When do you need travel insurance? Plus how to get it

When do you need travel insurance? Plus how to get it

Planning a vacation? Before you begin fantasizing about the colorful sites and delicious meals you’ll enjoy, consider what could go wrong. Unexpected delays, injuries or rental car mishaps can end a trip early or cost you thousands, TheZebra.com reports. While nearly 2 in 3 Americans (63%) surveyed by Upgraded Points risked traveling without it in 2025, experts recommend travel insurance to safeguard against these financial risks.

Depending on your policy, it can cover medical expenses, trip cancellations, lost items, and even liability protection if you’re responsible for accidental harm to others while away.

Is Travel Insurance Worth It?

Ask Sofia Calvin, a travel advisor with Storied Travel, and she’ll tell you that purchasing travel insurance coverage is a smart investment.“The more complex, expensive or time-sensitive your itinerary, the more valuable travel insurance becomes. International trips, cruises, milestone celebrations, multicountry itineraries and family travel all create a domino effect when one piece fails,” she says.

“Most travelers think of this insurance as only providing cancellation protection. But the real value is often trip interruption, medical support and emergency assistance while you are already away from home. Travel insurance is less about fear and more about protecting the financial and logistical investment of your trip.”

Personal finance expert Andrew Lokenauth seconds those sentiments.

“Consider that you can spend merely 4% to 8% of your total trip cost to protect against losses that can be 10 to 100 times larger. A medical evacuation from a remote destination, for example, can run $50,000 and up without coverage,” he says.

That being said, travel insurance isn’t always worth it. “If you are taking a short domestic trip and lodging with family, your existing health insurance and credit card protections may be enough,” Lokenauth adds.

The best candidates for buying travel insurance include international travelers, anyone with large nonrefundable bookings like cruises or multicity itineraries, those with health conditions that could flare up unexpectedly and older travelers where medical risks rise with age.

When Travel Insurance Matters

Many different types of travel insurance offer different coverages and protections. A comprehensive travel insurance policy will likely contain a number of these insurance products.

Here’s a closer look at scenarios when having travel insurance can make a big difference.

When You Get Sick Before or During Your Trip

An unexpected illness can derail your plans at any moment. Trip cancellation coverage reimburses nonrefundable expenses, such as flights and hotels, if you must cancel before departure due to unforeseen sickness or injury.

Once your journey begins, travel medical insurance becomes vital, as most primary U.S. plans and Medicare provide little to no coverage abroad. This insurance handles healthcare costs for you and your companions while traveling, ensuring a medical issue doesn't lead to a financial crisis. For frequent business travelers or expats, long-term medical policies are also available.

When Your Plans are Disrupted or Delayed

Travel is unpredictable, and several coverage types handle various logistical failures:

• Trip interruption and delay: Interruption coverage applies if you must return home early for a covered reason, such as the death of a family member. Delay insurance kicks in if you are temporarily stuck (e.g., a flight canceled by weather) and covers essential expenses like meals and hotels.
• Lost or delayed luggage: This reimburses you for lost, stolen or damaged suitcase items. Depending on the policy, you might be reimbursed for essentials like new clothes or toiletries even if you only experience a baggage delay. It is helpful to know that renters insurance typically covers stolen belongings even when they are "off-premises," which can provide a backup layer of protection for your gear.
• Waivers vs. insurance: Many cruises and tours offer waivers, but they might not refund your money if you cancel shortly before or after departure.

When You Need Ultimate Flexibility

If you want the power to cancel for any reason not listed in a standard policy—including simply changing your mind—Cancel For Any Reason (CFAR) is the solution. “It allows you to cancel for any reason whatsoever and reimburses 50% to 75% of your nonrefundable costs,” says Lokenauth. This coverage costs more, but for large trips with uncertain plans, it’s often the right call.

When Facing Evacuations or High-Risk Scenarios

For serious incidents or adventurous itineraries, specialized coverage is essential:

• Medical evacuation: “Evacuation coverage is one of the most overlooked protections and often one of the most important,” says Calvin. “It covers emergency transportation to the nearest appropriate medical facility or, depending on the policy, transport back home for treatment.” Meagan Palmer with Yonder Travel Insurance recommends aiming for a minimum of $250,000 in medical evacuation limits.
• Hazardous activities: Standard policies often exclude "high-risk" activities like skiing, scuba diving or mountain biking. “Verify whether your planned activity is listed as covered, not just absent from the exclusions list,” cautions Lokenauth. You may need to purchase a hazardous sports rider for these activities.
• Accidental death and dismemberment: In the unfortunate event you don’t make it home, or if you lose a limb during your trip, this provides a lump sum payment to your beneficiaries.

When You Crash a Rental Car

Navigating unfamiliar roads significantly increases the likelihood of a mishap. While you might consider a specialized rental car insurance policy, it is prudent to first examine if your current auto coverage or credit card benefits offer sufficient protection. "Before you turn down coverage at the counter, confirm the specifics of your existing safeguards," advises Calvin. "It is also important to remember that most standard travel plans do not include comprehensive liability or collision protection for rentals."

Common Exclusions

Travel insurance typically will not cover known events, pre-existing medical conditions (unless you get a waiver) or pregnancy.

“Many travelers are also surprised to learn that supplier bankruptcy, weather disruptions, missed connections and airline operational issues may only be covered under very specific circumstances,” Calvin points out.

Palmer adds that acts of war, civil unrest, intoxication, pandemics and epidemics are among other common exclusions. Lokenauth cautions, “If you have trip cancellation coverage in place, note that it only applies to a defined list of covered reasons. It’s not an ‘if anything goes wrong’ fail-safe.”

Can I Get Insurance Through My Credit Card?

The good news is that the credit card you used to book your trip could have your back. While the details and rules vary by card, there are three main types of protection often available:

• Interruption coverage: Protects you if travel is delayed or canceled while you’re already traveling. For example, if a connecting flight is canceled, your card might reimburse expenses like train tickets to get you to your destination.
• Delay coverage: Reimburses for reasonable purchases made while you’re delayed. If a snowstorm postpones your flight, your card might cover a hotel night or meals. Just remember to keep your receipts.
• Cancellation coverage: Protects you if the entire trip is canceled before you leave due to factors out of your control—like severe weather, jury duty or illness.

Don’t forget: You must have purchased the trip with that specific card to be eligible. Furthermore, these protections are often limited and rarely include meaningful medical or evacuation coverage.

Getting a Travel Insurance Policy

Determine what protections you already have through your credit cards or home insurance, then choose a separate policy to fill the gaps. You can research the best travel insurance policies on comparison sites or through offers embedded in your flight or hotel booking process.

This story was produced by TheZebra.com and reviewed and distributed by Stacker.