPal's Built-in Travel Protection: Limited and Discontinued
PayPal once ran a Travel Cancellation Protection scheme. Nevertheless, this program has ended and is not now accessible for new activations. For individuals who turned on the coverage before it was discontinued, the advantages stay valid until the coverage period runs out. For covered causes like illness, injury, loss of a family member, or natural disasters, this program provided repayment for non-refundable travel charges (flights, hotel, pre-booked excursions) up to a set amount (e.g., HK$3,500 in Hong Kong). To qualify, one has to schedule the whole trip through PayPal. This was not comprehensive travel insurance since it lacked other usual travel insurance features, including medical coverage.
Credit Card Travel Insurance and PayPal
Certain credit cards include travel insurance should you use them to pay for your trip. The terms and conditions of the particular card will determine if this coverage applies should you book using PayPal. Some cards forbid purchases made using PayPal or another third-party payment system. See your credit card issuer to find out whether their travel insurance covers PayPal payments. One user highlighted the requirement of personally confirming coverage directly with the card issuer when they noted doubt regarding Citi Premier Card travel insurance eligibility when buying through PayPal.
Third-party travel Insurance and PayPal as a Payment Method
Several travel insurance companies use PayPal as a payment method. Two such are Faye and Roamly. To provide trip cancellation insurance—even addressing COVID-19-related cancellements—Roamly teamed with Outdoorsy, an RV rental marketplace. For their worldwide travel medical insurance, CareMed additionally notes that PayPal is an approved payment option. To find the best fit for your requirements, you should examine policies and coverage offered by several providers.
Other Instances of PayPal in the Travel Insurance Context
Travelers Insurance provides a quicker and more practical payout mechanism by letting users claim payments using PayPal. This shows PayPal's role in enabling insurance sector transactions but does not reflect a travel insurance product directly from PayPal. Using a PayPal Mastercard Debit card, a user additionally asked for Mastercard travel benefits (baggage loss, medical), so highlighting the uncertainty about coverage when PayPal is used with connected cards.
Considerations for Travel Insurance
When considering travel insurance, weigh medical coverage, emergency evacuation, trip cancellation or interruption, baggage loss or delay, and personal responsibility. Coverage destinations, trip length, traveller age, and pre-existing medical issues can influence costs. Make sure the policy's restrictions and exclusions make sense to you. American Express, for instance, provides travel cancellation and interruption insurance and trip delay insurance with some cards, although the coverage is limited and particular.
| Provider | Type of Coverage | Specific Details | Eligibility/Requirements | Cost | Claim Process/Limits |
|---|---|---|---|---|---|
| PayPal Purchase Protection | Purchase protection, NOT travel insurance | Covers eligible items if they don't arrive or are significantly different from the description. Can cover some travel related purchases like event tickets or hotel reservations if booked directly and paid with PayPal. | Eligible items paid for with PayPal. Terms and limitations apply. Must open a dispute within 180 days. | Free with eligible PayPal purchases | Resolution Center. Average claim settlement in 14 days. Specific item limits apply. |
| PayPal Travel Cancellation Protection (Discontinued) | Trip Cancellation | Covered non-refundable travel expenses booked via PayPal for specific unforeseen circumstances. Varied by region (e.g., Singapore S$500/year, Hong Kong HK$3,500/year). | PayPal account registered in specific locations; resident of eligible country; specific unforeseen circumstances beyond user's control. | Free (offered as a benefit for a limited time) | Claim within 30 days of cancellation event; one approved claim per year. Exclusions applied. |
| Third-Party Travel Insurance via PayPal Checkout | Varies depending on the insurer. | Some travel insurance providers accept PayPal as a payment method. The specific coverage depends entirely on the insurer and chosen policy. | Set by individual insurers. | Set by individual insurers. | Set by individual insurers. |
| Outdoorsy/Roamly Travel Insurance (Paid via PayPal) | Trip Cancellation and Interruption | Coverage for trip cancellations and interruptions relating to RV rentals booked through Outdoorsy, due to illness/hospitalization (including COVID-19). | RV rental booked via Outdoorsy. | Varies depending on the trip cost and coverage options. Contact Roamly or Outdoorsy for a quote. | File a claim online at imglobal.com/claims-center or call toll-free 866-243-7524. Documentation required. Specific limits and exclusions apply (see Roamly policy). |
| Credit Card Travel Insurance (Paid via PayPal) | Varies by card and policy. Typically includes trip cancellation/interruption, lost luggage, medical emergencies. | Many credit cards offer travel insurance as a benefit when travel is booked and paid for with the card. Using PayPal as an intermediary *may* impact eligibility (check card T&Cs). | Purchasing the full cost of the trip with the eligible card. Some explicitly exclude PayPal transactions. Check individual card benefits guides. | Included as a credit card benefit. | Varies by card and policy. |
