Is Travel Insurance Worth It? What It Covers, Costs and When You Need It

Travel insurance is usually worth it if you would struggle to pay for emergency medical care abroad, or to absorb the cost of a cancelled trip. For travellers from the US and Canada, the most important part is emergency medical and evacuation cover, because domestic health plans such as Original Medicare and provincial health insurance pay little or nothing for care outside the country. Comprehensive policies typically cost about 4% to 8% of the trip’s price. It may be less necessary for short, cheap domestic trips, or if you already have strong cover through a credit card or employer plan. This guide explains what travel insurance covers, what it costs, when it’s worth buying and how to avoid common gaps.

What Does Travel Insurance Cover?

Policies vary widely, but comprehensive travel insurance usually includes:

• Emergency medical cover: treatment for illness or injury while travelling, including hospital stays.
• Medical evacuation and repatriation: transport to a suitable hospital or home if needed.
• Trip cancellation: reimbursement of prepaid, non-refundable costs if you cancel for a covered reason, such as serious illness, a death in the family or certain severe weather events.
• Trip interruption: costs if you have to cut a trip short for a covered reason.
• Travel delay and missed connections: meals, hotels and onward travel after long delays.
• Baggage: lost, stolen or delayed luggage and personal items, usually with low limits for valuables.
• Personal liability: if you accidentally injure someone or damage property.

Some travellers buy only “travel medical” insurance, which focuses on health cover and is usually cheaper. Others buy only cancellation cover for an expensive trip.

How Much Does Travel Insurance Cost?

The US Travel Insurance Association (UStiA) says comprehensive trip insurance typically costs about 4% to 8% of the total insured trip cost. The price depends on the traveller’s age, the trip’s length and cost, the destination, the level of cover and any pre-existing medical conditions. Medical-only policies for short trips can be much cheaper, while annual multi-trip policies can be good value for people who travel several times a year.

Why Is Medical Cover So Important?

Medical bills abroad, and especially medical evacuations, can be extremely expensive. The US State Department warns that a medical evacuation can cost from $20,000 to more than $200,000, depending on your location and medical condition. It also says US embassies cannot pay medical bills for travellers.

• US travellers: according to Medicare.gov, Original Medicare generally does not cover health care or supplies you get outside the US, except in rare situations. Some Medigap plans (C, D, F, G, M and N) cover 80% of emergency care abroad after a $250 deductible, for care that begins within the first 60 days of a trip, up to a $50,000 lifetime limit. Medicare Advantage plans may offer some cover, so check yours. Many private health plans have limited foreign cover.
• Canadian travellers: the Government of Canada warns that provincial and territorial health plans may cover only a small part of costs outside Canada, or none at all, and strongly recommends buying travel health insurance before leaving. That applies to trips to the US.
• UK travellers: a Global Health Insurance Card (GHIC) gives access to state healthcare in the EU and some other countries, but the NHS says it is not a substitute for travel insurance and does not cover private treatment, repatriation or cancellations.
• Australian travellers: Smartraveller says, “If you can’t afford travel insurance, you can’t afford to travel.” Medicare does not cover medical costs overseas, apart from limited reciprocal agreements.

When Is Travel Insurance Worth It?

• International trips: almost always, at least for medical cover.
• Expensive, prepaid trips such as cruises, safaris, tours or long-haul holidays with non-refundable bookings.
• Cruises, where onboard medical care is costly and evacuations from ships are complicated.
• Older travellers and anyone with health conditions, as long as the policy covers them.
• Adventure activities like skiing, diving or trekking, which may need specific add-ons.
• Remote destinations, where evacuation would be expensive. Our guide to seeing the northern lights covers remote winter trips where this applies.

When Might You Not Need It?

• Short, cheap domestic trips where your health plan covers you and bookings are refundable.
• When your credit card already covers you. Some premium credit cards include trip cancellation, delay, baggage and rental car cover when you pay for the trip with the card, and a few include medical cover. Read the card’s benefits guide carefully, because limits, exclusions and activation rules vary.
• When your employer or existing plan covers travel, such as some international health policies.

What Is “Cancel for Any Reason” Cover?

Standard cancellation cover only pays out for reasons listed in the policy. A Cancel for Any Reason (CFAR) upgrade, available in the US, lets you cancel for reasons not on the list. It typically reimburses about 50% to 75% of non-refundable costs, adds a significant amount to the premium, must usually be bought within a short period of your first trip deposit and requires you to cancel at least a couple of days before departure. Check the exact terms before buying.

What Do Travel Insurance Policies Usually Exclude?

• Pre-existing medical conditions, unless you declare them and they are accepted, or the policy has a waiver.
• Known events: once a storm, strike or outbreak is named or widely reported, it’s usually too late to buy cover for it.
• Alcohol or drug-related incidents.
• High-risk activities that are not specifically covered.
• Travelling against government advice: many policies are invalid if you go to a destination your government says not to travel to.
• Changing your mind, unless you have CFAR cover.
• Unattended valuables and items over the single-item limit.

Disruption can strike any trip. Our recent coverage of Italy’s trucker protests affecting airports and cancellations at Riyadh airport shows how quickly plans can change. Policies differ on whether strikes and airline disruption are covered, so check the wording.

How Do You Choose a Good Travel Insurance Policy?

• Buy early. Buy soon after booking, so you’re covered if something happens before you leave.
• Check the medical limits. Many experts suggest at least $100,000 of medical cover for international trips, and much more for the US and cruises, plus evacuation cover.
• Declare all medical conditions honestly, or your claim may be refused.
• Compare excesses or deductibles, as well as premiums.
• Check activity cover for anything you plan to do.
• Look at the claims process, including 24/7 emergency assistance.
• Keep documents and receipts, and report theft to local police within 24 hours.
• Check entry rules. Some countries require proof of insurance for visas, including Schengen visas. Our guide to the UK ETA covers another key travel requirement.

Is Travel Insurance Worth It for Students and Long-Term Travellers?

Students studying abroad usually need specific cover, and many universities or visa rules require it. Our study abroad guide explains what to check. Digital nomads and long-term travellers may need specialist nomad or international health insurance, because standard trip policies often limit the length of each trip.

What Are the Key Takeaways?

• Travel insurance is usually worth it for international trips, mainly for emergency medical and evacuation cover.
• Comprehensive policies typically cost about 4% to 8% of the trip’s price.
• Original Medicare and provincial health plans offer little or no cover abroad.
• Check credit card benefits, but read the limits carefully.
• Declare medical conditions, buy early and understand the exclusions before you travel.

This article is general information and not financial or insurance advice. Policies vary, so always read the policy wording before buying.

Featured image: Luggage awaiting loading at airport IMG 3140, by Billy Hathorn / Wikimedia Commons, CC BY 3.0. Cropped, colour-graded and combined with MediaPavilion branding.

Sources

• US Travel Insurance Association — Frequently asked questions (accessed 25 October 2026).
• Medicare.gov — Travel outside the US (accessed 25 October 2026).
• US Department of State — Insurance coverage overseas (accessed 25 October 2026).
• Government of Canada — Travel insurance (accessed 25 October 2026).
• NHS — Healthcare abroad: Global Health Insurance Card (accessed 25 October 2026).
• Smartraveller — Travel insurance (accessed 25 October 2026).