Travel Insurance: Do You Need It?

Key Takeaways

Travel insurance isn’t always required, but it can be a smart safeguard against unexpected setbacks – from canceled flights to medical emergencies abroad. Whether you’re planning a weekend getaway or an international adventure, understanding your options helps you travel with confidence.

Traveling opens the door to new experiences, but it also comes with a level of uncertainty. Flights get delayed, luggage goes missing, and sometimes unexpected events like illness or weather can completely derail a trip. This is where travel insurance comes in.

Travel insurance is designed to protect your investment and provide peace of mind when life doesn’t go according to plan. Whether you’re heading overseas, planning an expensive cruise, or simply want coverage for unexpected cancellations, the right policy can make a big difference if things go wrong.

In this article, we’ll walk through what travel insurance is, what it covers, when it’s worth considering, and even which destinations require proof of insurance before you go.

What Is Travel Insurance?

Travel insurance is a policy that helps protect you from financial loss if your trip doesn’t go as planned. It’s designed to cover unexpected situations that could disrupt your travel, such as a canceled flight, lost luggage, medical emergency, or natural disaster.

Think of it as a safety net. While your regular health or homeowners insurance might offer some coverage abroad, it’s often limited. Travel insurance fills those gaps, providing reimbursement or assistance when the unexpected happens far from home.

Policies can be purchased directly from an insurance provider, through a travel agent, airline, or even with certain credit cards. Some travelers opt for basic coverage that protects their prepaid expenses, while others choose comprehensive plans that include “cancel for any reason” options.

Types of Travel Insurance & What They Cover

Not all travel insurance is the same. Policies can vary widely in what they include, so it’s important to understand your options before purchasing a plan. Some cover only your trip expenses, while others offer more comprehensive protection for medical emergencies, lost luggage, and more.

• Trip Insurance 

Known simply as trip insurance, trip cancellation and interruption coverage helps reimburse you for prepaid, non-refundable expenses if your trip is canceled or cut short for a covered reason, such as illness, severe weather, or a family emergency.

Should you get trip insurance? It’s an individual choice, of course, but if a delay forces you to stay overnight or make new travel arrangements, trip insurance can also help cover hotel, meal, or rebooking costs. It can come in handy when things go sideways.

• Medical & Emergency Coverage

If you get sick or injured while traveling, medical coverage can help pay for necessary care – something your regular health insurance may not fully cover abroad.

Many policies include emergency medical evacuation, which pays for transportation to the nearest suitable medical facility or even back home if needed. Be aware that coverage for pre-existing conditions or higher-risk activities like skiing, scuba diving, or mountain climbing may require a specialized policy.

• Lost, Stolen, or Damaged Luggage & Personal Items

This protection reimburses you if your luggage or personal belongings are lost, stolen, or damaged during your trip. It’s particularly useful for travelers bringing valuable items like cameras, golf clubs, or electronics, though coverage limits for high-value items often apply.

You may see terms like golf travel insurance or camera travel insurance used online. These aren’t separate types of insurance, but rather ways to describe travel policies that include protection for expensive or specialized gear.

When in doubt, check your policy’s per-item coverage cap and consider standalone equipment insurance if your gear is especially valuable.

• Emergency Evacuation or Repatriation

This coverage pays for emergency transportation if you’re seriously injured or ill and need to be moved to a hospital or returned home. It’s especially important for cruises or remote destinations, where quality medical care may not be immediately accessible.

Does Travel Insurance Cover “Cancel For Any Reason”?

Cancel For Any Reason (CFAR) is an optional policy upgrade that lets you cancel your trip for nearly any reason not covered under a standard plan – such as concerns about safety, scheduling conflicts, or unexpected personal situations. This type of coverage offers more flexibility, but it does come with a few important conditions:

• You typically must purchase CFAR coverage soon after booking your trip – often within 14 to 21 days of your initial deposit.

• It usually reimburses a percentage of your non-refundable costs (commonly 50–75%), not the full amount.

• You must cancel your trip at least 48 hours before departure to qualify for reimbursement.

While CFAR policies cost more than standard travel insurance, they can be worth the investment for travelers who value flexibility, especially for expensive or unpredictable trips.

Do You Really Need Travel Insurance?

“Do I need travel insurance?” This is a question many people ask when finalizing plans. And while travel insurance isn’t required for every trip, it can be a smart investment. Before deciding, here are some things to consider before buying travel insurance

• The Cost of Your Trip

If you’ve prepaid for flights, hotels, tours or experiences that are non-refundable, travel insurance can protect that investment. The more expensive your trip, the more you stand to lose if something unexpected forces you to cancel or cut it short.

