Is Travel Insurance Worth It? A US Traveler's Guide

Published June 1, 2026 · Updated June 6, 2026 · By Travel Desk Editorial Team, Senior Travel Agents Last reviewed Jun 2026

Travel insurance can save your trip — or waste your money. The right answer depends almost entirely on what you've already got covered through your credit card and your health insurance.

What Travel Insurance Typically Covers

• Trip cancellation — refunds non-refundable prepayments if you cancel for a covered reason
• Trip interruption — covers extra costs if your trip is cut short
• Travel delay — meals/lodging if delayed beyond a threshold (usually 6+ hours)
• Baggage delay/loss — emergency purchases and lost-bag reimbursement
• Medical & evacuation — covers care abroad and emergency airlift home

What's Usually NOT Covered

• Pre-existing medical conditions (unless a specific waiver is purchased within 14–21 days of trip deposit)
• Pandemics, in most policies (always check)
• "Cancel for any reason" — must be added as a rider, typically refunds only 50–75%
• Extreme sports unless purchased separately

When Travel Insurance is Definitely Worth It

1. International trips — your US health insurance likely doesn't cover you abroad, and medical evacuations can exceed $100,000.
2. Cruises — large non-refundable prepayments + remote medical situations = high risk.
3. Trips with elderly or higher-risk travelers — medical risk justifies the premium.
4. Big-ticket prepaid trips (safaris, all-inclusives, multi-week itineraries).

When You Can Skip It

• Domestic US trips on refundable fares (you're already protected)
• Short trips where your credit card already provides baggage/delay coverage
• Trips paid mostly on premium travel credit cards with built-in trip cancellation (Chase Sapphire Reserve, United Club Infinite, Amex Platinum business)

Typical Cost

Standard travel insurance runs 4–8% of total trip cost. Add "Cancel for Any Reason" and that climbs to 10–12%. Get quotes from at least 2–3 carriers before buying.