How Does Travel Insurance Work: Comparing Plans to Find the Right Coverage

Man at beautiful looking out point at Chapmans Peak.

With the variety of different types of travel insurance available, choosing the best plan for your needs can be tricky. That's why it's important to compare travel insurance plans before your trip.

Finding the right plan that offers the right level of coverage begins with understanding how travel insurance works. So what exactly does it do and why should you bother with travel insurance? Let’s dive in.

How Does Insurance Work?

Travel insurance works similarly to other types of insurance you probably have: health, dental, and vision insurance; car insurance; homeowner’s insurance; life insurance. You pay for a plan before something happens — a car accident, a damaged roof, a root canal — and then the insurance provider helps to pay for the damage or care resulting from that event.

The basics of travel insurance are no different. If something like a hurricane or health emergency impacts your trip, you use the plan you purchased before traveling to help recover lost trip expenses or pay for medical treatment.

Is Travel Insurance Necessary?

With the events of the last few years — COVID, international conflict, economic fluctuations — the perception of travel insurance has changed. It’s no longer seen as a luxury or merely as a bonus for travelers who can afford it. More people are realizing the advantages of travel insurance, even for the average traveler.

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Why Buy Travel Insurance?

When does it make the most sense to buy travel insurance?

  • You’ve invested a lot of money in your trip. Travel, like just about everything else these days, is getting more expensive. Travel insurance can help protect the investment you made in your trip. If you have to cancel your trip or something unexpected happens while you travel, that protection can help cover expenses, whether it’s getting reimbursed for airfare or paying medical bills.
  • You’re traveling internationally. The health insurance from your home country typically does not cover you overseas. Your destination’s universal or national healthcare system won’t cover you either; it’s designed to protect that country’s citizens. All of this means that if you get sick or hurt during your trip, you need travel insurance to cover the cost of your medical bills. The alternative is that you could end up paying for costly treatment out of pocket, something many people aren’t financially able to do.
  • You’re worried about the unexpected ruining your trip. While there will always be situations out of our control, we can travel with more confidence by preparing for the unexpected and knowing what to do in an emergency ... before it happens. Between the benefits in a travel insurance plan and the travel assistance services that come with all Seven Corners plans, you take some of that worry off your plate and enjoy the journey.

Once you’ve decided you need travel insurance, you might wonder when you should buy it. As in, on what day?

Long story short, it depends on the type of coverage you choose. As a general rule, though, earlier is always better. It’s important to remember that you won’t be able to buy travel insurance after something happens and still have your claim covered. Preparation is key.

Types of Travel Insurance from Seven Corners

There are different types of travel insurance available so that you can get the kind and levels of coverage you need. Common types of travel insurance include:

  • Travel Medical: Pays for medical care if you get sick or hurt during your trip when traveling internationally.
  • Trip Protection: Protects your money and belongings with coverage for trip cancellation, delay, or interruption, as well as lost, stolen, or damaged luggage. Also includes travel medical benefits. Single-trip and annual plans may be available.
  • Visitor to the USA: Provides medical coverage for non-U.S. residents traveling to the United States.
  • Expat Insurance: A type of international health insurance designed to provide long-term medical coverage for expatriates and digital nomads living abroad for more than a year.

Trip protection

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With a trip protection plan, you can be protected if you need to cancel, delay, or interrupt your trip for a covered reason such as illness or injury. You can be reimbursed for your nonrefundable, prepaid trip costs, as well as unused expenses and transportation costs if you need to return home early.

For example, if my appendix ruptures the week before my trip and my doctor tells me I cannot travel, I could be reimbursed for travel arrangements like nonrefundable flights, hotel reservations, and tours. Of course I’d be disappointed not to take my bucket list trip to Argentina, but at least I haven’t lost all the money I put into my trip, too. (Yes, I do dream of an adventure in Argentina, but this hypothetical scenario is for illustration purposes only.)

In addition, trip protection plans can reimburse you for the cost of replacing lost, stolen, or damaged luggage. It can also reimburse you for rental fees for specific types of sports equipment, like skis or golf clubs, if yours are lost, stolen, damaged, or delayed by a common carrier for six or more hours during your trip.

