Everything You Need To Know About Buying Travel Insurance
I generally rely on my credit card for travel insurance but a recent incident changed all of that. My son was bitten by a dog in a foreign destination and required $3,000 worth of rabies shots and was required to stay in the country for an extra week to complete the treatment. Cha-ching! Fortunately, he’s a digital nomad – and enjoys extreme sports – so he knows the importance of having good travel insurance. It was my wake-up call to start choosing a better, more robust policy for myself when I travel. I’m a big proponent of having travel insurance, whether you get it through your credit card or purchase it separately.
A few years ago, we had a family trip planned to Italy. There were flights booked, rental homes and tours booked, and cars rented. Just days before our trip, one of the travelers had a medical emergency and was advised not to travel. We were well within the “no cancellation” period for everything. But fortunately, I had not one, but two, travel insurance policies and they covered most everything.
People get sick (before and during travel – I know because I recently got sick in South Africa), accidents happen, pandemics happen, flights get cancelled, and the unexpected occurs. So when you’re planning a big (often expensive) trip, your first question should be, “Do I need travel insurance?” followed by “How much travel insurance do I need?”
Why Travel Insurance Is Worth It
Travel insurance acts as your safety net against unexpected mishaps—from trip cancellations to medical emergencies. As travel becomes increasingly unpredictable, it’s a smart investment for peace of mind.
Here are some key things travel insurance covers:
– Financial protection: covers non-refundable trip costs due to illness, weather, strikes, or emergencies.
– Medical coverage abroad: U.S. health insurance often doesn’t apply overseas. Travel medical coverage can save you from exorbitant bills—or even cover emergency evacuation.
– Trip delays and baggage issues: protects against delayed flights, lost luggage, and other delays—issues on the rise due to weather and infrastructure stress.
– Add-on perks: such as “Cancel for Any Reason” (CFAR), rental car protection, and adventure sports coverage—available from many insurers.
Types of Travel Insurance
1. Comprehensive (Single-Trip) Policies – These most popular plans (around 65% of policies sold) bundle trip cancellation/interruption, emergency medical, evacuation, baggage protection, and delays into one.
2. Travel Medical–Only Coverage – Focused solely on medical emergencies and evacuation—great for international travelers on a budget or those with refundable travel.
3. Annual/Multi-Trip Insurance – Designed for frequent travelers—covers multiple trips within a year. Often includes medical and delay coverage but may omit trip cancellation.
4. Specialized Plans & Add-Ons – Tailored options include options to cancel for any reason and added coverage for adventure sports, cruise-specific, pet travel, rental car damage, and more.
What to Look for When Choosing Travel Insurance
- Coverage breadth – Does it include cancellation, medical, evacuation, baggage, delays?
- Medical limits & evacuation – Especially for international trips: aim for $100,000+ in coverage.
- Purchase timing – Best to buy as soon as you book—some benefits expire otherwise. For full perks, purchase 14–21 days before departure.
- Special add-ons – CFAR, rental car, pet, adventure sports—choose based on your trip specifics.
- Pre-existing condition waivers – Crucial if you have health conditions. Available in plans like BHTP, Travel Guard, others.
- Provider reputation & service – Read reviews, check for claim speed and clarity.
- Fine print – Understand exclusions, limitations, documentation needed for claims.
Additional things to consider when buying travel insurance
Every policy is different but here are some basics to consider when looking at insurance and deciding “How much travel medical insurance do I need”:
Pay attention to the emergency medical coverage as well. This is one of those things you don’t think about until you need it (remember my in-laws’ case?) Most good policies will cover your medical expenses and hospitalization costs for a short period. But what if you need to get back home for care? Emergency evacuation insurance is also worth a consideration.
Who else is covered on the policy – I like policies that also cover people in your traveling party (some policies will require people to all be on the same itinerary so double check this). That Italy trip that was cancelled just days prior? Fortunately, we were all on the same itinerary so it was never an issue.
How much cancellation coverage do you get? My Chase policy has $10,000 but my personal policy only has $2,000. Think about how much you’re spending on the total trip to ensure it’s all covered.
What qualifies for trip interruption? Typically, it’s an illness mid-trip. But what if your traveling companion gets sick? Are they covered as well?
How much lost baggage coverage do you get? My husband recently traveled on an extended work trip to the Middle East and his luggage went South. He was without it for three days but his policy only gave him $200 for incidentals. Fortunately, he always carries an extra change of clothes in his carry-on, but if he had to purchase clothes, it would have been at his own expense. Note that there is a difference between coverage for baggage lost and baggage delayed. Most lost baggage coverage is a hassle IMO. You will never get full replacement value for all your belongings. Another quick tip: photograph the inside of your suitcase in case you ever need to make an inventory list of what was in it.
Where to Buy Travel Insurance
First, check with your credit card to see if travel insurance is one of the benefits. I have the Chase Sapphire card and it offers pretty good trip cancellation and interruption insurance. According to their website, “If your trip is cancelled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $10,000 per person and $20,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.”
I also have a personal travel insurance policy from Allianz (I bought it before I discovered that my credit card offered one – don’t make my mistake.)
A friend recently told me about Square Mouth, which lets you price out different policies.
I’m not a huge fan of buying insurance on individual flights – you know that pop-up that comes when you’re booking a flight – except…my son is somewhat of a digital nomad. He’s constantly moving around the world. And he’s always changing his plans. I can’t tell you how many airline change fees I’ve paid for him over the years. So now, I encourage him to pay the extra few bucks to cover his flights in case he wants to make a change.
Just another quick, random tip: I’ve found myself getting into arguments with hotels and car rental companies when I call to cancel a reservation. They claim it’s too late, but I always screenshot the computer screen with their policy when I’m booking it. It has saved me more than once!
If you’re asking me, “Do I need travel insurance?”, I’m going to tell you with a resounding “Yes!” It should be considered a trip expense just like a hotel room. And if you’re wondering “How much travel medical insurance do i need?”, talk to an advisor. If nothing else, it’s peace of mind. I’ve seen and heard too many scenarios from fellow travelers where having insurance was a lifesaver, literally.