Is Travel Insurance Worth It or a Waste of Money? Here’s the Truth
Is travel insurance worth it? It’s a question thousands of travelers ask themselves every year. After all, no one likes spending extra money on something they hope they’ll never need.
Buying travel insurance is a proactive step that can protect you against trip cancellations, delays, and other unforeseen events before you even start planning your trip.
However, with expensive prepaid travel costs, rising flight cancellation risks, and unexpected medical emergencies abroad, the decision warrants careful consideration.
For U.S. travelers, “travel insurance” typically refers to trip insurance, which protects your trip costs if plans go awry.
For international travelers, especially those visiting the USA, a travel medical insurance plan is often more critical, since medical expenses in the United States can exceed $10,000 for a single emergency.
Let’s explore when travel insurance is worth it, what it includes, and how to choose the right plan by comparing insurance options and selecting a reputable travel insurance company.
What Does Travel Insurance Cover?
Travel insurance typically falls into two categories: most plans cover a wide range of incidents, including trip cancellations, medical emergencies, and other related events, providing travelers with comprehensive protection.
- Trip protection
- Most plans include coverage for trip cancellations, interruptions, and delays due to unforeseen events, such as illness, injury, or natural disasters.
- Includes coverage for lost, stolen, or delayed baggage and personal belongings.
- Medical coverage
- Most plans include coverage for medical emergencies, such as sudden illnesses or injuries requiring immediate medical attention, and may also cover hospital stays, doctor visits, or emergency medical evacuations.
- Includes coverage for emergency dental treatment and accidental death or dismemberment.
Trip Insurance (Trip Cancellation & Interruption)
- Protects non-refundable trip costs if you cancel for a covered reason, such as illness, family member emergencies, natural disasters, or flight delays.
- Benefits may include trip cancellation coverage, trip interruption, trip delay, travel delay, lost luggage, baggage delay insurance, rental car protection, and flight insurance.
- Cancel For Any Reason (CFAR) coverage add-ons provide maximum flexibility, reimbursing up to 75% of prepaid expenses.
- Best suited for travelers with significant prepaid travel expenses or complex travel plans.
Travel Medical Insurance
- Provides emergency medical coverage, hospitalization, urgent care, medical evacuation coverage, and repatriation.
- Essential for international travelers visiting the USA, where even routine medical care can be extremely costly.
- Some comprehensive travel insurance plans include limited coverage for pre-existing conditions or, at the very least, acute-onset benefits.
- Ensures access to the nearest adequate medical facility in the event of an emergency.
- Travelers with questionable health may want to consider travel medical insurance for added protection.
- Some travel medical insurance plans offer optional add-ons, such as identity theft protection, for comprehensive coverage.
When Is Each Worth It?
Do you need travel medical insurance or trip insurance?:
- Trip insurance is worth it when you’ve booked one trip with a high trip cost and want complete cost protection in the event of cancellation against unforeseen events like inclement weather, family illness, or flight disruptions.
- Travel medical insurance is worth it if you’re traveling internationally, especially to a country like the USA, where local health insurance from your home country won’t protect you against sky-high medical expenses.
Tip: To determine which type of travel insurance is right for you, consider factors such as the total cost of your trip, your current health coverage, the policy’s flexibility, and the specific risks associated with your travel plans.
Cost of Travel Insurance vs. Value of Coverage
The cost of travel insurance can vary depending on the plan and individual circumstances. The premium price varies depending on whether you buy trip insurance or travel medical insurance.
Trip Insurance Cost
- Typically, 4–10% of the total trip cost.
- Example: A $5,000 vacation = $200–$500 premium.
- Without coverage:
- Trip cancellation: Lose the full cost of prepaid travel.
- Trip interruption: Lose hotel stays, tours, and flights.
- Lost luggage: Replace personal property out of pocket.
Before purchasing additional coverage, travelers should verify whether their homeowners’ policy provides coverage for personal property while traveling, as some items may already be protected.
Travel Medical Insurance Cost
- Based on age, trip length, and coverage level, not the trip cost.
- Starts at $1 or less per day for younger travelers; seniors or those with pre-existing medical conditions may pay over $5 per day.
- Without coverage in the USA:
- Emergency evacuation: $50,000+
- Hospitalization: $10,000–$100,000
- Emergency medical care: Still thousands out of pocket
Either way, the cost of a travel insurance policy is minimal compared to the potential loss.
