Understanding your policy: 11 travel insurance terms to know

By HUB SmartCoverage Team on September 14th, 2018

Travel insurance is a popular form of coverage used by travellers worldwide. As with many types of insurance coverage, there are specific words used in a policy that not everyone automatically understands.

In this post, we’re going to look over 11 travel insurance terms you need to know in order to understand your coverage and protection abroad.

Annual coverage

When you purchase annual travel insurance – also known as an annual multi-trip plan – you have insurance coverage for 365 days after you purchase it. Annual coverage can take the administrative burden away from frequent travellers.

Baggage loss

Adding baggage loss protection to your travel insurance coverage means you’ll be taken care of in the event your luggage gets lost, stolen or otherwise damaged. Your insurer will provide you with the essentials until your baggage and its contents are returned to you, or, you’ll be compensated if it is beyond return.

Make sure you know the dollar amount you’re covered for in the baggage loss department as every policy and insurer is different. Consult your provider immediately if you experience baggage loss so that you can take the proper steps towards reimbursement.


The deductible is a common insurance term used to refer to the amount a policyholder must pay before the provider steps in to take over the costs and make payments on a travel insurance claim. Deductibles can refer to a total yearly amount, an amount based on the policy term, or an amount based on the individual incident or claim.

Emergency benefits

This term refers to that amount of coverage for expenses incurred if a traveller is ever transported to a foreign facility during an emergency medical situation.

Emergency evacuation

If you have emergency evacuation coverage, it means you will get evacuated from a travel destination to either a top medical facility or  to your home country during a medical or physical emergency.


True to its name, exclusions are expenses that the insurance provider will not cover. Most exclusions have to do with high risk sports and medical coverage regarding sports injuries.

Family plan

A packaged deal that covers every family member travelling, usually coming with a bundle discount.

Maximum policy coverage

This is the maximum amount that an insurance provider will pay for expenses covered by a travel policy. Make sure you know this amount, so you can attempt to keep your expenses in bounds, or, not claim above the limit.

Pre-existing condition

Pre-existing medical conditions must be disclosed to travel insurance providers, and they concern any medical diagnosis present before an insurance policy was purchased.


Another common insurance term, your premium refers to how much your policy costs. Premiums can be prepaid, paid every month, paid every year, or paid prior to each trip.

Trip interruption coverage

If you add trip interruption (or cancellation) coverage to your travel insurance policy, you’ll be reimbursed for any interrupted or canceled trips for reasons the provider deems acceptable. Acceptable reasons are usually events like injuries, illnesses, family emergencies, flight issues, etc.

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