Is travel insurance worth it?

Quick insights

• Travel insurance can cover a variety of unforeseen events and may protect you from certain financial loss while traveling.
• If you're traveling, you might want to consider travel insurance.
• Travel insurance covers a lot of travel-related issues, but don't assume everything will be covered.

In 2023, more than 16 million flights departing from the US were cancelled according to the U.S. Department of Transportation. If you were one of the unlucky travelers whose flight was cancelled, had your baggage lost or damaged or had a medical emergency, you may have taken some comfort if you had travel insurance.

What travel insurance covers

Travel insurance may cover unforeseen events that can happen to you and your belongings while travelling. It may also reimburse you should your trip get cancelled or interrupted for several reasons.

Travel insurance can include coverage for:

• Delayed flights or flight cancellations
• Rental car use
• Accidents, serious illness or injury and even death
• Lost or damaged baggage
• 24-hour emergency assistance services

You can seek reimbursement for purchases related to qualifying events, but don't assume every travel hiccup you encounter will be covered. Different policies cover different qualifying events. It can be important to consider the coverage you want and do your research when purchasing a travel insurance policy.

What travel insurance does not cover

For as much as travel insurance may cover, it's important to know some things will likely not be reimbursed under most policies. They include:

• Fear of travel: You would likely not be reimbursed if you cancel a trip because you become afraid to travel, if for example you develop anxiety about stepping on a plane.
• Natural disasters and severe weather already underway: If you purchased a ticket to a location knowing that it was actively experiencing a natural disaster or sever weather, you likely will not qualify for reimbursement should you cancel your trip.
• Bad Weather: If your beach vacation has a 90% chance of rain every day in the forecast that would not be a covered reason to cancel.
• Pre-existing medical conditions: Some policies won't cover medical issues that are related to a pre-existing condition while traveling. You can sometimes get pre-existing condition coverage as an add on to comprehensive travel insurance.
• Extreme sports: Accidents or injury from your participation in extreme sports while traveling would likely not be considered a qualifying expense.

Some comprehensive insurance policies will allow you to add-on Cancel For Any Reason coverage. As the name implies, this policy can partially reimburse you if you choose to cancel your trip for any reason.

When travel insurance may be needed

You might not feel like every trip may call for travel insurance, but there are a few scenarios where it may be a good idea to consider it:

• If you're a frequent traveler, taking several trips each year.
• If you're travelling to a place with extreme weather.
• If your non-refundable trip costs more than you are willing to lose.

When travel insurance may be unnecessary

The cost of your trip can be a big factor in determining how much, if any, coverage you need. If you're planning a nearby weekend getaway, you'll probably need less protection than if you're booking the trip of a lifetime. It's one thing to lose money over a $100 sightseeing tour. It can be far more costly and painful to cancel a Kenyan safari that has been years in the making.

You'll want to consider the terms of the travel and excursions you purchased too. Some travel companies may have flexible terms when it comes to cancelling or rescheduling. If all the reservations you've made can be cancelled or moved without penalty, travel insurance may look less tempting.

Also, consider your credit card coverage. Several credit cards offer travel insurance as a cardmember benefit. You may consider that your credit card's insurance coverage is sufficient for the trip you're taking. Just make sure you use the card to book your trip.

How to get travel insurance

As mentioned above, many credit cards, like the Chase Sapphire cards, include travel insurance for eligible claims. Research the terms and conditions of your credit card's travel insurance policy to be completely aware of what it covers.  For example, Chase Sapphire travel insurance includes trip cancellation and interruption that covers the following:

• As of October 2024, if your trip is canceled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $10,000 per person and $20,000 per trip for certain eligible pre-paid, non-refundable travel expenses. Be sure to fully read the Guide to Benefits before using the card to book your trip.

If you don't have coverage through your credit card or find your coverage lacking, you can purchase a travel insurance through an insurance carrier. You likely will be required to answer a few questions when you apply, like where you are going, the cost of your trip, your age and where you live.

You can get coverage for a single trip or a set time, like a year. The cost will likely be tied to the price of the trip and age of the traveler. Rates and coverage vary by carrier, so be sure to do your research and find the policy that is right for you.

In summary

Having travel insurance can provide peace of mind to any traveler. However, not every trip may call for it. Whether it does will likely depend on several factors including whether you have insurance through your credit card, the cost of your trip, and the likelihood that it may be interrupted or outright cancelled. As with any policy, carefully consider the coverage you need, research your options and find the right policy and carrier should travel insurance be something you need or want.