What Is Travel Insurance and Is It Worth It?

Consider this your go-to guide for everything you need to know about travel insurance.
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What is travel insurance?

Travel insurance is a type of insurance coverage that provides financial protection against unexpected events or emergencies that may occur during your travels, such as trip cancellations, medical emergencies, lost baggage, or other unforeseen circumstances.

What are the main types of travel insurance?
  • The main categories of travel insurance are typically based on the type of coverage they provide. Here are the main categories of travel insurance:
  • Trip cancellation/interruption insurance: This  covers expenses incurred if you need to cancel or interrupt your trip due to covered reasons such as illness, injury, death, natural disasters, or other unforeseen events. 
  • Medical insurance: This provides coverage for medical expenses incurred while traveling. It can include emergency medical treatment, hospital stays, doctor’s visits, medications, and medical evacuations.
  • Baggage and personal  belongings insurance: This type of travel insurance protects against loss, damage, or theft of your luggage, personal belongings, and valuables during your trip. 
  • Travel delay insurance: This covers additional expenses incurred due to unexpected delays, such as flight cancellations, missed connections, or severe weather conditions. 
  • Emergency evacuation insurance: This category assists with the cost of emergency evacuations, particularly in remote or medically inadequate areas. 
  • Accidental death and dismemberment insurance: This provides financial compensation in the event of accidental death, loss of limbs, or permanent disabilities resulting from accidents that occur during your trip.
How much does travel insurance cost?

The cost of travel insurance varies depending on several factors, including your destination, the length of your trip, your age, the coverage options you choose, and any pre-existing medical conditions. It is advisable to compare quotes from different insurance providers to find the best coverage at a competitive price.

Where can you buy travel insurance?

Travel insurance can be purchased from various sources, providing flexibility and options for travelers. Here are some common places where you can buy travel insurance:

  • Insurance companies: Many insurance companies offer travel insurance policies. You can directly contact insurance providers to inquire about their offerings, receive quotes, and purchase a policy. These companies may have online platforms or local offices where you can access their services.
  • Travel agencies: Travel agencies often offer travel insurance as part of their services. When booking your trip through a travel agency, they can provide you with options for travel insurance coverage and facilitate the purchase on your behalf.
  • Online travel booking platforms: Online travel booking platforms, such as Expedia, Travelocity, or Kayak, often provide the option to purchase travel insurance during the booking process. These platforms may partner with insurance providers to offer a range of policies that you can select from.
  • Credit card companies: Some credit card companies offer travel insurance as a benefit to their cardholders. If you have a credit card with travel-related perks, review the terms and benefits associated with your card to see if travel insurance coverage is included and how to access it.
  • Comparison websites: There are online comparison websites that allow you to compare different travel insurance policies from multiple providers. These platforms provide a convenient way to review coverage options, prices, and customer reviews, helping you make an informed decision.
  • Specialized travel insurance providers: There are companies that specialize in travel insurance, offering a wide range of policies tailored to different types of travelers and trips. These specialized providers may have additional coverage options or unique features that cater to specific needs, such as adventure travel or long-term travel.

Traveling is an exciting adventure that allows us to explore new places, experience different cultures, and create lifelong memories. However, just like any other aspect of life, travel comes with its own set of uncertainties. From unexpected medical emergencies to trip cancellations or lost baggage, unforeseen events can turn a dream vacation into a nightmare. This is where travel insurance comes into play, offering a safety net that provides financial protection and peace of mind. In this article, we will delve into what travel insurance is, the coverage it typically offers, and help you determine: Is travel insurance worth it?

Understanding travel insurance coverage

Travel insurance is a type of insurance policy designed to provide coverage and financial protection against various risks and uncertainties that travelers may encounter during their trip. While the specifics can vary between policies and providers, here are some common areas of coverage:

1. Trip cancellation and interruption

Travel insurance can reimburse you for non-refundable expenses if you have to cancel or cut short your trip due to covered reasons, such as illness, injury, or death of a family member. It typically includes coverage for prepaid expenses like flights, accommodations, and tour packages.

