Is travel insurance worth it, or just an upsell at checkout? For most short domestic trips, you can probably skip it. But when flights get expensive and plans get complicated, the right policy can be the difference between a minor hiccup and a financial disaster. Here's what actually matters.
What travel insurance actually covers
- Trip cancellation/interruption: reimburses prepaid, non-refundable costs for covered reasons — illness, injury, family emergency, severe weather.
- Travel delay: covers meals and hotels when delayed beyond 6–12 hours.
- Missed connection: pays rebooking costs if a delay makes you miss your onward flight.
- Lost/delayed baggage: reimburses essentials and losses up to a limit.
- Emergency medical: treatment abroad — critical, since domestic health insurance rarely works overseas.
- Medical evacuation: emergency transport that can cost tens of thousands without coverage.
When you probably need it
Expensive, non-refundable trips — insurance runs 4–8% of trip cost, cheap peace of mind.
International travel — medical coverage abroad is the top reason to buy.
Complex itineraries — more moving parts, more can go wrong.
Storm seasons — hurricane or winter-storm travel.
Pre-existing conditions — look for a waiver (buy within 14–21 days of first payment).
When you can probably skip it
Cheap domestic trips — the math rarely works.
Credit card coverage — many travel cards include delay, baggage, and cancellation perks; check before buying separately.
Fully refundable bookings — little to insure.
How to choose a policy
- Compare on aggregator sites — airline-offered policies are rarely the best value.
- Read the covered-reasons list. "Cancel for any reason" add-ons cost more but cover changing your mind.
- Check medical limits — at least $100,000 emergency medical and $250,000+ evacuation for serious itineraries.
- Mind exclusions — adventure sports, pandemics (some policies), pre-existing conditions.
- Buy early — best terms come within weeks of your initial deposit.
If something goes wrong
Document everything — receipts, written delay confirmations, police reports. Call the 24-hour line first for medical emergencies. File claims quickly — deadlines are often 20–90 days.
Frequently asked questions
How much does it cost?
Typically 4–8% of prepaid trip cost.
Does it cover airline cancellations?
The airline must rebook/refund first; insurance covers the extra costs they won't.
Credit card vs standalone policy?
Cards rarely cover emergency medical or evacuation abroad — the biggest gap a standalone policy fills.
Can I buy after departure?
Most comprehensive policies must be bought before departure; post-departure options are limited.
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