Travel insurance is often seen as an afterthought, an extra expense atop hotel, food, flights and other costs. But is travel insurance worth it? The short answer: Yes. Below, we break down everything you need to know about travel insurance — all with insights from Fora travel advisors.
Is travel insurance worth it? Absolutely
Travel insurance is worth the extra cost. It protects you in emergencies and reimburses you when unforeseen events force trip cancellations or interruptions (we’ll come back to this).
“I always recommend travel insurance to my clients,” Fora X Advisor Angela Marini said. “Many travelers assume they won’t need it because they don’t plan to cancel, but travel insurance goes beyond personal cancellations — it also protects against unexpected disruptions like flight delays or cancellations.”
Fora Advisor Elissa Mellinger agreed: “I recommend travel insurance approximately 95% of the time.”
Elisa challenged the notion that travel insurance is expensive and unnecessary, noting that travel insurance usually represents a small percentage of travel expenses. On average, most travel insurance policies only represent four to 10% of a trip’s total cost. More expensive policies do exist, but these typically cover unusual circumstances most travelers don’t need coverage for, like rare medical conditions or travel to exceptionally dangerous destinations.
Travel insurance protects your financial investment and peace of mind
Most hotels, flights and other travel-related services only offer refunds for specific, usually extraordinary events affecting a large number of guests. Cancellation windows, if offered, often expire well before intended arrival dates (sometimes weeks or even months before departure). Losing out on hundreds or thousands of dollars with nothing to show for it is, putting it mildly, disappointing. Travel insurance ensures this doesn’t happen.
“I once had a client who declined travel insurance despite my repeated encouragement. Everything was set for their trip until a family emergency forced them to cancel just weeks before departure,” Fora X Advisor Seasen Acevedo-Zullo said. “They lost the trip, they lost thousands of dollars and, worst of all, they lost peace of mind. Now, their story has become my cautionary tale for other clients — it’s simply not worth the risk.”
Beyond protecting your investment, travel insurance hedges against what-if’s: What if I try new food, get sick and need emergency care? What if a hurricane strikes and my hotel is destroyed before I even arrive? What if the airport technicians are careless and lose all my bags, with my clothes, jewelry, medicine? Travel insurance is a safety net that can cover all these events.
“At the end of the day, travel insurance isn’t just about protecting your money — it’s also about protecting your experience. And that’s priceless,” Seasen added.
Here’s what travel insurance covers
Most basic travel insurance policies either cover common travel issues partially or in full.
Trip cancellations, delays and interruptions
Travel insurance usually covers cancellations, delays or interruptions caused by unforeseen, and in some cases, predictable factors. This could be a trip cancelled due to job loss, a death in the family or severe weather, like a hurricane or wildfires. Flight delays or cancellations impacting other areas of your trip are typically included, too. Say a flight delay forces you to miss the first night (or more) of your trip. A good insurance policy will cover the cost of unused nights at your hotel, along with temporary accommodations at your departure point.
There’s another benefit, too: “Hotels offer pretty significant rate advantages to guests who are willing to book prepaid nonrefundable reservations,” Fora X Advisor Alicia Anderson said. “In many cases, clients can purchase cancel-for-any-reason travel insurance policies for less than the difference between the [hotel’s] nonrefundable and flexible rate, so they can actually save money and protect their investment by purchasing travel insurance.”
Accidents and emergency medical care
While your health insurance likely covers medical care for domestic travel, the majority of health insurance policies do not cover medical expenses abroad. And medical emergencies are among the costliest travel incidents if you’re uninsured. The good news: Travel insurance will usually cover medical services and related transportation (ambulances, airlifts, etc.). There are exclusions to consider, though. Basic travel insurance won’t cover cancellations or other hiccups caused by pre-existing medical conditions. For instance, if you suffer from a cardiac event during your vacation, your policy may not cover associated medical costs. Most travel insurers offer optional coverage for pre-existing conditions, however.
“Last summer, I was on my way home from Greece; I was literally on the plane bound for NYC and had to deplane prior to takeoff due to severe abdominal pain,” Fora X Advisor Andrea Vivier said. “I ended up having an emergency appendectomy in Athens and was hospitalized for five days.”
Luckily, Andrea had used Faye Insurance, which is Fora’s preferred insurance provider. Faye covered everything, Andrea said its agents were extremely supportive and made the whole process simple.
Baggage loss or damage
One of the most common travel issues is lost, delayed or damaged luggage and belongings. Good policies will cover all of the above, and may cover property stolen from a hotel room or rental car.
Fora Advisor Jenn King was vacationing with her husband in Switzerland. The couple boarded a bus to get to their next locale, but when they arrived, they realized their luggage was gone — they had left it on the platform (Jenn blames her husband). Weeks after the trip wrapped up, Faye reimbursed both Jenn and her husband for all the lost luggage — over four figures in credit to buy replacement clothes and shoes.
