Is Travel Insurance Worth It? An Honest Breakdown

Travel insurance is one of those things most people buy without really understanding, or skip entirely and hope for the best. The truth is more nuanced — it's genuinely worth it in some situations and a waste of money in others.

What Does Travel Insurance Actually Cover?

Standard travel insurance typically covers trip cancellation and interruption, emergency medical expenses abroad, lost or delayed baggage, flight delays, and emergency evacuation. Premium plans may also cover pre-existing medical conditions, "cancel for any reason" scenarios, and rental car damage.

When Travel Insurance Is Worth It

Travel insurance makes the most sense when you're taking an expensive, non-refundable trip. If you've paid thousands for a cruise or international holiday with non-refundable deposits, the cost of insurance (typically 4–10% of the trip cost) is justified. It's also strongly recommended when travelling to destinations with expensive healthcare costs, or when you have pre-existing health conditions.

When You Might Not Need It

For cheap, flexible, or fully refundable bookings, travel insurance may not be necessary. If your credit card already includes travel protection benefits (many do), you may be double-covered. For short domestic trips, the cost of insurance may outweigh the potential benefit.

Check Your Credit Card First

Many premium credit cards include travel insurance as a perk — covering trip cancellation, lost baggage, and even emergency medical assistance. Check your card's benefits guide before purchasing separate insurance. You may already be covered at no extra cost.

Read the Fine Print

Travel insurance is only as good as what's actually covered. Common exclusions include pre-existing conditions (unless specifically covered), acts of war, pandemic-related cancellations (check carefully post-COVID), and losses due to intoxication or reckless behaviour. Always read the policy document before buying.

Our Verdict

For most international travellers taking non-refundable trips, travel insurance is worth the cost for peace of mind alone. For budget domestic trips with flexible fares, it's often unnecessary. The key is to assess your specific situation — the cost of what you'd lose if things went wrong versus the cost of the premium.