Victoria Zidwick a RoamRight Blog Author

Travel Insurance Terms Glossary

When considering which travel insurance plan best fits your travel needs, it is important to have some basic understanding of the common concepts and terminology. We have put together such a list to help you understand the commonly used general terminology most used travel insurance.

Please note these definitions may not be identical to those contained in your travel insurance policy and are provided solely for informational purposes only. Please refer to your policy for its full and complete definitions, as well as any terms, conditions and exclusions that may affect coverage.

Accidental Death & Dismemberment: A benefit that can provide coverage in case of an accident that results in a loss of life, limbs, or sight while traveling.

Adventure Sports Coverage (also known as Hazardous Sports Coverage): Additional benefits beyond the base travel insurance coverage. It can provide coverage for activities that are considered high risk, such as bungee jumping, hang gliding, and skydiving. For a full list of activities that require additional Adventure Sports Coverage with Arch RoamRight, visit our list of adventure sports.

Annual Multi-Trip Plan: A type of plan that can insure all the trips taken within one year.

Baggage and Personal Effects: The items – such as luggage, personal belongings, or travel documents – that you take with you on your trip. Many travel insurance plans offer coverage for if these items are lost, damaged, stolen, or delayed.

Baggage Delay: In case of lost luggage or luggage ends up at a different location, a Baggage Delay benefit can provide coverage for replacement items if your luggage is delayed. Available coverages included in your travel insurance policy, such as Trip Cancellation, Missed Connection, and Accidental Death & Dismemberment.

Benefit Limit: A specified dollar amount payable for the described benefits, typically with a specified Maximum Benefit Amount for each coverage, as shown in the Schedule of Benefits.

Cancel for Any Reason: An optional benefit, frequently abbreviated as CFAR, which allows cancelation of a trip for absolutely any reason and be reimbursed for up to 75% of the non-refundable trip cost. Such Cancel for Any Reason coverage must be purchased within 21 days of the first deposit made towards a trip, insure 100% of the cost of all travel arrangements subject to cancellation penalties, AND trip canceled 48 hours or more before the scheduled departure date.

Cancel for Work Reasons: An optional benefit that can provide coverage if a trip is canceled due to a work reason. This includes being transferred more than 100 miles from an insured’s current location or having to work during a previously scheduled trip. For more information on Cancel for Work Reason coverages including required criteria and exclusions, consult your policy.

Car Rental Collision Coverage: A type of coverage that can reimburse one for expenses resulting from damage sustained in a rental car. For more information on Car Rental Collision Coverage including conditions and exclusions, consult your policy.

Claim: A request made for reimbursement under a policy as the result of a loss.

Coverage Period: The length of time, beginning with the Effective Date, in which one is eligible for coverage under a travel insurance policy.

Deductible: A specified dollar amount that a policyholder must pay before the insurance provider makes payment on a covered claim.

Effective Date: The day in which a coverage period begins under a travel insurance policy as specified in a travel insurance policy. For Trip Cancellation and the optional Cancel for Any Reason coverages, the effective date typically starts 12:01AM the day after receipt of payment for a travel insurance policy. All other coverages begin at 12:01AM on the date when you depart on the first scheduled travel arrangement for an insured trip.

Emergency Evacuation: Can refer to evacuation for medical purposes – such as emergency transportation to the nearest hospital or medical facility – or Political & Security Evacuation – evacuation to the nearest safe haven due to a political or security event. For coverage details for both Emergency Medical Evacuations and Political & Security Evacuations, review your policy.

Excess Coverage: Any other insurance coverages an insured may have that is triggered and pays out before any travel insurance policy, such as primary health or automobile insurance.

Policy Exclusions: Detailed policy terms and conditions that when triggered, result in there being no coverage for claims made under a travel insurance policy. Consult your policy for a complete list of exclusions.

Family Member: May include you or your traveling companion’s legal spouse (or common-law spouse where legal), legal guardian or ward, son or daughter (adopted, foster, step or in-law), brother or sister (includes step or in-law), grandparent (includes in-law), grandchild, aunt, uncle, niece or nephew, domestic partner, caregiver, or child caregiver.

