Perhaps one of the hardest choices to make when planning a trip overseas is whether to buy travel insurance. The terms can be confusing, the coverage amounts vary widely, and some policies come with a time limit for purchase.

This post will talk about how I approach evaluating travel insurance and what I personally do. Every person’s situation is different and I cannot advise you on whether you should buy travel insurance or what kind (I’m also not a doctor and I most certainly don’t play one on TV). Please check with your physician for further questions about whether a travel insurance policy is right for you.

I’m also not an insurance agent or broker.

Buying Through the Airline

Often, airlines will present you with an offer to buy travel insurance even before you’ve purchased the ticket. Many airlines now make you actively accept or decline before you proceed with actually buying the airfare.

As part of the pitch, they grab your attention with eye-popping, bolded warnings such as this one from American Airlines: “Important fact: The average out-of-pocket cost of medical emergency transportation outside the U.S. can be as high as $25,000.” That makes the $60, $80, or $100 travel insurance premium seem minuscule in comparison.

(PIC: Screen shot of American Airlines Travel Insurance Purchase screen.PNG)

Coverage Through Credit Cards

In June 2016, WalletHub posted its “Best Credit Cards with Travel Insurance” findings. Its pick for best travel accident insurance among personal cards was the Chase Sapphire Preferred, with a coverage amount of $500,000 (disclosure: I have this card, but did not know about the level of coverage when I signed up). The Citi Prestige Card tied for best lost and delayed luggage coverage.

I also like to check the security situation of the country or destination I’m going to. We talk more about security and where to get reputable information in our post How to Stay Safe While Traveling.

There are as many— or more — travel insurance policies than there are car insurance policies. Some insurers will only allow you to buy a policy for a certain number of days or week after you purchase your airfare; some will only allow it for a certain number of days or week before your trip. The price depends on a myriad of factors, including: country of travel, country of residence, the traveler’s age, etc.

Since it’s so confusing, the US State Department has created this page full of advice and tips for taking care of your health abroad.

Among its tips: if you do buy travel insurance, be sure to carry “both your insurance policy identity card as proof of such insurance and a claim form.” (emphasis added). For older travelers, the State Department also notes “You are NOT covered by Medicare abroad” (emphasis NOT added).

(PIC: Photo of a person getting their arm wrapped in a cast.JPG)