Rental car damage or theft
Like medical insurance, your car insurance probably doesn’t cover vehicles or accidents outside of the United States. Even for domestic travel, only some policies cover rental cars. Most rental services offer their own insurance, but policies — and prices — vary widely. You may find that travel insurance offers equal or better coverage at a better cost than your rental service.
Scenarios where travel insurance is especially worth it
The prevailing wisdom among Fora Advisors is that travel insurance is worth it in most cases. But there are certain scenarios where it becomes essential.
Any expensive or long-term vacations
Expensive trips, especially those that require large, nonrefundable deposits, are obvious candidates for getting travel insurance. Also consider long-term trips — there’s a higher chance something will go awry on a 30-day trip versus a seven-day trip. Hotels or other travel services with short cancellation periods are good candidates as well.
“Hotels typically won’t issue refunds once their non-refundable period begins, regardless of the reason,” Angela said. “Travel insurance ensures that clients are financially protected, giving them peace of mind and safeguarding their investment in their trip.”
Risky destinations or activities
Travel insurance is worth it if you’re visiting a destination for dangerous or risky activities — think surfing, skiing, base jumping and any other activity where the risk of severe injury is greater than the norm. But even seemingly innocuous pastimes like kayaking, horseback riding or pickleball carry some amount of risk. Additionally, destinations that have relatively high petty crime rates are good candidates for travel insurance.
Though much less common, travel insurance is also critical and possibly required to visit active warzones, natural disaster zones and areas of political turmoil or disease outbreaks. It’s a good reminder that travel insurance isn’t explicitly reserved for leisure travel. Insurance providers usually offer specific policies for these types of travel.
You’re older or prone to medical issues
“As a traveler who is over the age of 70, travel insurance is essential not only for trip cancellations, delays and lost baggage, but especially for medical coverage,” Fora Advisor Gail Collins said.
She always recommends purchasing a policy within 14 days of the initial deposit, as this often averts the exclusions for pre-existing conditions. This way, if you find out you have a pre-existing condition right before your departure, you’re still covered during your trip.
Your chosen destination often has bad or dangerous weather
Some of the world’s best vacation destinations are coupled with the possibility for extreme weather or natural events: hurricanes in the Caribbean, monsoons in Southeast Asia, volcanic eruptions in the Pacific. Hurricane season is of particular interest because it’s predictable, lasting from June to the end of November. Most resorts and hotels drop their rates during this period. Travel insurance is a great way to hedge your bet. Despite the added cost of a policy, you will still enjoy dramatic savings.
“I book a lot of honeymoon clients in the Caribbean, and I always recommend travel insurance during hurricane season!” Fora Advisor Lana Jainarain said. “I can't predict the weather, but I know my clients are covered if they need to change or cancel their trip suddenly.”
You’re going on a cruise
Cruises present several additional layers of vulnerability that travel insurance can address. Fora X Advisor and cruise travel expert Amy Lagrow Rogers highlighted a few reasons why purchasing cruise insurance is wise. First and foremost, if your flight to your departure port is delayed, you can’t just take the next flight and start your vacation a day late — you may have missed the ship entirely. Alternatively, if you fail to make it back aboard your cruise ship after a shore excursion, you now have to make arrangements to connect with your ship at its next destination.
“Unlike a land-based vacation, where you can adjust your schedule more flexibly, missing the departure of a cruise can be costly and complicated,” Amy said. “Travel protection helps safeguard against these potential pitfalls, giving travelers peace of mind.”
Amy mentioned that cruise itineraries can also change unexpectedly because of weather, political unrest and other circumstances. Travel insurance can reimburse you for these changes depending on your chosen coverage.
“I always recommend travel protection for cruise clients because the logistics involved in joining a cruise mid-itinerary, handling emergencies at sea or dealing with lost luggage are far more complex than with a typical land vacation,” Amy added.
Third-party insurance vs. hotel, cruise, flight and other policies
Many travel services offer their own insurance policies. The most important consideration here is that these policies may only apply to their respective services. Cruise insurance only covers your cruise, flight insurance only covers your flight and so on. Some policies will cover related expenses, but even in these instances they’re rarely comprehensive. Third-party travel insurance can either cover every leg of your trip or the exact aspects of your trip you prefer (i.e., you can pick and choose).
Instances where travel insurance may not be worth the extra cost
Many Fora Advisors agreed that there are instances where travel insurance probably isn’t worth it.
