is travel insurance still worth it

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Is travel insurance worth it yes, in these 3 scenarios.

These are the scenarios when travel insurance makes most sense.

Is Travel Insurance Worth It?

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Travel insurance can be useful, but it's not always necessary.

The key to knowing if you need travel insurance is figuring out your specific risks for any given vacation, then deciding if you can buy coverage that adequately protects you from any financial losses and pitfalls that might occur.

While insurance can be invaluable no matter the traveler and trip, these are the scenarios where it's especially useful:

• You're concerned about flight disruptions: Flight cancellations and delays are commonplace, especially during the holiday and summer travel seasons. Most trip insurance will reimburse you for incidental expenses that occur while you wait for your flight to depart or for your checked luggage to arrive. Examples include meals and hotel stays if your flight is delayed overnight, or clothing and toiletries you have to buy while you wait for your bags to show up at your destination. Limits apply to this coverage, but it can still pay off if you have to use it.
• You need the option to cancel your trip: Do you have a medical condition that might suddenly prevent you from traveling? What about young children who are prone to illness, or the possibility of your beach vacation getting rained out during hurricane season ? These are just some of the instances when cancel for any reason (CFAR) coverage can help. Offered as an add-on to many insurance policies, this coverage lets you cancel your trip for a reason not covered within a typical trip cancellation benefit. If you need to use this coverage, you'll typically get 50% to 80% of your prepaid travel expenses refunded.
• You're traveling internationally: U.S. health insurance policies typically don't cover medical care or emergencies overseas, which is why so many people seek out travel medical insurance . According to Allianz Travel Insurance, the average costs of international medical evacuation can range from $15,000 in Mexico all the way up to $220,000 in Asia, Australia and the Middle East. Fortunately, many travel insurance policies offer up to $500,000 in medical evacuation coverage or potentially more.

The best travel insurance options

If one of the above applies and/or you're still curious about travel insurance, you can find the top-rated policies in a variety of categories below.

Any rates listed are for illustrative purposes only. You should contact the insurance company directly for applicable quotes.

What does travel insurance cover?

You'll quickly notice that each travel insurance policy is different from the next. Most plans offer coverage for trip cancellations and interruptions, lost or delayed baggage, medical emergencies, and other common perils; some let you add optional coverage for a rental car , sporting equipment and more.

To give you an overview of the way different travel insurance policies work, the chart below shows the included benefits in several plans from a travel insurance company called Travelex:

Compare Travelex plans and get a quote .

What does travel insurance not cover?

It's important to note that travel insurance policies cannot possibly cover every unexpected bill you encounter before, during or after a trip. That's because travel insurance is not meant to be used like other types of insurance, including traditional medical coverage you have for routine health care expenses.

According to Allianz Travel Insurance , travel insurance "does not cover losses that arise from expected or reasonably foreseeable events or problems." Here are some of the most common exclusions found in travel insurance policies:

• Civil unrest
• Epidemics (except COVID-19)
• Extreme, high-risk sports
• Government-issued travel bulletins or warnings
• Natural disasters
• Nuclear reaction, radiation or radioactive contamination
• Preexisting conditions (unless specifically covered by your plan)
• Pregnancy-related medical expenses that aren't an emergency (including regular labor and delivery)
• Terrorist events
• Travel to participate or train for a sporting event

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When should you skip travel insurance?

While the cost of a travel insurance policy can be worth it in the end, there are plenty of travel scenarios where you may not need to purchase a plan. Consider the following situations where buying insurance may not be worth the trouble:

• You're planning a short road trip within the U.S.: If you're planning a short trip within the U.S. where your own health insurance coverage will apply, you may not need trip insurance for medical expenses. The fact that you're not flying also means you don't have to worry about flight cancellations, and that your luggage will likely remain in your possession the entire trip.
• You plan to use credit card travel insurance: There may be instances where credit card travel insurance coverage is sufficient for your plans, although only you can make this decision. For example, the popular Chase Sapphire Reserve card comes with trip cancellation and interruption coverage worth up to $10,000 per person and $20,000 per trip; primary rental car coverage for damage or theft worth up to $75,000; lost luggage reimbursement worth up to $3,000 per passenger; emergency evacuation and transportation coverage worth up to $100,000; and more.
• You bought insurance from your travel provider: There may be instances where the travel insurance coverage from your airline or cruise line is good enough. If you're flying within the U.S. to see a family member and staying in their home for free, for example, you'll likely just need protection against flight cancellations, eligible trip delays, and lost or delayed baggage.

Why Trust U.S. News Travel

Holly Johnson is an award-winning writer who has extensive experience when it comes to researching and buying travel insurance for her own trips to more than 50 countries around the world. Johnson has interviewed top executives from many of the best travel insurance companies and has successfully filed several travel insurance claims for trip delays and trip cancellations over the years. Johnson also works alongside her husband, Greg, who has been licensed to sell travel insurance in 50 states, in their family media business.

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Is travel insurance worth it?

You've spent weeks meticulously planning your vacation — everything from airfare and hotels to an itinerary. However, what do you do when something unexpected occurs and suddenly you can't take your trip?

Some purchase travel insurance. It can help you potentially avoid losing the thousands of dollars you spent on your vacation.

But when is travel insurance worth buying?

Here's everything you need to know about travel insurance so you can decide if you should purchase a policy for your next trip.

What is travel insurance?

Travel insurance is coverage you can purchase to protect yourself from risks and potential financial losses you may incur while traveling, according to insurance company Nationwide .

There are two categories of travel insurance: trip cancellation protection and comprehensive travel insurance.

Trip cancellation insurance is the most basic form of travel insurance. It covers your lost bags or missed connecting flights in the event you cannot travel due to illness or injury.

Comprehensive travel insurance covers many of the same issues as trip cancellation insurance. However, it also offers coverage for medical and dental emergencies, emergency evacuations in the event of a disaster, 24-hour traveler assistance and accidental death benefits.

Travel insurance can provide many different types of coverage, though you may feel reluctant to tack on another expense to your trip.

When should I purchase travel insurance?

While travel insurance has its benefits, you only need to purchase it in certain scenarios.

When to skip buying travel insurance

You can skip purchasing travel insurance if you're traveling within the U.S. Flying domestically typically isn't as expensive compared to international trips. Also, if you already have medical insurance, you will most likely be covered in the event of a medical emergency in another state.

Purchasing insurance that only covers flight cancellations or lost baggage may not be wise either.

For instance, if your flight is canceled, you won't necessarily lose all the money you spent on airfare. That's because airlines typically book passengers on the next available flight. Even if the next available flight doesn't work for you, passengers are entitled to refunds from airlines if their flights are canceled or significantly delayed.

You also may not need to buy travel insurance if you have a card like the Chase Sapphire Preferred Card or The Platinum Card® from American Express . Some credit cards already offer a few travel insurance benefits such as trip cancellation protection and lost luggage reimbursements. Keep in mind, though, that the insurance perks credit cards offer may not be sufficient for larger trips.

When to buy travel insurance

You should only consider travel insurance if you're traveling at least 100 miles away and you have travel concerns, according to Suzanne Morrow, senior vice president of e-commerce at InsureMyTrip .

"Am I concerned that something happens to me medically? Am I concerned if there's delays or cancellations or anything that'll prevent me from being able to go?" Morrow said. "Once people can identify the things they're concerned about, they can think about what type of travel insurance they need."

Travel insurance can come in handy when traveling internationally, particularly for medical coverage since U.S. travelers won't otherwise have medical insurance abroad.

Megan Moncrief, chief marketing officer at travel insurance comparison site Squaremouth , said travel insurance can be beneficial for international trips due to the chances of facing more inconveniences associated with higher traveling costs.

"Most of us have health insurance here. We don't need the medical side of traveling domestically," Moncrief said. "If you're traveling internationally, you're more than likely to have a higher trip cost, more legs to your trip, so more chances to be inconvenienced along the way."

Besides cancellations or medical coverage, comprehensive travel insurance can also allow you to book a flight quickly in the event you have to abruptly leave your vacation for an unplanned situation like a family emergency. Travel insurance plans can offer medical evacuation or emergency evacuation coverage, where travelers — in the absolute worst-case scenario — can be transported to the nearest hospital or medical facility in the event of illness or injury without accruing six-figure medical bills.

"Unless you 100% know your medical insurance is going to take care of you outside of the United States, 100% for that reason alone [you should consider travel medical insurance]," Morrow said. "The second is the evacuation piece because, believe it or not, that can get really, really expensive if you have to be medically evac'd and have to pay it out of your pocket."

However, Stan Sandberg, co-founder of TravelInsurance.com , said he believes consumers should only purchase travel insurance if their trip has any nonrefundable components that they wouldn't want to lose money over.

"We see a lot of people who are looking for insurance for the post-departure benefits," Sandberg said. "So, when they're on the trip, they want the emergency medical expense coverage. If someone were to get sick or if something goes wrong, then that's covered."

How do I purchase travel insurance?

There are two ways you can purchase travel insurance: by searching comparison sites for a quote or directly from a provider.

Travel comparison sites, such as InsureMyTrip, Squaremouth and TravelInsurance.com, allow you to compare policies and prices across multiple travel insurance companies, which may give you the most options. You can also purchase travel insurance directly from a provider — companies such as Allianz and AIG are popular.

Surprisingly, travel insurance isn't expensive. You should expect to spend around 4% to 10% of the total for your nonrefundable trip costs, per InsureMyTrip.

You may feel reluctant to tack on another expense to an already pricey vacation, but with travel insurance only costing, on average, $280 to insure $5,200 of expenses, according to Moncrief, the extra expense may be worth it for added peace of mind.

"It makes it look a lot more attractive when you can think, 'Well, I can either lose $5,200 if I can't travel or spend $280 to make sure I don't ever lose the $5,200,'" Moncrief said.

Bottom line

There are perks to having travel insurance. It can be worth buying for international trips in case a medical or family emergency causes you to suddenly cancel the rest of your trip.

By only spending a couple of hundred dollars, you'll potentially save yourself thousands of dollars.

"Travel is becoming more expensive," Moncrief said. "Inflation is very real, and what we're seeing is travelers are having to spend more on their travel; therefore they're less likely to want to risk that expense."

Related reading:

• The best travel insurance policies and providers
• The best credit cards with travel insurance
• 7 things to look out for when buying travel insurance, according to an expert
• Here's why I buy an annual travel insurance policy, even though my credit cards offer travel protections
• All you need to know about annual travel insurance policies

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When to Buy Travel Insurance

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Planning a trip involves a lot of moving parts, and while you want everything to go smoothly, the truth is that unexpected things can happen. In these cases, travel insurance can help make those issues easier to deal with — whether it’s by paying for your hospital bills in another country or reimbursing you for lost luggage.

However, the types of travel insurance that are available to you depend on when you purchase your policy. Let’s look at when to buy travel insurance, how late you can buy travel insurance and what different policies can offer.

The different types of travel insurance

There are many different kinds of travel insurance coverage depending on your needs. Here are some of the most common.

