Wallet protection on vacation

Enjoy your vacation to the fullest - even if something unplanned happens

June 25, 2025

This week, we offer a special issue on how to avoid a large, nasty expense while enjoying much needed relaxation. Insurance is kinda boring until you are staring at a credit card charge for $13,000 because you sprained your ankle while walking back from the pool. Let’s prevent that.
- Cris

The Joy of Modern Times

Let’s face it, life is unpredictable. Storms can cause chaos for travel. The local water can lead to an emergency room visit. Geopolitical chaos can shut down airports for days. The good news is that there are options to protect your wallet in these circumstances. Let’s take a quick look at how to protect ourselves because we aren’t giving up the joy of travel.

🧳 Trip Insurance vs. Travel Medical Insurance: What’s the Difference?

Planning a trip? Don’t skip the insurance - just make sure you’re picking the right kind.

A lot of travelers assume that "travel insurance" is a one-size-fits-all deal. But here’s the truth: there are two very different types of coverage that fall under that umbrella - trip insurance and travel medical insurance - and choosing the wrong one could leave you high and dry when you need help most.

Let’s break it down.

✈️ What is Trip Insurance?

Trip insurance (sometimes called trip cancellation insurance) protects your travel investment. It helps you recover non-refundable costs like flights, hotel bookings, and tours if your plans are derailed by covered reasons - think illness, family emergencies, job loss, or even weather events.

It can also include:

  • Trip interruption coverage

  • Lost or delayed baggage

  • Emergency assistance for rebooking or cancellations

But here’s the catch: trip insurance does not cover your medical bills abroad.

🏥 What is Travel Medical Insurance?

Travel medical insurance is designed to cover the cost of healthcare while you’re traveling outside your home country. That means if you get injured on a hike, come down with food poisoning, or need emergency surgery, this plan steps in.

Features often include:

  • Doctor and hospital visits

  • Emergency medical evacuation

  • Prescription drugs

  • Coverage for COVID-19 or other illnesses

This type of insurance is essential if you're traveling internationally, especially to countries where your home health insurance doesn’t apply.

📊 Quick Comparison

Feature

Trip Insurance

Travel Medical Insurance

Main Purpose

Protect trip expenses

Cover health costs while abroad

Covers Cancellations

✅ Yes

❌ No

Covers Medical Bills

❌ No

✅ Yes

Lost Baggage

✅ Sometimes

❌ Rarely

Emergency Evacuation

✅ Sometimes (limited)

✅ Often included

Required for Visa?

❌ No

✅ Sometimes (e.g. Schengen countries)

Ideal For

Cruises, tours, expensive bookings

International travelers, adventure seekers

🧠 So Which One Should You Get?

That depends on your trip. If you're traveling domestically and want protection for costly reservations, trip insurance is a solid bet. But if you’re headed abroad, especially somewhere without reciprocal healthcare agreements, travel medical insurance is a must.

You can even combine both types to get comprehensive protection - some providers offer bundled packages that include both cancellation and medical coverage. Links to check out prices for Visitors Coverage are scattered throughout this article because we have had great success with them. We purchase medical insurance to supplement the travel insurance that is already included in our personal credit card.

Pro Tip: Not all plans are created equal. Read the fine print, especially around pre-existing conditions, adventure sports, and coverage limits.

Stay smart. Stay covered. And travel worry-free. 🌍

See you next Wednesday.

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