What Travel Insurance Actually Does
Travel insurance is one of the most misunderstood travel purchases. Buy the wrong policy and you’ve wasted money; skip it entirely and one emergency can cost you tens of thousands. Here’s what’s actually worth paying for — and what isn’t.
The Coverage That Matters
Emergency Medical Coverage
This is the single most important part. Your domestic health insurance often covers little or nothing abroad — and a medical evacuation flight can cost $50,000 to $200,000. Look for at least $100,000 in emergency medical coverage and $250,000+ in medical evacuation for international trips. This is non-negotiable for solo travelers and anyone visiting countries with expensive healthcare.
Trip Cancellation and Interruption
This reimburses prepaid, non-refundable costs if you must cancel or cut short a trip for a covered reason — illness, injury, death in the family, natural disasters. “Covered reason” is the key phrase: standard policies don’t cover “I changed my mind.” If you want that flexibility, you need “Cancel For Any Reason” (CFAR) coverage, which costs 40-50% more and typically reimburses only 50-75%.
Baggage Loss and Delay
Airlines lose or delay millions of bags yearly. Baggage coverage pays for essentials while you wait and replaces items if the bag is truly lost. It’s usually a few hundred to a couple thousand dollars — modest, but useful. Packing smart reduces the risk in the first place; see carry-on packing mistakes to avoid.
What’s Usually a Waste of Money
Rental Car Collision Coverage (Sometimes)
Many credit cards already include rental car coverage — check yours before buying the rental company’s expensive daily policy. If your card covers it, the add-on is pure waste.
“Cancel For Any Reason” for Cheap Trips
CFAR makes sense for a $10,000 cruise. For a $800 weekend trip, the extra premium often isn’t worth the partial reimbursement.
Flight Accident Insurance
Standalone flight accident policies are almost always redundant — your life insurance and travel medical policy already cover accidents. Skip it.
When You Definitely Need Insurance
Buy it when: you’re traveling internationally, your trip costs are largely non-refundable, you’re going somewhere with expensive or limited healthcare, you’re doing adventure activities, or you’re traveling during hurricane/monsoon season. Complex multi-city itineraries with many non-refundable bookings are another clear case — one cancelled leg can cascade.
When You Can Reasonably Skip It
Consider skipping when: it’s a cheap domestic trip with refundable bookings, your credit card already provides trip protection, and your health insurance covers you at the destination. Many premium travel credit cards include solid trip cancellation and baggage coverage — read your card’s benefits guide before buying a separate policy.
How to Buy It Right
Buy within 14-21 days of your first trip payment if you want pre-existing condition coverage and CFAR eligibility — most insurers require early purchase for those. Compare on aggregator sites, but read the actual policy document, not just the marketing summary. Check the exclusions list carefully: adventure sports, alcohol-related incidents, and travel to countries under advisory are commonly excluded.
Declare pre-existing conditions honestly. Insurers can and do deny claims for undisclosed conditions, and the savings aren’t worth the risk.
The Bottom Line
Good travel insurance is medical coverage first, cancellation coverage second, and everything else a bonus. Match the policy to the trip: big international adventure, comprehensive policy; cheap domestic weekend, maybe just your credit card’s built-in protection. Either way, decide deliberately — don’t just click “add insurance” at checkout without reading what you’re buying.