2. Emergency medical expenses

If you fall ill or get injured during your trip, travel insurance can cover the costs of necessary medical treatment, including hospital stays, doctor visits, and medications. This coverage is particularly important when traveling internationally, as it can help mitigate the high costs of healthcare in some countries.

3. Emergency medical evacuation and repatriation

In case of a severe illness or injury that requires emergency medical evacuation to the nearest suitable medical facility or repatriation to your home country for treatment, travel insurance can cover the expenses associated with these services, including transportation and medical supervision.

4. Lost, stolen, or delayed baggage

Travel insurance can provide compensation for lost, stolen, or damaged luggage and its contents. It may also offer coverage for essential items purchased due to baggage delays, helping you cope with the inconvenience and financial impact of such situations.

5. Travel delay and missed connections

If your trip is significantly delayed due to reasons beyond your control, such as severe weather or mechanical issues, travel insurance can reimburse you for additional expenses incurred, such as accommodation, meals, and transportation. It may also cover missed connections and assist with alternative travel arrangements.

6. Travel assistance services

Many travel insurance policies include 24/7 travel assistance services, which can provide valuable support during emergencies. These services may include access to medical professionals, emergency cash transfers, help with lost documents, translation services, and travel information.

7. Accidental death and dismemberment

In the unfortunate event of an accident during your trip resulting in death or permanent disability, travel insurance can provide benefits to your designated beneficiaries or yourself. This coverage offers financial protection for you and your loved ones in case of such tragic circumstances.

8. Personal liability

Travel insurance may include personal liability coverage, which can protect you in case you accidentally cause damage to property or injure someone during your trip. This coverage can help cover legal expenses and any settlements or judgments against you.

Navigator Tip

When choosing travel insurance, carefully review the coverage details and ensure it aligns with your specific needs. Consider factors such as your destination, the length and cost of your trip, and any activities or sports you plan to participate in.

Is travel insurance worth it? Factors to consider

Determining whether travel insurance is worth it depends on various factors. Here are a few key considerations to help you make an informed decision:

1. Coverage types

Assess your specific requirements and consider the coverage types that are most relevant to your trip. Determine if you need coverage for trip cancellation/interruption, emergency medical expenses, baggage loss/delay, travel delay, or other specific needs.

2. Coverage limits

Review the policy’s coverage limits to ensure they are sufficient for your planned activities and potential expenses. Consider factors such as medical coverage limits, coverage for high-value items, and maximum payout amounts for trip cancellation or baggage loss.

3. Pre-existing medical conditions

If you have pre-existing medical conditions, carefully examine the policy’s coverage and exclusions related to these conditions. Check if there are options to include pre-existing conditions or if there are waiting periods or limitations associated with them.

4. Policy exclusions

Take note of the policy’s exclusions to understand what situations or activities are not covered. Look for any specific exclusions related to high-risk activities, extreme sports, or travel to certain countries or regions. Ensure that the policy covers your planned activities and destinations.

5. Deductibles

Consider the deductibles associated with the policy. A deductible is the amount you must pay out of pocket before the insurance coverage kicks in. Determine if the deductible is reasonable and if you’re comfortable with the financial responsibility it entails.

6. Policy duration and trip length

Check the policy’s maximum duration and ensure it covers the entire duration of your trip. Some policies may have limitations on the number of days covered or require additional coverage for longer trips.

7. Price and value

Compare the prices of different policies, but also consider the value they offer in terms of coverage and benefits. Assess the cost-benefit ratio and determine if the price aligns with the coverage and peace of mind provided by the policy.

8. Policy excess

Examine the policy’s excess amount, which is the portion you are responsible for paying in the event of a claim. Evaluate if the excess is reasonable and fits within your budget.

9. Policy reviews and reputation

Research the insurance provider’s reputation and read reviews from other customers. Look for feedback on their claims handling process, customer service, and overall satisfaction. Consider choosing an insurer with a reliable track record and positive reviews.

10. Policy conditions and fine print

Read the policy’s terms and conditions, including any fine print, to understand the specifics of the coverage. Pay attention to details such as claim procedures, documentation requirements, and any limitations or conditions that may affect your coverage.

11. Additional benefits

Consider any additional benefits or services offered by the policy, such as 24/7 emergency assistance, concierge services, or identity theft protection. These additional benefits can enhance your travel experience and provide extra support during unforeseen circumstances.