Your trip is domestic, short and low risk (you’re not worried about losing your investment)
Sometimes the cost of a room is so low that purchasing travel insurance to cover the loss simply doesn’t make sense. Fora X Advisor Amy Green spoke to this. She noted that while she almost always recommends travel insurance to her clients, there’s one exception: when her US-based clients book moderate or low-expense trips — like a hotel room for a night — and they don’t mind losing their deposit or paying a minor penalty.
Your hotel and other experiences have excellent cancellation policies
Some hotels and other travel-related services have excellent cancellation policies, offering full refunds up until days before your arrival date. If you couple this with domestic travel and solid health and car insurance policies (meaning medical and transportation costs are covered), there may not be enough gaps in your travel coverage to justify the cost of a travel insurance policy.
Your credit card travel insurance provides acceptable coverage
Some credit cards provide travel insurance, though often with notable gaps. These may include exclusions for medical coverage, limits on trip cancellations and inadequate baggage protection. This insurance is only offered for purchases charged to the card that provides travel insurance.
“Many travelers rely on their credit card’s built-in travel protection, and that’s great — but it’s crucial to know exactly what’s covered (and what’s not),” Seasen said. “I always advise my clients to read the fine print and consider a supplemental policy if needed — a little extra coverage can go a long way in protecting both your trip and peace of mind.”
Fora’s preferred insurance provider: Faye
After asking if travel insurance is worth it, the next question is how to get it. Faye is one of our top partners and a favorite provider among many Fora Advisors. The company allows you to customize your coverage to your needs, offers speedy payouts (in cash, no less) and excellent support when things go awry.
“I love using Faye for my clients because they make travel insurance effortless,” Seasen said. “It’s seamless, flexible and removes the guesswork.”
Fora Advisor Alexandra Wiedman, who specializes in travel to Costa Rica’s best places, praised Faye for covering aspects of trips not always covered by other providers and wowing her clients.
“They will insure you when you are ziplining or rock climbing and get you fresh toiletries if your bags are delayed,” she said. “They even have an ‘umbrella’ policy for your pets for their stay at a pet hotel while you are away.”
Many advisors shared examples of how Faye helped their clients — too many to reasonably include here, — but here’s a taste:
“I had a client whose flight was delayed by 24 hours,” Fora Advisor Ana Santos said. “Because the announcement was made so late, they were past the cancellation period for their first hotel on a long trip, but Faye promptly covered the cost of the hotel.”
Fora Advisor Nancy McLaughlin shared a personal instance when Faye deposited $200 into her digital wallet after her flight home from Germany was cancelled, purely for the inconvenience. In a separate instance, Faye covered four nights in a hotel plus meals when her client’s flight was rebooked four days after their originally planned departure.
FAQs: Is travel insurance worth it?
Read on for more information about travel insurance.
How much does travel insurance cost?
Expect to pay four to 10% of your total trip cost for a basic travel insurance policy. For example, if your trip costs $4,000, you can expect to pay between $160 and $400 for a policy. Your destination, age, trip length and add-on’s like ‘cancel for any reason’ options influence pricing. More comprehensive or niche coverage may cost more, but this varies by provider.
Do all credit cards provide travel insurance?
Travel insurance provided through a credit card is relatively common, but not universal. Most policies are minimal, only covering specific out-of-pocket costs. We recommend comparing your credit card’s policy with a third-party policy to ensure you’re getting the coverage you want.
Are there any disadvantages to having travel insurance?
The only notable disadvantage for having travel insurance is the minimal upfront cost increase for your trip.
Is there anything that travel insurance will not cover? Are there any common exclusions?
This varies by policy and provider, and there’s generally a more advanced policy for unusual or high-risk scenarios. Common exclusions in basic policies, however, include pre-existing medical conditions, acts of terror or war, cancellations due to anxiety and breaking local laws. The latter might include acts committed under the influence of drugs (unless prescribed by a licensed physician) or alcohol. Travel insurance generally won’t cover refundable experiences or hotel rooms (although it may issue partial refunds).
Does your health insurance cover you when you travel internationally?
In most cases, no. There are exceptions, though. For example, if you work a job where international travel is common, your employer may fund a health insurance policy that offers appropriate coverage — but coverage may only apply when you’re on an official work trip. We recommend checking your policy to be certain. Travel insurance like the policies Faye offers will cover you in the event you need medical attention abroad.
Can you buy travel insurance anytime?
It depends. Most insurers only offer full policies if you purchase them within two to three weeks of your initial deposit date. After this window, you may not receive full benefits. Other insurers will allow you to purchase and/or cancel a policy until up to two days prior to your departure date.
Can travel insurance save you money in the long run?
The point of travel insurance is for protection when things go wrong. If they do, then yes, insurance will save you plenty of money.
More travel inspiration
Check out articles on destinations around the world (a trip to any of which would benefit from travel insurance):