Is Travel Insurance Worth It?

Key takeaways

• It’s worth considering travel insurance if you’re planning a trip out of the country, or one with high prepaid, nonrefundable costs.
• You might choose to skip it if your trip is refundable or flexible, or if you already have adequate coverage through a credit card or another insurance provider.
• Comparing travel insurance plans can help you find one that fits both your trip and your budget.

Travel plans can fall like dominoes. Your connecting flight gets canceled, which means you miss your cruise. Scrambling to catch up to your itinerary, you miss a nonrefundable excursion. And by the time you finally arrive, your bags have gone on a different vacation entirely. 

Travel insurance can’t solve every problem, but it may help soften the financial hit when travel plans go sideways.  

Is it worth it to get travel insurance?

If you’re planning a trip that includes expensive nonrefundable bookings, international travel, a cruise, or destinations where you’d be on the hook for your own emergency medical care, travel insurance is generally a smart move. 

A few situations where we’d recommend travel insurance: 

• You’re traveling internationally, and your health insurance provides limited to no coverage abroad. A policy with medical benefits can cover you in an emergency.   
• You’re worried you might need to cut your trip short—say, because of an elderly parent’s health. A comprehensive travel insurance plan can offer peace of mind here.
• You’ve spent a lot on nonrefundable travel plans, including flights, hotels, ground transportation, and tours. A policy with trip cancellation coverage can insure 100% of those prepaid travel costs.
• Your destination requires travel insurance. A plan can provide required coverage, such as the emergency medical benefits needed for a Schengen visa.

Comparing travel insurance plans side by side is the easiest way to see your options and find a price that works for you.

When is travel insurance worth it?

Some factors worth considering when deciding whether to buy travel insurance include:

• Trip cost: If you’ve spent thousands on flights, hotels, tours, or cruises that can’t be refunded, travel insurance may reimburse those expenses if you have to cancel or interrupt your trip for an eligible reason.
• Destination: When you leave the U.S., your regular health insurance may not follow you. Travel insurance can cover medical treatment, emergency transportation, and other travel-related expenses.
• Travel activities: If you’re planning cruise excursions, adventure trips, or remote travel, an injury or illness during your trip could get expensive fast. A plan with medical evacuation and travel assistance can be an invaluable safety net.
• Existing coverage: Credit cards and other benefits may offer some protection, but usually with lower limits than a comprehensive travel insurance plan.
• Personal circumstances: If you have pre-existing medical conditions, a complex itinerary, or limited flexibility, the right travel insurance plan can protect your wallet against many of the things that could go wrong.

Ultimately, deciding whether travel insurance is worth it comes down to the specific trip you’re taking. When weighing your options, think through the financial impact of losing your prepaid deposits or having to cover a major unexpected expense on your own.

Is travel medical insurance worth it?

Often, yes—travel medical insurance can be worth it if you want financial protection against emergency medical expenses while away from home. You can buy travel medical insurance as a standalone plan or get it bundled into a comprehensive travel insurance policy.

Travel medical insurance may be especially valuable if you:

• Are leaving the country
• Have health concerns
• Will be traveling to areas far from adequate medical facilities
• Plan to participate in activities where injuries are more likely

When comparing travel insurance plans, review each policy’s emergency medical limits, read the exclusions carefully, and see how pre-existing conditions are handled.

Is yearly travel insurance worth it?

Annual travel insurance is worth considering if you travel three or more times a year. An annual plan covers all eligible trips taken throughout the year, so you’re not buying a new policy each time.

Yearly travel insurance might be a good fit if you:

• Plan to take at least three trips in the next 12 months
• Want a simpler way to manage your travel protection
• Travel often, whether for business or leisure

Before you buy, it’s worth comparing what you get with annual vs. single-trip travel insurance. A comprehensive single-trip policy typically offers more customizable coverage, while an annual plan provides consistent coverage, often at a lower overall price.

When is travel insurance not worth it?

Travel insurance may not be necessary for every trip.   

You might decide to skip buying coverage if:

• Your trip isn’t expensive, and you could comfortably absorb any unexpected costs
• Your bookings are fully refundable or flexible
• You’re traveling close to home
• You already have sufficient coverage through a credit card or another insurance policy
• Your health insurance will cover you, and emergencies aren’t a major concern

Even if you decide to pass on a policy, it’s worth understanding the financial risks you’re taking by traveling without one. That way, it’s an informed choice either way.

How much does travel insurance cost compared to what it could pay out?

Travel insurance typically costs about 4% to 10% of your total insured trip cost (that’s the amount of your prepaid, nonrefundable expenses). The exact price depends on factors such as your age, destination, coverage level, and trip details.

For example, travel insurance for a $5,000 trip might cost a few hundred dollars. While that upfront cost may seem significant, covered losses (trip cancellation, medical emergencies, evacuation, or a trip cut short) can easily run into the thousands of dollars.

The right question isn’t just how much travel insurance costs, but whether you could comfortably handle the financial impact of a major travel disruption or health crisis.

What are common travel insurance exclusions?

No policy covers every situation, so it’s important to understand what’s not covered when you buy a plan.

Common travel insurance exclusions include:

• Any loss resulting from alcohol or drug use, or illegal activity
• Medical tourism
• Normal pregnancy care
• Pre-existing medical conditions (unless you qualify for a pre-existing condition waiver)
• Routine medical care
• Some adventure or extreme activities (check out SOVENTURE for adventure-specific policies)
• Theft of cash or credit cards
• Traveling against a doctor’s advice

Always review the details of a policy before purchasing. If you have any questions, our licensed travel insurance agents are happy to help. 

How do I compare travel insurance plans?

The best approach to compare travel insurance plans is to focus on the benefits that matter most for your trip.

Review each policy’s coverage, conditions, and limits for:

• Baggage loss and delay
• Emergency medical 
• Medical evacuation 
• Travel delay 
• Trip cancellation and interruption 

Tip: The cheapest option isn’t always the best value. Depending on your trip, it might be worth paying a little more for stronger coverage. 

The bottom line

Travel insurance is often worth it, since a comprehensive plan can offer valuable financial protection against cancellations, medical emergencies, delays, and other unknowns that can derail a trip.

Before your next trip, take a few minutes to compare travel insurance options and find a plan that provides the financial protection you want at a price that fits your budget.

Frequently asked questions

Is travel insurance worth it for a domestic trip?

Travel insurance can be valuable for domestic trips, especially if you have expensive nonrefundable bookings, flights, or accommodations. However, if your plans are flexible and your costs are minimal, you may decide you don’t need it.

Is travel insurance worth it for a flight only?

Travel insurance is worth considering for expensive flights, international routes, or trips where a delay or cancellation could leave you covering costs out of pocket. 

How can I find the best travel insurance for my trip?

It comes down to your destination, trip cost, activities, and personal needs. Comparing travel insurance options by coverage, limits, exclusions, and price can help you land on a policy that actually fits your trip.