Booking that dream trip? You’ve probably seen the optional travel insurance add-on pop up and wondered if it’s just another fee.
The truth is, travel insurance can be worth it, especially for international travel or expensive, nonrefundable bookings. But not every trip requires it. Here’s what to consider before you click “add.”
What Does Travel Insurance Cover?
Before you spend the extra money, it’s essential to understand what travel insurance includes. Coverage varies by provider, but most plans fall into a few common categories.
- Trip Cancellation/Interruption: Covers prepaid, nonrefundable costs if you cancel for a covered reason (illness, weather, etc.).
- Medical Coverage: Crucial for international travel, where your health insurance may not apply. Includes emergency care and evacuation.
- Baggage Delay/Loss: Reimburses lost, delayed, or stolen luggage and personal items.
- Cancel for Any Reason (CFAR): Premium add-on that lets you back out of a trip for reasons not typically covered, like changing your mind.
- Rental Car Protection: Covers damage or theft of rental vehicles abroad.
How Much Does Travel Insurance Cost?
Cost is one of the biggest factors when deciding if travel insurance is worth it.
The good news? It’s often more affordable than people think, especially compared to what you could lose. Most comprehensive plans cost 4% to 8% of your total trip price.
So for a $3,000 vacation, you’re looking at roughly $120–$240. Basic medical-only plans can be cheaper, starting around $4 to $6 per day.
When Is Travel Insurance Worth It?+
Travel insurance makes the most sense when you’re spending a lot, heading far from home, or dealing with complicated logistics. In those cases, the risk of skipping coverage can be costly.
Travel insurance is worth the investment if any of these apply:
- You’re traveling internationally, and your health insurance doesn’t cover you abroad.
- Your trip is expensive and nonrefundable, especially during peak seasons.
- You’re visiting destinations prone to weather disruptions like hurricanes or winter storms.
- You’re booking multi-leg flights, tours, or cruises, where a missed connection could snowball into costly changes.
- You want peace of mind, especially with kids, elderly companions, or ongoing health conditions.
When You Can Probably Skip It
Not every trip justifies the added expense. If you’re staying close to home, have refundable bookings, or solid backup coverage through your credit card, skipping insurance could be a smart call.
You might be fine going without it if:
- You’re taking a short domestic trip with refundable bookings.
- You’re already covered by a credit card travel insurance policy (double-check the limits and terms).
- Your travel budget is low enough that you’re okay absorbing potential losses.
Not sure if your credit card includes coverage? Learn more about The Best Travel Credit Cards for Rewards, Points, & Perks.
Compare Insurance Plans Before You Buy
Not all travel insurance plans are created equal. Some cover far more than others, and many have fine print that could affect your claim. That’s why comparison shopping is key.
Use tools like Squaremouth, InsureMyTrip, or TravelInsurance.com to find the right policy and price. And always read the details.
Some plans exclude pandemics, extreme sports, or pre-existing conditions unless you meet specific criteria.
The Bottom Line
Is travel insurance worth it? That depends on your risk tolerance, destination, and how much you’re willing to lose if things go sideways.
For international trips or prepaid vacations, it’s often a smart safety net. For quick, refundable getaways? You might not need it.
Just don’t wait until the last minute. Some coverage is only valid if purchased within days of your first booking.
