Overview
You’ve booked your flights, reserved your hotel, and packed your favorite beach hat—but there’s one thing you might be overlooking: travel insurance. You may find yourself debating whether it’s necessary. After all, you have a good credit card, and it includes some travel protection… right? So do you really need to pay for a separate travel insurance plan?
This is a common dilemma for many of our nomads. Most have some level of coverage through their credit card, but they’re often unsure if it’s enough. They’re not climbing Mt. Everest—they’re just headed to the beach. So, what’s the risk?
The answer depends on a few key factors. To help you decide, let’s take a closer look at what travel insurance covers (and what it doesn’t), and how it compares to the protection that may already come with your credit card.
Travel Insurance
For many of us, planning a vacation is a major investment, both financially and logistically. Personally, I start dreaming up my summer trips in the middle of winter. Researching destinations and activities is how I survive the rainy days, and I usually start booking flights and hotels months in advance. By the time my trip rolls around, I’ve spent hours planning and racked up a sizable credit card balance. So, if something were to go wrong—say I get sick or a natural disaster wipes out my hotel—I’d be disappointed on more than one level.
That’s where travel insurance comes in. It can’t prevent bad things from happening, but it can help ease the blow. A solid travel insurance plan can reimburse you for unexpected events that threaten or derail your trip. Think of it as protection for three core areas: your investment, your health, and your stuff.
Investment
Most travel insurance plans include trip cancellation and interruption coverage. If you can’t go, or need to cut your trip short, due to a covered event (like illness, natural disaster, or airline strike), you may be reimbursed for non-refundable, unused expenses. Just keep in mind that covered reasons are clearly outlined in your policy, and changing your mind usually doesn’t qualify. Some plans, like those from World Nomads, offer an optional ‘Cancel for Any Reason’ benefit. For an added cost, this gives you flexibility to cancel your trip for any reason and still receive partial reimbursement. It’s only available on Explorer and Epic plans and must be purchased within seven days of your initial trip deposit.
Health
If you get sick or injured while traveling, travel insurance can cover emergency medical expenses, especially helpful if your regular health insurance doesn’t work abroad. Some plans also include medical evacuation, hospital transportation, and 24/7 emergency assistance to help you find care and get home safely if needed.
Stuff
If your luggage is lost or stolen, travel insurance can help cover the cost of replacing the items. If your baggage is delayed, your plan can help you purchase the necessities until the bag finally makes it back to you. A good plan can minimize the disruption should you arrive to a destination with only the clothes on your back.
What is covered?
Just as important as knowing what travel insurance covers is understanding what it doesn’t. Planning to hike the Andes? Check if your plan covers high elevations. Taking a motorbike ride? Know what “necessary precautions” means in your policy, it might include wearing a helmet or having a valid license. Even domestic trips may benefit from coverage, but you’ll want to verify that emergency help is available close to home.
Travel insurance also doesn’t give you permission to let your guard down or act carelessly. Plans may become ineligible should you drink too much or leave your stuff unattended.
- Offers travel insurance only
- Best for: Affordable choice for adventurous spirits
World Nomads
World Nomads has been protecting adventurous and independent travelers with travel insurance coverage for more than 20 years.
Our quick take
They offer four budget-friendly travel protection plans for U.S. residents, designed to fit a variety of traveler needs and trip styles. Whether you’re traveling solo, as a couple, or with family (up to nine people), there’s a plan for you. Each option includes key benefits like trip cancellation, emergency medical coverage, baggage protection, and 24/7 non-insurance emergency assistance.
Key features
Covers 250+ adventure sports and activities
Offers Optional Cancel for Any Reason cover
Annual and Single-trip plans offered
Includes non-insurance perks like pre-trip health consultations & lost airline luggage retrieval services
Getting a quote is quick and easy
Credit Card Travel Protection
Many credit cards include some level of travel protection as part of their perks, also often covering your trip investment, health, and stuff. However, the benefits can vary widely depending on the card issuer (like Visa, MasterCard, or Amex) and the card tier (Platinum, Gold, Silver, etc.), and they often come with important limitations.
