Flights get canceled, bags go missing and people get sick abroad. Travel insurance can reduce the financial damage of these surprises, but only if you choose a policy that matches your trip.
What Does Travel Insurance Cover?
- Trip cancellation: reimburses prepaid, non-refundable costs if you cancel for a covered reason.
- Trip interruption: helps if your trip is cut short.
- Emergency medical: covers medical care abroad, which your regular health plan may not.
- Medical evacuation: pays for transport to a suitable medical facility.
- Baggage loss and delay: covers lost, stolen or delayed luggage.
- Travel delay: reimburses meals and lodging during covered delays.
What Is Usually Excluded?
- Pre-existing conditions unless a waiver applies
- Changing your mind or “fear of travel”
- Risky activities without extra coverage
- Events that were already known when you bought the policy
How Much Does Travel Insurance Cost?
Pricing generally depends on trip cost, traveler age, destination and coverage level. Many policies cost a small percentage of the total trip cost, so more expensive trips usually cost more to insure.
When Is Travel Insurance Worth It?
- Your trip has large non-refundable costs.
- You are traveling abroad and your health plan has limited overseas coverage.
- You plan adventure activities or cruises.
- You travel with family or have important events tied to the trip.
Tip: Buy soon after booking your trip. Some benefits, such as pre-existing condition waivers, require early purchase.
How to Choose a Policy
- Compare plans from several providers on coverage limits, not just price.
- Check what your credit card or health insurance already covers.
- Read the exclusions and claim requirements before you pay.
Final Thoughts
For costly or international trips, travel insurance offers valuable protection and peace of mind. For cheap, fully refundable trips, it may be unnecessary. Decide based on what you could not afford to lose.