Travel insurance is insurance that is intended to cover medical expenses, trip cancellation, lost luggage, flight accident and other losses incurred while travelling, either internationally or domestically.
Travel insurance can usually be arranged at the time of the booking of a trip to cover exactly the duration of that trip, or a "multi-trip" policy can cover an unlimited number of trips within a set time frame. Some policies offer lower and higher medical-expense options; the higher ones are chiefly for countries that have high medical costs, such as the United States.
This section covers any unused travel and or accommodation costs, pre-paid charges (including any additional travel expenses incurred, provided they are deemed reasonable and necessary) if a trip is canceled or cut short under a variety of circumstances, which may include any of the following, depending on the policy:
Certain countries will require that you have purchased sufficient coverage should something happen while you are traveling to that country. Those governments do not want to be burdened with the costs of your medical care and will require you to have a suitable plan meeting certain minimum requirements.
The common exclusions in travel insurance policies include pre-existing medical conditions, unlicensed operation of a vehicle, travelling for the purpose of receiving medical treatment, elective surgery or treatment, or injury or illness caused by alcohol, drug use, or reckless behavior, including engaging in some sporting activities. Events arising from war and terrorism are usually excluded, but most policies allow trip cancellation arising from war or an act of terrorism that meets the policy's criteria.