Is travel insurance worth it? When travel insurance may not be necessary

While travel insurance can provide valuable protection and peace of mind during trips, there are certain situations where it might not be necessary. Here are some of the main scenarios when travel insurance might not be needed:

1. Low-cost domestic travel

If you’re taking a short, inexpensive trip within your own country, the potential risks and expenses associated with travel mishaps, such as trip cancellations or medical emergencies, may not justify the cost of travel insurance.

2. Robust existing insurance coverage

If you already have comprehensive health insurance, homeowners or renters insurance, or credit cards that offer significant travel benefits, such as trip cancellation coverage or medical evacuation, you may not need additional travel insurance as your existing coverage may already provide adequate protection.

3. Fully refundable bookings 

If you’ve made all your travel arrangements, such as flights, accommodations, and tours, with fully refundable options, cancellation penalties are minimal or non-existent. In such cases, travel insurance may not be necessary since you can easily cancel and receive refunds if your plans change.

4. Low-value or replaceable belongings

If you’re traveling with minimal valuable items or belongings that are easily replaceable, such as inexpensive clothing or generic toiletries, the risk of loss, theft, or damage may be relatively low. Travel insurance often includes coverage for personal belongings, but if the value is insignificant, it might not be worth the additional cost.

5. Short trips close to home

For short trips close to your place of residence, where you can easily access medical facilities or return home quickly in case of emergencies, the need for travel insurance may be reduced. The proximity to familiar healthcare systems and support networks can mitigate the risks associated with unexpected medical expenses.

6. Adventure sports or high-risk activities exclusion

If your travel plans primarily involve engaging in activities specifically excluded from standard travel insurance policies, such as extreme sports, skydiving, or mountaineering, it may be challenging to find coverage that adequately protects you. In such cases, travel insurance might not be necessary, or you may need to explore specialized policies tailored to those activities.

Navigator Tip

Even if you decide not to purchase travel insurance, ensure you have adequate health insurance coverage for your trip, including coverage for medical emergencies abroad.

What may be excluded from travel insurance

Travel insurance policies typically include certain exclusions that limit coverage for specific situations, conditions, or activities. While the specific exclusions can vary between policies and insurance providers, here are some common things that are often excluded from travel insurance:

1. Pre-existing medical conditions

Most travel insurance policies have limitations or exclusions related to pre-existing medical conditions. These are typically defined as illnesses, injuries, or conditions for which you received medical treatment, medication, or advice within a specified period before your trip. It’s essential to review the policy’s definition and limitations regarding pre-existing conditions.

2. High-risk activities

Many standard travel insurance policies exclude coverage for certain high-risk activities, such as extreme sports, skydiving, bungee jumping, or motor racing. If you plan to engage in such activities during your trip, you may need to seek additional coverage or consider specialized adventure travel insurance.

3. Intentional self-injury or recklessness

Claims resulting from intentional self-injury, suicide attempts, or reckless behavior may be excluded from coverage. It’s important to act responsibly and follow safety guidelines during your trip to ensure your insurance coverage remains valid.

4. Alcohol or drug-related incidents

Travel insurance policies may exclude coverage for incidents or accidents that occur while under the influence of alcohol or drugs. It’s important to exercise caution and act responsibly to avoid compromising your coverage.

5. War, terrorism, or civil unrest

Most travel insurance policies exclude coverage for losses or cancellations due to war, terrorism, civil unrest, or acts of violence. This exclusion may vary depending on the specific policy and the level of travel advisories or warnings issued for your destination.

6. Non-medical evacuations

While travel insurance often covers emergency medical evacuations, non-medical evacuations, such as those related to political instability or natural disasters, may be excluded from coverage. However, some specialized policies may offer this coverage as an optional add-on.

7. Acts of nature or extreme weather

Some policies may exclude coverage for losses or cancellations due to natural disasters, severe weather conditions, or acts of nature like hurricanes, earthquakes, or floods. However, specific policies designed for travel to high-risk areas or during certain seasons may offer coverage for such events.