Trip cancellation insurance . Will reimburse nonrefundable costs when your trip is canceled due to a covered event. 

Trip interruption insurance . Pays costs incurred when a trip is cut short for a covered reason. 

Trip delay insurance . Provides financial assistance in case your flight is delayed beyond a certain amount of time.

Travel medical insurance . Covers medical costs for illness or accidents that arise during your travels.

Emergency evacuation insurance . Pays for the cost to evacuate you elsewhere (reasons can vary from medical to extreme weather).

Accidental death and dismemberment (AD&D) insurance . Like life insurance, it provides a payout to a beneficiary in the event of death or dismemberment during travels. 

Baggage loss insurance . Will reimburse you if your bag is lost, stolen or damaged.

Rental car insurance . Provides insurance for collision and damage to a rental car.

Cancel for Any Reason insurance (CFAR). An optional add-on that covers a portion of nonrefundable costs if you choose to cancel your trip for any reason.   

» Learn more: What does travel insurance cover?

How early can you buy travel insurance?

Understanding when to get travel insurance can make a big difference in the policies you’re able to purchase. Typically, you can’t buy one before knowing some details about your trip.

While it’s possible to purchase a policy before you’ve booked your flights or made other travel plans, many insurers ask you for information about your trip to help you find the correct insurance. This means you’ll need to at least know where you’re going, when you’re going and the cost of your trip before purchasing travel insurance.

Multi-trip or annual travel insurance can cover you for a year with a single purchase. This is convenient if you travel frequently or take last-minute trips.

When to purchase travel insurance

So if you can’t buy travel insurance before doing some preliminary trip planning, you might be wondering “When should I buy travel insurance?” The answer to that is that it depends on what you want covered.

This is because not all types of coverage are available at all times. Two notable examples include CFAR insurance and pre-existing medical conditions.

CFAR insurance is a supplement to your existing policy that allows you to cancel your plans for any reason. Standard trip cancellation or interruption insurance requires that you cancel for a covered reason to receive reimbursement. Covered reasons may include sickness, death, job loss or financial insolvency, but CFAR insurance faces none of these limitations.

Many insurance companies only give you a short window to purchase a CFAR add-on. This will generally be within two to three weeks of your initial trip deposit, but the deadline varies by insurer so be sure to double-check if you’re interested in this type of coverage.

Likewise, many travel medical policies specifically exclude coverage of pre-existing health conditions — unless you take some additional steps in a timely manner. Some policies will cover acute re-occurrence of the pre-existing condition, provided you complete a waiver within a specific time period, usually within two weeks of your first trip payment.

» Learn more: Can I get travel insurance for pre-existing medical conditions?

When is it too late to buy travel insurance?

It’s a good idea to purchase travel insurance sooner rather than later, especially if you’re interested in any time-sensitive add-ons. However, running late on buying insurance doesn’t mean that you’re out of luck.

While you’ll likely get better coverage if you buy a policy soon after making an initial payment on your trip, it’s still possible to buy a plan if your trip is days away — or if you’ve already departed. Typically, these plans may include things like trip interruption, emergency medical and baggage delay coverage, but they won’t provide trip cancellation or other pre-departure benefits.

Credit cards that offer travel insurance

It’s tempting to purchase a travel insurance policy when planning a trip, but before you do, you’ll want to do some research. Many travel credit cards offer complimentary travel insurance. To qualify, you’ll need to pay for your trip with your card. Keep in mind that different cards have different coverage limits.

The Chase Sapphire Reserve® card, for example, is a premium travel credit card that provides a wide range of coverage:

Trip cancellation, interruption and delay insurance. 

Baggage delay and lost luggage insurance. 

Emergency medical and evacuation insurance. 

Travel accident (AD&D) insurance. 

Rental car insurance. 

The coverage offered by the Chase Sapphire Reserve® isn’t limited to just the cardholder; immediate family members are also included in this policy. They don’t even need to be traveling with the cardholder to receive coverage as long as the trip was charged to the card.

» Learn more: The best credit cards for travel insurance benefits

When should you buy travel insurance?

Purchasing travel insurance isn’t mandatory for a good vacation, but it can certainly come in handy if your plans go awry. While it’s possible to buy travel insurance up until just before — or even after — you depart, the best time to do so is shortly after you begin booking the trip. This allows you to provide the information required to buy a policy while also remaining eligible for time-sensitive add-ons and benefits like trip cancellation.

Before you purchase travel insurance, however, you’ll want to take a look at any travel credit cards you own to see what types of complimentary insurance they offer.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024 :

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Wells Fargo Autograph℠ Card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

60,000 Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

85,000 Earn 85,000 bonus points after spending $3,000 on purchases in the first 3 months from account opening.

Is Travel Insurance Worth It? Evaluating the Value and Benefits

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate travel insurance products to write unbiased product reviews.

• Travel insurance covers risks like trip cancellations, health emergencies, and lost luggage.
• Travel insurance costs can range from 4% to 12% of your total trip cost.
• Travel insurance is best for trips that are long, expensive, nonrefundable, and international.
• Compare travel insurance coverage options and rates with SquareMouth . 

Vacations can be very expensive. If you're paying a lot for yours, you might wonder if you should purchase travel insurance, especially when some costs are nonrefundable.

The answer isn't always cut-and-dried. Travel insurance isn't necessary for everyone. Whether you need it will depend on a variety of factors. Here are some key points to consider when deciding if travel insurance suits you.

Introduction to travel insurance

When planning a trip, it's essential to think about how you'll protect yourself from the unexpected. That's where travel insurance comes in. It can cover various risks like loss of personal belongings, checked baggage, and more. With the appropriate coverage, you can nullify or mitigate the potential losses. "Plain and simple, travel insurance is a layer of protection against financial loss," says Brad Cummins , owner and principal agent for Insurance Geek, an insurance comparison platform. "Whether it be lost luggage or a lost passport, travel insurance will cover the extra costs during these unfortunate events."

Benefits of travel insurance

Protection against unforeseen cancellation.

One of the top reasons to acquire travel insurance is to cover potential losses from trip cancellations. When canceling a trip due to a covered cause, travel insurance will reimburse you for prepaid, nonrefundable expenses. 

Some covered causes for travel cancellations include:

• Sickness, injury, or death of traveler or family member of traveler
• Inclement weather
• Unexpected work or layoffs
• Terrorist incidents in a travel location

Some travel insurance covers trip cancellations regardless of the reason. However, you make certain trade-offs when you enroll in a "Cancel for Any Reason" (CFAR) insurance policy. These policies are more expensive and may only refund a percentage of your trip's cost. You can find our guide on the best CFAR travel insurance  here.

Financial security and peace of mind

While your travel insurance covers any unforeseen issues before your trip, it continues to cover you even after your flight has taken off.

For example, you don't have to be as anxious at baggage claim when your fellow passengers have claimed their luggage and yours hasn't come out yet. Travel insurance offers lost luggage protection and can cover any necessary purchases while you wait for your late luggage to arrive, such as toiletries and a change of clothes.

Medical coverage on travel insurance  can also offer peace of mind as most US health insurers don't provide coverage when you're abroad. A comprehensive travel insurance plan will cover you in an unexpected accident or emergency so you can seek medical attention for an injury sustained while traveling without worrying about mounting medical bills.

Evaluating the cost of travel insurance

The average cost of travel insurance is 5%-6% of your total trip cost. However, the exact cost will vary based on factors such as your age, travel destination, and where you live, and can be as little as 4% of your trip cost or as high as 12% of your trip cost.

If you're wondering whether travel insurance is worth it, you're not alone. There are a few things to consider. If an emergency arises on your trip, travel insurance can reimburse part or all of your vacation expenditure. However, this will depend on factors such as your trip type and whether it's refundable.

Cost vs. potential savings

In general, travel insurance is worth it if you're concerned about losing money if your trip is called off or delayed or if you're worried about medical bills while traveling. However, conducting thorough research and understanding the costs and coverage provided is critical before purchasing a policy.

For example, older travelers or those with pre-existing medical conditions may pay more for their insurance. Similarly, those traveling to high-risk destinations or participating in high-risk activities may also face higher premiums. 

Ultimately, it's important to shop around and compare quotes from different travel insurance companies to find the best coverage and rate for your needs. Read more in our guide for the best travel insurance companies . 

Cost-benefit analysis for different trip types

Travel insurance may be a wise investment if you've already paid for your and can't change or cancel your trip without penalty. Suppose your trip is canceled or disrupted due to a covered cause. In that case, travel insurance will cover the trip's cost and any other nonrefundable expenditures up to a pre-determined amount.

If you're heading to a country where your health coverage doesn't apply, or if you don't have any health insurance at all, travel insurance might provide the protection you need. Travel insurance can also assist you in case of medical emergencies. It's vital to understand that not all travel insurance policies are created equal. Be sure to carefully study the details and understand what is and isn't covered before purchasing one.

Scenarios where travel insurance is essential

Expensive vacations and long-term travel.

It's a good idea to insure trips with a high, nonrefundable price tag because you'll never forgive yourself if your expensive, once-in-a-lifetime trip gets canceled and your money and planning go down the drain. For these vacations, you'll want to find a policy that covers 100% of expenses.

Similarly, if you have long-term travel plans, you'll want to have a policy that protects against travel interruption in case something cuts your plans short. You'll also want medical coverage during extended stay outside the country.

High-risk destinations and activities

High-risk destinations include regions facing political instability, war zones, and areas prone to natural disasters. Travelers headed to these areas should look into travel insurance in case their trip is canceled due to an unforeseen event. 

Additionally, certain areas are known for the thrilling activities they offer, like skydiving and bungee jumping. If you have extreme sports on your itinerary or believe you might build up the courage to plunge down a canyon, you may want to invest in a travel insurance policy. Keep in mind that some travel insurance policies don't cover high-risk activities, so shop carefully.

When travel insurance may not be necessary

Low-risk, short, or domestic trips.

There are also some situations in which you might not need travel insurance. If you are traveling within the US, you do not need travel insurance for health reasons since most health insurance plans will cover you even if you're not in your home state. 

Additionally, travel insurance may not be necessary if you're only traveling over the weekend or exclusively booked refundable experiences.

Making an informed decision

There are a few key considerations when buying a travel insurance policy. The cost of the policy is one factor, but it's also important to look at the coverage limits and what is included and excluded in the policy. Be sure to read the fine print carefully and compare policies between different companies. 

It's also important to consider the purpose of your travel insurance policy. If you're going on a trip where you'll be doing adventurous activities, ensure your policy covers those activities. Finally, remember that travel insurance is there to protect you in case something goes wrong on your trip, so don't hesitate to use it if you need to.

If you decide that you need travel insurance, here are a few things to keep in mind when shopping for a policy:

• Read the fine print of any policy you are considering to understand what is and is not covered. This is especially important for those who want to add special coverage options. 
• Compare policies from different providers to find the best coverage at the best price.
• Purchase your policy well in advance of your trip so that you are covered in case of any unforeseen circumstances.
• Ensure you're covered for pre-existing conditions because a number of policies will exclude pre-existing conditions if you don't pay extra for a waiver or additional coverage. 

