What Is Travel Insurance, and Is It Worth It?
Travel insurance is a policy that reimburses financial losses from problems before or during a trip - cancellations, medical emergencies, lost baggage, and travel delays. Coverage and cost vary significantly by provider, destination, and trip length.
What travel insurance typically covers
- Trip cancellation or interruption
- Emergency medical treatment and evacuation
- Lost, delayed, or damaged baggage
- Flight delay or missed connection compensation
- Some policies also cover rental car damage, adventure sports, or offer a "cancel for any reason" add-on
What it usually doesn't cover
- Pre-existing medical conditions, unless specifically added to the policy
- Travel against an active government advisory
- Issues you already knew about before buying the policy
When it's worth buying
- International trips where your regular health insurance doesn't cover you abroad
- Expensive, non-refundable bookings
- Trips with multiple connections or adventure activities
- Destinations without reciprocal healthcare agreements with your home country
When it may not be necessary
Fully refundable domestic trips, or short trips already covered by a credit card's built-in travel protection, often don't need a separate policy.
How to choose a policy
Compare coverage limits, not just the premium, and check the medical evacuation limit specifically - it's usually the single costliest risk on any policy. Read the exclusions before buying, since that's where coverage gaps typically hide.