What does travel insurance cover?

Posted By Allison on Jul 18, 2016

This post may contain affiliate and sponsored links. We donate 10% of our sales commissions to charity.

Thanks to Allianz Global Assistance for sponsoring this post about providing travel coverage for the unexpected. I received financial compensation from Allianz Global Assistance (AGA Service Company). #TravelHappy


I’m so excited! We just booked our first family cruise for Spring Break 2017. This will be our kids’ first cruise and we are looking forward to seeing gators in the Florida Everglades and relaxing on Caribbean beaches.

When I told my mom about our plans, one of her first questions was, “Are you getting insurance?”

What does travel insurance cover? | tipsforfamilytrips.com | vacation | family vacation | cruise | summer | sponsored | Allianz

My parents both work in insurance, so they know what a life saver it can be when something goes wrong. I confess that I don’t buy travel insurance for most trips, but for a big trip where we have to pre-pay most expenses months before we walk out the door, it’s a no-brainer. Cruise lines don’t give refunds if we have to cancel due to illness, a death in the family or any other reason. Missing a dream vacation would be doubly painful if we also lost the money we paid for it.

New research from Allianz Global Assistance shows that fewer Americans are planning vacations in 2016, but those that go will spend more. When we vacation less often, but make it special when we do, it’s important to know that it’s protected. When you buy insurance, you buy peace of mind.

Cancellation is always my biggest worry, but travel insurance covers a lot more than that. Here’s what you get when you buy travel insurance.

Cancellation and Interruption

A lot of crazy things can keep you from leaving home for a long awaited vacation. Sometimes, life happens while you’re on vacation and you have to cut it short. When you have kids, your odds of cancellation or interruption increase and peace of mind is that much more important.

Travel insurance can refund your prepaid vacation expenses for nearly everything from jury duty to natural disasters. If your airline, cruise line, hotel, tour operator, etc takes your money and then goes out of business, you’re covered.

Awful acts of terror have occurred all over the world in places that are usually safe. If it happens at your destination just before or during your trip, you’re covered if you decide to cancel.

In a nutshell, you’re covered for nearly every unplannable accident or event that could keep you from leaving for or finishing your trip. Here is the list from the basic international plan from Allianz Global Assistance.

  • Hijacking
  • Unplanned strikes
  • Civil unrest
  • Natural disaster
  • Injury or illness
  • Death
  • Job loss
  • Felonious assault
  • Terrorism
  • Jury Duty
  • Damage to your home
  • Travel provider default

What does travel insurance cover? | tipsforfamilytrips.com | vacation | family vacation | cruise | summer | sponsored | Allianz

Lost, Stolen or Damaged Luggage

My parents visited friends in Brazil a few years ago, and went three days without their luggage when it was misplaced by the airline. Travel insurance will help you purchase the essentials if your luggage is lost for more than 24 hours. Insurance will also help replace bags and belongings that are lost, stolen or damaged during your trip.

Travel Delay

One of my travel blogging friends was recently delayed at the airport more than 12 hours with her family. They lost an entire day and missed a tour at their destination. I don’t know if they had travel insurance, but unplanned hotel accommodations and lost prepaid expenses would have been covered.

Medical Emergencies

It’s a safe bet that our medical insurance will be out-of-network  in the Caribbean.  A trip to the emergency room for a broken bone or high fever could be crazy expensive. Travel insurance helps fill in the gaps. If you require emergency medical transportation or dental care, it will help pay for that too.

24-hour Hotline

Allianz Global Assistance has a team ready around the clock to help you find medical or legal assistance, send a message home, help with missed connections and lost or stolen travel documents and much more. That’s peace of mind.

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Hi there! I am the founder of Tips for Family Trips. I am a married mom of two children, ages 10 and 12, living near Salt Lake City, Utah. We took our first child on a two-week road trip when she was four weeks old and we have been traveling as a family ever since. We love to get out of the house to see and do fun things, both far away and in our own neighborhood.


  1. Travel insurance is such an essential purchase! We’ve had to claim on our policy a number of times on our travels for accidents or hospital stays. Definitely worth it.

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    • Thanks, Bethaney! Glad to hear that it has worked for you. We have never needed to make a claim on travel insurance, but that’s the ideal scenario. Better to have it and not need it than to need it and not have it.

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  2. Great post. Thanks for sharing!

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  3. I’m just starting to learn more about travel insurance and I can’t believe we haven’t been using it. Could have saved us several times. Thanks for bringing this to the spotlight.

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  4. I found this super helpful. I have only purchased insurance for a few trips in the past, but I can see that we will need to start investing in it for more and more travel.

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