Is Travel Insurance Worth It? When to Buy & Why You Need It

Travel insurance is worth it if losing your trip investment due to cancellation would cause financial stress and if you're traveling somewhere your regular health insurance won't work. Medical emergencies abroad can cost tens of thousands of dollars, and medical evacuations from remote areas can run $100,000 to $1,000,000+.  You don't need it, until you need it.  It's hard to predict when travel insurance will be important but we help you figure out when travel insurance is worth it.

Think of it like this: would you rather pay 3-8% of your trip cost, or risk losing 100% of your trip investment or risking medical bills if something goes wrong? Travel disruptions happen more often than you think:

• Weather-related delays and cancellations cost travelers billions in additional expenses each year, with 75% of cancelations due to storms.*
• Medical evacuations can cost $100,000-$1,000,000+
• Trip cancellations due to illness, job loss, or family emergencies affect millions of travelers annually

But travel insurance isn't worth it for every travel situation. If you're taking a cheap weekend trip you could easily afford to lose, or if you have excellent health insurance that covers international travel, you might decide to skip it.

Travel insurance is worth it for these specific scenarios:

Cancel for any reason, or CFAR, allows you to cancel your trip for literally any reason you want and you get a standard 75% reimbursement on your covered trip cost.  See our guide to the best CFAR coverage.  Cancel for Any Reason (CFAR) coverage costs extra, about 3% of your trip value, but gives you ultimate flexibility and peace of mind. 

It's worth it if:

• You're worried about work conflicts that might not qualify under standard coverage
• You're concerned about personal safety or changing political situations
• You want the freedom to cancel for any reason and get 50-75% of your money back
• You're booking during uncertain times (pandemic, economic instability)

You can skip it if: 

• You're taking a cheap trip you could easily afford to lose
• You're young, healthy, and have no family medical concerns
• You're traveling domestically and have good health insurance

Knowing what's actually covered helps you decide if travel insurance is worth it for your situation. The main benefits include: trip cancellation and interruption, emergency medical coverage, medical evacuation, baggage protection, and travel delays. Exclusions include pre-existing conditions (unless you get a waiver), known events like named hurricanes, high-risk activities, and routine medical care.  

For complete details on what's covered and what's not, check out our comprehensive travel insurance coverage guide.

Travel insurance typically costs 3-8% of your total trip cost, but several factors affect the price:

Cost Factors:

• Your age: Older travelers pay more (medical risk increases)
• Trip cost: More expensive trips = higher premiums
• Destination: Some countries cost more to cover
• Coverage level: Comprehensive plans cost more than basic
• Trip length: Longer trips increase premiums
• Health status: Pre-existing conditions may increase costs

Typical Cost Examples:

• $2,000 trip, age 35: $80-150 for comprehensive coverage
• $5,000 trip, age 65: $300-500 for comprehensive coverage
• $500 weekend trip, age 25: $20-50 for basic coverage

Ways to Save:

• Buy within 14-21 days of booking for best rates and benefits
• Skip unnecessary add-ons you don't need
• Compare quotes from multiple providers and check out our guide to the cheapest travel insurance companies
• Consider annual policies if you travel more than 3 times per year

Travel insurance is worth buying if losing your trip investment would cause financial stress or if you're traveling internationally without adequate health coverage. The 3-8% cost is reasonable protection against losing 100% of your trip plus facing massive medical bills abroad.

Buy travel insurance if:

• Your trip costs more than you can afford to lose
• You're traveling internationally
• You have health issues or unpredictable work situations
• You're booking far in advance or during hurricane season

Skip it if:

• You're taking a cheap domestic trip
• You're young, healthy, and have good travel coverage through credit cards
• The premium costs more than you're comfortable risking

Rule of thumb: If the potential loss would hurt, insure it. If it wouldn’t, consider self-insuring.