Buying travel insurance can be a pretty quick and painless process, thanks to insurance aggregator sites like SquareMouth .

Using SquareMouth is one of the easiest ways to see multiple coverage options simultaneously. Once you've entered some personal details and information regarding your trip, you'll see a variety of insurance providers and plans from which to choose.

Assessing personal and trip risks

The first consideration you should factor into travel insurance is how much of your trip is already paid for. If you've prepaid for most or all of your travel expenses, you may want to purchase travel insurance if you have to cancel.

Another thing to consider is where you will be traveling. If you are visiting multiple countries, getting insurance that covers you in all of them might be a good idea.

Your age and overall health can also determine whether you need travel insurance. Suppose you are older or have pre-existing medical conditions, for example. In that case, it might be a good idea to purchase travel insurance if you need to cancel your trip or incur unexpected medical expenses.

Lastly, the value of your luggage can also be a factor to consider. If you plan to bring expensive items with you on your trip, it might be worth purchasing travel insurance to cover lost or stolen luggage.

Reviewing policy options and exclusions

When it comes to travel insurance, the ease of use will depend on the provider you choose. If you're working with a reputable insurer, then the process should be relatively straightforward. However, it's still important to understand what is and isn't included in your policy before you purchase it. This way, you can be sure that you're getting the coverage you need and that you won't be caught off guard by any fine print.

Travel insurance isn't necessary for everyone or every trip. But it can bring a lot of peace of mind during your travels and can certainly translate into significant savings if you're faced with a medical emergency while on your trip. It's best to do your research, compare plans, and understand your own level of risk when it comes to deciding whether or not to purchase coverage.

Travel insurance frequently asked questions

Travel insurance is highly recommended for trips that are long and expensive. For example, you should buy travel insurance for any international trips, cruises, adventure travels, and trips with significant pre-paid expenses.

To say that travel insurance will save you money in the long run isn't entirely accurate. Travel insurance will save you money when things go wrong, but it won't save you any money if your trip goes smoothly.

Short domestic trips don't necessitate travel insurance. Most health insurance policies cover you from state to state, so unless you're worried about unexpected cancellations, travel insurance isn't a must-have.

Travel insurance policies commonly exclude coverage for pre-existing medical conditions, extreme sports injuries, and travel to high-risk countries.

Cost-benefit considerations should include the total cost of your trip, the refundability of your expenses, your destination's healthcare costs, and your personal health and travel risks.

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Is Travel Insurance Worth It? Here’s What You Should Know Before Your Next Trip

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Table of Contents

What is travel insurance, why travel insurance is worth it, what travel insurance costs, when you need travel insurance, how to get travel insurance, final thoughts.

We may be compensated when you click on product links, such as credit cards, from one or more of our advertising partners. Terms apply to the offers below. See our  Advertising Policy for more about our partners, how we make money, and our rating methodology. Opinions and recommendations are ours alone.

Travel can be an exciting and enriching experience, but it’s not without risks. Unforeseen events such as medical emergencies abroad or trip cancellations can disrupt your plans and leave you with financial losses.

When things go wrong on your trip, travel insurance can help. Whether you need emergency assistance or reimbursement for delayed luggage, travel insurance coverage comes in clutch.

Is travel insurance worth it? Usually — though it’s not necessary for every trip. Although adding another expense to your travel budget may not be thrilling, investing in travel insurance is frequently a wise decision if you’re spending a lot or taking risks.

Let’s look at what travel insurance costs, what it covers, and when it’s essential so you can make the best choice for travel insurance.

Travel insurance offers coverage for unexpected events and risks while traveling , providing coverage that can give you financial protection and assistance when things go wrong. It can help you manage the financial impact if you experience a travel-related disruption or emergency.

Typically, standard travel insurance covers trip cancellation or interruption, emergency medical expenses, baggage, travel delays, emergency assistance, evacuation, and accidental death or dismemberment.

You can purchase travel insurance for a specific trip or as an annual policy that covers multiple trips. Travel insurance is available directly from insurance companies, travel agencies, airlines, and online travel booking platforms.

You probably don’t want to imagine that your trip will be anything less than perfect, but the reality is travel frequently goes awry — and it can cost you. 

You might need to buy clothes and toiletries after an airline loses your luggage, pay for a night in a hotel due to travel delays, or face medical bills if you’re injured far from home. Travel insurance can reimburse costs in all these situations, providing peace of mind and financial protection .

Consider these situations when travel insurance can reimburse unexpected travel expenses:

• Emergency Evacuation: You may require emergency evacuation due to situations such as a medical emergency. Without proper coverage, these situations can be logistically and financially challenging.
• Lost or Delayed Baggage: Baggage mishaps are common, and airlines may misplace your luggage, or you may face theft or damage. Without your belongings, you might need to purchase essential items.
• Medical Emergency: Illness or injury is always troubling, especially when traveling in an unfamiliar environment. An accident abroad without travel insurance could be costly, and your regular health insurance might not provide coverage.
• Travel Delays: Flight delays and cancellations are common travel frustrations, and you may face expenses such as meals, accommodations, and alternative transportation.
• Trip Cancellation or Interruption: An unexpected event such as illness or a family emergency could force you to cancel or cut short your trip. Without travel insurance, you might lose out on your nonrefundable expenses.

In these situations, travel insurance can come to the rescue, offering reimbursement and sometimes emergency assistance when things go wrong on your trip.

For example, emergency medical transportation can cost about $20,000 on the low end. If you need a medevac, you could be looking at $200,000 or more, according to travel insurance company Allianz .

Travel insurance can help you relax on your trip, knowing you’re covered for major mishaps.

Generally, travel insurance costs 5% to 10% of your trip , depending on several factors. Getting quotes from multiple insurance carriers to compare costs and coverage is wise. These are some of the factors insurance companies will consider when pricing your travel insurance policy:

• Additional options, such as Cancel for Any Reason or adventure sports
• Coverage level
• Destination
• Trip duration

You should consider travel insurance for any trip of significant financial investment or risk, whether international or domestic. But there are some travel situations when travel insurance is particularly useful:

• Adventurous or Risky Travel: If you plan to do adventure sports (such as scuba diving) or visit destinations with significant risks (such as natural disasters), a specialized travel insurance policy can support you with coverage and assistance.
• Elderly Travelers : Health risks increase as we age, making senior travelers more susceptible to health issues while traveling.
• International Travel: International trips are generally more costly than domestic, with longer durations or more logistics that could go wrong. And medical care abroad could be complicated.
• Medical Issues: If you’re concerned about medical care, travel insurance could help ensure access to medical care and coverage while traveling.
• Multiple Destinations: If you’re visiting multiple destinations or have connecting flights, you have more opportunities for travel to go off the rails.
• Peak Season Travel: When many other people travel, you may face more flight delays, cancellations, or trip interruptions.
• Significant Investment: A costly nonrefundable trip makes travel insurance essential so you can get reimbursed if an unexpected event forces you to cancel or interrupt your trip.
• Unpredictable Weather: If you’re traveling during stormy seasons or in areas prone to natural disasters, you might face delays or cancellations caused by adverse weather conditions.

You might not want travel insurance for a domestic trip that’s relatively inexpensive and where your existing health plan would cover you at your destination. And trip cancellation or interruption coverage isn’t useful if all of your reservations are refundable — though you might still want it for medical and emergency coverage while on your trip.

But if you’re traveling to the Caribbean during hurricane season on a nonrefundable trip, for example, travel insurance is probably a wise choice.

You can get travel insurance by searching for a quote directly from a travel insurance company or on comparison sites such as Squaremouth or InsureMyTrip . You can also ask an insurance agent to guide you and find the best travel insurance policy for your needs.

Review the policy and documentation to ensure you understand all the terms and limitations once you’ve found a quote with the coverage and cost you’re good with. 

If everything looks good, you’ll pay the premium and get your policy. You should print a copy of your insurance policy or carry a digital copy on your mobile device to access policy information if you need to make a claim or get emergency assistance.

Credit Card Travel Insurance Limitations

You may have a credit card that offers travel insurance as a benefit. Credit cards with this benefit frequently offer protection for trip cancellation or interruption , rental car damage , and baggage loss or delay . Though rare, some offer emergency evacuation coverage.

American Express credit cards typically offer travel accident, car rental loss and damage, and baggage insurance. You can also get roadside assistance and access to the Global Assist Hotline.

Chase credit cards often have travel insurance, too. For example, the Chase Sapphire Reserve ® provides cardholders with an auto rental collision damage waiver , trip cancellation, trip interruption, trip delay, lost luggage, baggage delay, roadside assistance, emergency evacuation, emergency medical and dental, travel accident, and travel and emergency assistance coverage.

While credit card travel insurance is helpful, don’t expect it to offer the same extensive coverage you’d get with a separate travel insurance policy.

Consider these common limitations of credit card travel insurance:

• There are coverage limits, such as a maximum limit for trip cancellation or lost baggage.
• There are eligibility requirements, such as booking the trip with your credit card.
• Preexisting medical conditions may be excluded.
• Coverage duration may be limited.
• Types of coverage may be limited, so you may get trip cancellation coverage but not emergency evacuation.
• There’s little to no customization that allows you to add coverage options.
• It’s typically secondary coverage that kicks in only after you’ve exhausted other insurance policies.

How Much Travel Insurance Do You Need?

How much travel insurance you should get depends on how much protection you need. Consider higher protection levels if you’re taking an especially expensive or risky trip, have health issues, or plan to bring costly items such as jewelry or sports equipment. Long trips may require a greater degree of coverage to account for the potential risks and expenses that can occur over an extended period.

Consider Annual Travel Insurance

Frequent travelers may benefit from annual travel insurance or multi-trip insurance. If you travel multiple times each year, annual travel insurance can be a cost-effective way to cover all of your trips rather than separate travel insurance policies for each trip.

Annual travel insurance can also be more convenient than buying travel insurance each time you plan a trip. You’re automatically covered for all of your trips within the specified coverage period as long as your trip meets the policy’s limits. 

Annual travel insurance policies typically offer comprehensive coverage, which includes trip cancellations, medical emergencies, travel delays, and baggage loss. You can generally add coverage for additional needs, such as adventure sports or Cancel for Any Reason coverage .

Assess your travel habits, anticipated number of trips, and planned destinations when considering annual travel insurance. If you take more than a couple of trips each year, it might make sense to get a multi-trip policy.

Adding Travel Protection to Your Booking

When you make a travel booking, you may notice you can add travel protection insurance. For example, Airbnb and Disney offer travel protection add-ons at checkout. Should you add it?

The travel protection offered at checkout is typically not issued by the operator, such as Airbnb or Disney, but by a third-party travel insurance company . These policies are typically comprehensive, like a separate travel insurance policy you could buy independently. Coverage often includes trip cancellation or interruption, baggage loss or delay, emergency medical and evacuation, accidents, and rental car coverage.

