I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on Vacation

Here are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.

By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS

published 4 July 2025

in Features

A woman sits at the gate in an airport and looks at her phone.

(Image credit: Getty Images)

Congratulations, you've worked hard and are ready for a vacation. Some time away. Some R&R. Some phone-free time (though we know that never actually happens). Are any of your insurance policies — auto, homeowners, renters or health insurance — going along for the journey?

Here are three things to keep in mind about your insurance when you're traveling this summer in the U.S. (If you're leaving the country, check with your insurance agent or broker to find out if the level of coverage you have is sufficient or if you'd be better off with a supplemental insurance policy.)

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No. 1: Rental cars

If you're fortunate enough to be flying somewhere and renting a car, then you're sure to be hit up with a plethora of options at the rental car counter, the good old upsells.

The rental car you managed to find was $40 a day, but you're going to get everything from liability insurance to physical damage insurance, even mechanical breakdown and towing coverage. Heck, you can even prepay for gas so you can return the car on empty.

So to buy or not to buy — that is the question. Some options are a matter of personal choice. If you want to prepay for gas, why not? It's convenient.

When it comes to liability and physical damage to the car, it will depend on the personal auto insurance policy that you already have.

Most policies will extend the same coverage you already have to a temporary replacement vehicle. Liability insurance is typically even more portable, so chances are you can skip paying extra for that if you already have it on your existing insurance policy.

Now, these days, there may be some extremely basic policies out there that specifically exclude rentals, so before making any final decisions, either check your policy language, or save some time and ask your insurance agent or broker if your coverage will extend to a rental car.

No. 2: Your luggage, your stuff

So many things can happen to your luggage — you forgot it in your Uber, the airline lost it or sent it to Budapest or, heck, maybe a hotel employee moonlights as a thief.

If you have a property insurance policy — let's narrow it down to a homeowners insurance policy, condominium owners policy or renters policy for the sake of discussion — then chances are excellent you will have some coverage accompanying you on your journey, with a few caveats.

First, your entire amount of personal property coverage will not go with you. See, the insurer will figure you're not taking everything you own on your trip, so 100% of your coverage won't go either. Typically, 10% of your personal property amount will be covered while you are away.

So, if you have $100,000 in personal property coverage, then while you're on the beach in Hawaii, you will have about $10,000 in coverage. Check your policy or with your agent or broker — there are nuances in this area, too.

No. 3: Medical issues

We're only human, and let's face it, stuff happens. You can get the flu just as likely while away as you can at home. Arguably, you are more exposed to bacteria and viruses while traveling than you are when working from home.

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So, yeah, it's the pits, but you may get sick and need a doctor. Or, and I hate to even put this out in the universe, you could get injured.

While the view from the top of that cliff looked magnificent, the jump into what appeared to be deep water may not have been. Even needing a simple prescription medication brings your health insurance into play.

While there is a great deal of nuance here, depending on your health insurer and the type of plan you have, most of them will have provisions for emergencies.

It wouldn't be a bad idea to have a peek at that policy as well so that you know whether to pay out of pocket or go through the process of providing your insurance information to the pharmacy, only to be told it is not in your network.

Work hard, play hard. Vacations are meant to be enjoyed, not dreaded, but — and I'm not trying to be a Debbie Downer — the truth is, I can personally attest to things happening when you're away from home.

Want to learn more about insurance? Visit KarlSusman.com.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Karl Susman is a veteran insurance agency principal, nationally engaged insurance expert witness and broadcast host who translates insurance from jargon to judgment. For more than three decades, he's helped consumers, courts and policymakers navigate coverage, claims and compliance. As Principal of Susman Insurance Agency, Karl works directly with households and businesses to compare options and make clear, defensible coverage decisions.