Money Smarts Blog

As summer travel season heats up, let’s talk travel insurance. Americans are shelling out an average of $272 per person per trip on travel insurance for prepaid plans. But is it really worth it? What's hidden in the fine print? Most policies cover unexpected surprises like family illnesses or lost luggage (though payouts are often partial).

The pandemic has also spiked the number of people opting for insurance. Travelers are grabbing policies online, through booking engines, or directly from airlines and cruise lines, and they’re doing it like it's going out of style!

Forbes (February 2024) reveals that a staggering 85% of travel insurance sales are for international travelers. On average, these global adventurers spend nearly $5,959 per trip, compared to $3,315 for domestic travelers. Interestingly, international travelers typically spend about $255 on insurance, while domestic travelers spend around $311.

So, when should you consider purchasing travel insurance? It depends on several factors, including your age, the type and duration of your trip, and your destination.

Consider purchasing travel insurance:

• If your trip is non-refundable
• If you’re worried your trip may need to be cancelled due to family illness or weather
• If you’re concerned about access to medical care overseas because your health insurance may not cover medical emergencies outside the U.S.

Leave home without it:

• If you’re using frequent flyer miles
• If you’re staying at a hotel with a reliable cancellation policy
• If your credit cards automatically offer travel insurance

Don’t plan on getting travel insurance if you hear a storm is about to hit your destination; if a tropical storm or hurricane has been announced, it’s too late. If you don’t buy the policy within seven to 15 days of paying for your trip, other exclusions may apply, such as coverage for preexisting medical conditions or for the financial default of your travel supplier.

Finding the right travel insurance doesn't have to be complicated. If you’re not sure who to go with, try browsing travel insurance comparison sites. A few of the top sites include SquareMouth, TravelInsurance.com and InsureMyTrip. By using these sites, you can save time and ensure you’re getting the most comprehensive coverage at the best price. And remember to read the fine print of each policy to understand what is included and any exclusions that may apply.

As summer travel season heats up, let’s talk travel insurance. Americans are shelling out an average of $272 per person per trip on travel insurance for prepaid plans. But is it really worth it? What's hidden in the fine print? Most policies cover unexpected surprises like family illnesses or lost luggage (though payouts are often partial).

The pandemic has also spiked the number of people opting for insurance. Travelers are grabbing policies online, through booking engines, or directly from airlines and cruise lines, and they’re doing it like it's going out of style!

Forbes (February 2024) reveals that a staggering 85% of travel insurance sales are for international travelers. On average, these global adventurers spend nearly $5,959 per trip, compared to $3,315 for domestic travelers. Interestingly, international travelers typically spend about $255 on insurance, while domestic travelers spend around $311.

So, when should you consider purchasing travel insurance? It depends on several factors, including your age, the type and duration of your trip, and your destination.

Consider purchasing travel insurance:

• If your trip is non-refundable
• If you’re worried your trip may need to be cancelled due to family illness or weather
• If you’re concerned about access to medical care overseas because your health insurance may not cover medical emergencies outside the U.S.

Leave home without it:

• If you’re using frequent flyer miles
• If you’re staying at a hotel with a reliable cancellation policy
• If your credit cards automatically offer travel insurance

Don’t plan on getting travel insurance if you hear a storm is about to hit your destination; if a tropical storm or hurricane has been announced, it’s too late. If you don’t buy the policy within seven to 15 days of paying for your trip, other exclusions may apply, such as coverage for preexisting medical conditions or for the financial default of your travel supplier.

Finding the right travel insurance doesn't have to be complicated. If you’re not sure who to go with, try browsing travel insurance comparison sites. A few of the top sites include SquareMouth, TravelInsurance.com and InsureMyTrip. By using these sites, you can save time and ensure you’re getting the most comprehensive coverage at the best price. And remember to read the fine print of each policy to understand what is included and any exclusions that may apply.