Whether you're planning a trip to a remote island halfway around the world or you're flying from New York to Chicago to meet up with friends for the weekend, travel insurance can come in handy.
However, not all travel insurance is the same. When it comes to domestic versus international travel, there are some key differences in terms of coverage, cost, and scenarios where these policies make sense.
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Compare plan prices for domestic and international travel.
Key Differences in Coverage
Among the several key differences between domestic and international travel insurance, some of the starkest contrasts are regarding what these policies typically cover.
For example, there are usually differences in:
Geographic scope
As the names imply, domestic insurance generally only covers you while traveling within your home country, while international insurance provides support for specific foreign countries or global coverage, depending on the plan.
That said, you should always check the details of your policy. You might find that a policy is marketed as domestic insurance in the U.S. but covers all of North America, for instance, or it might include some limited emergency coverage in other international countries.
Medical coverage
While the specifics vary by policy, in general, international policies often have more comprehensive medical coverage. That's because your regular health insurance often covers most of what travel insurance would cover medically while traveling domestically, but not internationally.
Domestic travel insurance often focuses more on trip interruption and cancellation, while international travel insurance includes those coverages plus more comprehensive medical coverage, including emergency evacuations and repatriation back to your home country for care.
That said, some domestic travel insurance does provide medical coverage, such as if you want coverage for what might otherwise be out-of-network costs for your regular health insurance.
Support services
Another notable difference is that international travel insurance often has more comprehensive emergency support services, due to the nature of traveling abroad.
For example, international plans often provide embassy assistance and multilingual support, such as if you need help communicating your medical needs in a foreign country.
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Cost Comparison Between Domestic and International Insurance
In general, you can expect travel insurance to run somewhere in the range of 4-10% of the total trip costs. However, costs vary significantly by insurer and policy details.
Typically, domestic travel insurance is less expensive than international travel insurance, since it often has narrower coverage. Even when coverage is similar, insurers have to account for the potential cost of claims, which often makes international policies cost more.
For example, it's much more expensive to fly back from Tokyo to New York, than Chicago to New York. Plus, international policies include coverage for things like medical evacuation.
According to SquareMouth, a travel insurance policy comparison site:
- A domestic travel insurance policy costs $245 within the U.S. on average
- An international travel insurance policy costs $310 on average
However, costs all differ significantly based on factors such as:
- Trip length
- Destination risk level
- Activities covered by insurance
- Reimbursement limits
- Age and health of traveler
Plus, policies often differ based on add-ons/optional coverage, such as if you want pre-existing health conditions covered or cancel for any reason (CFAR) coverage.
The best way to compare the costs is to get some quotes. See what applies to the trips you're considering and what you want covered.
Common Misconceptions About Domestic and International Travel Insurance
When you’re considering whether to buy travel insurance, you might assume any of the following.
But here’s why these assumptions are usually wrong.
“International travel insurance is only for long trips.”
You might think international travel insurance is only worth it if you're traveling for multiple weeks. However, even short trips, such as a long weekend in Central America, can be worth insuring.
That's because the same risks still apply, regardless of travel time. If you get sick abroad, for example, the out-of-pocket costs of healthcare can be very high, depending on where you are in the world.
Worse, if you need to be transported home in an emergency, medical evacuation could cost tens of thousands of dollars, if not more.
“Domestic travel insurance is unnecessary for regional travel.”
Even if you're traveling a short distance, domestic travel insurance can still pay off.
Suppose you drive from Atlanta down to Miami, but then flooding prevents you from driving back anytime soon. In this scenario, travel insurance could potentially pay for additional nights at a hotel until it's safe to drive back.
Or, if you're taking a short plane ride but the airline loses your bag, travel insurance could help reimburse you if the contents of your luggage are more than what the airline or your credit card company will pay.
“My domestic health insurance covers me everywhere.”
Your domestic health insurance might provide some coverage for international trips but it’s rare and/or very limited. International travel insurance can reduce the risk of high medical bills abroad. Even for domestic trips, it's worth considering if travel insurance could fill in some gaps.
No matter where you're traveling, check the details of your current health insurance policy and see if adding travel insurance would reduce your financial risk.
You might find that adding a medical-only travel insurance policy works best, or you might prefer to buy a policy that includes medical along with trip interruption/cancellation and 24-hour emergency assistance.
FAQs About Domestic and International Travel Insurance
Does domestic travel insurance cover medical emergencies while traveling within my home country?
Some domestic travel insurance policies cover medical emergencies, but this varies by plan. Always check coverage details before buying.
How does embassy assistance work under international travel insurance?
Your travel insurance may provide a hotline that can give you contact information for the closest embassy or consulate, and an agent might walk you through what an embassy can help with.
It can also include coverage for costs like replacing a lost passport that the embassy facilitates.
Is international travel insurance necessary for countries with reciprocal healthcare agreements?
The U.S. has limited reciprocal healthcare agreements with other countries. While Americans can access emergency medical treatment in countries like Canada, Australia, and South Korea, coverage is limited. You’ll still want travel insurance to ensure you’re covered.
TL;DR: Do I Need Domestic Travel Insurance?
Domestic and international travel insurance each serves its own purpose, and it's important to understand the coverage and cost of specific policies.
You may still need domestic travel insurance to cover things like trip cancellation and lost luggage, even if you don’t need medical coverage.
On the other hand, if you’re traveling overseas, your domestic health insurance likely won’t cover you, so you’ll want more comprehensive coverage.
No matter where you’re traveling, whether it’s within the U.S. or abroad, check what your current policies and credit cards offer so you don't overbuy insurance.
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