You’re about to drop a few grand on a trip. Then you see travel insurance for $100 and wonder if it’s a scam. It’s not. But the real question is whether you need it. For most international trips, the answer is yes. One medical evacuation can cost $50,000. Your domestic health insurance probably won’t cover you abroad. That’s the cold truth.
Key Takeaways
- Travel insurance covers trip cancellation, medical emergencies, and lost baggage. Check what’s excluded.
- Buy a policy within 14 days of your first trip deposit to get pre-existing condition waivers.
- Compare plans on aggregator sites like Squaremouth or InsureMyTrip. Don’t just buy the cheapest.
When You Actually Need It
If you’re flying to another country, get insured. Even Canada. Your US health plan stops at the border. Medicare doesn’t work overseas. A broken leg in Mexico could mean a $15,000 hospital bill. Travel insurance covers that. It also covers trip cancellation if you get sick before leaving. If you’re driving to a nearby state, you can probably skip it. Your car insurance and health plan still apply. But for any flight where you’d lose money canceling, consider it.
What It Covers and What It Doesn’t
A standard policy covers three big things: trip cancellation, trip interruption, and medical expenses. Trip cancellation pays you back if you have to cancel for a covered reason. That includes illness, a family death, or a natural disaster. Trip interruption covers you if you have to cut the trip short. Medical coverage pays for doctor visits, hospital stays, and evacuation. It does not cover everything. Most policies exclude pre-existing conditions unless you buy within a window. They exclude adventure sports like skiing or scuba diving unless you add a rider. They also exclude pandemics, war, and acts of terrorism in some cases. Read the fine print.
How to Pick the Right Policy
Don’t just buy the cheapest plan. Look at coverage limits. A good medical limit is $100,000 or more. Evacuation coverage should be at least $250,000. Check the deductible too. A low premium often means a high deductible. Use comparison sites like Squaremouth or InsureMyTrip. They let you filter by coverage amount and add-ons. If you have a pre-existing condition, buy within 14 days of your first deposit. That’s the only way to get a waiver. For cruises or expensive trips, look for Cancel for Any Reason coverage. It costs more but lets you cancel for any reason and get 50-75% back.
How Much It Costs
Expect to pay 4% to 8% of your total trip cost. A $2,000 trip might cost $80 to $160 for insurance. Older travelers pay more. People with pre-existing conditions pay more. Add-ons like Cancel for Any Reason add about 50% to the premium. It’s not cheap, but it’s cheaper than losing your whole trip.
Common Mistakes
One big mistake is buying insurance after you book. You lose the pre-existing condition waiver if you wait. Another is assuming your credit card covers everything. Many cards offer trip cancellation but not medical coverage. Check your card’s benefits before relying on them. A third mistake is not declaring the full trip cost. If you underinsure, you only get back what you insured. Be honest about your total spend.
Frequently Asked Questions
Is travel insurance worth it for domestic trips?
Usually not if you’re driving within your state. Your health insurance and car insurance still apply. But if you’re flying and the ticket is nonrefundable, it might be worth it for cancellation coverage alone.
Does travel insurance cover COVID-19?
Some policies do, some don’t. It depends on the provider. Look for policies that explicitly mention epidemic or pandemic coverage. Many now exclude COVID-19 unless you add a rider.
Can I buy travel insurance after I leave?
Yes, but it won’t cover any event that already happened. And you lose the pre-existing condition waiver. Buy before you depart for best coverage.
How do I file a claim?
Keep all receipts, medical reports, and proof of cancellation. Contact your insurer as soon as possible. Most have online claim forms. Expect processing to take a few weeks.
One final piece of advice: before you buy, call your health insurance provider and ask what they cover abroad. Then call your credit card company and ask about travel insurance benefits. You might already have some coverage. But don’t assume. Get it in writing. Then decide if you need more.
