What Does Travel Insurance Cover? (And 5 Other FAQs)

Whether you're exploring a faraway country or taking a scenic road trip across the U.S., vacations are a meaningful—and often big—investment. 

Travel insurance helps protect that investment by covering unexpected disruptions that can arise before or during your trip. If you’re new to travel insurance, this guide will help you understand how it works and what it covers.

1. Why should I buy travel insurance?

When planning a dream trip, no one expects something to go wrong. But travel delays, lost luggage, medical emergencies, or even last-minute cancellations can derail your plans. Travel insurance offers peace of mind by covering many unforeseen events that could otherwise lead to financial loss. It’s a smart way to protect your trip and travel with confidence.

2. What Does Travel Insurance Typically Cover?

Most travel insurance plans offer three key areas of protection:

Trip Cancellation Coverage

Reimburses you for prepaid, nonrefundable expenses if you need to cancel your trip due to a covered reason, such as illness, injury, job loss, or certain natural disasters.

Trip Interruption Coverage

Covers the unused portion of your trip if you have to return home early due to a covered emergency or unforeseen event.

Emergency Medical and Transportation Coverage

Pays for emergency medical care and transportation to a medical facility—or your return home—if you suffer a serious illness or injury while traveling.

Additional benefits may include:

• Coverage for lost, delayed or damaged baggage
• Trip delay reimbursement for meals and accommodations
• Emergency medical expenses abroad not covered by your primary health insurance

3. I’m just taking a road trip. Do I need travel insurance?

Absolutely. Travel insurance isn’t just for international travel or flights—it’s useful for road trips, too. If you're renting a car, rental car damage protection can save you money by covering damage or theft of the rental vehicle.

Without it, you may be responsible for your auto insurance deductible and additional rental company fees. Many travel insurance policies also include trip interruption coverage, which can be helpful if your road trip is unexpectedly cut short.

4. How do I choose a travel insurance plan?

Selecting the best travel insurance plan depends on factors like your destination, travel budget, and personal concerns.

Do you worry more about canceling before the trip or about issues while you're already traveling, like lost baggage or delays? Your AAA Travel Advisor can help you compare travel insurance options and select a plan tailored to your needs.

5. What other travel resources are available?

With AAA travel insurance through Allianz Global Assistance, you gain access to 24-Hour Hotline Assistance with multilingual specialists who can help with everything from replacing a lost passport to locating emergency medical care.

You’ll also find helpful tools in the AAA Mobile app, including a medical translator and emergency contact numbers for hospitals and medical services around the world.

From missed connections to medical mishaps, travel insurance offers comprehensive coverage that helps keep your trip on track.

Talk to a AAA Travel Advisor to learn more about travel insurance options that fit your plans—and travel with confidence.