If you’re offered travel protection when booking, it makes sense to check out the details. It could be a good deal, as the operator may have preferred pricing with the travel insurance company. But you should still get travel insurance quotes independently to compare the costs and coverage.

How To Get the Best Value Travel Insurance

Before you purchase travel insurance, you should get quotes from multiple travel insurance companies. You can compare coverage and costs once you input your information, including trip cost, duration, age, and destination.

Before you purchase travel insurance, assess your needs and consider the activities and destination so you can get the right level of coverage. 

As you compare policies, consider pricing, benefit limits, and what’s covered. You should also look at deductibles , which can lower the premium cost but require you to pay out before the insurance company does. Make sure the deductible amount is manageable if you need to make a claim. And, ensure that coverage limits are enough to cover potential expenses and losses.

You may get better rates if you purchase your travel insurance policy directly from a provider , eliminating third-party fees or commissions. However, getting quotes from a third-party website or travel agency can be a good idea because you may benefit from discounts or promotions.

Finally, read reviews before you purchase your travel insurance policy. A travel insurance policy isn’t a good deal if it doesn’t offer helpful coverage. Find out what other customers think of the coverage and customer service and how their claims went. 

Travel insurance can be an investment in peace of mind. Whether you’re taking a costly trip or need medical coverage abroad, travel insurance benefits can far outweigh the cost. Before you take your next trip, consider your travel needs, destination risks, and the travel insurance coverage you can get from different providers.

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When Is Travel Insurance Worth It?

Know when you need travel insurance and when you can skip it.

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Now that Americans returning to the U.S. from abroad are no longer required to test for COVID-19 before boarding a plane, you might be wondering whether it's worth it to pay for travel insurance . Travel insurance may seem like an unnecessary cost, particularly when fares are refundable or you don’t have to pay a change fee. But there are situations when its mandatory, as well as times when it’s not required but is worth paying for.

What travel insurance covers

While some credit cards offer travel insurance , often, the coverage is limited. Sure, travel insurance through your credit card may cover the cost of your trip if its cancelled, but it likely won't cover expenses if you experience a medical emergency abroad. 

By contrast, comprehensive travel insurance policies cover a wide range of expenses. A comprehensive travel policy typically includes several types of coverage all in one plan. This includes coverage for damage to rental cars, trip cancellation, lost baggage and medical expenses when you’re abroad.

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Another option is to combine the benefits that come with your travel rewards credit card (trip cancellation, lost luggage and trip delay coverage) with a travel medical insurance policy. 

How much travel insurance costs

According to data from SquareMouth , a travel insurance comparison site, the overall average cost among all single trip travel insurance policies purchased on their site in 2023 was $283. Comprehensive travel insurance policies averaged at $403, while  medical-only policies cost on average $96. 

However, the amount you pay for a policy depends on a number of factors — the length of your trip, the number of travelers you need to insure, and even how old you are. A better estimate is 4% to 11% of the total cost of a trip, experts say. You can compare plans at SquareMouth or TravelInsurance . Choose coverages that make sense for your trip, and be sure to read the fine print of any policy you consider.

Travel insurance policies generally fall into one of three tiers: basic, middle-tier and comprehensive coverage.  

Although basic is often the most affordable option and includes benefits such as trip cancellation and lost baggage coverage, it may require that you pay a deductible in the event of sickness or injury. According to TravelInsurance.com , a basic coverage policy costs on average $103. 

Middle-tier coverage typically includes the same benefits as basic policies but adds a health insurance benefit. A mid-range policy costs on average $124 .

A more expensive, comprehensive policy includes both the benefits of basic or middle-tier policies, plus other benefits like accidental death coverage. However, with a comprehensive policy, you'll likely have to pay a higher claim limit. On average, a comprehensive policy costs $162 .

Because older travelers are generally at higher risk of health problems, policies tend to be more expensive the older you are. A 2021 analysis conducted by AdvisorSmith , a small business resource website, estimated that average prices differed from a low of $92 for a young child to a high of $805 for a 100-year-old person. The difference between a 40-year-old’s and 70-year-old’s average cost of travel insurance may come to about $100. But that doesn’t mean older folks can’t find affordable policies; shopping around and comparing plans is key.

Travel insurance and COVID-19

Most comprehensive travel insurance policies now include cancellation and medical benefits related to contracting COVID-19. For those with other COVID-related concerns during the height of the pandemic, such as border closures or quarantine restrictions, it would have been advisable to pay for what’s called a “cancel for any reason,” or CFAR, upgrade. CFAR travel insurance can tack on an additional 50% to the cost of travel insurance, but it offers better protection for travelers facing pandemic-era complications.

When to buy travel insurance

As of June 12, 2022, travelers returning to the U.S. no longer need to test negative for COVID in order to reenter the country, alleviating fears of being stuck in a foreign country longer than planned. But the Centers for Disease Control and Prevention advises anyone experiencing COVID-like symptoms not to travel. And there are other times when opting for travel insurance is worth the cost.

If you are concerned about severe weather upending your trip, about a possible unexpected health incident involving you or a family member, a terrorist attack, or even losing your job, travel insurance policies with basic trip cancellation coverage often cover those reasons for cancelling. Also, be sure to check the travel restrictions for any countries you are traveling to regularly; some countries still require travel insurance in order to visit.

If you are concerned about severe weather upending your trip, about a possible unexpected health incident involving you or a family member, a terrorist attack, or even losing your job, travel insurance policies with basic trip cancellation coverage often cover those reasons for cancelling. 

Furthermore, if you're traveling outside the country, it’s always a good idea to purchase some form of travel medical insurance , even if you're in good health. This way, you won't have to pay out of pocket for any medical costs in the case of an accident or emergency. Even if you have a U.S. health insurance plan, most provide little or no coverage abroad.   

When to skip travel insurance

Whether to pay for a travel insurance policy and what level of coverage you get depends on your personal risk tolerance, of course. But it also depends on whether you’ll have to pay a lot out of pocket if you have to cancel or postpone your plans.

If you’re mainly worried about losing money on costly international flights, for instance, think again before you pay to insure them. That also goes for travel insurance plans offered at checkout when purchasing a plane or train ticket. Although it may seem like a small expense in exchange for the added flexibility, keep in mind that most airfares already have built-in flexibility.

Major U.S. airlines made permanent changes during the pandemic, allowing flexible bookings for most tickets. That means you won’t have to pay a fee if you need to change your flight — as long as you don’t buy the cheapest fares (Southwest allows free changes for all tickets). Also, some travel providers offer flexibility on bookings made within a certain time. For instance, the major airlines and Amtrak offer a refund in the first 24 hours after a booking if you have to cancel or change your itinerary.

Also, when an airline cancels your trip—as long as the flight is arriving at and/or departing from a U.S. airport — you are legally entitled to a refund, per U.S. Department of Transportation regulations. An airline will often automatically issue a credit or voucher for a cancelled flight, but be sure to request a refund if that is what you would prefer, as is your right. Also, if there has been a substantial schedule change (typically of two hours or more) and you decide not to take that flight, you are entitled to a refund of your fare.

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Emma Patch joined Kiplinger in 2020. She previously interned for Kiplinger's Retirement Report and before that, for a boutique investment firm in New York City. She served as editor-at-large and features editor for Middlebury College's student newspaper, The Campus . She specializes in travel, student debt and a number of other personal finance topics. Born in London, Emma grew up in Connecticut and now lives in Washington, D.C.

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Is Travel Insurance Worth It? Experts Say Yes!

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Taylor Medine is a personal finance writer who focuses on demystifying related topics for people like her — the everyday consumer. Her work has been published by FinanceBuzz, Credit Karma and Experian.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

Here’s a breakdown of how we reviewed and rated the best travel insurance companies

Travel insurance is worth considering, even if it’s not mandatory for your destination. Think of it as a financial safety net that can protect you if unexpected events and expenses occur during your trip.

We at the MarketWatch Guides team have researched the best travel insurance companies to help you decide if purchasing a policy is worth it. We’ll cover when you might need it, when you might not, coverage inclusions and exclusions and more. We’ll also touch on the average cost of travel insurance and where you can purchase a plan.

Key Takeaways:

• Travel insurance can provide you with peace of mind in case unforeseen circumstances cause you to cancel your trip or return home early.
• If you need emergency medical help for an illness or injury abroad, a travel insurance policy with medical coverage can reimburse the costs of this care.
• According to our third annual travel insurance survey conducted in February 2024, almost 80% of the 1,000 respondents had purchased travel insurance more than once. Coverage was the most important factor over cost for nearly half of these respondents.

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Is Travel Insurance Worth the Cost?

Travel insurance can provide peace of mind in the face of unforeseen events that can alter your travel plans before or during your trip. Coverages such as trip cancellation and trip interruption coverage can help you recoup money lost if you need to cancel your trip or head home early for reasons covered under policy terms. Baggage coverage can reimburse you for items lost, stolen or damaged in your luggage during transit to your destination.

Many travel insurance policies also include coverage for emergency medical situations. Angela Borden, a product marketing specialist at Seven Corners, makes the case that this coverage is worth the extra cost.

“If you get sick or hurt during your trip, your travel medical insurance can pay for doctor’s appointments, hospital visits, treatment, medication, and in extreme situations, emergency medical evacuation. Without travel medical insurance, there’s a good chance you’d be left paying those bills out of pocket.”

If you value your peace of mind and view protection from unforeseen travel and medical circumstances as an investment, a travel insurance policy may be worth purchasing.

When Is Travel Insurance Worth It?

Travel insurance can provide a valuable financial safety net regardless of your destination, but it may make more sense for some travel itineraries than others. For example, if you’re traveling to a country lacking a robust healthcare system, travel medical and evacuation coverages can help you get the care you need during an emergency. Or if you’re traveling with expensive items in your luggage, baggage delay and loss coverage can reimburse you if your bags are damaged, lost, stolen or delayed during your travels.

Explore when it could be worth purchasing different types of coverage in the sections below.

When Is Trip Cancellation and Trip Interruption Insurance Worth It?

Trip cancellation and  trip interruption coverage  can help cover nonrefundable travel expenses if you’re unable to travel or your trip is cut short. While no traveler wants to expect the unexpected, these coverages can protect against unforeseen circumstances.

For example, if you need unexpected medical attention or surgery that prevents you from traveling,  trip cancellation insurance  can reimburse your trip costs. Or if a travel companion dies, travel insurance will typically consider this a covered event for cancellation or trip interruption. If you’re worried about an unforeseen event forcing you to cancel your trip, you’ll likely find this type of insurance to be worth it.

hould I Purchase CFAR Coverage?

Standard trip cancellation insurance won’t cover every circumstance. If you’re concerned about canceling your trip due to a foreseeable event,  cancel for any reason (CFAR) coverage  could be worth considering. Living up to its name, this type of travel insurance provides considerable flexibility by allowing you to cancel your vacation for any reason.

