Travel insurance is full of legal jargon and confusing acronyms. To help you understand exactly what you are paying for, we have decoded the most common travel insurance terms.
Use this A-Z glossary as your cheat sheet when comparing plans using our Quote Tool.
B
Baggage Delay vs. Baggage Loss
The Simple Definition: Delay coverage reimburses you for essential items (like a toothbrush and change of clothes) if your bags arrive late. Loss coverage reimburses you for the actual value of your luggage and its contents if the airline loses it permanently. Why You Need It: Everyone fears arriving in a foreign country without their clothes. Baggage delay coverage ensures you don’t have to wear the same shirt for three days, but remember: you must save your receipts for those emergency purchases to get reimbursed!
C
Cancel For Any Reason (CFAR)
The Simple Definition: An optional upgrade that allows you to cancel your trip for literally any reason (not just reasons explicitly listed in the policy) and still receive a partial refund. Why You Need It: Standard cancellation requires a documented excuse, like a doctor’s note or a hurricane. If you just decide you don’t want to go, or you are afraid to travel, standard insurance won’t pay out. CFAR (which usually refunds 50% to 75% of your costs) gives you ultimate flexibility. Note: CFAR usually must be purchased within 14-21 days of your initial trip deposit.
Covered Reason
The Simple Definition: A specific event or situation explicitly listed in your policy document that triggers your coverage (e.g., severe weather, unexpected job loss, jury duty, or sudden illness). Why You Need It: When you file a claim for Trip Cancellation or Interruption, the insurance company will check if the cause of your cancellation matches a “Covered Reason.” If it doesn’t, your claim will be denied unless you have CFAR coverage.
D
Deductible
The Simple Definition: The amount of money you have to pay out-of-pocket before your travel insurance kicks in and starts covering the rest of the bill. Why You Need It: Many travel insurance policies actually offer a $0 deductible, which is highly recommended. If your policy has a $250 deductible and your urgent care visit costs $200, the insurance will pay nothing. Always check the deductible amount when comparing quotes.
F
Free Look Period
The Simple Definition: A 10 to 15-day window immediately after purchasing your policy during which you can cancel it for a 100% refund, provided you haven’t left for your trip or filed a claim. Why You Need It: This is the ultimate peace of mind. It allows you to lock in your coverage today, carefully read the policy documents when you have time, and cancel risk-free if you realize the policy isn’t right for you.
L
Look-Back Period (For Pre-Existing Conditions)
The Simple Definition: The specific window of time—usually 60 to 180 days prior to buying the policy—that an insurance company will review your medical records to determine if an illness is considered “pre-existing.” Why You Need It: If you were treated for a heart issue 5 years ago, but have had no symptoms, medication changes, or treatments in the 180 days before buying the policy, it is not considered pre-existing! Understanding this saves you from thinking you are uninsurable.
M
Medical Evacuation & Repatriation
The Simple Definition: Coverage that pays to transport you to an adequate medical facility if you are severely injured or ill, and pays to fly you back to your home country once you are stable. Why You Need It: If you suffer a major injury on a remote island or while hiking in the Andes, local clinics might not be equipped to save you. A medical jet can cost upwards of $100,000. This coverage pays for that specialized transport.
Missed Connection
The Simple Definition: Coverage that pays for additional transportation costs (like a last-minute flight) to help you catch up to your trip if a delay causes you to miss a departure. Why You Need It: This is an absolute must-have if you are going on a cruise or taking a multi-leg international flight. If your first flight is delayed by a storm and the cruise ship leaves port without you, this coverage pays to fly you to the next port of call.
P
Pre-Existing Medical Condition Waiver
The Simple Definition: A time-sensitive waiver that overrides the standard rule excluding pre-existing conditions from coverage. Why You Need It: By default, if you have asthma and suffer an asthma attack abroad, your medical claim could be denied as a “pre-existing condition.” If you purchase a policy with this waiver (usually required within 14 days of your first trip payment), that asthma attack will be fully covered.
Primary vs. Secondary Coverage
The Simple Definition: “Primary” means the travel insurance company pays your medical bills first. “Secondary” means you must file a claim with your regular, domestic health insurance provider first, and the travel insurance will only pay whatever your primary provider refuses to cover. Why You Need It: Primary coverage is vastly superior. If you break your leg in Europe, a primary policy handles the bills directly and immediately. A secondary policy forces you into a bureaucratic nightmare of filing claims with your home health insurance (who will likely deny an international claim anyway) before the travel insurance steps in.
T
Trip Cancellation
The Simple Definition: Coverage that reimburses you for your prepaid, non-refundable trip costs (like flights, hotels, and tours) if you are forced to cancel your trip before you leave due to a Covered Reason. Why You Need It: This is the core of most travel insurance policies. It ensures that if you get the flu three days before your $10,000 cruise, you don’t lose all your money.
Trip Interruption
The Simple Definition: Coverage that reimburses you for the unused portion of your trip and the cost of a last-minute flight home if you have to cut your trip short after you have already departed. Why You Need It: While Cancellation protects you before you leave, Interruption protects you during the trip. If you are a week into a two-week European vacation and a parent suddenly passes away back home, this coverage pays for your emergency flight back and refunds the week of hotels you didn’t get to use.