Why you might actually need road trip travel insurance
If you're planning to pack up a car or RV this summer for your version of the Great American Road Trip, consider adding one thing to your packing list: road-trip-specific travel insurance.
Throughout the pandemic, many people have been purchasing travel insurance, most commonly used for high-ticket foreign-travel journeys in order to cover potential medical emergencies or protect high-cost trip investments.
However, an increasing number of people are considering travel insurance for domestic, land-based vacations.
“People tend to only think about travel insurance when they’re flying abroad — but when you’re on the road, perhaps hundreds of miles away from home, there are things that can go wrong that could wind up costing you a lot of money," said Carol Mueller, vice president at Berkshire Hathaway Travel Protection. "Road-trippers should be thinking about protecting their investment in their vacation.”
The Points Guy looked at some travel insurance companies to explore the latest insurance options on the market. Here's a guide to why these products might be a worthwhile addition to your summer road trip.
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3 reasons you might want travel insurance for a road trip
Standard auto insurance policies cover the usual mishaps of the road, including collision, liability, theft and medical costs (depending on your specific policy). However, travel insurance can cover the related travel expenses connected to such accidents.
For example, if you paid for a non-refundable vacation at Walt Disney World that you weren't able to use in time because your car sank into a bog while en route in Georgia, a travel insurance policy could cover the cost of your missed hotel stays, tours and attraction tickets. (And yes, that's my SUV in the above photo. I didn't get stuck in a bog on the way to Disney World — but I did get stuck in a mud pit near Lake Tahoe.) Road trip insurance can save the day in any domestic destination.
Related: The best credit cards for rental car insurance
Travel insurance covers pre-paid road trip costs due to cancellation
Whether your planned road trip is an epic cross-country journey or just a cross-state weekend escape, if you've booked hotels, attractions or experiences in advance, you might want to think about travel insurance in case you have to cancel the trip before it begins.
Many travel insurance policies also now have coverage in case you or someone in your group has contracted COVID-19 and needs to cancel. Other policies allow you to cancel for any reason. Policies can also cover cancellation due to reasons like jury duty, a documented death in the family, financial insolvency, weather disasters and other problems that would prevent you from taking your planned trip.
Read the fine print carefully to determine exactly what cancellation reasons are accepted, as well as what sort of documentation you need.
Travel insurance covers pre-paid trip costs due to traffic accidents or other road delays
Road-trip-specific travel insurance policies would cover costs associated with trip interruptions or cancellations due to traffic accidents or significant delays brought on by weather or road closures during your journey. For example, if a dust storm shuts down major highways and your group can't make it to Coachella in time, a travel insurance policy could cover the cost of your festival tickets.
As far as damage coverage for rental cars goes, you typically wouldn't want to duplicate your credit card or car insurance coverage with travel insurance. However, Generali Global Assistance suggests signing up for its rental car coverage for additional security – and to avoid "exposing your auto plan to risk" in the shape of higher future rates if you file a claim through your personal policy.
Travel insurance covers medical expenses and evacuation
You won't face the same potential costs of medical evacuation from a foreign country during a domestic road trip. You might need out-of-network doctor care while on the road, though. Generali Global Assistance makes the point on its website that "you don't think travelers only fall off of foreign cliffs, do you? Or people only get stung by non-domestic bees?"
When confronting medical emergencies such as these, typical out-of-network fees can be exorbitant for many medical policies. So it might make financial sense (and give you peace of mind) to purchase a travel insurance policy covering medical expenses even while traveling in the U.S. Additionally, travel insurance may be able to pay for deductibles and copays needed even for in-network providers for any emergencies that come up on the road.
Related: 8 times your credit card insurance might not cover you
How road trip insurance plans can protect you at a reduced cost
Typical travel insurance plans incorporate costs to cover you for flight changes, cancellations, baggage loss or delays, foreign medical treatments, and medical evacuation back to the U.S., as well as many cruise-specific items. If you're just taking a domestic road trip, many of these coverage areas wouldn't apply, so it doesn't make sense to pay a higher premium for them.
If you're looking into a travel insurance policy, it's worth it to explore a la carte pricing for specific coverage areas, if the insurance provider offers such options like medical-only coverage, or only pre-trip cancellation coverage. Some companies, like Berkshire Hathaway, are creating road-trip-specific insurance products that are essentially stripped down versions of standard travel insurance policies.
For example, Berkshire's "ExactCare Lite" insurance policy covers medical emergencies while traveling in the U.S., Canada and Mexico, with some limited pre-paid expense reimbursement. One sample policy priced out at just $56 for medical coverage for a two-week trip, as well as covering up to $500 of pre-paid trip expenses should you cancel the trip.
If you book an expensive hotel or tour during your road trip, you may want to opt into a more comprehensive (and expensive) policy. A sample: Berkshire's "ExactCare Value" policy would cover a full $7,000 trip value, but at a price of $340. It also includes some flight and baggage coverage (which obviously wouldn't apply for a road trip).
Allianz Travel offers insurance policies that can cover you for any trip that's at least 100 miles from home, according to Daniel Durazo, its director of external communications. He added: "And if you feel you don’t need medical coverage, Allianz offers a very inexpensive policy, called One Trip Cancellation Plus that offers trip cancellation and interruption coverage, but does not cover medical emergencies or other 'post-departure' situations." Pricing for the policy begins at just $14, Durazo said.
Related: Best credit cards for paying your medical bills
Bottom line
With the uncertainty of current times, it's a good idea to look into travel insurance, particularly if you have a lot of pre-paid expenses in your planned trip. A domestic road trip doesn't have all of the same potential risks as a foreign trip, so your policy should be tailored to cover only those areas relevant to your specific trip.
Some companies offer branded road-trip products. However, you can also look into a la carte trip insurance pricing (often on convenient online menus) to find the policy that's right for your coverage and price point. As always, read the fine print on all insurance coverage areas, payouts and conditions to avoid surprises down the road.
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.