You’re booking flights, scrolling hotel options, maybe adding a rental car—and then it pops up: “Would you like to add travel insurance?” For many people, that’s the moment of hesitation. Do you click yes? is travel insurance worth it? Do you ignore it? Do you even know what it covers?
It’s not your fault if you’re unsure. Travel insurance is one of the least understood tools in modern travel—and yet, it’s also one of the most important when things go sideways.
The truth is, sometimes it’s a smart move. Other times, it’s unnecessary. This guide will help you understand when travel insurance is worth it, when it’s probably a waste, and how to choose the best travel insurance for your trip—not just the checkbox.
First Things First: What Is Travel Insurance?
Travel insurance is a short-term policy designed to protect you financially if something goes wrong before or during your trip. Depending on the policy, it can reimburse you for everything from a canceled flight to emergency surgery in a foreign hospital.
Most standard trip insurance policies include:
- Trip cancellation/interruption (e.g., illness, injury, or death in the family)
- Medical coverage for accidents or illness while abroad
- Emergency evacuation services
- Lost, stolen, or delayed baggage
- Travel delay reimbursement
Some plans also offer 24/7 assistance hotlines and concierge services.
Do I Need Travel Insurance? Is Travel Insurance Worth it?
It depends. Here’s a good rule of thumb:
The more expensive, international, or non-refundable your trip is—the more likely travel insurance is worth it.
📊 According to a 2023 survey by the U.S. Travel Insurance Association (USTiA), nearly 40% of Americans traveled without any insurance in the previous 12 months—yet one in three experienced a travel-related issue that could have qualified for reimbursement.
When Travel Insurance Is Worth It
1. You’re traveling internationally
International travel insurance is very important. Most U.S. health insurance plans don’t cover care abroad, and Medicare doesn’t either. If you get sick or injured overseas, you could be stuck with thousands in hospital bills.
📊 The average cost of an air ambulance evacuation from Europe or Asia to the U.S. is $50,000–$100,000.
2. Your trip is expensive and non-refundable
This includes prepaid hotels, tours, cruises, or flights. If you cancel due to a covered reason (e.g., illness, injury, family emergency), you can be reimbursed for non-refundable expenses.
3. You’re cruising
Cruises come with strict cancellation penalties, and on-board medical care is limited. If you’re looking into cruise travel insurance, look for policies that cover shipboard delays, missed port departures, and onboard care.
4. You’re a senior traveler
If you’re over 70, coverage for seniors or for travelers over 70 is essential—both for medical coverage and potential evacuation. Many standard policies don’t cover travelers above a certain age without a special plan.
5. You’re going somewhere remote or risky
Adventure travel, safari tours, or trips to areas with poor healthcare infrastructure call for medical emergency coverage and evacuation protection.
When It’s Probably a Waste
1. You’re taking a short domestic trip
If your trip is drivable or cheap, and everything is refundable, it may not be worth it. Your credit card may already cover trip insurance for canceled flights or lost bags.
2. You already have medical coverage abroad
Some premium health insurance plans and travel-focused credit cards already offer international policies or emergency travel coverage. Check your existing policies first.
3. You bought fully refundable bookings
If your airline, hotel, and activities are all refundable, there’s less risk—and less need for insurance.
Types of Coverage to Compare
If you’re shopping for a policy, here are the major types of coverage to compare:
- Trip cancellation/interruption
- Emergency medical
- Baggage loss/delay
- Travel delay
- Emergency evacuation/repatriation
- Accidental death/dismemberment
- “Cancel for Any Reason” (CFAR) – usually a pricey upgrade but allows more flexibility
Use comparison sites to view multiple quotes for travel coverage before choosing a policy.
📊 According to Squaremouth, a travel coverage comparison platform, the cost of this type of insurance is between 4%–8% of your total trip cost.
What About Credit Card Coverage?
Many travel credit cards include some level of trip insurance—like coverage for delays, cancellations, or rental car damage. But these benefits are often limited and don’t cover medical expenses abroad.
If you’re relying on your card, make sure:
- You used it to pay for the trip
- You understand what’s included and what’s not
The Best Travel Insurance for Every Age
Travel insurance isn’t just about where you’re going—it’s also about who you are when you go. Age has a direct impact on the type of coverage you may need, the risks you face, and even how much you’ll pay.
If you’re under 30, you’re likely booking flexible, lower-cost trips—maybe a solo backpacking tour, a last-minute weekend getaway, or a long-planned group adventure. Most travelers in this stage of life—primarily Gen Z as of 2025—are less likely to think about insurance at all, yet more likely to engage in activities like skiing, surfing, hiking, or scuba diving that may not be covered by standard plans. That makes it worth looking into adventure sports add-ons or specific high-risk activity coverage. One unexpected hospital visit abroad could easily wipe out your savings, especially since most domestic health plans don’t cover international care.
Travelers in their 30s to 50s—largely Millennials and younger Gen Xers—tend to book more structured, higher-cost trips involving partners, children, or extended family. With tighter schedules and more complex itineraries, the biggest risks are often non-refundable bookings, travel delays, and disrupted plans. This group benefits most from strong trip cancellation, baggage protection, and interruption coverage. Insurance isn’t just about medical emergencies anymore—it’s about minimizing financial and logistical stress when something throws the whole trip off track.
For travelers 60 and older, including Baby Boomers and the Silent Generation, the stakes are different. Medical coverage becomes essential, and the price reflects it. 📊 According to Squaremouth, insurance premiums for older travelers can increase by 40% or more—even for the same level of coverage (source). Pre-existing conditions, emergency evacuations, and the need for specialized assistance services are more common in this age group. And with longer, often international trips on the rise post-retirement, the financial risk of not being covered is significantly higher.
While these stages roughly mirror generational lines, the real takeaway is that your needs change with age—not labels—and understanding those needs is what makes coverage worth it.
When to Buy Coverage
If you’re wondering when to buy travel insurance, the best time is soon after you book your trip—especially if you want full coverage or “cancel for any reason” add-ons. Most policies must be purchased within 10–21 days of your first booking to qualify for the widest protections.
Final Thoughts: Be Strategic, Not Fearful
Travel insurance isn’t about expecting the worst—it’s about being ready for the unexpected. If your trip is short, flexible, and refundable, skip it. If your plans are big, expensive, or overseas, a policy could save you thousands.
“Travel with curiosity—not fear—but back that curiosity with a little preparation.”
In a world where flights get canceled, baggage gets lost, and borders sometimes close overnight, this kind of coverage might be the smartest travel accessory you bring with you.