Hazardous Sports Coverage (also known as Adventure Sports Coverage): Additional benefits beyond the base travel insurance coverage. It can provide coverage for activities that are considered high risk, such as bungee jumping, hang gliding, and skydiving. For a full list of activities that require additional Adventure Sports Coverage with Arch RoamRight, visit our list of adventure sports.

Insured: The person named on the Confirmation of Benefits that is scheduled to participate on a trip, provided the policy premium has been paid.

Maximum Benefit Amount: Means the maximum amount payable for coverage as shown in a policy’s Schedule of Benefits.

Medical Expenses: Medical costs and expenses associated with providing emergency medical services such as, hospital care and emergency transportation incurred while traveling. Please consult a copy of your policy for specifically what is considered a medical expense.

Missed Connection: A benefit that can reimburse for additional transportation costs to rejoin a departed trip, and reimburse for prepaid expenses for unused land or water travel arrangement in the event that one misses a trip departure because of reasons such as: delayed arrival at a trip destination is delayed due to a delay of a common carrier; documented weather condition preventing you from getting to the point of departure for your trip; or a quarantine, hijacking, strike, natural disaster, terrorism, or riot. A common application of the missed connection benefit is a flight delay to a cruise disembarkation port that causes one to miss the cruise departure.

Non-Refundable Travel Expenses or Deposits: The cash, check, or credit card amounts, rewards, miles or points actually paid or used for a trip. Certificates, vouchers, discounts, and/or credits applied (in part or full) towards the cost of the travel arrangements are not considered payments or deposits. Consult a copy of your policy for specific terms.

Pre-Existing Condition: An illness, disease, or other conditions during the 180 day period immediately prior to the effective date of the insured’s coverage for which the insured or insured’s traveling companion, business partner, or family member: 1) received or received a recommendation for a test, examination, or medical treatment; or 2) took or received a prescription for drugs or medicine. Item (2) of this definition does not apply to a condition which is treated or controlled solely through the taking of prescription drugs or medicine and remains treated or controlled without any adjustments or change in the required prescription throughout the 180 day period before your coverage is effective under the policy.

Premium: The amount paid for your travel insurance plan.

Primary Coverage: Refers to a benefit that can provide coverage despite any other insurance coverage the insured may have.

Primary Residence: The primary place where the insured lives.

Quote: A price estimate for travel insurance based on the information provided.

Repatriation of Remains: A benefit that can provide coverage for preparing and sending a deceased person’s body back to their country of primary residence.

Scheduled Departure Date: The date on which the insured is originally scheduled to leave on a trip.

Scheduled Return Date: The date on which the insured is originally scheduled to return to the point of origin or the original final destination of the trip.

Travel Assistance Services: A non-insurance service available to an insured while traveling. This assistance can be replacement of lost or stolen travel documents, legal assistance, language services, and more.

Trip Cancellation: A benefit that can provide coverage for non-refundable trip payments in the event that a trip has to be cancelled for a covered reason. Refer to your policy for a list of covered reasons and exclusions.

Trip Cost: The total non-refundable expenses paid towards a trip.

Trip Delay: A benefit that can provide coverage for non-refundable trip payments if the start of a trip must be delayed. Refer to your policy for time triggers and a list of covered reasons and exclusions.

Trip Deposit Date: The date in which the first non-refundable payment was made towards the trip.

Trip Interruption: A benefit that can provide coverage for non-refundable trip payments in the event a trip must be cut short for a covered reason. Refer to your policy for a list of covered reasons and exclusions.

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About the Author

Victoria Zidwick

Victoria Zidwick, a RoamRight Blog Author RoamRight's Marketing Communications Specialist, Victoria Zidwick, has worked in the travel insurance industry for more than five years. She has traveled extensively throughout the United States and has a handful of international travel experiences.Victoria's travel experiences have changed in recent years, as her family grows and she is learning the ins and outs of traveling with children. Connect with Victoria on LinkedIn or follow her onTwitter or Google Plus.

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