Travel insurance is worth considering, even if it’s not mandatory for your destination. Think of it as a financial safety net that can protect you if unexpected events and expenses occur during your trip.
We at the MarketWatch Guides team have researched the best travel insurance companies to help you decide if purchasing a policy is worth it. We’ll cover when you might need it, when you might not, coverage inclusions and exclusions and more. We’ll also touch on the average cost of travel insurance and where you can purchase a plan.
Key Takeaways:
- Travel insurance can provide you with peace of mind in case unforeseen circ*mstances cause you to cancel your trip or return home early.
- If you need emergency medical help for an illness or injury abroad, a travel insurance policy with medical coverage can reimburse the costs of this care.
- According to our third annual travel insurance survey conducted in February 2024, almost 80% of the 1,000 respondents had purchased travel insurance more than once. Coverage was the most important factor over cost for nearly half of these respondents.
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Is Travel Insurance Worth the Cost?
Travel insurance can provide peace of mind in the face of unforeseen events that can alter your travel plans before or during your trip. Coverages such as trip cancellation and trip interruption coverage can help you recoup money lost if you need to cancel your trip or head home early for reasons covered under policy terms. Baggage coverage can reimburse you for items lost, stolen or damaged in your luggage during transit to your destination.
Many travel insurance policies also include coverage for emergency medical situations. Angela Borden, a product marketing specialist at Seven Corners, makes the case that this coverage is worth the extra cost.
“If you get sick or hurt during your trip, your travel medical insurance can pay for doctor’s appointments, hospital visits, treatment, medication, and in extreme situations, emergency medical evacuation. Without travel medical insurance, there’s a good chance you’d be left paying those bills out of pocket.”
If you value your peace of mind and view protection from unforeseen travel and medical circ*mstances as an investment, a travel insurance policy may be worth purchasing.
When Is Travel Insurance Worth It?
Travel insurance can provide a valuable financial safety net regardless of your destination, but it may make more sense for some travel itineraries than others. For example, if you’re traveling to a country lacking a robust healthcare system, travel medical and evacuation coverages can help you get the care you need during an emergency. Or if you’re traveling with expensive items in your luggage, baggage delay and loss coverage can reimburse you if your bags are damaged, lost, stolen or delayed during your travels.
Explore when it could be worth purchasing different types of coverage in the sections below.
Trip cancellation andtrip interruption coveragecan help cover nonrefundable travel expenses if you’re unable to travel or your trip is cut short. While no traveler wants to expect the unexpected, these coverages can protect against unforeseen circ*mstances.
For example, if you need unexpected medical attention or surgery that prevents you from traveling,trip cancellation insurancecan reimburse your trip costs. Or if a travel companion dies, travel insurance will typically consider this a covered event for cancellation or trip interruption. If you’re worried about an unforeseen event forcing you to cancel your trip, you’ll likely find this type of insurance to be worth it.
Standard trip cancellation insurance won’t cover every circ*mstance. If you’re concerned about canceling your trip due to a foreseeable event,cancel for any reason (CFAR) coveragecould be worth considering. Living up to its name, this type of travel insurance provides considerable flexibility by allowing you to cancel your vacation for any reason.
However, our research has found that this coverage will significantly increase your overall policy costs. If you think this additional cost is worth the option to cancel your trip for reasons uncovered under traditional trip cancellation coverage, then adding CFAR coverage to your travel insurance policy is worth considering.
Baggage loss and delay coverage can reimburse you for lost, delayed, stolen or damaged bags during your travels. If your travel plans involve multiple layovers or if you’re traveling with expensive items in your luggage, this coverage could be worth investing in. Note, though, that monetary coverage limits vary by travel insurance policy. It’s best practice to read through a plan’s sample policy to ensure itsbaggage coverage fits your needs.
Emergencytravel medical insurancecan cover medical bills accrued while traveling abroad. As most domestic health insurance plans, includingMedicare, don’t extend coverage outside of the US, this type of insurance can benefit those concerned about illnesses and injuries during international travel.