Travel Insurance at a Glance: Plan Comparison
| Coverage Type | Travel Insurance Plan | Why It’s Worth It |
|---|---|---|
| Trip Insurance Policy | TinLeg Standard Plan | Protects prepaid travel expenses with strong trip cancellation coverage and interruption benefits. |
| Optional CFAR Upgrade | TinLeg CFAR Add-On | Let’s you cancel for any reason (CFAR) and recover up to 75% of prepaid trip cost. |
| Comprehensive Travel Insurance Plan | Patriot Platinum International | Combines trip protection with extensive emergency medical coverage, ideal for frequent U.S. travelers going abroad. |
| Budget-Friendly International Medical Coverage | Safe Travels International Cost Saver | An affordable option that includes emergency medical coverage and medical evacuation for international trips. |
| Travel Medical Insurance For the USA | Patriot America Plus | Covers medical emergencies and medical evacuation in the USA. |
| Pre-Existing Conditions Coverage | INF Premier | Provides medical coverage for visitors to the USA with pre-existing medical conditions coverage, ideal for seniors. |
When Is Travel Insurance Worth It?
Travel insurance is worth buying in scenarios like:
- Expensive International Trips: Losing thousands in trip cost would hurt.
- Nonrefundable Bookings: Hotels, cruises, and tours often do not allow refunds.
- Travel During Risky Seasons: Natural disasters, winter storms, and hurricanes.
- Family Member Health Risks: Cancellations due to illness or emergencies.
- Adventure Sports Travel: Scuba diving, mountain climbing, or activities needing additional coverage.
- International Travelers to the USA: Medical insurance is essential due to the high cost of medical expenses and the risk of emergency medical situations.
When Travel Insurance Might Not Be Worth It
- Short Domestic Trips with low upfront trip cost.
- Refundable Travel Plans where cancellation penalties are waived.
- Credit Card Travel Insurance that already includes some cancellation coverage or baggage protection.
- Most travel insurance policies purchased too late (after the initial trip deposit) may exclude pre-existing conditions.
How to Choose the Right Travel Insurance Plan
- Calculate Non-Refundable Costs: Add up the costs of flights, tours, and hotels.
- Decide on Coverage Type: Choose from trip insurance or a travel medical insurance policy.
- Check for Pre-Existing Conditions Coverage: Some plans cover cancellations related to medical conditions if purchased early.
- Compare Travel Insurance Providers: OnshoreKare collaborates with top travel insurance companies.
- Read the Fine Print: Understand what the insurance covers, any exclusions, and policies purchased after booking.
- Buy Travel Insurance Early: The sooner you purchase travel insurance, the more protection you’ll get (e.g., CFAR eligibility).
Conclusion: So, Is Travel Insurance Worth It?
Yes. If you’re investing in prepaid travel expenses or traveling internationally and worried about unforeseen medical emergencies, travel insurance is worth it.
- For U.S. travelers, TinLeg trip insurance policies with optional CFAR coverage give peace of mind against trip cancellation, trip interruption, and delays.
- For international visitors, pairing trip protection with a travel medical insurance plan ensures safety against both financial losses and medical emergencies.
- For Visitors to the USA, a comprehensive travel insurance policy covers emergency medical expenses, and pre-existing conditions coverage is available in select plans.
Compare travel insurance plans with OnshoreKare today and find the right insurance plan for your journey.
Frequently Asked Questions
Is travel insurance really worth it?
Yes, travel insurance is worth it if you’ve invested heavily in prepaid travel expenses or are traveling internationally. It protects against trip cancellation, trip interruption, and unexpected medical emergencies.
When is travel insurance not worth it?
If you’re taking a short domestic trip, have fully refundable bookings, or your credit card travel insurance already includes sufficient cancellation coverage, you may not need to purchase an additional policy.
Does travel insurance cover medical expenses abroad?
Yes, most comprehensive travel insurance plans include emergency medical coverage and medical evacuation coverage for international travelers. Plans like Atlas International and Patriot Platinum International provide strong protection.
Is Cancel For Any Reason (CFAR) coverage worth it?
CFAR coverage is worth it if you want maximum flexibility. With TinLeg’s CFAR add-on, you can cancel for reasons beyond the standard covered reasons and still recover a significant portion of your trip cost.
How much travel insurance coverage do I need?
A good rule of thumb is to match your trip cost with cancellation benefits and ensure at least $50,000 to $100,000 in emergency medical coverage for international trips. For frequent international travelers, higher limits provide more peace of mind.
Does travel insurance cover pre-existing medical conditions?
Some plans offer coverage for pre-existing medical conditions if you purchase them shortly after making your initial trip deposit. If you have a medical condition, check the fine print to confirm eligibility.
Is travel insurance worth it for domestic trips in the USA?
Usually not, unless you’ve booked expensive nonrefundable flights, hotels, or tours. Domestic travelers are often already protected by their health insurance, flexible airline policies, and credit card benefits.