However, our research has found that this coverage will significantly increase your overall policy costs. If you think this additional cost is worth the option to cancel your trip for reasons uncovered under traditional trip cancellation coverage, then adding CFAR coverage to your travel insurance policy is worth considering.

When Is Baggage Loss or Delay Coverage Worth It?

Baggage loss and delay coverage can reimburse you for lost, delayed, stolen or damaged bags during your travels. If your travel plans involve multiple layovers or if you’re traveling with expensive items in your luggage, this coverage could be worth investing in. Note, though, that monetary coverage limits vary by travel insurance policy. It’s best practice to read through a plan’s sample policy to ensure its  baggage coverage fits your needs.

When Should I Buy Emergency Travel Medical Insurance?

Emergency  travel medical insurance  can cover medical bills accrued while traveling abroad. As most domestic health insurance plans, including  Medicare , don’t extend coverage outside of the US, this type of insurance can benefit those concerned about illnesses and injuries during international travel.

Check to see if your health insurance plan covers overseas medical expenses. If not — and you’d like coverage for an illness or injury — you may want to consider purchasing a travel insurance policy with emergency medical coverage.

When Is Emergency Medical Evacuation Coverage Worth It?

Emergency  medical evacuation coverage  could be worth purchasing if you’re traveling to a remote area or an area lacking a robust healthcare system. It covers the cost of transportation to a medical facility equipped to care for your needs when you’re sick or injured.

This coverage includes more common transportation methods such as ambulances, plus evacuation by helicopter from more remote areas. Reading up on the healthcare system of the country you’re traveling to can help you decide if you need this type of travel insurance.

When To Buy Supplemental Travel Insurance

Supplemental travel insurance could be beneficial over a standard policy in specific scenarios. For example, if you have a credit card that offers travel benefits — such as the  Chase Sapphire Preferred  card — you’ll receive complimentary trip cancellation and interruption coverage if you use it to purchase your non-refundable travel expenses.

However, complimentary coverage doesn’t always mean comprehensive. If you’re looking for more well-rounded coverage that includes travel medical and emergency evacuation benefits, you may want to purchase these additional coverages a la carte.

When Is Travel Insurance Not Necessary?

While travel insurance can be a helpful purchase to protect your non-refundable trip expenses, it’s not always necessary in every situation. For example, if you’re taking a cheap domestic trip and you’re not concerned about potentially losing its total costs, a policy may not be worth the extra money. Or if you have coverage through a credit card and feel satisfied with it, you could forgo any additional travel insurance. 

If you’re traveling for business and your company covers your expenses, you likely won’t need your own policy. That said, it’s still worth checking with your company to learn more about the specific coverage it provides, if any. Every travel scenario is different. Examine your individual travel needs before deciding against the purchase of a policy.  

What Does Trip Insurance Cover?

Most travel insurance policies offer multiple types of coverage for travel-related events, such as flight cancellations, medical emergencies and lost baggage. If you’re on a tight budget, even cheap insurance policies can provide a wide range of protection options. 

According to our 2024 travel insurance survey findings, over 15% of the 1,000 participants chose an Allianz policy as their most recent travel insurance provider. To help you better understand what travel insurance typically covers, we offer an overview of common coverages and the amounts allocated through one of Allianz’s popular policies in the table below.

“When you’ve made a financial investment in your trip or need to protect your health when you travel, travel insurance is 100% worth it. Travel insurance can reimburse you for prepaid, nonrefundable trip expenses if you need to cancel or interrupt your trip for a covered reason. “

– Angela Borden, Product Marketing Specialist at Seven Corners

What Does Travel Insurance Not Cover?

Travel insurance can cover unexpected trip expenses due to unforeseen circumstances, but a policy won’t cover everything. Here are examples of what your travel protection might not include:

• Pre-existing conditions : Medical expenses due to pre-existing conditions are typically not covered unless your doctor clears you for travel and you purchased insurance within a certain number of days of paying for your trip.
• Pregnancy : While your policy may cover medical emergencies related to pregnancy , it likely won’t include trip cancellations due to normal pregnancy symptoms.
• Political unrest: If your visit is canceled or interrupted due to war, the resulting costs might not be covered.
• High-risk travel: Your policy may not provide coverage for high-risk activities like skydiving or traveling to destinations that are considered unsafe.

Where To Buy Travel Insurance

You can purchase a travel insurance policy entirely online at your convenience. Our research and mystery shopping efforts have shown that many travel insurance companies allow you to gather quotes, choose a policy and complete your purchase without the need to speak with a customer service representative. 

Of course, if you prefer to speak with someone about a policy, most providers have dedicated representatives available to discuss any questions or concerns you may have. You could also purchase a policy with the help of a travel insurance agent or through the website you used when booking your trip. Wherever you decide to buy a plan, read the fine print in your policy to fully understand the coverage you’re paying for.

How Much Does Travel Insurance Cost?

The average cost of travel insurance is about 3% to 5% of the total value of your trip . We based this percentage on 1,519 quotes gathered by our research team across various travel insurance providers using seven unique traveler profiles. However, note that your actual cost for a travel insurance policy will depend on multiple factors.

The more costly your trip, the more your provider will need to reimburse you for a valid claim, which increases the cost of your policy. In addition, plan costs will generally increase with age, as younger travelers may be less likely to file a claim than senior travelers based on overall health. The type of coverage you purchase can also affect how much you pay for a policy.

In our experience, the best way to determine the cost of travel insurance is to gather quotes from several providers and compare them. This will help you find the coverage that best fits your travel needs and budget.

Frequently Asked Questions About Travel Insurance

What are the disadvantages of travel insurance.

A downside of buying travel insurance is there’s always a chance you could pay for coverage you don’t end up needing. Ultimately, buying insurance for a trip is a gamble, but it’s one you could be happy you made if a vacation doesn’t go as planned.

Another travel insurance disadvantage is that policies don’t cover everything. Policy exclusions vary so be sure to read through your contract’s fine print to understand limits and covered events.

What is the value of travel insurance?

Travel insurance can reimburse you for costs if a trip gets canceled, delayed or interrupted. When traveling abroad, having travel insurance with medical coverage can also help pay for emergency expenses until you return home. So if you’re on a cruise line and need to visit a medical facility, for example, travel insurance could help cover the cost of your care.

Is it worth paying for travel insurance?

Travel insurance may not be necessary for short, inexpensive trips or for trips where airfare and accommodations are refundable. However, for longer trips where you’re paying more out-of-pocket, travel insurance can provide peace of mind and minimize financial loss if you have to cancel your plans.

What are some things to be careful about when traveling?

When traveling, it’s important to be vigilant about your surroundings and be aware of any travel advisories for your destination. Try to travel in groups and avoid bringing valuable items with you when sightseeing or touring since tourists may be attractive targets for theft. You can keep updated on international travel advisories on the U.S. Department of State website .

If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides. com .

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On This Page

• Key Takeaways

Does everyone need travel insurance?

When buying travel insurance is worth it.

• When travel insurance may

Understanding what travel insurance covers

What is not covered by travel insurance, should i use my credit card travel protection instead of buying travel insurance.

• Bottom Line Is trip insurance worth it?

FAQ: is travel insurance worth it?

• Recommended articles

Related topics

• The bottom line is travel insurance is worth the cost . In fact, the cheapest travel insurance plans can cost as little as $1 per day.
• In rare cases, travel insurance may not be worth it – if your traditional healthcare plan covers you abroad or if you have travel coverage through a credit card or travel company like AAA.
• The best way to evaluate if travel insurance is worth it for you is to weigh your total potential losses vs. the total cost of travel insurance to see which costs more .
• Typically, after doing this exercise, your potential losses without insurance are far higher than the cost of travel coverage . Therefore, it’s usually worth it to buy travel insurance.
• Keep in mind travel insurance offers more than just medical coverage, which usually sweetens the deal. Extra benefits such as rental car coverage, baggage coverage, trip interruption or cancelation coverage, or stipends for trip delays are common benefits to consider.
• We recommend using an online comparison tool to see quotes from multiple providers and easily compare travel insurance plans all at once .

As a ballpark figure of reference, the average cost of travel insurance typically works out to be 5% to 6% of the total cost of most trips. For inexpensive trips, this means travel insurance can cost as little as $1 per day.

Alternatively, for more expensive trips that cost several thousands of dollars, paying 5% down to get travel insurance can be well worth the cost as it often allows you to be reimbursed for the entire cost of your trip .

This guide will explain when travel insurance is worth it, the different types of travel coverage you can buy, and how much you could save by purchasing a travel insurance plan.

Our top picks for travel insurance

Seven corners, generali global assistance.

While travel insurance is a great option for everyone, it may not be necessary for all trips or people. For example, if your traditional health insurance covers medical emergencies while traveling within the U.S., you may not need emergency travel medical coverage for a domestic trip.

However, at a minimum, you should ensure you can weather the losses and extra expenses that you could potentially incur on any trip you take. For example, most people probably could not afford to pay out of pocket for a medical airlift evacuation from a foreign country, even as close as Canada . Therefore, it’s important to weigh the odds of these types of scenarios occurring. Additionally, some countries will legally require you to have travel insurance before you are allowed to enter.

Consider the following instances where travel insurance is definitely worth it , and when you may be able to go without.

Your flight has multiple connections

If you’re traveling on an international flight with multiple connections, such as the US to Italy, and then traveling to India , there are so many more opportunities for something to go wrong. Your bags could get lost or delayed during any leg of your journey, and more flights provide more opportunities for trip delays or missed connections.

In these instances, having trip delay coverage could pay for costs like unexpected hotel stays or meals you have while you wait. Meanwhile, baggage delay coverage can pay for clothing and toiletries you have to buy while you wait for your luggage to arrive. If you plan trips to multiple destinations over a year, you’ll typically pay higher premiums for multi-trip or annual travel insurance plans versus one-off plans.

• Total value of travel insurance: $200 to $1,000 or more

You’re traveling to a destination where your medical coverage will not apply

If you’re traveling outside your home country, it’s very unlikely your health insurance plan will apply. This means failing to purchase travel insurance with medical coverage will leave you entirely on the hook for charges you rack up.

As an example, let’s say you travel to Mexico for Christmas and wind up in the emergency room with a heart attack. Your hospital stay and emergency surgery result in a $20,000 medical bill, which is entirely your responsibility .

With travel insurance that covers medical expenses, however, you could rest assured that your insurance company would foot the bill. Also keep in mind that it’s possible to rack up even higher amounts in medical bills overseas, which could be impossible to pay back on your own.

• Total value of travel insurance: Hundreds of thousands of dollars or more

Flare-ups are common with a pre-existing medical condition you have

Imagine you have a chronic medical condition that frequently flares up, but you’re ready to embark on a dream trip to Italy . Now picture yourself in an Italian hospital dealing with your medical condition and wondering how much the bill will set you back.