As another example, let’s say I do go to Argentina (no appendicitis!) where I plan to do some skiing. If my own skis were lost by the airline on my way there and I had to rent equipment instead, my trip protection could reimburse me for those rental fees.

It would be a similar situation if the airline lost all my luggage and I needed to buy clothes just to decently walk around my resort for a few days. My trip protection could reimburse me for those necessary replacement items.

Finally, many plans offer medical coverage for injuries or illnesses that arise while you're traveling, as well as travel services such as emergency 24/7 multilingual traveler assistance as a non-insurance benefit.

Different plans offer different levels of coverage. Annual plans are even designed to cover you during multiple trips throughout the year. So be sure to review your options, learn how to read a travel insurance plan document, and choose a plan that offers the right protection for your needs.

Seven Corners trip protection plans are designed specifically for U.S. residents traveling inside the United States or internationally. We also offer trip protection plans designed specifically for cruise vacations. This travel insurance for cruises provides even more coverage for missed tour/cruise connections, cruise diversion, and cruise disablement.

As you can see, we offer a range of plans that can be customized to fit your needs, budget, and trip style. Learn more and start your quick quote at SevenCorners.com.

International travel medical insurance

Travel medical plans are just what they sound like. They provide medical coverage for people traveling abroad. This is important because many domestic health insurance plans don't cover you when you travel internationally, which means you could have to pay for treatment yourself if you get sick or injured on your trip.

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Also, if appropriate medical care is not available at your location, you may need to be medically evacuated to an area with appropriate care. A travel medical plan will cover the expense of an emergency medical evacuation. It also comes with a knowledgeable travel assistance team as part of your non-insurance benefits. Seven Corners will arrange the evacuation for you.

A travel medical plan can cover doctor and hospital fees, emergency transportation, accidental death, and more. As with any type of travel insurance, different plans offer different levels of coverage.

Deductibles, medical maximum options, coinsurance options, and other aspects of the plan can vary widely, so do your homework and purchase a plan that covers all your bases.

Seven Corners Travel Medical Insurance and Seven Corners Travel Medical Global are available for U.S. and non-U.S. residents traveling outside their home country. Learn more about your travel medical insurance options with Seven Corners and start a quick quote today.

Visitors’ health insurance (to the USA)

Seven Corners Travel Medical USA Visitor insurance is for non-U.S. residents, which can include American expatriates living abroad, and residents of U.S. territories traveling to the United States. Millions of people who travel to the USA trust Seven Corners to provide emergency medical coverage for an affordable cost.

Travel Medical USA Visitor is a scheduled benefit plan, which means it pays a set amount for each type of medical service or treatment you receive.

For example, if you break your leg during your trip, you may require multiple services or treatments, such as x-rays, surgery, and a brace. According to your scheduled benefit plan, we will pay up to a set amount for each of those after you’ve met your deductible.

So, in your plan document, you may see:

  • X-rays: $500
  • Surgery: $3,000
  • Initial Orthopedic Prosthesis or Brace: $1,000

In this scenario, we would pay up to the amount listed, minus your deductible if you had not yet paid it. Anything over the dollar amount for each service, you would be responsible for paying.

Learn more about Travel Medical USA Visitor and start your quick quote.

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Expat insurance

Expat insurance is not typical travel medical insurance, but it does provide valuable health insurance coverage to individuals living abroad for more than a year. This may be more similar to the type of health insurance you’re used to getting at home in the United States, covering routine and preventive care as well as treatments for medical emergencies and evacuations.

This type of insurance is popular — and necessary — among those living or retiring abroad, as well as those who are working full-time or as digital nomads outside their home country.

Learn more about Seven Corners Expat & Digital Nomad Insurance and request a quote if you’re ready to make the most of a new life abroad.

How to Choose the Best Travel Insurance

When it comes to travel insurance, there's a lot to consider. Every trip is unique, and you want to make sure you choose the right provider and the plan for you. Don’t settle for some cookie cutter option that might or might not work for your situation.

Look for a travel insurance provider that offers a variety of plans, outstanding customer service, an extensive directory of international doctors and hospitals, and 24/7 emergency assistance.

If you have more questions about travel insurance and how it works, check out our ultimate guide or contact us. Our licensed agents are available to help you make sense of it all and to help you find the best plan for your next trip.

Topics: Travel Insurance Advice

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