Travel insurance
A real-life example: Mr. and Mrs. Kowalski bought a vacation package on a Greek island: airfare and a stay in a modest hotel. On the second day at the beach, Mrs. Kowalska collapsed onto the sand and never got up again. An ambulance took her to the hospital, where the doctors pronounced her dead of a stroke. Mr. Kowalski did not speak Greek and did not know what to do. He called his travel agent, who told him that the tour package also included travel insurance, and helped arrange for the body to be transported to Poland.
Travel Insurance Means Different Things
Travel accident insurance covers accidents during a trip and is provided by a travel agency or a credit card. Some credit cards provide this coverage automatically if you use them to buy a plane, train or bus ticket for yourself, your spouse or your child – check your card’s terms to see whether yours offers it. Travel accident insurance covers you in case of death or loss of limbs, hearing, sight, etc., up to a set amount, even up to a million dollars.
Travel life insurance covers even less – only the death of the traveler. Some credit cards provide travel life insurance if the ticket is purchased with that card.
Death or a serious accident on vacation is rare, but it is worth knowing that tour packages and travel bought with a credit card sometimes have this insurance included in the price.
Insure Your Rental Car Wisely
A tourist who rents a car cannot do without insurance for it. Car rental companies sell insurance that considerably increases the cost of the rental. It is worth knowing how to minimize that cost.
Pay for the car rental with a credit card, and you may avoid having to buy the rental company’s collision damage waiver, which significantly raises the daily rental cost. Many credit cards cover such damage – in that case the coverage is provided by the card issuer. Before you rely on it, check all the limitations and conditions carefully.
Note: A credit card covers only losses resulting from an accident or theft of the car, but not civil liability or the driver’s other losses. If you cause damage to someone’s property or health in an accident, you will be responsible for it. That is why you should buy liability insurance from the car rental company, unless you have this coverage from another source, e.g., from your auto policy, your homeowner’s insurance, or your own or your company’s business insurance.
Tip: Check the following insurance policies you have:
- Insurance on the car you own (car insurance). Read the policy or call your agent or insurance company and ask to what extent the policy covers rental cars.
- A credit card often provides collision coverage for a rental car paid for with that card. It thus pays for damage to the car resulting from an accident or theft.
- Homeowner’s insurance will pay for items stolen from a rental car. If you have an umbrella policy for half a million or a million dollars, you can sleep soundly, because it will cover your civil liability obligations (damage you cause to others).
- Your health insurance will cover the cost of any medical treatment for you, your children and your spouse.
In a few situations, insuring a rental car makes sense. This is the case when you have no other insurance of your own. Some auto policies refuse to pay if the accident happens abroad, e.g., farther than 50 miles from the Mexican border. In addition, some drivers prefer to pay a few dozen dollars for extra insurance on a rental car simply for peace of mind, so that the rates on their private auto insurance do not go up in case of an accident.
Travel Medical Insurance
Before you leave for an extended period, find out what the rules are for coverage while traveling (away from home) under your health insurance policy. If you have an accident or a sudden illness during your trip (a broken leg, a heart attack, etc.), your insurer will probably cover part of the costs. You will have to pay for the medical services in cash and then file a claim with your insurer for reimbursement. Remember that, as a rule, Medicare does not cover treatment outside the United States.
Note: Most policies do not cover the cost of treating injuries related to extreme sports. If you are going high-altitude mountain climbing, make sure you are covered. Before setting out on so-called adventure travel, consider buying special insurance. Medical transport in case of sudden illness is guaranteed by specialized companies (e.g., Medjet) for an annual premium for one person or a family. Lists of doctors and hospitals in the country you are traveling to are posted on the websites of U.S. embassies and consulates (under U.S. Citizens Services) – more on the State Department website: travel.state.gov.
Trip Cancellation / Trip Interruption Insurance
If you are planning to buy an expensive tour package or a cruise around the world, you may want to consider trip cancellation/trip interruption insurance. You will get your money back only if an event specified in the contract occurs: the death, accident or sudden illness of you, a close family member or a travel companion. The contract may also cover situations where you became the victim of a crime or lost your job through no fault of your own.
If you want insurance against canceling your trip for any reason, choose the appropriate contract, and you will get back only 50–70% of the ticket price.
The premium depends on the value of the ticket purchased and the type of contract.
A credit card may insure you against trip interruption or cancellation and offer various types of emergency assistance while traveling. Read your credit card agreement or call your bank or credit union.
Baggage Insurance
Airlines are responsible for lost baggage. Your rights depend on whether the flight is domestic or international.
In the United States, an airline’s liability for lost baggage on domestic flights may be limited to $4,700 per passenger (the limit has been in effect since January 22, 2025). Passengers’ rights regarding lost baggage are governed by 14 CFR Part 254 (Code of Federal Regulations), overseen by the U.S. Department of Transportation. See also: Aviation Consumer Protection (DOT).
On international flights, baggage liability is limited by the Montreal Convention – since December 28, 2024, to 1,519 SDR (Special Drawing Rights, whose dollar value changes daily). One way to get higher compensation is to declare a higher value for your bags before departure and pay an additional fee. If the airline’s compensation does not fully cover your loss, you can file a claim under your homeowner’s insurance or renter’s insurance. Read your policy carefully. Some credit cards offer additional baggage insurance to passengers who bought their tickets with those cards.
About 99% of lost suitcases are found. If you need to buy essentials while waiting for your bags, keep the receipts – airlines reimburse reasonable expenses incurred until the suitcase turns up.
Where to Get Help
The more adventurous your vacation, the more you need the right package to protect you against various contingencies. Insurance companies offer travel policies for a range of circumstances. You can choose from different travel insurance packages. Ask your travel agent for a recommendation.
Elżbieta Baumgartner
Elżbieta Baumgartner is the author of many advice books, including “Powrót do Polski” (“Returning to Poland”), “Emerytura reemigranta w Polsce, podręcznik seniora wracającego do kraju” (“A Returning Emigrant’s Pension in Poland: A Handbook for Seniors Returning Home”), “Ubezpieczenie społeczne Social Security” (“Social Security”), “WEP: Jak walczyć z redukcją Social Security dla Polaków” (“WEP: How to Fight the Social Security Reduction for Poles”), and “Obywatelstwo z przeszkodami” (“Citizenship with Obstacles”). They are available in Polish-American bookstores and directly from the publisher: Poradnik Sukces, 255 Park Lane, Douglaston, NY 11363, tel. 1-718-224-3492. A list of these and many other guides is available online at: www.poradniksukces.com
Updated October 2026.
