Whether travel insurance is worth it depends on the trip's cost, your health, and how much is non-refundable. This guide explains what it covers, when it clearly pays off, and when you can reasonably skip it.
What it covers
A standard policy typically covers trip cancellation and interruption, emergency medical care and evacuation, lost or delayed baggage, and travel delays. Medical and evacuation coverage is the part that can save you the most abroad, where your home health plan may not apply.
Coverage limits, exclusions and pre-existing-condition rules vary widely — read what's actually covered, not just the headline.
When it's worth it
Insurance makes the most sense on expensive, non-refundable trips (cruises, all-inclusive packages, international flights), trips during hurricane season, and any travel where a medical issue abroad would be costly. If losing the trip's cost would hurt, insure it.
Older travelers and those with health concerns benefit most from strong medical and evacuation coverage.
When you can skip it
For a cheap, fully refundable domestic trip with no big non-refundable costs and good health coverage, insurance may be unnecessary. If almost everything is refundable, there's little to protect.
Some credit cards include limited trip protection — check what you already have before buying a separate policy.
'Cancel for any reason' explained
Standard policies only pay out for covered reasons (illness, certain emergencies). 'Cancel For Any Reason' (CFAR) upgrades let you cancel for reasons not otherwise covered, but reimburse only a portion (often 50–75%) and must be bought soon after your first trip payment.
CFAR costs more but suits travelers who want maximum flexibility. An advisor can help you weigh whether it's worth it for your trip.
Frequently asked questions
Is travel insurance worth it?
For expensive, non-refundable, international or hurricane-season trips — usually yes, mainly for medical/evacuation coverage. For cheap, refundable domestic trips, often not.
What does travel insurance cover?
Typically cancellation/interruption, emergency medical and evacuation, baggage, and delays — with limits and exclusions that vary.
Does my credit card already cover it?
Some cards include limited trip protection. Check your card benefits before buying a separate policy.
What is 'Cancel For Any Reason'?
An upgrade that lets you cancel for reasons a standard policy won't cover, reimbursing a portion. It costs more and must be bought early.
Related planning resources
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