• The Length of Your Trip

Longer trips mean more opportunities for delays, cancellations, or mishaps. Extended travel also increases your exposure to illness or lost items, making coverage more valuable.

• The Destination

Some destinations – particularly remote areas, islands, or regions with limited healthcare access – make emergency medical and evacuation coverage especially important. If you’re traveling internationally, check whether your personal health insurance will cover you abroad (many don’t).

• The Activities You Plan

If your itinerary includes adventure or higher-risk activities like skiing, scuba diving, zip-lining, or mountain trekking, you may need a policy that specifically includes those experiences. Standard policies often exclude injuries from extreme sports or activities deemed hazardous.

• Your Personal Health & Risk Factors

Travelers with pre-existing conditions or specific health concerns should review policy details carefully. Some plans offer coverage for pre-existing conditions if purchased soon after your initial trip deposit.

Do Any Destinations Require Travel Insurance? 

Some destinations require proof of travel insurance for entry or visa approval, though most only recommend it.

The most consistent requirement is for Schengen Area visa applicants. Anyone applying for a Schengen visa must show proof of travel medical insurance with at least €30,000 in coverage for emergencies, hospitalization, and repatriation. The policy must be valid throughout all Schengen countries and for the full duration of the stay.

Other countries once required travel insurance during the COVID-19 pandemic, but many of those mandates have been lifted. For example, Costa Rica and Thailand previously required coverage but no longer do (as of October 2025). Some destinations, such as the United Arab Emirates or expedition-style trips to Antarctica, may still require medical or evacuation insurance depending on visa type or travel provider.

Because entry requirements can change, it’s always best to confirm with your airline, travel agent, or the destination’s embassy or consulate before departure.

Best Practices for a Successful Travel Insurance Claim

Filing a travel insurance claim is usually straightforward, but success often depends on how well you document and report what happened. To avoid frustration or delays, keep these best practices in mind:

• Keep All Documentation

Hold onto receipts, confirmation emails, police reports, medical bills, and any written proof of delays or cancellations. The more evidence you can provide, the easier it is for your insurer to verify your claim.

• Report Problems Right Away

Notify your insurance provider as soon as an issue occurs – whether that’s a medical emergency, trip cancellation, or lost luggage. Many policies require you to report incidents within a specific time frame to remain eligible for reimbursement.

• Understand What’s Excluded

Common exclusions include injuries from high-risk activities, losses due to intoxication, or unattended items. Reading your policy details before departure helps you avoid surprises later.

• Keep Contact Info Handy

Store your insurer’s emergency hotline and policy number in your phone and with your travel documents. Many insurers also offer mobile apps for faster claims or assistance abroad.

• Work With a Licensed Agent

If you’re unsure what coverage you need or how to file a claim, working with a licensed insurance agent can help you choose the right plan and navigate the process if you ever need to use it.

Common Questions About Travel Insurance

As you explore your options, here are answers to a few frequently asked questions that can help you better understand if travel insurance is right for you.

• What are the cons of travel insurance?

While travel insurance offers valuable protection, there are a few potential downsides to consider before purchasing a policy: it adds to the cost of your trip; coverage can be limited and confusing; claims require documentation and patience; and CFAR coverage costs more. These don’t outweigh the benefits for many travelers, but they’re important to understand.

• Is it okay to not get travel insurance?

Yes; it’s okay not to get travel insurance in some situations. If your trip is inexpensive, domestic, or fully refundable, and your existing health insurance or credit card offers some protection, you may decide it’s not worth the added cost. It’s optional, but smart to evaluate your personal risk before opting out.

• Who is the beneficiary of travel insurance?

A travel insurance beneficiary is the person who would receive benefits from the policy in the event of a covered death or certain payouts (similar to a life insurance policy). For most coverage types – like trip cancellation or lost luggage – the traveler is the direct recipient. However, if the plan includes accidental death or dismemberment coverage, you can name a beneficiary who would receive those benefits.

• Can I buy travel insurance for someone else?

Yes, you can purchase travel insurance on behalf of another person, such as a spouse, family member, or friend, as long as you provide accurate personal details (like birth date, destination, and trip dates). The policyholder will be the insured traveler, not the buyer, and they’ll be the one eligible to file claims or receive reimbursements.

Not sure what kind of coverage you need? Our team at Independent Insurance Associates can help – contact us today. Happy travels!