Should You Get Travel Insurance?

Last Updated: October 11, 2024 — 5 min read

Planning a vacation can be one of the most exciting events—dreaming of exotic destinations, booking flights, and finding the perfect accommodation. But amid all the excitement, one question often pops up: Should you get travel insurance? 

You might wonder if adding another cost to your pricey trip is necessary. So, let’s consider whether you need travel insurance, why we recommend it, and when it might be worth buying so you can make an informed decision. 

What Exactly Is Travel Insurance Coverage?

Before we tackle whether you need travel insurance, let’s first understand what it is. Simply put, a travel insurance plan protects you from financial loss if you encounter travel disruptions, like trip cancellations, medical emergencies, trip delays, lost baggage, and natural disasters.

There are various types of travel insurance policies, each offering different levels of coverage. These can include basic travel protection plans that cover delays and lost luggage and more comprehensive plans that include coverage for trip cancellations and medical evacuations. Comparing multiple options can help you choose the right plan for your needs, even if it’s last-minute.

What Does it Cover?

Now that we’ve covered whether or not you should get travel insurance, let’s talk about the types of coverage and what’s included in a typical policy. While coverage can vary by provider and plan, most travel insurance policies cover the following:

1. Trip Cancellation and Interruption are among the most common reasons people buy travel insurance. Suppose you must cancel or cut your trip short due to an unforeseen event (like illness, injury, or a natural disaster). In that case, your insurance will help reimburse your non-refundable trip expenses.
2. Medical Coverage: Travel insurance can cover emergency medical expenses, including doctor visits, hospital stays, and even emergency medical evacuations, which can be critical if you’re in a remote location with limited healthcare facilities.
3. Baggage Loss or Delay: If you experience a baggage delay or your luggage gets lost or stolen, travel insurance can help cover the cost of replacing your items. Some policies will even cover additional expenses if you’re stuck without your belongings for an extended period.
4. Travel Delay Coverages and Cancellations: If your flight gets delayed or worse, Travel Delaytrip cancellation insurance can help cover additional expenses like meals, accommodations, or alternative transportation to get you to your destination.
5. Travel Assistance Services: Many travel insurance policies offer 24/7 emergency assistance services, which can be incredibly valuable if you run into trouble while traveling. This can include everything from finding local medical care to coordinating emergency evacuations.

Do You Need Travel Insurance for International Trips?

If you’re heading abroad, travel insurance becomes much more essential. Why? Because when you’re outside of your home country, the stakes are often higher. For example, you may be unable to predict when a volcanic eruption, hurricane, or political unrest will occur at your destination. Still, with the right travel insurance, you’ll have protection if something unexpected does happen. Even common issues like trip interruptions and cancellations or lost or stolen baggage become extra challenging when you’re away from your home country. Or worse yet, imagine needing medical support when hiking in the Alps; you could end up on the hook for thousands in medical bills.

When Is it Not Necessary?

Now, let’s talk about those times when you might not need travel insurance. It’s possible that for some travelers, insurance may not be worth the extra cost.

For example:

1. Domestic Travel: If you’re traveling within your own country, especially if it’s a shorter, less expensive trip, travel insurance might not be necessary. You’ll likely already have health insurance coverage at home, and the risks of trip disruptions may feel smaller.
2. Existing Coverage: In some cases, your existing insurance policies, such as your health insurance, credit card benefits, or homeowner’s insurance, may offer travel-related coverage. For example, some credit cards include complimentary trip cancellation and delay protection, so check what’s already included in your policies before buying additional travel insurance.
3. Short, Inexpensive Trips: If you’re going on a quick weekend getaway that didn’t cost much to plan, travel insurance may not make sense financially, or a basic coverage plan with trip cancellation coverage might be sufficient to avoid out-of-pocket expenses.

Is Travel Insurance Worth it?

The short answer is: it depends. Travel insurance isn’t a one-size-fits-all situation. Comprehensive travel insurance may be essential for some people, while it might feel like an unnecessary expense for others.

So, how do you decide whether or not to buy travel insurance? Consider the following to help you determine if exploring insurance options makes sense for you:

1. The Cost of Your Trip: If you’re spending significant money on your vacation, you’ll want to protect that investment. Travel insurance can cover the cost of a canceled trip if an emergency arises, like a sudden illness, a death in the family, or even a natural disaster at your destination. So, if your trip is costly, buying travel insurance could give you peace of mind and a sense of financial responsibility.
2. Your Destination: Travel insurance is strongly recommended if you travel abroad, especially to remote destinations with limited access to adequate health services.
3. Your Situation: Travel insurance could be an essential safety net if you travel with pre-existing medical conditions or plan a trip during potential life changes (like a family illness).
4. The Type of Trip: Are you going on an adventure-packed vacation? Hiking, scuba diving, or skiing all involve higher risks. Travel insurance policies can offer coverage for extreme sports or activities that may not be included in basic health insurance.

Ultimately, travel insurance is all about risk management. It helps you answer this question: How much risk are you willing to take, and how much are you willing to pay to reduce that risk? In other words, it’s a way to protect your investment in a trip against unforeseen circumstances that could disrupt or cancel your plans.

How to Buy it

So, you’ve decided that buying travel insurance is the right choice for your next trip—great! But how do you go about purchasing a policy? It’s easier than you might think.

1. Shop Around: There are plenty of travel insurance providers out there, and the best way to find the right policy for your needs is to compare plans. You can use our compare tool to weigh the different travel insurance companies side by side to see which coverage best suits your trip.
2. Read the Fine Print: A policy’s Certificate of Insurance will outline what’s covered, what’s excluded, and any limitations or conditions that apply (such as pre-existing medical condition exclusions).
3. Consider Timing: It’s generally best to purchase travel insurance as soon as you book your trip, especially if you’re worried about cancellations. Many policies include time-sensitive benefits, such as coverage for pre-existing medical conditions, that require you to purchase your plan within a specific time frame after booking.
4. Customize Your Coverage: Travel insurance policies often offer add-ons or upgrades for specific needs, such as coverage for extreme sports or rental cars. Tailor your coverage to fit the specifics of your trip.

Bottom Line: Deciding whether you should get travel insurance depends on how much peace of mind you want while traveling. For some, it’s worth the extra cost for the reassurance that if something goes wrong, they’ll have financial protection. The risks may feel manageable enough for others to skip the additional expense.

If you’re still on the fence, consider the factors that matter most to your situation—your trip’s cost, the destination, personal health, and how much risk you’re comfortable taking. And remember, there’s no right or wrong answer. Just make the choice that feels best for you.