Travel insurance is a catch-all term for a policy that protects you from financial losses caused by unexpected events before or during a trip. Coverage typically includes trip cancellation, trip interruption, emergency medical expenses, evacuation and delayed or lost baggage, though benefits vary by policy and provider. Standalone policies generally cost between 4% and 10% of your total nonrefundable trip expenses, with the current average sitting around 6%.
What is travel insurance?
Travel insurance is a catch-all term for a policy that protects you from financial losses caused by unexpected events before or during a trip. Coverage typically includes trip cancellation, trip interruption, emergency medical expenses, evacuation and delayed or lost baggage, though benefits vary by policy and provider. Standalone policies generally cost between 4% and 10% of your total nonrefundable trip expenses, with the current average sitting around 6%.
TL;DR: Key takeaways
- Travel insurance is a purchased policy that reimburses you for financial losses tied to unexpected travel disruptions, medical emergencies or cancellations.
- Standalone policies typically cost 4% to 10% of your nonrefundable trip expenses, averaging about 6% in recent data.
- The strongest case for buying a standalone policy is an international trip with large nonrefundable costs and limited personal health insurance coverage abroad.
- Many premium travel credit cards include built-in trip protections, but they do not offer cancel-for-any-reason coverage and often have some emergency medical benefits.
- Buy as soon as you make your first trip deposit. Waiting even a few weeks can disqualify you from time-sensitive benefits like preexisting condition waivers and cancel-for-any-reason coverage.
What does travel insurance cover?
Travel insurance is not a single product. It is a category of coverage, and what you get depends entirely on the policy you choose. Comprehensive plans bundle multiple protections together; narrower plans cover a single concern, such as emergency medical care for international travel.
Here is what most comprehensive policies include:
| Coverage type | What it pays for | Key notes |
|---|---|---|
| Trip cancellation | Prepaid, nonrefundable costs if you cancel before departure for a covered reason | Covered reasons vary; illness, jury duty and severe weather are common examples |
| Trip interruption | Unused trip costs plus return transportation if your trip is cut short for a covered reason | Often pays more than cancellation because it includes getting you home |
| Emergency medical | Doctor visits, hospitalization and treatment costs abroad | Most U.S. health plans provide limited or no out-of-network international coverage |
| Medical evacuation | Transportation to the nearest adequate medical facility | Helicopter evacuations can exceed $30,000 out of pocket |
| Baggage delay or loss | Reimbursement for delayed, damaged or lost luggage | Coverage limits and documentation requirements vary by policy |
| Accidental death and dismemberment | A cash benefit in the event of death or serious injury during travel | Less commonly needed but included in most comprehensive plans |
Most policies exclude preexisting medical conditions by default, though many providers offer a waiver if you purchase within 14 to 21 days of your initial trip deposit. Adventure sports like skydiving or free soloing are also typically excluded unless you purchase a specialty plan.
Travel insurance vs. credit card travel protections
Many premium travel cards include useful built-in protections when you use the card to pay for your trip. These typically cover trip delays, cancellations, interruptions and lost baggage. For a lot of travelers on domestic or lower-risk trips, that coverage is genuinely sufficient.
The gaps, however, are real. Credit card travel protections generally do not include extensive emergency medical coverage or medical evacuation benefits. If you get sick abroad and need hospitalization, or need to be airlifted to a facility, you are likely on your own unless you carry either a standalone travel insurance policy or personal health insurance that covers out-of-network international care. No credit card offers CFAR coverage, so if you need to cancel for a reason outside the card’s covered list, you will not be reimbursed.
There is also a practical consideration: card protections only apply to expenses charged to that specific card. If you spread trip costs across multiple cards or use points for part of the booking, coverage may not extend to the full trip value. Learn more about when yo buy travel insurance versus when to rely on credit card protections in our article.
How much does travel insurance cost, and is it worth it?
Standalone travel insurance typically costs between 4% and 10% of your total nonrefundable trip expenses. Per recent Squaremouth data, the average policy runs about 6% of insured trip costs, or roughly $307 per policy for a 15-day trip. Age and destination affect pricing: a 30-year-old insuring a $5,000 trip pays around $200, while a 65-year-old insuring the same trip pays closer to $400.
Adding a CFAR upgrade increases the base premium by roughly 40% to 50%, which translates to about 9% to 14% of total trip cost when combined. For most travelers, that level of spend makes more sense on high-cost, mostly nonrefundable international trips than on flexible domestic bookings.
When a standalone policy tends to be worth it:
- International trips with significant nonrefundable expenses
- Trips where your health insurance provides limited or no coverage abroad
- Cruises or multi-leg itineraries with high nonrefundable deposits
- Travel to remote destinations where medical evacuation costs could be severe
- Any trip where you want the option to cancel for reasons outside standard covered events
When card protections are often sufficient:
- Domestic trips, especially with refundable bookings
- Trips where you carry personal health insurance that covers out-of-network care at your destination
- Lower-cost trips where the potential loss is manageable without insurance
