Travel insurance policies becoming more common post-pandemic

CLEVELAND — Booking a vacation can be expensive but it can be even more expensive to cancel that trip without insurance.

Five years after the pandemic began, more and more people are booking flights, hotels and travel insurance. But is it worth the extra money?

“I’m stuck in Belize, and there is a hurricane heading here,” said Kathy Yarian, a travel agent for Prestige Travel Leaders.

In Nov. 2022, Yarian took a trip to Belize.

“We were with our friends, so we all stayed in one room, no air conditioning and the whole wall was windows, and they were just pounding.” Said Yarian.

While she was there, Hurricane Lisa made landfall. The airport closed, and no flights were going out.

“We were stuck there for a couple extra days, and the insurance did cover my extra nights and my meals during that time,” said Yarian.

The average cost of a travel insurance policy is usually 4% to 6% of the total cost of the trip. Yarin paid $180 to insure her $2,400 trip to Belize. She filed a claim, and instead of being out $800, she lost around $200.

“They can really vary in price,” said Yarian. “That’s why I always look at a couple different policies.”

As a travel agent, Yarian has booked thousands of trips for her clients and for herself. She says she always recommends getting the insurance. Emergency Assistance Plus reports a 46% increase in travel insurance purchases from 2019 to 2024. Medical emergencies are among the top reasons people get travel insurance.

“You may come to find that your health insurance, the policy that you have back in America, doesn’t cover what happened to you internationally,” said Jim Garrity, the Director of Public Affairs for AAA. “That’s where travel insurance can step in and help you cover those costs.”

Garrity said that after the pandemic, more people want to protect their trips.

“It covers your investment, and if you’re investing your hard-earned money into a vacation, we would not recommend you go out and do so without getting some travel insurance to back yourself up,” said Garrity.

There are tons of options for travel insurance. The main policies cover cancellations, medical emergencies, baggage loss and travel interruptions.

“When you’re getting a travel insurance product, you want to make sure you’re aware of what yours covers, aware of what it doesn’t cover,” said Garrity.

There are plenty of options of how to purchase travel insurance. Travel websites, insurance companies, credit cards or travel agents can help find the right policy.

When looking into travel insurance, it’s best to get a policy that fits your needs and not just any policy. When it comes to deciding if travel insurance is worth the extra money, it comes down to how much you are willing to risk and whether you want to take the risk. Yarin said it’s better to be prepared for the worst even if it doesn’t happen.

“You should spend a little bit extra money,” said Yarin. “Go into it carefree, enjoy your trip. You don’t have to worry about it.”

According to Emergency Assistance Plus, in 2024, more than 80 million people were protected by more than 50 million travel insurance plans from major U.S. providers like Allianz, Travel Guard and Generali.

For frequent travelers, Yarin suggests looking into travel plans that cover the entire year instead of on a per-trip basis.

When it comes to travel insurance, whether it is booked through a travel agent or you do it yourself, research what the companies offer and compare plans.