Do I need travel insurance? What travelers should know.

Seasoned travelers know to expect the unexpected. From canceled flights to food poisoning, travel plans can go awry for a number of reasons.

A way to safeguard yourself from financial loss when your trip doesn’t go as planned is by having travel insurance.

It’s exactly what it sounds like: insurance for the investment you’re putting into your trip, from the costs of your flight to your hotel stay. Travel isn’t cheap, and it would be unfortunate to see your money go to waste.

“Travel insurance may help you recoup money for unexpected events and inconveniences like being stuck on the tarmac, a trip delay, medical emergencies, lost bags and more,” said Christina Tunnah, general manager of global marketing and brands at World Nomads. “Travel insurance can’t necessarily prevent stressful things from happening to you, but it can help ease the financial and logistical blow.”

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About 38% of travelers purchase travel insurance, according to a December 2023 survey by INSIDER and Momentive AI Audience. The main reason behind the purchase was due to fear of flight delays or moved reservations. However, this is only the tip of the iceberg that travel insurance can do for you on your travels.

Here’s what you need to know about travel insurance.

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Do I need travel insurance?

“I could make a case for anybody for any trip that they should consider travel insurance,” said Stan Sandberg, co-founder of TravelInsurance.com, a travel insurance comparison site. “The big question to ask yourself is, would it really hurt if I had to cancel this trip at the last minute because I get sick – or for a number of reasons – and I were to lose all the money on the trip?”

Travel insurance is meant to protect you and your trip from unforeseen events, ranging from medical emergencies to lost baggage, flight delays and more. “You can think of travel insurance as providing coverage for three main buckets: your trip investment, your health and your stuff,” said Tunnah.

Your typical comprehensive travel insurance is broken down into two parts: pre- and post-departure. Pre-departure includes circumstances like weather disruptions (before a storm is named, so keep that in mind) or if you get sick before your trip starts and you need to cancel it. Post-departure spans whatever happens on the trip, such as your luggage being stolen and you need to buy toiletries and clothes at your destination, or you end up in the hospital.

“Most people will find the standard list of covered reasons to be comprehensive enough to be suited for their needs,” Sandberg said. However, those with pre-existing medical conditions or planning to do more adventurous activities like scuba diving or hiking in remote areas may want to consider looking at add-ons for the most protection.

What’s not covered by travel insurance?

Travel insurance doesn’t cover everything that can happen on your trip, so make sure you read your full policy or talk to the travel insurance company’s customer service to get a full understanding.

“Some of these exclusions can include pre-existing conditions, undertaking certain adventure activities, or getting injured while under the influence (of narcotics),” Tunnah said. “Your policy will also have coverage limits to the amount that will be paid for lost baggage, medical expenses, emergency evacuation, etc.” For example, some travel insurance will only cover a flight delay if it hits a certain number of hours.

Can I cancel my trip with travel insurance for any reason?

No, not unless you specifically pay for it. Buying travel insurance doesn’t guarantee a refund if you cancel simply because you no longer want to go. However, if you do want that flexibility, there is an option for that, aptly named the “cancel for any reason” add-on. You can cancel your trip for any reason as close as two days before your departure and still get reimbursed 50% or 75% of your nonrefundable costs.

Do I need travel insurance if I have a pre-existing medical condition?

If you have a medical condition that existed before your trip, such as asthma or even pregnancy, there are a few steps you need to take – and you’ll want to act quickly, according to Beth Godlin, president of Aon Affinity Travel Practice.

“What’s most important, number one, is that you check the definition of pre-existing conditions,” she said. Then you’ll know how long you’ll have to fill out the pre-existing waiver, any requirements for purchasing to get the most coverage and what the lookback period is, or the timeframe that the insurance company will consider a condition stable.

When it doubt, give them a call. “If you’re still confused, call the company and say this is what I’m worried about,” Godlin said.

Do I need travel insurance for Japan? Do I need travel insurance for Europe?

Those traveling internationally will especially find travel insurance useful if something were to happen, from as small as a visit to a doctor to as major as a medical evacuation. “Even with the best health insurance plans in the U.S., you may not have coverage when you travel overseas or outside your home medical territory or maybe just very limited,” Sandberg said.

Do I need travel insurance for a cruise?

If you’re taking a cruise, travel insurance can definitely come in handy, so shop around and see what type of coverage is offered. Cruise lines typically offer their own insurance, but they’ll often have quite a bit of restrictions, so make sure to read the fine print.

“When it comes to cruises, some benefits are more important than others,” Tunnah said. “As you aren’t flying between many locations, baggage delay may not matter as much. However, what if you have to skip a planned port of call due to weather? Some plans may cover this inconvenience.”

It’s also very likely that your usual health insurance won’t cover visits to the cruise infirmary or clinic at a port, and you’ll end up having to pay out-of-pocket.

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