What to Know About Travel Insurance and How to Pick the Right Plan

Cut through the jargon and discover what factors to consider when choosing trip insurance

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Only you can decide if the risk of something going wrong before or during your trip is worth paying for travel insurance. One big benefit: You can relax knowing that you won’t have to pay for an accident out of pocket.

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Berit Thorkelson,

Updated February 23, 2026

AARP

Published April 09, 2020

/ Updated February 23, 2026

The idea of buying travel insurance is simple enough: Once you’ve shelled out thousands of dollars for your trip, you don’t want to lose money if something prevents you from taking it or if there’s a problem along the way.

On top of personal challenges such as a health event or family emergency, the world’s increasing unpredictability is also a concern. With “winter storms and different climate-related events … there are a lot more current events that travelers we’re speaking to seem to be more aware of,” says Chrissy Valdez, senior director of operations at Squaremouth, a travel insurance comparison website. “[Travelers] want to make sure they’re prepared for anything.”

What’s more, the older you get, the greater the risk of health issues, both ongoing and unexpected. As Nikki McGregory, the 53-year-old owner of Nik of Time Travel, puts it, “The ‘check engine’ light stays on. We all have something going on with us now, right?”

To help: Arm yourself with some basic knowledge from insurance experts. Learn when to consider purchasing travel insurance, what to look for in a policy and how to narrow your options to find the best plan for your needs and adventures.

Do I need travel insurance?

That depends on how comfortable you are with the risk of something going wrong. “A good rule of thumb is if losing your trip investment would hurt, travel insurance is worth considering,” says Suzanne Morrow, CEO of InsureMyTrip, a travel insurance policy comparison website.

Consider insurance for international trips, those with tight connections or nonrefundable prepayments and cruises, Morrow says.

Also, keep in mind that your current health care plan will provide little to no coverage overseas. This includes most U.S. plans and traditional Medicare, outside of some Medicare Advantage and Medigap plans, which sometimes cover emergencies.

“I never travel abroad without travel insurance,” says Matt Kepnes, of the travel website NomadicMatt. “While you’re likely going to be fine 99 percent of the time, the risk just isn’t worth it. Moreover, emergency evacuations can cost upward of hundreds of thousands of dollars.”

Even short, refundable or inexpensive domestic trips are not without risk. Out-of-state medical care may also be out-of-network, and the potential for typical travel pitfalls remains. “Delays, baggage issues or medical surprises can add up quickly,” Morrow says. “The key is to consider all aspects of your trip and make the best decision for you.”

Types of travel insurance

Comprehensive travel insurance policies are designed to cover a wide range of risks, from trip cancellation and interruption to travel delay, baggage protection, some medical issues, emergency evacuation and 24-hour assistance. Some policies will even reimburse you a set amount toward the cost of a new passport.

Review the different ways to protect yourself against cancellations, delays and interruptions when you travel, and what each does (and doesn’t) cover.

Single-trip travel insurance: This is a popular choice, in part because policies can be customized to unique concerns and experiences. “The type of travel insurance best suited for a weekend domestic flight would be very different than [what’s needed for] a trip to multiple European cities or a safari in Africa,” says Scott Fleming, president at Aon Affinity’s Travel Practice, which customizes travel insurance programs for the travel industry. Single-trip policies can also offer deeper coverage, such as a Cancel for Any Reason (CFAR) add-on.

Annual travel insurance: If you take three or more trips a year, an annual policy may be a simple, cost-effective alternative to buying separate policies for each trip, Morrow says. Annual policies typically cover trip evacuation and baggage reimbursement beyond what the airline is required to provide, with the option to add trip cancellation benefits. However, you probably won’t be covered by more specialized or comprehensive customizations, such as CFAR, adventure sports coverage for activities such as skiing and snorkeling or coverage for missing a port of call while on a cruise.

Medical-only travel insurance: This is designed to take over where your regular health care leaves off. It doesn’t cover anything beyond medical needs, such as cancellation costs, even if related to a medical issue. It’s available per trip or annually.

Credit card travel insurance: If you use your card to pay for the trip, you’re often covered for delays, lost baggage and cancellations, and potentially rental car damage. Some premium travel-focused cards cover medical evacuation and even accidents, though coverage limits may be modest. Check your credit card for exact coverage.

Travel provider travel insurance: This is the coverage offered by the airline, or the tour or cruise provider. It is easily purchased at the point of sale, customized to the service being provided and can offer payouts as credit for future travel as only a provider can supply, Fleming says. On the flip side: Provider-specific travel insurance is typically limited to that one aspect of your trip — for instance, the cruise, but not the flight to port — and issues don’t often result in cash back.

