National Association of Insurance Commissioners issues consumer guidance on travel insurance coverage costs and common exclusions

The National Association of Insurance Commissioners has published consumer guidance explaining how travel insurance works and what buyers should check before purchasing a policy. The guidance describes travel insurance as protection for some or all trip-related costs if travel is canceled or interrupted, and stresses that coverage, limits and exclusions vary by policy. It also notes that policies usually cost 5% to 10% of the total trip price, with price affected by factors such as destination, season and age. The guidance highlights the main coverage categories, including trip cancellation, interruption and delay, travel medical coverage, emergency medical evacuation, repatriation, accidental death and dismemberment, and baggage loss or delay. It says covered triggers can include illness, family emergencies, severe weather, transport disruption, natural disasters, overnight delays, jury duty or court testimony, while common exclusions may include pre-existing conditions, pandemics, civil or political unrest, pregnancy and childbirth, and some higher-risk activities. It also explains that Cancel for Any Reason coverage is typically an add-on bought shortly after booking, costs more than standard coverage, usually reimburses only part of trip expenses, and generally requires travelers to insure all prepaid non-refundable costs. The association advises consumers to review whether existing protection already exists through health insurance, credit cards or homeowners insurance, and to buy early because named storms or other known events are unlikely to be covered if insurance is purchased after the fact. For questions about specific policies, it directs consumers to their state or territorial insurance department.