Is Travel Insurance Worth It?

Travel insurance is worth buying for nearly all international trips and many longer domestic trips. The cost is typically 4-10% of trip cost, and the protection it provides for the two most likely catastrophic scenarios (medical emergencies abroad and major trip cancellations) almost always outweighs the premium.

The two scenarios that justify it

Medical emergencies abroad. Most domestic health insurance, including US Medicare, does not cover medical care outside your home country. A serious accident or illness while traveling can produce hospital bills in the tens or hundreds of thousands of dollars. Travel insurance covers most of this, often including medical evacuation back to your home country (which alone can cost USD 50,000+).

Trip cancellation. If you have prepaid significant trip costs (flights, hotels, tours) and need to cancel due to a covered reason (illness, family emergency, employer requirements), travel insurance refunds the non-refundable portion. For trips over USD 3,000 in prepaid costs, the math almost always favors insuring.

What to look for in a policy

Medical coverage of at least USD 100,000 (more if traveling somewhere remote). Medical evacuation coverage of at least USD 250,000. Trip cancellation coverage at least equal to your prepaid trip cost. Trip interruption coverage. Baggage loss coverage. 24/7 emergency assistance hotline.

Read the exclusions list carefully. Many standard policies exclude pre-existing conditions, adventure activities, alcohol-related incidents, and travel to certain countries.

Cancel For Any Reason (CFAR) coverage

CFAR upgrades cost roughly 40% more than standard policies but reimburse 50-75% of trip costs for cancellations outside the standard “covered reasons” list. Useful for travelers who book complex trips well in advance and want maximum flexibility.

Credit card travel insurance

Many premium travel credit cards include travel insurance as a benefit. The Chase Sapphire Reserve, American Express Platinum, and similar cards provide trip cancellation, lost baggage, and travel accident coverage. The medical coverage on credit card insurance is usually less robust than dedicated travel policies; verify your specific card”s benefits before relying on them as primary coverage.

When to buy

Buy within 14-21 days of your initial trip deposit to get pre-existing condition waivers and CFAR options. Waiting until later in the booking process limits your options.

Where to buy

Compare policies on aggregator sites like InsureMyTrip, Squaremouth, or Travel Insurance Review before purchasing. Direct from major insurers (Allianz, World Nomads, Travelex, Tin Leg) avoids middleman fees but takes more comparison work.