Check to see if your health insurance plan covers overseas medical expenses. If not — and you’d like coverage for an illness or injury — you may want to consider purchasing a travel insurance policy with emergency medical coverage.
Emergencymedical evacuation coveragecould be worth purchasing if you’re traveling to a remote area or an area lacking a robust healthcare system. It covers the cost of transportation to a medical facility equipped to care for your needs when you’re sick or injured.
This coverage includes more common transportation methods such as ambulances, plus evacuation by helicopter from more remote areas. Reading up on the healthcare system of the country you’re traveling to can help you decide if you need this type of travel insurance.
Supplemental travel insurance could be beneficial over a standard policy in specific scenarios. For example, if you have a credit card that offers travel benefits — such as theChase Sapphire Preferredcard — you’ll receive complimentary trip cancellation and interruption coverage if you use it to purchase your non-refundable travel expenses.
However, complimentary coverage doesn’t always mean comprehensive. If you’re looking for more well-rounded coverage that includes travel medical and emergency evacuation benefits, you may want to purchase these additional coverages a la carte.
When Is Travel Insurance Not Necessary?
While travel insurance can be a helpful purchase to protect your non-refundable trip expenses, it’s not always necessary in every situation. For example, if you’re taking a cheap domestic trip and you’re not concerned about potentially losing its total costs, a policy may not be worth the extra money. Or if you have coverage through a credit card and feel satisfied with it, you could forgo any additional travel insurance.
If you’re traveling for business and your company covers your expenses, you likely won’t need your own policy. That said, it’s still worth checking with your company to learn more about the specific coverage it provides, if any. Every travel scenario is different. Examine your individual travel needs before deciding against the purchase of a policy.
What Does Trip Insurance Cover?
Most travel insurance policies offer multiple types of coverage for travel-related events, such as flight cancellations, medical emergencies and lost baggage. If you’re on a tight budget, even cheap insurance policies can provide a wide range of protection options.
According to our 2024 travel insurance survey findings, over 15% of the 1,000 participants chose an Allianz policy as their most recent travel insurance provider. To help you better understand what travel insurance typically covers, we offer an overview of common coverages and the amounts allocated through one of Allianz’s popular policies in the table below.
| Travel Insurance Coverage Type | Description | Allianz OneTrip Basic Coverage |
|---|---|---|
| Trip cancellation | Reimburses prepaid, non-refundable travel expenses for scenarios listed as covered under a policy. | 100% (up to $10,000) |
| Trip interruption | Reimburses any unused, non-refundable travel costs if your trip is cut short for a covered reason. | 100% (up to $10,000) |
| Trip delay | Reimburses you for expenses such as accommodations, meals and more if your trip is delayed for a covered reason. | $300 |
| Accidental death and dismemberment benefits | Provides coverage for loss of life or dismemberment, typically for air travel only. | Not available |
| Baggage delay | Reimburses you for baggage delays due to an issue with your transport provider. | $200 |
| Baggage loss | Reimburses you for essential items packed in your luggage if lost, stolen or damaged. | $500 |
| CFAR coverage | Covers trip cancellations for virtually any reason typically excluded from standard trip cancellation benefits. | Not available |
| Emergency accident and illness medical expenses | Provides reimbursem*nt for any care related to illnesses or injuries that occur during your travels. | $10,000 |
| Emergency evacuation and repatriation of remains | Covers the cost of an emergency evacuation to a medical facility or repatriation benefits to transport your remains back home. | Not available |
| Emergency medical transport | Covers the cost of transporting you to an appropriate healthcare facility to receive care for an illness or injury. | $50,000 |
| Interruption for any reason | Reimburses the cost of unused trip expenses due to a trip interruption for virtually any reason. | Not available |
| Missed flight connection | Offers coverage if you miss your flight connection due to a reason listed as covered under your policy. | Not available |
| Missed tour or cruise connection | Provides coverage if you miss your tour or cruise connection for a covered reason. | Not available |
| Non-medical emergency evacuation | Evacuates you back to your home country due to non-medical emergencies, such as political or civil riots or unrest. | Not available |
| Passport or visa replacement | Reimburses you for fees associated with replacing a lost or damaged passport or visa. | Not available |
| Rental car coverage | Covers damages to a rental car during your travels, but only provides collision coverage, not liability coverage. | Available |
| Pre-existing conditions waiver | Extends your travel medical coverage to include chronic or long-term conditions present during travel. | Available |
| 24-hour hotline assistance | Provides round-the-clock emergency assistance during your travels by facilitating various services. | Included |
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Ask an Expert
“When you’ve made a financial investment in your trip or need to protect your health when you travel, travel insurance is 100% worth it. Travel insurance can reimburse you for prepaid, nonrefundable trip expenses if you need to cancel or interrupt your trip for a covered reason.“
– Angela Borden, Product Marketing Specialist at Seven Corners
What Does Travel Insurance Not Cover?