Homeowners or renters insurance travel coverage: If you have an existing policy, you probably have off-premises coverage for your personal property that covers lost or stolen luggage and valuables. Deductibles typically apply.

How much does travel insurance cost?

Per-trip policies run from under $5 a day, for medical only, to about $30 a day, for more comprehensive coverage. “It’s really going to depend on the length of your trip, the age of the travelers, and, of course, the amount that you want to insure,” Valdez says.

To come at it another way, plan on somewhere between 4 and 10 percent of a trip’s total cost. “For example, a $5,000 trip often costs between $200 and $500 to insure, depending on traveler age, destination and coverage choices,” Morrow says.

The average cost of annual travel insurance for someone 50 or older is just over $300.

Key considerations when purchasing travel insurance

Compare your options to customize. Consider your biggest risks, including how much you’ve prepaid, where you’re going, how long you’ll be away and how much medical coverage matters, Morrow says. Now, view plans side by side to examine coverage limits, exclusions and upgrades. “The ‘best’ policy is the one that fits your trip, not someone else’s,” she says. You can compare plans on sites, such as InsureMyTrip, Squaremouth and Insurify. Always ask clarifying questions before purchasing to ensure your specific concerns are well covered.

Consider concierge service. This perk, which can be included in or added to some travel protection packages, assists with insurance-related issues and beyond, Fleming says, such as finding a pharmacy, securing accommodations based on special needs and choosing a restaurant. Some are available 24/7, starting pre-trip.

Buy ASAP. Ideally, purchase insurance within 14 to 21 days of making a trip deposit or payment, Valdez says. Valuable benefits such as CFAR and preexisting condition coverage are only available within this window. Premium costs may rise as the trip date approaches, too. You’re only covered if you purchase before the bad weather or health problems hit. McGregory recalls a client who declined trip insurance, then suffered a fall during the trip. “She called me, told me what happened, and asked if she had … insurance. I’m like, ‘Girl, you know you declined insurance,’ ” McGregory says. “Luckily, she was OK, but she did have to pay for her medical treatment out of pocket.”

Mix and match. Maybe your cruise line’s policy is great overall, just a little light on the medical evacuation coverage for your far-flung destination. Or you’re comfortable with most of what your credit card and homeowners’ insurance policies cover, though you’d like a medical policy to round things out. Identify any insurance gaps as soon as you book your trip and fill them ASAP. “If you’re just looking for the lowest cost, only insure the parts that are nonrefundable,” Valdez says.

Your Travel Insurance FAQs

What if I get sick or hurt before my trip?

A last-minute health emergency that prevents you from traveling should be covered by trip cancellation insurance. To figure out how much coverage you should purchase, add up all your nonrefundable expenses for such things as airline tickets, cruise cost, tours and prepaid excursions. You’ll need to buy coverage for 100 percent of these costs to be eligible for certain benefits, such as the preexisting condition waiver.

To collect, you’ll need a note from your doctor certifying that you are unable to travel and including the details of your diagnosis or injury.

If a family member has a medical emergency while I’m traveling, am I covered if I drop everything and head home? One common scenario: the serious illness or unexpected death of a close relative. This should be covered under a standard policy’s trip interruption coverage, Valdez says, but add an “interruption for any reason” policy for the most flexibility. To make a claim in this situation, you’ll need a doctor’s note to get reimbursed. And your relative has to have been medically fit at the time you bought the insurance (which, again, you must buy on a timely basis).

What if my Caribbean cruise is canceled because of a hurricane? Or what if my flight to Miami is delayed and I miss the boat?

A cruise called off as a hurricane barrels toward your destination would indeed be covered by trip cancellation insurance, assuming you bought it before the hurricane was forecast. Some plans may let you cancel if your destination is under a hurricane warning close to your departure date.

Regarding that delayed flight, some policies provide “cruise only” missed connection coverage that will pay for flying you to the next destination port if you miss the boat because of flight delays. Check a policy’s wording carefully, though. You might not be covered if your plane’s scheduled arrival falls too close to your ship’s departure.

Editor’s note: This story was originally published April 9, 2020. It has been updated to reflect new information.

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Contributing: Lynn Asinof and Adam Pitluk, AARP.

Berit Thorkelson is a travel writer and editor for aarp.org. She has also written for publications such as National Geographic Traveler, Better Homes & Gardens and The Minnesota Star Tribune’s travel section.