Costco Travel Insurance: Is It Actually a Good Deal?

Reviewed By Steven BennaEditor

Last Updated: April 17, 2026April 17, 2026 — 8 min read

If you’re booking a trip through Costco, checking the box to add travel insurance might seem like an easy win — it’s low cost and one less thing to worry about. But what does it cover and will it actually pay out if something goes wrong? And how does it compare to other options?

The good news is that Costco travelers insurance can be a good deal. It covers most of what you need, like trip cancellations, medical emergencies and medical evacuations, at a relatively low price point. But, you’ll only get that low price point if you purchase it while booking a Costco vacation package.

Also, you’re typically limited to a single, pre-selected plan with little flexibility. Not to mention, travelers report frustrating claims experiences with extensive documentation requirements.

So is it worth it? That depends on how much flexibility you want, how comfortable you are with the coverage details and whether you’re willing to shop around. Here’s what to know before you decide.

Costco trip insurance pros and cons

How Does Costco Travel Insurance Work?

Costco’s Cover-More travel insurance is one-size-fits-all travel coverage that you can opt into when you purchase a Costco vacation package. Costco’s travel insurance plans are designed to cover common travel risks, like trip cancellations and medical emergencies. Policies aren’t actually sold by Costco, but are underwritten by its partner, Zurich American Insurance Company. This means that you’ll have to go through Zurich — not Costco — for claims, customer service and payouts.

One important limitation is that coverage is fixed. Unlike many third-party insurers, you can’t customize your policy or add optional protections like adventure sports coverage.

Note: You can purchase a policy through Zurich on non-packaged Costco travel and even on travel purchased outside Costco, but the premiums are higher.

What Types of Travel Insurance Does Costco Offer?

Costco offers just two types of travel insurance plans: domestic travel insurance for travel within the U.S. and international travel insurance for trips abroad. Your plan is automatically assigned based on the type of trip you book, so you can’t customize it or compare plans to get the best price.

But, you will get comprehensive coverage that you can easily opt into. If you purchase insurance within 21 days of your booking, you’ll also get coverage for pre-existing medical conditions, a benefit that’s not always included in travel insurance policies.

Who is Costco Travel Insurance Ideal For?

Costco Travel Insurance is ideal for travelers who want no-fuss comprehensive travel coverage that they can easily tack on to a travel vacation package at a good value. It can be an especially good deal for older travelers looking for comprehensive coverage, since pricing generally doesn’t increase with age.

On the other hand, it’s not a good choice for those who need more flexible coverage. For instance, travelers who are strictly looking for medical insurance will be stuck paying for trip cancellation protection. If you need niche protections like adventure sports coverage or higher-than-typical coverage for benefits like medical emergencies, you’re better off exploring other travel insurance plans.

What Does Costco Travel Insurance Cover?

Costco’s travel insurance provides a broad set of protections for common travel risks, including trip cancellations, interruptions, medical emergencies and evacuations. While you can’t customize your plan, it covers most of the scenarios travelers worry about, giving you peace of mind on your trip.

Costco travel insurance includes:

• Trip Cancellation: up to 100% of your trip cost
• Trip Interruption: up to 150% of your trip cost
• Trip Delay Coverage: up to $2,000 for expenses like lodging and meals
• Delayed and Lost Baggage Coverage: $200 for delays over 12 hours and $1,000 to $3,000 for lost, damaged or stolen luggage ($500 per item)
• Emergency Medical: $100,000 to $200,000 for unexpected illness or injury
• Emergency Medical Evacuation: $500,000 to $1,000,000 for medically necessary transport
• Cancel For Any Reason (CFAR): for an extra charge

We strongly recommend comparing policies before purchasing any travel insurance, to find coverage that’s more tailored to your specific needs. See Squaremouth’s guide to buying travel insurance for more tips.

How Does Costco Travel Insurance Compare to Other Plans?

Costco trip insurance stacks up well against many top-rated travel insurance plans, offering broad coverage for common concerns like trip cancellations, medical emergencies and delays at a competitive price. Compared to top comprehensive travel insurance plans Costco provides similar protections for an equal or slightly lower premium.

