Travel insurance is worth it in some situations and unnecessary in others. The honest answer: it depends on your trip cost, destination, and health situation — not a blanket yes or no.
When travel insurance is clearly worth it
- Expensive non-refundable trips: A $5,000 cruise or international package tour where cancellation means losing most of the cost — insurance at 4–8% of the trip value ($200–$400) is easy to justify.
- Medical coverage abroad: Your domestic health insurance almost never covers international medical care. A medical evacuation from a remote location can cost $50,000–$200,000+. Medical-only travel insurance can be purchased for $30–60 for a short trip.
- Adventure travel or high-risk activities: Standard policies exclude many activities; specialist adventure travel cover is worth buying if your trip involves skiing, diving, trekking, or similar.
When you can often skip it
- Short domestic trips where accommodation and flights are cheap or flexible
- Trips booked with a credit card that offers travel insurance as a benefit
- Destinations with reciprocal healthcare agreements (e.g. EHIC in Europe)
- Fully refundable bookings where your main risk is already hedged
What travel insurance typically covers
- Trip cancellation / interruption (usually 100% of insured costs)
- Emergency medical and evacuation
- Baggage loss or delay
- Travel delay expenses
- Some policies: rental car damage, political evacuation, 'cancel for any reason' (CFAR — adds 40–50% to premium)
How much does it cost?
Standard policies run 4–8% of trip cost. CFAR policies run 8–12%. Medical-only short-trip policies can be $30–80. Your age significantly affects medical-inclusive premium rates — a 65-year-old pays 3–5× more than a 30-year-old for the same policy.
Frequently Asked Questions
Does my credit card already include travel insurance?
Some premium travel credit cards include trip cancellation, travel delay, and rental car damage coverage. But coverage limits are typically lower than standalone policies, and emergency medical or evacuation coverage is usually absent entirely. Read the benefits guide for your specific card carefully — and understand that coverage generally only applies to travel booked and paid for with that card.
Does travel insurance cover COVID-19 or pandemic-related cancellations?
Most standard trip cancellation policies cover cancellation due to your own documented illness — including COVID — but will not cover cancellation simply because you decide not to travel due to COVID concerns or government advisories. Cancel for Any Reason (CFAR) coverage does allow cancellation for any reason but adds 40–50% to the premium and typically reimburses only 50–75% of trip costs.
When is the best time to buy travel insurance?
Buy as soon as you make your first non-refundable trip payment. Many policies include a pre-existing condition look-back window — typically 60–180 days before purchase — and buying early maximises your covered cancellation period. Buying at the last minute still provides medical and emergency coverage during the trip but may exclude cancellation benefits for conditions or events that arose before the purchase date.
Estimate your travel insurance cost
Use our Travel Insurance Estimator to get a rough premium estimate based on trip cost, duration, age, and coverage type.