How to Quickly and Easily Choose the Best Travel Insurance

Here you’ll learn about travel insurance including how to quickly figure out the kind of travel insurance you need, information to have ready for getting quotes, and how to compare and choose the right policy.

When someone mentions travel insurance, my eyes cross and I feel the urge to yawn. To me, it falls into the category of a necessary evil. The operative word is “necessary”.

Travel insurance has one purpose – to manage risk. Each of us must decide the level of risk we are okay with. If something goes wrong, you want your travel insurance to cover and pay for what you aren’t comfortable paying out of pocket.

A few quick points before we dive in. First, there are NO affiliate links in this post, and I don’t recommend any specific insurance company.

Travel insurance should be an individual decision based on your personal needs. Furthermore, those needs can change with each trip.

My goal here is to give you a framework for understanding travel insurance so that you can quickly make an informed decision on what is best for you.

Some of you may already be familiar with part of the material, some may only need a refresh, and for some it may be totally new. Wherever you are in this range, you can use table of contents below to easily navigate to the information you need:

• What Kind of Travel Insurance Do You Need
• What You Need to Get a Travel Insurance Quote
• How to Compare and Choose the Right Travel Insurance Policy

Finally, this post covers travel insurance in general. Plus, those with Italy trips in mind will find specific information tailored to Italy here as well.

What Kind of Travel Insurance Do You Need?

There are three main types of travel insurance:

• Trip Cancellation Insurance
• Medical Insurance
• Medical Evacuation Insurance

Each is covered here. When deciding which of these you need, a good question to ask yourself is:

“If something goes wrong, how much am I able and willing to pay out of pocket?”

Also, each policy may have various exclusions and limitations. Because of this it’s critical to read the fine print. Check their definitions too. What you consider a travel partner or family member may not be the same as what the policy includes.

Trip Cancellation Insurance

Trip Cancellation Insurance covers what you would lose if your trip were cancelled before you go. These policies cover pre-paid, non-refundable items only. This typically includes flights, pre-paid tours, and the pre-paid portion of hotel reservations. The words “pre-paid” and “non-refundable” are key.

What is “covered” depends on the policy. So, you need to read the fine print to make sure it includes what you want and note any restrictions. Covered reasons may include:

• Unexpected illness that makes you unfit to travel
• Unexpected injury that makes you unfit to travel
• Hospitalization of non-traveling family member
• Natural disasters
• Legal obligations (e.g. jury duty)

Sometimes cancellation travel insurance is paired with trip interruption coverage. Trip interruption insurance reimburses you for the part of your trip you were unable to use. It only applies when you have begun your journey but can’t continue for a covered reason.

If there is a disease outbreak where you’re going, some policies may allow you to change your itinerary or make a last-minute cancellation. Be sure to check the fine print to see if this is included and whether there are any restrictions.

Medical Insurance/Travel Health Insurance

 Make sure your health insurance plan provides coverage overseas. For example, I have health insurance with a major provider. However, it does NOT cover me outside the United States. So, don’t assume you’re automatically covered in other countries even if you’re with a large insurance company.

In addition, Medicare does NOT cover hospital or medical costs abroad. If you are a U.S. Senior Citizen, also check into foreign medical coverage with your private Medicare supplement plans.

If you aren’t covered medically while travelling outside your country, Travel Health Insurance is designed to fill this gap. It is a short-term, supplemental medical insurance policy to manage the risk of medical emergencies and care abroad.

When traveling to Italy, the U.S. government highly recommends you have medical insurance with overseas coverage.

Healthcare Systems by Country

You can check into the healthcare system of the country you’ll be visiting at the U.S. State Department website. Enter the name of the country, then click search. Scroll down to “Health”. There you’ll find helpful information about medical facilities and requirements for the country.

Overview of the Italian National Health System

US News and World Report ranked Italy #22 for having a well-developed public health system. In comparison, the United States is ranked #23.

Italy has a national healthcare system. Italians receive free or very low-cost care. There are public and private hospitals. But emergency care is usually available only in public hospitals.

In Italy, all visitors have the right to receive treatment in an emergency. This is true whether they have health insurance or not.

When necessary, the patient pays for transfers to or between hospitals. Also, you usually pay for treatment and services up-front.