In this scenario, you would be considerably better off if you had a travel insurance policy with medical coverage for pre-existing conditions already in force. Keep in mind, that pre-existing conditions could also be something as common as traveling while pregnant . Like with any other type of medical care, the value of travel health insurance can easily be in the hundreds of thousands of dollars depending on the care you receive. Especially for older travelers, senior travel medical insurance is the most important coverage to look for.

You’re taking a cruise

If you’re taking a cruise, there are plenty of things that can go wrong before your trip and after you arrive . Your flights could be canceled or delayed, resulting in you missing your cruise altogether. Plus, you could become sick or injured during your cruise, resulting in onboard medical expenses and even emergency evacuation home.

As one example, let’s say you have a heart attack during your cruise and require $5,000 in medical care from the ship physician and another $15,000 in medical care from a hospital at your cruise stop in Mexico. From there, you require medical evacuation back home for $20,000, which is the average cost of medical evacuation from Mexico according to Allianz.

In this scenario, having cruise travel coverage could mean all your costs are paid, including your medical expenses and transportation costs to get home.

• Total value of travel insurance: $40,000 up to $1 million

You have an upcoming life situation that could cause you to cancel

Buying cancel for any reason insurance (CFAR) can also make sense in situations where you’re not entirely sure you’ll be ready to go. Maybe you have a grandchild on the way and you want the chance to cancel if the baby comes earlier than planned, or perhaps you have a sick family member and you’re worried they’ll pass away days before you’re supposed to leave for as far as the UK .

It’s also common for people to buy CFAR coverage when they’re worried about the pandemic and want the chance to cancel for COVID-related reasons that aren’t necessarily covered any other way. In any of these instances, paying for add-on CFAR coverage can be well worth it.

• Total value of travel insurance: Up to 80% of the prepaid travel expense for hotels, flights, and more

You need peace of mind while traveling

Finally, it’s important to remember that travel insurance provides something you can’t put a price tag on — peace of mind.

This coverage can help you enjoy your trip without worrying about emergencies or other mishaps costing you thousands of dollars . Plus, you’ll sleep better at night knowing you have a third-party company ready to assist when you need it the most.

• Total value of travel insurance: Priceless

When travel insurance may not be worth it

Your credit card offers basic travel insurance.

Some travel credit cards offer basic coverage for free if you’re a cardholder, and free credit card coverage can be enough for certain types of trips . If you’re young and healthy and not necessarily worried about travel health insurance , for example, you may be willing to rely on card coverage instead of buying a travel insurance plan.

Travel card coverage is often quite generous, although your specific benefits will depend on the travel credit card you sign up for. As one example, Chase Sapphire travel insurance offers trip cancellation and interruption coverage worth up to several thousand dollars per person, primary auto rental coverage, lost luggage reimbursement, trip delay coverage, emergency medical evacuation coverage, and more . That said, the fine print says you have to pay for the full expense of your trip with this card for coverage to apply.

Also, keep in mind that many travel credit cards with the best travel insurance benefits charge a high annual fee. For example, the Chase Sapphire Reserve ® Credit Card will set you back several hundred dollars per year. Therefore, it may be better to opt for travel credit cards with no annual fee , such as some cards from American Express , many of which also have American Express travel insurance benefits.

You’re planning a domestic trip close to home

If you’re planning a domestic trip close to home, there are fewer scenarios where travel insurance would pay off. This is especially true if you’re driving to your destination and your luggage and belongings will be in your possession the entire time.

Your travel plans only include flights

If you are flying within the U.S. to see family and friends but that’s most of what you are paying for this time around, you may not need to purchase flight insurance. After all, airlines are required to get you on another flight if your trip is canceled or delayed, and having travel insurance won’t make the process any faster.

You can also opt to buy flight insurance directly from your airline in this scenario. While this type of coverage can be inexpensive, it may only cover your flights. However, a cheap travel insurance plan can include added protections for lost or stolen luggage, medical expenses, and more.

Before you can decide whether travel insurance is worth it or not, it helps to have a full understanding of the types of coverage you can buy.

This step is crucial since some types of travel protection can only save you around $100 to $200 per day, whereas others can prevent you from racking up tens of thousands in expenses (or more) during trips overseas.

Types of travel insurance

The following types of travel coverage are typically included in the most comprehensive travel insurance plans , although policy details and coverage limits vary by provider.

• Accidental Death and Dismemberment (AD&D) : This type of insurance policy provides a cash payment when a traveler is killed or dismembered during a covered trip. Coverage can be worth up to $25,000 or more for each individual covered by the plan.
• Baggage Delay Coverage : Baggage delay coverage reimburses travelers for incidental expenses that arise when bags are delayed for a certain length of time, usually 6 or 12 hours. This protection can pay for clothing, toiletries, and more, and it’s typically worth $100 to $200 per day.
• Cancel for any reason (CFAR) : This type of optional travel insurance lets travelers get reimbursed for up to 80% of pre-paid trips, and nonrefundable costs when they need to cancel a trip for personal reasons.
• Emergency Evacuation : Emergency evacuation coverage is typically offered in amounts up to $1 million, and it protects against the exorbitant costs of transportation to a local hospital for care or even supervised medical transportation to your home country.
• Emergency Medical Expenses : Coverage for emergency medical expenses typically pays for $25,000 to $500,000 in medical expenses during international trips. This coverage is crucial for travel to destinations where a person’s own health insurance policy does not apply.
• Lost or Stolen Baggage : Coverage for lost or stolen baggage can reimburse you for your actual luggage and personal effects when your bags are lost while in the care of a common carrier. Coverage is typically worth $500 to $3,000 per traveler.
• Trip Cancellation Insurance : Trip cancellation insurance can be worth up to 150% of the total cost of your trip when a vacation must be canceled for a covered reason, such as the death of a family member or contraction of COVID-19 by a member of your party.
• Trip Delay Coverage : This type of insurance can pay for incidental expenses that pop up when a trip is delayed for a specific length of time, usually 6 to 12 hours. Coverage kicks in to pay for hotel stays, meals, and more, and it can be worth $150 to $200 per traveler or more with some plans.
• Trip Interruption Insurance : This coverage kicks in to pay for up to 175% of the total trip cost when a trip is delayed for a covered reason, such as inclement weather that ruins a trip to the Bahamas or COVID-19-related quarantine.

As you can see, some types of coverage offer a nominal amount in benefits while others can be worth up to 1 million dollars.

For example, missing out on trip delay coverage may cost you a few hundred dollars in hotel stays and meals if your flight is delayed overnight. Likewise, you may be out a few thousand dollars if you don’t have travel insurance and your luggage and belongings are stolen while you’re on vacation in Canad a, for example.

If you wind up sick or injured overseas, however, not having travel insurance for medical expenses or evacuation could easily leave you on the hook for tens of thousands of dollars in bills and potentially more. Ultimately, this is why most travelers purchase a travel insurance policy that includes medical insurance and evacuation coverage first and foremost.

Buying a travel insurance policy can provide considerable peace of mind, but you should know that some situations typically are not covered by most travel plans.

As an example, “disinclination to travel” due to COVID-19-related reasons or other pandemic fears is typically not covered by travel insurance unless you have optional CFAR coverage in place. For full COVID-19-related, coverage you should consider looking into COVID-19 travel insurance .

Another scenario not covered by travel insurance is when a natural disaster has already begun. If you are planning a trip to the Caribbean during hurricane season and a major storm system has already been named, you can no longer purchase most types of travel insurance such as hurricane travel insurance , for that specific trip.

Most travel insurance plans also exclude pre-existing conditions, but exceptions can be made when you pay for additional coverage for pre-existing medical conditions and purchase your travel insurance plan within a few weeks (usually within 15 days) of making your initial trip deposit.

Other situations not typically covered by travel insurance include:

• Acts of war
• Claims resulting from alcohol or drug use
• Claims that result from medical tourism
• Illegal activities that result in injury or other losses
• Risky adventure activities and sports (unless specifically covered in your travel insurance policy)

If you’re tempted to use credit card travel insurance instead of buying a policy, you’ll want to read over the fine print from your card issuer so you know what is and isn’t covered. Also check to make sure coverage limits are sufficient for your needs based on the trip you are planning to take, and make sure you understand any exclusions that apply.

Finally, keep in mind that credit card travel insurance rarely provides any coverage for medical emergencies. Even the Chase Sapphire Reserve ® Credit Card, which is one of the few travel credit cards that does provide medical coverage , only includes up to $2,500 in coverage for emergency medical expenses (including dental), and only after you pay a $50 deductible.

If you decide to travel with credit card coverage only, you’re leaving yourself vulnerable to expenses that can arise if you need emergency medical care. With that in mind, you should only rely on credit card coverage if you’re willing to take that risk.

Bottom Line: Is trip insurance worth it?

The benefits of travel insurance include financial protection from life’s many “what ifs” and the peace of mind you get knowing you’re covered.

Meanwhile, the disadvantages of travel insurance include the additional cost required and the fact you have to spend time and energy researching and comparing policies before you buy.

Either way, travel insurance is well worth it if you wind up needing coverage, and you won’t know that part until it’s far too late. With most travel insurance plans adding just 5% to 6% of your total trip cost, you’re better off factoring this coverage into your travel budget from the start.

Does travel insurance cover COVID claims?

Many travel insurance companies include coverage for coronavirus and many of the high-risk complications it causes. However, you’ll want to read over the fine print of travel insurance policies you’re considering so you know for sure.

Is it important to get trip insurance?

Travel insurance typically costs a few hundred dollars for a standard trip, yet the costs of not having coverage can easily run into the tens of thousands of dollars or more. With that in mind, travel insurance is typically considered a good investment.

Is it a good idea to buy trip insurance just to be safe?

Buying travel insurance can provide considerable peace of mind, particularly if you’re spending a lot of money on a trip you’ve been planning for a long time. For the most comprehensive coverage, you can even add on CFAR protection that lets you cancel for any reason. This coverage gives you the option to stay home and get up to 80% of your pre-paid, non-refundable travel expenses back.

Is it bad to not have travel insurance?

Not having travel insurance leaves you vulnerable to exorbitant costs caused by overseas emergencies and related expenses caused by a third-party. Meanwhile, having coverage can protect you from these costs and the stress they cause.

Do you need insurance when traveling abroad?

Being insured for overseas trips is especially important since your own health insurance plan will not apply. Also note that overseas trips typically require more connections and more opportunities for some aspect of your trip to go awry.

Ultimately, these are the main reasons you should always buy travel insurance for overseas trips. Having travel insurance can help protect against emergency medical expenses, the exorbitant costs of medical evacuation, costs associated with repatriation of remains, and more.

While you’ll want to read over the fine print of your travel insurance policy to learn about exclusions, typical items not eligible for a refund include disinclination to travel due to the pandemic or other reasons, cancellation caused by inclement weather that exists before purchasing a plan, cancellation due to pre-existing conditions not specifically covered, acts of war, claims resulting from alcohol or drug use, claims that result from medical tourism, illegal activities that result in injury or other losses, and certain adventure activities and sports.

What are the disadvantages of travel insurance?

