When You Actually Need It and When You Don’t

With travel costs rising and unexpected disruptions more common than ever, is travel insurance still worth the price?

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Travelers face everything from airline delays to extreme weather events, making trip protection more tempting — but not every policy is a smart investment. While in some cases, travel insurance can save you thousands, in others, it may be an unnecessary expense.

Before you book your next trip, here’s when you actually need travel insurance and when you can safely skip it.

Trip Cancellation

It’s never a bad idea to have travel protection for trip cancellation, which can help you recoup costs due to unexpected disruptions ranging from medical emergencies to unexpected severe weather, which can lead to financial losses and added stress, according to Chris Carnicelli, CEO of Generali Global Assistance.

“Without the right protections in place, travelers may face significant out-of-pocket expenses during an already difficult situation,” he said.

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If Health Insurance Falls Short

If your health insurance does not cover emergencies abroad, investing in travel insurance would be a wise decision, especially if you’re carrying expensive gear, according to Nick Schrader, owner of Texas General Insurance.

“For example, in case of hurricane-related cancellation, having travel insurance can save you from paying hefty bills,” he explained.

Additionally, many people hold a misconception that their travel credit card provides robust travel insurance coverage for health, too, according to Lauren Gumport, vice president of communications and brand at Faye Travel Insurance.

“In all actuality, your health insurance typically doesn’t cover you out of state, let alone abroad. And your travel credit card protection will come with more limitations than compared to a full policy you buy directly from a travel insurance provider,” she said.

Travel Assistance

Once the trip is underway, access to 24/7 travel assistance services may provide crucial support in arranging medical care, rescheduling flights or finding alternative accommodations in case of unexpected covered disruptions, Carnicelli said.

In addition to these critical services, some plans offer concierge assistance, which can help with booking museum visits, securing dinner reservations or planning special experiences.

“These services can make trip planning easier and provide added convenience for both domestic and international travel,” he said.

If You Bought a Nonrefundable Trip

If you got a great deal on a nonrefundable trip, travel insurance is especially important, according to Schrader. “Especially if you are planning an international trip that involves prepaid activities or destinations prone to weather disruptions,” he said.

Supplemental Policies

You can always add on a policy for supplemental coverage, but this will vary by provider, Gumport pointed out. While her company offers a robust base plan that can cover your trip, your stuff and your health, you can also choose to add on extra coverage ranging from pet care to rental car care.

“This will increase the cost of your policy, and of course boost your protection,” she said.

Be Wary of Insurance Add-Ons at Booking

However, Gumport said travelers should be wary of travel insurance add-ons while booking a hotel or flight.

“Those typically come wrought with a lot of fine print and limitations. Best to go directly to a provider for their support team and comprehensive coverage that takes into account more than your flight for example.”

Don’t Worry About Short, Domestic Trips

You can, however, skip travel insurance for short, low-cost domestic trips with flexible bookings or if your credit card already offers sufficient coverage, Schrader said.

“Let’s say you are planning a weekend road trip with refundable hotels, you don’t necessarily require extra protection, he said.

Check For Exclusions

While your travel insurance policy may seem comprehensive, check for exclusions, Schrader urged.

“Policies usually don’t cover intoxication-related incidents, mental health issues or known storms, so always read the terms and conditions carefully.”

If you want flexibility, consider “cancel for any reason” add-ons, but expect partial reimbursement and strict deadlines even then.

In short, weigh your trip’s cost, health risks and existing coverage. In the end, insurance always provides an extra layer of peace of mind.

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This article originally appeared on GOBankingRates.com: Travel Insurance in 2025: When You Actually Need It and When You Don’t