Do I Really Need Travel Insurance? Here’s the Truth
If you’ve ever booked a flight, hotel, or tour online, you’ve probably seen that pop-up:
“Add travel insurance for just $X?”
It sounds optional, maybe even unnecessary, especially if your trip isn’t that expensive. So, the question is:
Do you really need travel insurance?
The short answer: It depends. The long answer: Keep reading.
What Is Travel Insurance, Anyway?
Travel insurance covers you in case your trip doesn’t go as planned, whether that’s a missed flight, a lost bag, or a medical emergency abroad.
Most policies fall into a few categories:
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Trip Cancellation/Interruption: Reimbursement if you cancel or cut your trip short for a covered reason (like illness or a family emergency).
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Medical Coverage: Helps pay for doctor visits or hospital care if you get sick or injured while traveling.
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Emergency Evacuation: Covers transportation to a hospital or back home if something serious happens.
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Lost/Delayed Baggage: Compensation for lost, stolen, or delayed luggage.
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Travel Delays: Reimbursement for meals, hotels, or rebooked flights due to delays.
When Travel Insurance Is a Smart Idea
Here are situations where travel insurance is smart travel planning:
You’re Traveling Internationally
Your regular health insurance might not cover you outside your home country. If you break an ankle hiking in Peru or get food poisoning in Thailand, travel insurance with medical coverage can save you thousands.
Your Trip Is Expensive or Non-Refundable
If you’ve prepaid for flights, resorts, tours, or cruises that don’t offer refunds, insurance can protect your investment.
You’re Traveling During Unpredictable Seasons
Hurricane season, wildfire season, or winter storms can wreck even the best-laid plans. Travel insurance can help you recover costs if your trip is canceled or delayed due to severe weather.
You Have Medical Conditions
Pre-existing conditions can sometimes be covered if you purchase a plan early enough. Without insurance, unexpected medical needs can get very expensive fast.
You Like to Be extra Prepared
Peace of mind is worth something. Even if you never need to file a claim, knowing you’re covered in an emergency can ease a lot of stress and help you have a more enjoyable trip.
When You Might Not Need Travel Insurance
You’re Taking a Low-Cost, Domestic Trip
If you’re just flying home for the weekend or doing a road trip and all your bookings are refundable, insurance might not be worth it.
Your Credit Card Already Covers You
Many premium credit cards include travel insurance when you book the trip with that card. Be sure to check what’s included, it might be enough.
You’re Not Bothered by Risk
If you’re okay with losing some money in exchange for skipping the insurance fee, and your trip isn’t risky or expensive, you might decide to take your chances.
How Much Does Travel Insurance Cost?
Typically, it ranges from 4% to 10% of your total trip cost. For example, if your trip costs $3,000, expect to pay around $120–$300 for coverage, depending on your age, destination, and the level of protection.
What It Doesn’t Cover
Travel insurance isn’t a get-out-of-jail-free card. Most policies don’t cover:
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Canceling because you “just don’t feel like going”
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Travel disruption due to civil unrest
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Dangerous sports or activities (unless you buy an adventure add-on)
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Claims made after you knew a trip was at risk (like hurricanes already forecasted)
Always read the fine print.
Travel frequently?
Whether you travel multiple times a year as part of your routine, like I do, or have more than one upcoming trip, consider an annual or multi-trip policy. I purchase one policy a year, through Allianz, that covers most of my travel. If I need to book additional coverage due to a higher risk activity, I look at that case-by-case. Last year, I booked a short term policy with MedJet that covered air evacuation while hiking in a remote part of British Columbia.
So, Do You Really Need It?
Ask yourself:
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Can I afford to lose the money I’ve paid for this trip?
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What’s the chance I might cancel for a covered reason?
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Do I have health insurance that works where I’m going?
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Am I traveling during a risky time (weather, illness, etc.)?
If your answer to any of these is “no,” then travel insurance is probably a smart choice.
