Do You Need Travel Insurance?
When planning a trip, your mind is probably on all the fun you’ll have when you get there—not what can go wrong along the way. Canceled flights, sudden illnesses, and lost luggage are just a few unexpected ways your dream vacation can turn into a costly headache. While travel insurance might not be the first item on your travel-planning checklist, it can be one of the most important. Here’s why.
What Does Travel Insurance Cover?
Travel insurance covers most of the common, frustrating disruptions you can experience when traveling, including:
- Trip cancellations: Reimburses you for cancellations due to covered reasons, such as illness, injury, or severe weather
- Medical emergencies: Covers emergency medical treatment if you get sick or injured while traveling
- Flight delays: Pays for meals, accommodations, and rebooking fees if your flight is delayed for a covered reason
- Baggage losses: Helps pay for essentials if your bag is delayed and reimburses you if it’s damaged, lost, or stolen.
- Travel assistance: Provides 24/7 support for issues like replacing a lost passport or finding emergency medical care
How Much Does Travel Insurance Cost?
You can expect to pay between 4% and 10% of your prepaid, nonrefundable trip expenses for a good travel insurance plan. Based on our data, travelers spend an average of $21–$21.50 per day on Squaremouth coverage, which works out to around $311 for a 15-day trip. However, the price varies depending on the type of coverage you purchase.
Policies with all-encompassing coverage are slightly pricier—you’ll pay closer to $414 per trip, or about $29.60 per day. These comprehensive policies include coverage for cancellations, medical emergencies, travel delays, and luggage.
If you’re considering a medical‑only plan (which focuses on emergency medical protection and excludes trip cancellation), the cost drops dramatically to roughly $90–$92 per trip, or about $4.50–$4.60 per day. These standalone medical plans are ideal if you’re a budget-conscious traveler or if your credit card company covers nonrefundable fares when you purchase with their card.
Here are some factors that impact how much you’ll pay for a plan:
- Total trip cost: The more you pay for your flight, hotel, and other expenses, the more you’ll pay for insurance, as policies are usually calculated using your total costs.
- Your age: Many plans have pricing tiers that increase with age because older travelers are considered likelier to file claims, especially for medical coverage.
- Duration of trip: Longer trips increase your likelihood of experiencing a disruption or emergency, so many insurers charge based on the number of days you’ll be gone.
- Destination: Travel to countries with higher medical costs or greater risk of travel disruption (like remote areas or politically unstable regions) can lead to higher premiums. International trips tend to cost more to insure than domestic ones.
Specific coverage limits or add-ons, like “Cancel For Any Reason” (CFAR), also impact the price you pay for a policy. Adding CFAR coverage, for example, can raise your premium by 40–50%.
Bottom line: travel insurance is typically 4–10% of your trip cost, but you can customize it—and the price—to match your needs and budget.
When Do I Need to Buy Travel Insurance?
You can technically purchase travel insurance up until the day before you leave, but to get the most protection (and peace of mind), it’s best to purchase a policy at the time you book your trip. Not only does this ensure you’re covered if something unexpected comes up before you leave, but it also gives you access to benefits, like CFAR coverage or a pre-existing condition waiver, that require you to purchase the policy 14-21 days before departure.
However, don’t worry if you miss that window. You can still get coverage for medical emergencies, trip interruptions, and baggage mishaps up until the day before you leave. Just remember that anything that happens between booking your trip and buying the coverage (such as a natural disaster or personal illness) won’t be covered.
What Types of Trips Do I Need Travel Insurance For?
Travel insurance can be helpful for all kinds of trips, but some types of travel come with more risk and come at a higher cost than others. Here’s how coverage can protect you depending on where you’re going and what you’re planning to do:
International trips
Traveling abroad is exciting, but can be more unpredictable than domestic trips. Besides covering pricy nonrefundable costs like airfare, insurance for international travel also reimburses you for medical expenses not covered by U.S. health insurance plans. If you get sick or injured, emergency treatment and even medical evacuation could cost thousands of dollars without coverage. Plus, many policies offer 24/7 global assistance, helping you navigate hospitals, language barriers, and unexpected emergencies with expert support.
Domestic trips
Even within the U.S., things can go wrong when you travel. Travel insurance can reimburse you for prepaid, nonrefundable expenses if you have to cancel for a covered reason or if you experience a missed flight or other disruption. These policies also help cover added costs like meals or extra lodging if you get stuck somewhere along the way. If you’re booking an expensive getaway, insurance adds a layer of financial protection even if you’re staying stateside.
Cruises
Cruises are unique in that once you set sail, it’s hard to adjust your plans if something goes wrong. For example, medical issues on board can be particularly complicated, since most cruise ships have limited medical facilities. And emergency evacuation can be extremely costly. A travel insurance policy with strong medical and evacuation coverage ensures you’re protected while at sea or visiting remote ports of call.
Travel insurance for cruises also covers standard disruptions like cancellations due to illness or severe weather and can help if you miss your ship because of a delayed flight.
Adventure trips
Adventure travel is thrilling, but it comes with added risks that make insurance even more important. Whether you’re scuba diving in the Bahamas or skiing in the Alps, an accident or injury could result in high medical costs—especially if you need evacuation or specialized treatment. Many standard policies exclude risky activities, so you’ll want to look for a plan that specifically includes the sports or excursions on your itinerary.
When Is Travel Insurance Not Necessary?
Travel insurance offers valuable protection for a wide range of potential disruptions, but it’s not always essential. If you’re taking a domestic trip without any nonrefundable costs (think hotels, tour packages, or flights), there may not be enough financial risk to make insurance worthwhile. The same goes for any other low-cost getaway for which the cost of a policy may be more than what you’d lose if something unexpected came up.
You might also skip travel insurance if you already have coverage through other sources, like your credit card. Some issuers offer protections for things like trip cancellations and baggage delays. And if your primary health insurance will cover you at your destination, you may not need extra medical coverage. Be sure to read the fine print in either case to confirm what’s covered before you travel.
Is Travel Insurance Worth It?
Yes, travel insurance is worth it. Policies typically cost just 4–10% of your total trip expenses, and you get coverage for 100% of nonrefundable costs like airfare and tour packages. You’ll also be protected against medical emergencies, flight delays, lost or delayed baggage, and other disruptions that could quickly become expensive and stressful without coverage. In most cases, that sense of security makes travel insurance a wise purchase.
Written by Casey Clague