You travel insurance company typically reimburses you for covered amounts afterward. Although, a few policies may coordinate payment with the hospital directly.

A potential issue in Italy is that public hospitals don’t provide itemized bills. Italy’s healthcare service charges one rate that covers services, room, and board. So, check if your insurance company requires itemization of expenses.

Note: If you have an end-of-life directive, it is not legal in Italy. Hospitals will continue lifesaving procedures indefinitely regardless of documentation stating otherwise. Therefore, include this as a consideration in your decision making for coverage.

Medical Evacuation Insurance

Medical Evacuation Insurance covers emergency transportation to a high-quality hospital for treatment. It may also include circumstances requiring a medical escort.

Situations where medical evacuations are necessary are hopefully rare. However, if/when they do occur, they can wipe you out financially. 

The stories I hear usually fall within the six-figure range for cost. One example is an older couple that went on a cruise. Beforehand, their travel agent recommended they buy medical evacuation insurance.

During the cruise, one of them had a heart attack and was life flighted back to the United States. The bill was nearly $100,000. Needless to say, this made a critical difference to them in terms of care and finances.

I hope you’re in the group that puts this in the “don’t leave home without it” category. You owe it to yourself and your family.

When evaluating policies, make sure to review what is covered. Decide what is important and best meets your needs here. Some questions to consider are:

• Do I have any say in what medical facility and/or country I’m transferred to? Who makes this determination?
• Does coverage include air as well as ground evacuation?
• Does coverage include an air ambulance furnished with medical equipment?
• Does coverage include medical personnel to care for me enroute?
• Is there a 24-hour physician support center provided?
• Is coverage for a medical escort included and in what circumstances?
• Is evacuation for certain infectious diseases included?
• Can a family member go with me on the journey?

What You Need to Get a Travel Insurance Quote

There are many insurance companies offering travel insurance these days. Most are online and you can communicate with them directly.

Another option is to work through a travel insurance comparison company. These companies typically work with a specific group of individual insurance companies. Usually there is no charge to you for their service.

They focus on simplifying the decision making process. Once you enter basic information, they give you a list of companies, rates, and coverage. To find them, do a search using “travel insurance comparison companies”.

Regardless of if you contact individual companies or a comparison company, you must provide some information to get a quote.

This information is fairly standard and good to have on hand before you start the process. Most will ask about your:

• Trip (date you are leaving home, date your return home, main destination)
• Travelers (country of residence, citizenship, state of residence if in U.S., number of travelers, age of each traveler)
• Trip Cost

Trip Cost

Use the following guidelines to calculate the trip cost amount to enter:

• Include only pre-paid costs that you will lose if your trip is cancelled.
• Include only costs of non-refundable items that you have paid for before your trip. These are items you must pay for even if you cancel.

The amount you enter affects the price of your quote. You don’t have to include the full amount of your trip cost, only what you want included in case of cancellation.

Remember I said insurance is about covering your risk. So, if you are comfortable assuming some of the risk directly, you can insure a part of the trip costs. Doing so should lower your insurance cost.

Also note that many policies allow you to add to your trip cost after purchase for an additional fee if needed.

How to Compare and Choose the Right Travel Insurance Policy

You now have the tools to make an informed decision on travel insurance. The amount of time you spend making this decision is influenced by several factors, including how much you want to spend and your specific needs. However, it can truly be a streamlined process.

Here are key points when comparing your quoted policies:

• Choose insurance based on your personal needs and the amount of risk you are willing to assume. (International trip cost average is under $5,000 while medical evacuation is often six figures. What are you comfortable covering out-of-pocket?)
• Check existing coverage you may already have relating to travel.
• If you want to customize coverage (choosing types, amounts, etc.), look for comparison sites and insurers that provide this option.
• Make sure you select a reputable company. (I recommend a Better Business Rating of A or A+ as a guide.)
• Ensure that the insurance company you select is licensed in your state. If you make a claim and have problems with an insurance company that isn’t licensed in your state, you don’t have a case. Check the National Association of Insurance Commissioners site or your state’s insurance department website for listings.
• Read the fine print/details and ask questions BEFORE you buy. Pay attention to preexisting condition limitations. (Make sure answers you get are in writing.)

Remember to comment and share your travel insurance experiences and questions. Buon viaggio!

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