8. Unattended belongings

Travel insurance may exclude coverage for theft, loss, or damage to belongings that are left unattended or not properly secured. It’s important to take reasonable precautions to safeguard your possessions and follow any specified requirements for coverage to remain valid.

9. Non-refundable expenses

Travel insurance typically covers trip cancellation or interruption for specific covered reasons, but it may not reimburse non-refundable expenses if you simply change your mind or decide not to travel.

How to get travel insurance

Purchasing travel insurance can generally be an easy process. Insurance providers understand the importance of offering a user-friendly experience to attract customers. They often provide online platforms where you can obtain quotes, compare different policies, and make purchases conveniently. Here’s what to expect: 

1. Research and comparison

Start by researching different travel insurance providers to find the one that suits your needs. Look for coverage options, benefits, exclusions, and pricing. You can use online comparison websites or directly visit insurance company websites to gather information.

2. Determine coverage needs

Assess your travel plans and determine what kind of coverage you require. Consider factors such as trip duration, destination, activities you’ll be engaging in, and the value of your belongings that you’ll be taking with you.

3. Coverage options

Choose the type of travel insurance coverage you need. Consider factors such as your trip details, including destination and duration, evaluate your existing medical coverage, calculate the cost of your trip, assess the value of your belongings, review any existing insurance policies, and take into account personal factors like pre-existing medical conditions or traveling with dependents.

By considering these aspects and reading through policy details, you can identify the specific coverage options that best suit your needs and provide protection for your trip. Consulting with insurance providers or licensed agents can offer further guidance if needed.

4. Read the policy details

Once you’ve landed on the type of travel insurance you need, carefully read the policy documents, including the terms, conditions, and exclusions. Understand what is covered and what is not, as well as any limitations or specific requirements.

5. Obtain quotes

Contact the insurance providers or use their online platforms to obtain quotes based on your coverage needs. Provide accurate information about your travel plans to receive accurate quotes.

6. Compare quotes and select a provider

Compare the coverage, benefits, limits, and pricing of different insurance providers. Consider factors such as reputation, customer reviews, and the financial stability of the insurance company. Select the one that offers the best value for your needs.

7. Purchase the insurance

Once you’ve chosen a provider, follow their instructions to purchase the insurance policy. You will usually be required to provide personal information, trip details, and make the payment.

8. Review the policy confirmation

After purchasing the policy, carefully review the confirmation or policy documents to ensure all the details are accurate. Keep a copy of these documents with you during your trip.

Navigator Tip

Squaremouth is our go-to tool for finding travel insurance. The online travel insurance comparison platform serves as a convenient way for travelers to compare and purchase travel insurance policies from multiple providers in one place, enabling them to find the coverage that best suits their needs.

Frequently asked questions

Travel insurance can provide you with peace of mind and financial security when you are traveling. It can protect you from the costs associated with trip cancellations, medical emergencies abroad, lost or stolen belongings, and other travel-related risks.

The coverage provided by travel insurance can vary depending on the policy and the insurance provider. However, typical coverage may include trip cancellation or interruption, medical expenses, emergency medical evacuation, lost or delayed baggage, travel delays, and accidental death or dismemberment.

Travel insurance is generally not mandatory, but it is highly recommended, especially when traveling abroad or engaging in activities with higher risks. Some countries, however, may require proof of travel insurance as a condition of entry.

The cost of travel insurance varies depending on several factors, including your destination, the length of your trip, your age, the coverage options you choose, and any pre-existing medical conditions. It is advisable to compare quotes from different insurance providers to find the best coverage at a competitive price.

Yes, travel insurance policies often have exclusions or limitations that vary depending on the insurance provider and the specific policy. Common exclusions may include pre-existing conditions, high-risk activities, acts of terrorism, and certain natural disasters. It is essential to carefully read and understand the policy’s terms and conditions before purchasing.


In the event of a covered loss or emergency, you should contact your insurance provider as soon as possible to initiate the claims process. Most insurers have a claims department that can guide you through the necessary steps and documentation required to file a claim.

Ask the Navigators: Do I need travel insurance?

Editorial Disclaimer: Opinions expressed here are the author’s alone. This post contains references to products from one or more of our partners and we may receive compensation when you click on links to those products.

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