The main downside of purchasing travel insurance is the added cost, which typically amounts to around 5% to 6% of the total cost of a trip. Another downside is the fact that you have to research and compare plans before you buy, and that not all plans provide sufficient coverage for all trips you want to take.

To make the research part easier, and to ensure you’re not overpaying for travel coverage, we suggest shopping around to compare plans and costs from each insurer through an insurance portal like Squaremouth.

About the Author

Holly D. Johnson is an award-winning personal finance writer who covers topics like insurance, investing, credit and family finance. As a leading voice in the travel and loyalty space, Johnson has traveled with her family to more than 50 countries over the last decade.

The author has also written extensively on the power of household budgeting, and she even co-authored a book on the topic. Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love was originally published in 2017, and it teaches families how to use zero-sum budgeting to reach their financial goals. She is also the co-owner and founder of the family finance and travel website, ClubThrifty.com.

Johnson’s 10+ years of writing have focused on helping families make important financial decisions at each stage of their lives. The author also applies the financial principles she teaches to her own life, and she is currently on track to retire in her late 40’s with her partner. She currently lives in Central Indiana with her husband and children, and she is a regular contributor for Bankrate, CNN, Forbes, U.S. News and World Report Travel and many other notable publications.

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Is travel insurance worth it? Here's what travel agents say

By Aly Yale

Edited By Matt Richardson

May 3, 2023 / 11:59 AM EDT / CBS News

Travel insurance can protect you if your travels don't go as planned . It can help if you lose your luggage, get injured abroad, and, perhaps most commonly, if your travel plans change (or need to be canceled entirely).

Still, travel insurance comes at a cost, and in some cases, it might not be worth the investment. When should you consider it, and how can you get the best coverage? We spoke to travel agents to find out.

You can start exploring your travel insurance options here now to learn more .

Why (and when) travel agents think travel insurance is worth it

Travel agents generally recommend buying travel insurance every time, if you can afford it. As Tara Minson, executive vice president at travel advisory agency InteleTravel, explains, "Safe travel starts with travel protection."

If you're on a tighter budget, though, consider investing in insurance only on bigger trips — ones that cost you lots of cash and planning time — or on international ones . 

"Medical expenses can be very costly in other countries, plus you may have to pay upfront for medical care, including hospitalization and surgery," says Michelle Osborn, who runs the travel agency Outta Here Travels. "Travel insurance can help cover those expenses."

It can also be helpful if you're going to be participating in any high-risk activities while traveling — things like bungee jumping, skiing, or other adventure sports that you might get injured doing. If you're taking a low-risk trip in the same country or state, though, it might not be worth the money. 

"The only time I would say travel insurance isn't necessary is if you go on a last-minute domestic trip ," says Shane Mahoney, founder of the luxury travel agency Lugo's Travel. "In that case, you most likely didn't prepay for any non-refundable expenses and you're not worried about last-minute trip cancellation, so it can be safe to not get travel insurance."

Explore your travel insurance options here now  or in the below table to find the right protection for your next trip.

How to pick a travel insurance policy, according to agents

There are lots of companies that offer travel insurance, so picking the right one isn't always easy. To start, agents say it's important to think about your specific needs and trip details.

"Do you have a preexisting health condition you want to make sure is covered," Osborn asks. "Is there a chance you might have to cancel the trip due to work or something else? Are you worried about arriving at your destination but your luggage did not and having to purchase new items while in a foreign place?"

Knowing what your biggest concerns and risks are can help point you toward the right types of coverage.

Osborn also says to consider things like an insurer's reputation for customer service and their financial ratings, which speak to how stable the company is (and how likely they'll be in business for the long haul). 

Finally, make sure to purchase from a third party , not the company providing the trip. 

"The biggest mistake travelers make when choosing to add travel protection is booking a 'protection plan' with the travel supplier directly — the cruise line, tour operator, or vacation company," Minson says. "Booking travel protection from a third-party insurance company is always the best protection. It offers you, the traveler, higher value coverages, more types of coverage, cash refunds — not just future travel credit — and more."

What travel agents caution travelers to be aware of

In general, travel is risky. There are hazards en route to your location, you could get injured or develop an illness while abroad, and you have lots of money on the line, too.

"Think of Steve Martin trying to get home for Thanksgiving in 'Planes, Trains. and Automobiles,'" says Mary Despain, president of the travel agency Destination CLEs. "A car on fire, missed flights, and a nightmare of a trip home. Lost luggage can be just the beginning — and his trip was in the United States." 

Travel insurance can help offset some of these risks and ensure you're not just covered medically while traveling (most U.S. health insurance doesn't extend to other countries) but also financially as well .

"Traveling without travel insurance carries a huge risk — a risk that many people cannot afford if something happens before or during their trip," Mahoney says. "If you don't have travel insurance, anything that happens during your trip, from something common like flight cancellations and lost baggage to more serious situations like medical emergencies abroad, you are on the hook for paying for all of it."

Purchasing your travel insurance policy

If you're confident in what type of policy, coverage, and insurer to use, you can purchase travel insurance on your own online . Some credit cards also come with travel coverage, though it may not be as comprehensive as third-party policies.

If you're not sure how to pick the right policy or how much coverage you need , you can always enlist a travel agent for help. They can recommend insurers, coverage amounts and more. They may also be able to negotiate better deals on your behalf.

Start comparing your travel insurance options here now .

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Is Travel Insurance Worth It for Your Upcoming Trip?

Travel isn't getting any less expensive, and adding travel insurance to your vacation budget is another line item beyond flights, hotels and attractions at your destination.

Yet Business Insider conducted a 2023 survey that found that 38% of Americans purchase some form of insurance for their trips. So what is travel insurance—and is it worth the hassle and the expense? Here are a few important questions to consider.

How does travel insurance work?

"The basic purpose of a standard travel insurance policy is to reimburse travelers for prepaid and non-refundable trip costs if they have to cancel their trip due to a covered reason," says Stan Sandberg, co-founder of TravelInsurance.com, which helps travelers compare and buy travel insurance plans online.

It's important to understand which reasons are covered. Reasons for canceling a trip could range from bad weather at the destination to breaking a leg before a planned ski trip. Most basic travel insurance policies cover canceled or missed flights, lost or damaged luggage, and medical expenses if you get sick or require medical care while you're away. The dollar value covered for lost or stolen items is variable depending on the policy you buy, as is the total amount that may be covered for medical costs.

Depending on where you travel, your existing medical insurance may not be accepted locally—so having supplementary travel insurance could be advantageous. Some travel insurance plans even cover the cost of medical evacuation if you need to receive treatment somewhere other than where you're vacationing—including medical evacuation back to the US or your country of residence.

Who's covered by travel insurance?

You can purchase travel insurance for a single trip or for the duration of 1 year to cover an individual, a couple or an entire family.

"Businesses often take out travel insurance policies on their employees, as they're aware of the potentially high cost of trip cancellation compared to the relatively low cost of trip cancellation insurance coverage," Sandberg says.

There's no one-size-fits-all travel insurance policy, though. The amount of coverage and the costs vary by provider, so it's best to know what kind of activities you'll be doing on your trip to fit the policy to your itinerary.

What's covered by travel insurance?

First, determine what type of travel insurance policy you'll need. Do you want a basic policy that covers general trip costs, such as flight interruptions, lost items and medical emergencies? A standard plan from most travel insurance providers delivers this level of coverage.

Add-ons are usually available for purchase and provide more comprehensive coverage. For example, a policy with an added cancel for any reason, or C FAR, rider allows travelers to recoup most of their expenses for rare or unexpected travel disruptions.

Keep in mind that many insurance providers require travelers to be deemed medically fit to travel before they open a policy.

"Travel insurance is not a catch-all for everything that may go wrong on a trip," explains Terra Baykal, senior marketing manager at World Nomads, a travel insurance provider specializing in adventure sports coverage. "Most policies are what's called named peril policies. That means you are only covered for perils specifically named in the policy, and exclusions and benefit limits apply."

Baykal urges travelers to read the policy wording to make sure they understand what is and isn't covered in a plan.

"Where travelers most often get tripped up and become dissatisfied with their travel insurance is when they don't understand their coverage and then try to claim for something that wasn't covered," she says.

What does travel insurance cost?

Travel insurance costs will vary depending on the amount of coverage provided in the plan. The cost of your trip will also affect how much travel insurance costs as a percentage of your overall travel budget.

Forbes analyzed more than a dozen major travel insurance providers in 2023 and found that the average cost of travel insurance was between 5% and 6% of the trip's total cost for a standard policy.

These averages held true at both ends of the affordability spectrum, whether you plan to spend $1,000 or $30,000 overall on your trip. Insurance plans with higher medical coverage, emergency evacuation provisions and C FAR add-ons could bump up the cost.

And what about travelers on a shoestring budget? Going the ultra-inexpensive route for traveling is where the cost of travel insurance may start to exceed 10% of the overall trip cost. In cases where your trip budget is as low as $500, travel insurance may not be worth the additional expense.

What do I need to file a claim?

If you need to file a claim, the first step is organizing your paperwork. Gather receipts for every item your travel insurance policy would cover. If anything is lost, stolen or damaged, you'll need to let the insurance provider know its value.

Keep a copy of any correspondence with airlines and hotels. If your flight is canceled, take a screenshot or download the email message. It doesn't hurt to ask for compensation directly from the airline before you file a travel insurance claim over a canceled flight.

A police report is required when you file a claim for theft, so ask for a copy when you contact authorities about stolen goods. And finally, if you accrue any medical expenses, send those to your primary health insurance provider to see what they'll cover. If they refuse to pay some or all of the medical costs of your trip, send the difference to your travel insurance provider along with all the documentation related to your medical needs and expenses.

Is travel insurance worth it?

Everyone deserves a vacation now and then. Travel broadens your horizons, and a trip could be your ticket to a memorable or restorative experience. That's certainly worth the investment for many travelers—but is it worth the potential risk of lost funds?

There are some situations, such as a fully refundable trip, where travel insurance may be unnecessary. But also consider unplanned expenses. The peace of mind travel insurance can give you may justify the cost—especially if it's negligible compared to the cost of your trip. And if trouble arises, you'll be glad you're protected.

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Is Travel Insurance Worth It? The Hidden Costs of Skipping Coverage

You might think you’re saving money by skipping travel insurance, but have you considered the potential costs of not having it? From unexpected medical bills to lost luggage, traveling without insurance can turn your dream vacation (or important business trip) into a financial and emotional nightmare.

In this we cover risks to expect if you decide to travel without a travel insurance, how having travel insurance — and the Air Doctor app — can save the day, and finally answer the question, “is travel insurance worth it?”

Common Issues Faced by Uninsured Travelers

Medical emergencies  .

Imagine you’re exploring the lush hiking trails in Costa Rica and suddenly fall ill or get injured. Without insurance, the cost of treatment at a local clinic or hospital can quickly add up. 

According to a study published in the National Institutes of Health, up to 87% of travelers get sick during or after their travels. 

