Is travel insurance worth it? When it pays off

We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. By Aly J. Yale is a contributing writer for the Managing Your Money section for CBSNews.com, covering various personal finance topics, including investing, homebuying, loans and more. Read Full Bio November 10, 2026 / 8:33 AM EST / CBS News Add CBS News on Google Travel insurance can be a smart investment in many cases, but it may not make sense for all travelers. Nora Carol Photography/Getty Images Travel insurance can be a smart investment for many travelers. It can cover financial losses if your trip is canceled or delayed, reimburse you for lost baggage, and, most importantly, cover the costs of medical care or evacuation if needed, which can be worth thousands of dollars.But not everyone requires coverage. And with an average premium of approximately $457 for a comprehensive policy (or around 6% of the average trip cost), according to SquareMouth travel insurance (as of mid-October 2026), you shouldn't buy one without careful consideration, accounting for both the costs you'll pay and the coverage you'll receive.Are you planning a big trip soon? Below, we'll examine when travel insurance might be a worthwhile investment — and when you can probably skip coverage. Find out more about your travel insurance options online now.When travel insurance is worth the costTravel insurance can be pricey, but it's often worth the cost, particularly if there's a chance your trip may be canceled, interrupted, or otherwise changed. There's nuance to every situation, of course, but here's a look at when travel insurance generally makes sense:ScenarioWhy it makes senseYou're on Medicare or MedicaidMedicare and Medicaid generally won't cover the costs of medical treatments outside the U.S., the State Department notes online. You'll need travel insurance to make sure you're covered in an emergency. Your U.S. medical plan doesn't cover services abroadSome U.S. insurance plans will cover certain services and treatments outside the country, but many won't. Check with your insurer, and if coverage is not available or is limited, you may need travel insurance.You're traveling somewhere with limited medical careIf you're heading somewhere where you know there are limited medical facilities or services, then buying a travel plan — particularly a medical evacuation plan — can be smart. Check the department's travel advisories page to get more information on the risks of your particular destination.There's a chance a portion of your trip may be canceled, delayed, or need to be changedIf flight delays or cancellations are common in your area or destination, or you need to alter your plans at all, travel insurance can offer flexibility in a way that otherwise wouldn't be possible without it.You're pregnant or have a pre-existing medical conditionSince these may require specialized medical care, a travel medical plan may be necessary, depending on your current insurance coverage.You're planning on participating in any high-risk activitiesIf you have risky activities like skydiving, bungee jumping, hang gliding, or scuba diving on your itinerary, select travel insurance providers may be able to provide health coverage in case something goes awry.You're planning on traveling for an extended period (under 90 days, approximately)Extended trips mean more money is on the line and offer more opportunity for things to go wrong. Travel insurance can ensure you're financially protected if something goes wrong.Compare your top travel insurance options today.When travel insurance may not be worth itTravel insurance might not be worth buying if you can confirm that your existing healthcare coverage extends to where you're traveling and would cover you if an emergency arises. If your trip is fully refundable or has built-in cancellation policies, it also may not be worth it. Keep in mind that you may still want coverage in case your trip gets interrupted, canceled, or delayed. If your credit card offers travel insurance, you may be able to skip buying a separate policy, too, as long as you book and pay for the travel using the card in question. Some homeowners and renters insurance policies may also include some level of travel insurance coverage, though restrictions and limits may apply. Be sure to check what specific protections are included and what requirements you must meet for coverage.Another scenario where it might make sense to forgo travel insurance is if you've used award points to book your trip. In that case, your points/miles are typically deposited back into your rewards account if your trip is interrupted or canceled — though you may have to pay a small fee.What to consider before buying travel insuranceTo determine whether travel insurance makes sense for you, consider the risks of your unique trip, your physical health, and the coverage, limits, and exclusions on your current health insurance plan and credit cards. It's also important to understand how much you stand to lose if some or all of the trip is canceled. If you do opt to purchase travel insurance, be sure to shop around for your plan as pricing and coverage options can vary widely. Edited by Matt Richardson