For example, coverage might only apply to domestic trips, only protect the primary cardholder (not your children or travel companions), or only be valid if you paid for the entire trip with that specific card.
As you investigate your credit card protections, ask yourself questions like this: Will it fully reimburse your trip if you have to cancel or interrupt it? What are the medical coverage limits, and would they cover an ambulance ride abroad? Does the card offer emergency assistance at your destination? Read the fine print so you know exactly what you’re getting.
Key Differences at a Glance
| Feature | Travel Insurance | Credit Card Protection |
| Medical coverage | ✅ Yes | ❌ Rare or very limited |
| Customizable coverage | ✅ Yes | ❌ No |
| Emergency evacuation | ✅ Yes | ❌ Limited or none |
| Purchase required | ✅ Yes | ❌ No (included with card) |
| Claim support | ✅ Dedicated providers | ❌ May vary by issuer |
| Trip payment required with a specific card | ❌ No | ✅ Yes |
| Adventure Activities coverage | ✅ Yes | ❌ No |
Travel Insurance
Pros
- Comprehensive coverage
- Can cover pre-existing conditions (with some policies)
- Often includes emergency services
- Often includes expanded coverage for adventure activities. World Nomads covers a minimum of 250 activities (hiking, skiing, scuba diving, etc.) for US Residents.
Credit Card Protection
Pros
- Free with an eligible card
- Convenient and automatic (if card used for purchase)
Cons
- Often lower limits
- Limited medical coverage in most cases
- Less flexibility and fewer support services
- Often limited adventure activities are covered
Which is the better choice?
When travel insurance is better
If you’ve invested a significant amount of time or resources into booking the trip, you should protect it. But which should you choose: credit card insurance or a proper travel insurance plan? In general, travel insurance is the suggested choice for:
Traveling abroad (especially where medical care isn’t free or cheap)
Long or expensive trips
Adventures or high-risk activities
Need for cancellation flexibility
Support during emergencies
When credit card protection might be enough
Some trips are riskier than others. If you are camping near your house, purchasing a separate travel insurance plan may not be necessary. Some other times your credit card insurance may be enough include:
Short, domestic trips
Budget travel with minimal prepaid costs
Rental car coverage needs only
Supplement to existing insurance
Why Combining is the Best Option
You don’t necessarily have to choose between credit card protection and a travel insurance plan—they can work together to help cover your trip. One may fill in gaps the other doesn’t. However, you can’t file the same claim with both—that’s considered insurance fraud. Instead, review the coverage limits of each and submit your claim to the plan that offers the best benefits for your situation. If that plan doesn’t fully reimburse you, you may be able to file the remaining balance with the other, just be prepared to show proof of what was already paid out.
While both options offer valuable protection, they serve different purposes. The best choice depends on your specific travel plans and your personal risk tolerance. Ask yourself how much support you’d need if things go wrong, and choose coverage that matches. And most importantly, read the fine print, travel protection is never one-size-fits-all.
- Offers travel insurance only
- Best for: Affordable choice for adventurous spirits
World Nomads
World Nomads has been protecting adventurous and independent travelers with travel insurance coverage for more than 20 years.
Our quick take
They offer four budget-friendly travel protection plans for U.S. residents, designed to fit a variety of traveler needs and trip styles. Whether you’re traveling solo, as a couple, or with family (up to nine people), there’s a plan for you. Each option includes key benefits like trip cancellation, emergency medical coverage, baggage protection, and 24/7 non-insurance emergency assistance.
Key features
Covers 250+ adventure sports and activities
Offers Optional Cancel for Any Reason cover
Annual and Single-trip plans offered
Includes non-insurance perks like pre-trip health consultations & lost airline luggage retrieval services
Getting a quote is quick and easy
by your friends at The Daily Navigator