Common medical issues like food poisoning, infections, or injuries can lead to hefty bills. Luckily, with travel insurance, those expenses are covered, allowing you to focus on getting better rather than stressing over medical costs.

Traveling internationally? Here’s the ultimate guide to emergency medical travel insurance and urgent doctor appointments abroad.

Lost or Stolen Luggage  

If you find yourself asking, is travel insurance worth it? Picture this: You’ve just landed in Paris, ready to start your adventure, but your luggage is nowhere to be found. Without your clothes, toiletries, and other essentials, your trip could be off to a rough start. Replacing personal items can be expensive, and the stress and inconvenience of dealing with lost luggage can dampen your spirits. 

Just take a look at this crazy story of one traveler, Paola, who’s baggage didn’t meet her at her destination after her Spirit Airlines flight. Luckily she could track her luggage, but you’ll never guess where it ended up. . . Okay, we’ll tell you – with one of the airport workers! And if you think that you’ll just be able to contact the airport and get your luggage back, you’re sorely mistaken. The first step in the process is to contact the airline – and you can only do that if your luggage has been missing for 5 days or more! So is travel insurance worth it? We think so! Travel insurance can reimburse you for those lost or stolen items, making the situation a little less painful and allowing you to continue your journey with peace of mind.

Cancelled Travel Plans

The perfect example to the question of, “is travel insurance worth it?” is this:

Let’s say you’ve booked a non-refundable trip to Japan, but a few days before your departure, something out of your control forces you to cancel. 

Sometimes, plans change unexpectedly. Whether it’s a family emergency, a natural disaster, or a global pandemic (cue PTSD), non-refundable expenses for flights and accommodations can be costly. If you’re concerned about this, you’re not alone. In fact, according to Forbes’ Advisor :

The top three concerns for travelers in 2024 are as follows:

• Medical emergencies (59.8%)
• Needing to cancel a trip for an unforeseen reason (31.2%)
• Lengthy travel delays (5.7%)

Without insurance, you’d lose out on the money spent on flights, accommodations, and any other extras. Travel insurance helps cover those costs, so you’re not left out-of-pocket, giving you

Trip Interruptions

If you need to cut your trip short due to unforeseen circumstances like political unrest or cancelled flights, the associated costs can be significant. Imagine being at the airport about to depart for your dream vacation, when suddenly all the flights are cancelled because airport workers are on strike. 

It might sound crazy, but things like that do happen. 

According to a recent Business Insider’s Travel Insurance survey , 35% of travelers who bought insurance did so primarily because they were concerned about the travel provider they booked with, and feared issues like delayed flights or moved reservations.

And the costs of changing flights, booking last-minute accommodations, and other expenses can be immense. Travel insurance can help cover these unexpected costs, ensuring a safe return home that’s not hard on your bank account.

Missed Flights or Connections

Missing a flight or connection can derail your entire trip. And, the additional costs for new tickets and accommodations can be overwhelming. Even the best laid travel plans don’t always work out. This is a situation where travel insurance comes in handy, since it can help cover these extra expenses, ensuring your dream vacation continues smoothly.

Don’t take our word for it – Kelsey has plenty of flight horror stories that’ll convince you to purchase worthy travel coverage. 

Accidents and Liability  

Accidents happen, and if you cause damage or injury to others, the legal fees and compensation costs can be daunting. That’s right! You might’ve thought skimping on travel insurance only caused risks to yourself. But you might end up causing harm to another person or their property, and you’re still liable with or without insurance.

Picture renting a scooter in Bali and accidentally colliding with another vehicle, causing significant damage. Yikes!

Travel insurance often includes liability coverage, which will protect you from these potential financial burdens and ensure you can handle the situation responsibly.

A great example is that of Alex Waltner , who got into an accident while chasing northern lights when he collided with another car. While he had to pay an excess, he still ended up saving over 800 Euro (876+ USD)! 

How Air Doctor Can Help

So if you’re still wondering, “Is Travel Insurance Worth It?” Take it from us – travel insurance is essential. But what if you need medical assistance while abroad? This is where the Air Doctor app comes in.

Seamlessly Find A Doctor Anywhere You Travel

With Air Doctor in your pocket, you can easily access trusted medical assistance wherever your adventures take you. The easy-to-use app app connects you with trusted, local multi-lingual doctors, ensuring you get the care you need, wherever you are. Whether you’re in a bustling city or a remote village, finding a reliable doctor is just a few taps away.

Air Doctor offers a wide range of benefits, including:

• Global network of over 20,000 multi-lingual doctors and specialists
• Most common medical specialties
• Choice of clinic, at-home (hotel), and video consultations
• Active in 78 countries
• Video consultations & valid, local prescriptions in 84 countries and 21 languages
• 24/7 multi-lingual support
• Transparent pricing, and reviews

Enjoy A Cashless and Claimless Experience  

When you use the Air Doctor service through one of our partnered insurance providers, you don’t have to worry about out-of-pocket expenses or lengthy claims processes. It’s all taken care of by your insurance providers, allowing you to focus on your trip.

Opt For The Self-Pay Option  

If you prefer to pay upfront, you can use the Air Doctor service and conveniently pay via the app. You can browse and filter doctor’s according to the consultation prices – this transparency helps you manage your expenses better and ensures you’re aware of the costs involved.

Enjoy An Improved Travel Experience

The Air Doctor app enhances your travel experience with just a few taps. The app’s fully digital experience means you can access medical assistance no matter where you are. Seamlessly find and book a doctor’s consultation in a matter of minutes, potentially saving your vacation from turning into a disaster. 

“With Air Doctor, it means there are fewer travelers who will feel stranded if they fall ill abroad, and these travelers can access quality medical care from anywhere. While we’re already operating in 78 countries, we’re always working to expand our network.” Jenny Cohen Derfler, Air Doctor CEO and Co-Founder

Travel insurance is more than just an added expense — it’s a safety net that protects you from the unexpected. From medical emergencies to trip interruptions, having worthy travel insurance can make a world of difference. Plus with the Air Doctor app , accessing medical help abroad has never been easier. Don’t take chances with your health while you’re away from home. Ensure a safer, more enjoyable trip by getting travel insurance and downloading the Air Doctor app today – it takes just a few seconds to download and it might just save your trip.

Jenny Cohen Derfler

Air dr ceo & co-founder.

Jenny is the CEO and one of the Co-Founders at Air Doctor. She spent more than 20 years at Intel, most recently as general manager of its manufacturing facility in Israel and before that in various engineering and manufacturing roles in Silicon Valley. Air Doctor is her second startup having previously founded electric vehicle company ElectRoad.

Is a Travel Agent Worth It? The Pros and Cons

N eed to pivot your trip plans but don't want to deal with the extra time, money and hassle of rebooking flights and accommodations on your own? That's just one area where a knowledgeable travel agent (also commonly known as a travel advisor) can help.

Read on to discover the other benefits – as well as the downsides – of using a travel agent, so you can confidently decide whether or not a travel agent is worth it for your next trip.

The Pros of Using a Travel Agent

Travel agents can save you money – and get you other perks.

"In some cases, you'll actually get a better  deal by working with a travel agent," says Jackie Steele, travel expert at MagicGuides . "This could be in the form of a cruise onboard credit (free spending money to use on the ship), access to special agency/group rates, or even just learning about a discount you qualify for but weren't aware of." The best agents will even keep an eye on new discounts as they're announced and apply them to your trip even after you've booked, he notes.

Travel agents handle all the details

Hotel room? Booked. Dinner reservations? Made. Tour tickets? Ready to go. A travel agent handles every detail of your vacation itinerary. "The traveler still gets to be involved in the fun part of dreaming up ideas and providing their travel wishes, while we take and perfect them," says Jessica Parker, founder of Trip Whisperer .

Molly McShea, owner and travel advisor at McShea Travel , points out that travel agents can also help with timing logistics. "Travel agents know how many days should be spent in each destination, which tours go together, and how many things you should do in a day," she says, adding that crafting an itinerary can be challenging if it's not something you regularly do. Additionally, travel agents can help you choose the best time to visit your preferred destination(s) based on seasonality and your budget, and sift through travel insurance policies to find the best option for your needs.

Travel agents can provide local expertise

"A travel advisor's industry connections and relationships provide added value to their clients," says Valerie Edman, a luxury travel advisor and agency owner at Cultured Travel LLC. She says when working with a travel agent, travelers gain access to a global network of connections including:

• In-destination specialists who work exclusively with travel advisors and can connect travelers with unique, off-the-beaten-path experiences they wouldn't otherwise know about
• Exclusive experiences not available to the general public

You'll avoid surprise fees

When deciding if a travel agent is worth it for you, remember this: A reputable agent can guarantee you won't encounter any surprise fees on accommodations and activities once your trip is booked.

You'll have someone to troubleshoot unexpected travel issues

A travel advisor is essentially your personal vacation concierge. "Because they've been around for so long, agents really know what to look for," says Christopher Elliott , a consumer advocate and journalist. "Travel agents are among the first to know about flight cancellations and delays , making it easy for them to rebook itineraries right away." 

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The Cons of Using a Travel Agent

It might not be your cheapest option.

There are some instances when it makes more sense to plan your own trip. "If you're planning a quick flight from New York City to Los Angeles, it's easy enough to book it yourself online directly or through a third-party booking site," says Elliott. "If you're planning a once-in-a-lifetime trip or bucket list honeymoon , that's when you call the experts."

You'll have less flexibility in your itinerary

The upside of working with a travel agent is having someone plan an epic vacation for you based on industry knowledge and local expertise. But this can also be a downside in the event you discover an activity you'd like to do or a restaurant you'd like to try that isn't on your pre-planned itinerary. If you alter your plans, you risk losing money; plus, the time it takes for you and your travel agent to coordinate your change of plans may not be worth the hassle.

You still have to do some research

It's important to find an agent you can trust, which means you still have to do some of the vacation planning. For this part, Parker recommends picking up the phone. "Lots of people avoid or don't pick up the phone as much anymore," she says. "That's where you get the high-touch service, tone of voice, excitement or concerns to manage." She advises to look for the following red flags:

• No fees: " Travel advisors are charging planning fees more now or increasing them, so the client knows more confidently than ever, we work for them, not the suppliers with the best commissions," Parker explains. "There are a lot of things that are non-commissionable and the advisor's time and expertise shouldn't be given away for free, either. That's the best way to show an advisor takes their business seriously."
• Limited options: If you work with someone who is inexperienced or has an incentive to book you with a certain supplier, they may not be prioritizing your best interests. "It's important to check if they are with a larger consortia, accreditations and network, typically listed on their website and signatures," says Parker. "That level of mindshare doesn't come with a lone advisor unless they have many, many years of experience."
• Slow response times: If communication is delayed, that's a sign they may be too busy to plan your trip – but again, this is something you can avoid by having the right conversations early on.

Edman suggestes starting your search with the American Society of Travel Advisors . "ASTA-verified travel advisors are committed to the highest industry standards and have verifiable industry knowledge so consumers can feel confident in working with them," she says.

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