Travel insurance can cover unexpected trip expenses due to unforeseen circ*mstances, but a policy won’t cover everything. Here are examples of what your travel protection might not include:
- Pre-existing conditions: Medical expenses due to pre-existing conditions are typically not covered unless your doctor clears you for travel and you purchased insurance within a certain number of days of paying for your trip.
- Pregnancy: While your policy may cover medical emergencies related to pregnancy, it likely won’t include trip cancellations due to normal pregnancy symptoms.
- Political unrest: If your visit is canceled or interrupted due to war, the resulting costs might not be covered.
- High-risk travel: Your policy may not provide coverage for high-risk activities like skydiving or traveling to destinations that are considered unsafe.
Where To Buy Travel Insurance
You can purchase a travel insurance policy entirely online at your convenience. Our research and mystery shopping efforts have shown that many travel insurance companies allow you to gather quotes, choose a policy and complete your purchase without the need to speak with a customer service representative.
Of course, if you prefer to speak with someone about a policy, most providers have dedicated representatives available to discuss any questions or concerns you may have. You could also purchase a policy with the help of a travel insurance agent or through the website you used when booking your trip. Wherever you decide to buy a plan, read the fine print in your policy to fully understand the coverage you’re paying for.
How Much Does Travel Insurance Cost?
The average cost of travel insurance is about 3% to 5% of the total value of your trip. We based this percentage on 1,519 quotes gathered by our research team across various travel insurance providers using seven unique traveler profiles. However, note that your actual cost for a travel insurance policy will depend on multiple factors.
The more costly your trip, the more your provider will need to reimburse you for a valid claim, which increases the cost of your policy. In addition, plan costs will generally increase with age, as younger travelers may be less likely to file a claim than senior travelers based on overall health. The type of coverage you purchase can also affect how much you pay for a policy.
In our experience, the best way to determine the cost of travel insurance is to gather quotes from several providers and compare them. This will help you find the coverage that best fits your travel needs and budget.
Country
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Frequently Asked Questions About Travel Insurance
A downside of buying travel insurance is there’s always a chance you could pay for coverage you don’t end up needing. Ultimately, buying insurance for a trip is a gamble, but it’s one you could be happy you made if a vacation doesn’t go as planned.
Another travel insurance disadvantage is that policies don’t cover everything. Policy exclusions vary so be sure to read through your contract’s fine print to understand limits and covered events.
Travel insurance can reimburse you for costs if a trip gets canceled, delayed or interrupted. When traveling abroad, having travel insurance with medical coverage can also help pay for emergency expenses until you return home. So if you’re on a cruise line and need to visit a medical facility, for example, travel insurance could help cover the cost of your care.
Travel insurance may not be necessary for short, inexpensive trips or for trips where airfare and accommodations are refundable. However, for longer trips where you’re paying more out-of-pocket, travel insurance can provide peace of mind and minimize financial loss if you have to cancel your plans.
When traveling, it’s important to be vigilant about your surroundings and be aware of any travel advisories for your destination. Try to travel in groups and avoid bringing valuable items with you when sightseeing or touring since tourists may be attractive targets for theft. You can keep updated on international travel advisories on the U.S. Department of State website.
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
