How to compare travel insurance (without overpaying)
Travel insurance is really several products bundled together. Knowing which part you actually need is the fastest way to stop overpaying, or to avoid buying a plan that doesn't cover the thing you're worried about.
The four coverages that matter
| Coverage | What it pays for | Who needs it most |
|---|---|---|
| Trip cancellation / interruption | Refunds prepaid, non-refundable costs if you cancel or cut a trip short for a covered reason (illness, injury, death in the family, certain weather or carrier problems). | Anyone with large non-refundable deposits: cruises, tours, villas. |
| Emergency medical | Doctor and hospital bills abroad. | International travelers, especially US travelers on Medicare, which generally does not cover care outside the US. |
| Medical evacuation | Transport to an adequate hospital or home. This can cost tens of thousands of dollars from remote areas or ships. | Cruisers, adventure travel, remote destinations, older travelers. |
| Baggage & delay | Lost or delayed bags and meals or hotels during long delays. | Often already covered by a premium travel credit card. Check before paying twice. |
What it typically costs
Comprehensive plans with trip cancellation are priced mainly on trip cost and traveler age, and commonly land somewhere around 4% to 10% of the insured trip cost. Medical-only plans (no cancellation) are usually far cheaper because they don't insure your deposits. Older travelers pay noticeably more for the medical part.
Cancel For Any Reason (CFAR)
Standard cancellation only pays for listed reasons. CFAR is an upgrade that lets you cancel for any reason but usually reimburses only part of your costs (often 50% to 75%). It typically must be bought within a short window after your first trip payment (often 10 to 21 days) and requires cancelling a minimum number of days before departure. It adds meaningfully to the premium.
When you may not need a separate policy
- Short domestic trips with refundable bookings, where your health plan covers you nationwide.
- Trips paid with a card that already includes trip cancellation/interruption and delay coverage (read the card's guide to benefits for limits).
- Frequent travelers may save with an annual multi-trip plan instead of buying per trip.
Fine-print checklist before you buy
- Pre-existing conditions: many plans waive the exclusion only if you buy within a set number of days of your first trip deposit.
- Primary vs secondary medical: primary pays first; secondary makes you claim on your own insurance first.
- Medical limits: compare the medical and evacuation maximums, not just the price.
- Activities: skiing, diving and motorbikes are often excluded unless you add a sport rider.
- "Foreseeable events": once a storm is named or a strike is announced, it's usually too late to buy coverage for it.
- Free-look period: most US plans let you cancel for a full refund within a short review window (often 10 to 15 days) if you haven't left yet.
The best approach is to get 3 or 4 quotes with the same trip cost, dates and ages, then compare the medical limit, evacuation limit, and cancellation reasons side by side.
FAQ
Is travel insurance worth it?
It's usually worth it when you have large non-refundable costs or are traveling internationally without medical coverage abroad. For cheap, refundable, domestic trips it often isn't.
Does Medicare cover me abroad?
Generally no. Original Medicare usually does not cover care outside the US except in rare cases, so travel medical coverage is worth considering.
When should I buy travel insurance?
Soon after your first trip payment. Buying early can unlock pre-existing condition waivers and CFAR upgrades, which often have short purchase windows.
How much does travel insurance cost?
Comprehensive plans commonly cost roughly 4% to 10% of the insured trip cost, depending mostly on trip cost and traveler age.