However, there are some areas where Costco falls short:

• Cancel For Any Reason (CFAR) coverage: Costco only reimburses 50% of your trip cost, whereas many top plans cover up to 75%.
• Emergency medical travel insurance: Costco’s plan offers less coverage than some plans like Tin Leg Gold, which may be important for higher-risk destinations or older travelers.
• Alternative options may be cheaper: While Costco’s premiums are reasonable, it’s possible to find comparable plans — like IMG iTravelInsured Choice — with even lower premiums.

Example coverage for a $7,000 international trip with CFAR protection

What Does Costco Travel Insurance Not Cover?

Like most travel insurance, you’ll find exclusions in the fine print. Most notably, it excludes high risk activities like mountain climbing, bungee jumping, snow skiing, skydiving and parachuting. If you’re planning an adventurous vacation, you should look into adventure and sports travel coverage instead.

Besides this, Costco includes many of the typical exclusions in its terms and conditions, including:

• Pregnancy and childbirth
• Participation in athletic events and motor competitions
• Mountaineering and scuba diving that exceeds 75 feet
• Elective medical procedures
• Operating or learning to operate an aircraft
• Being under the influence of drugs or intoxicants
• Trips taken against the advice of your physician
• Declared or undeclared war, or any act of war or civil disorder

To see the full list of exclusions and limitations you should consult your plan documents after you purchase your policy.

How Much Does Costco Travel Insurance Cost?

A major advantage of Costco Travel insurance is its affordable pricing. The premium is based on the cost of your trip, ranging from around 5% to 7% of your total trip cost, depending on whether your trip is domestic or international and you add Cancel for Any Reason (CFAR) coverage.

Costco domestic travel insurance example

• Trip cost: $3,388.91
• Base premium: $152
• CFAR (optional): $61
• Total: $213 (~5–6% of trip cost)

Costco international travel insurance example

• Trip cost: $7,070.42
• Base premium: $353.52
• CFAR (optional): $141.40
• Total: $494.92 (~5–7% of trip cost)

This beats the average rate for travel insurance. A recent Squaremouth report on travel insurance pricing found an average premium of $458 for comprehensive coverage on a $7,000-$9,000 international trip. You’d pay between $350 and $450 through Costco for similar coverage.

Note that comprehensive travel insurance typically costs between 4-10% of your total trip cost, but premiums will vary based on your age and trip details.

Because Costco bases pricing strictly on vacation cost, age does not affect your premium, which can make it a particularly attractive option for older travelers.

How Hard Is It to File a Claim With Costco Travel Insurance?

If you’re hoping to easily file travel insurance claims, Costco’s claim filing experience may be a drawback. Many customers report problems with filing claims though Costco’s underwriter, Zurich Insurance. Though Zurich has an A+ rating with the BBB, it has a very low Trustpilot rating, largely due to claims-related grievances. Some common complaints reported by travelers include:

• Slow processing times: Claims can take weeks or even months with limited status updates.
• Excessive documentation requirements: Filing typically requires multiple forms and receipts, with frequent requests for additional information.
• Poor communication and customer support: Customers complain that it’s difficult to get clear answers from customer service and they have to make many calls.

Tip: Be prepared before you travel. Keep a dedicated folder or baggy with all receipts, confirmations, and documents you might need for a claim. Staying organized can make the process of filing a travel insurance claim smoother if something goes wrong.

Should You Buy Travel Insurance Through Costco?

Costco trip insurance can be a good value for certain travelers. but it isn’t the best fit for everyone. Consider purchasing it if:

• You’re booking a Costco vacation package. Costco only offers travel insurance on vacation packages. If you’re booking other types of travel, you’ll have to shop elsewhere.
• You want simple, easy-to-purchase coverage. If you don’t want to bother with shopping for insurance or customizing your plan, Costco offers an easy add on at a good rate that will cover most of what you need.
• You’re an older traveler. As mentioned, Costco doesn’t tie premiums to age, making it a potentially great deal for older folks.

If you’re planning risky activities during your trip, wanting customizable coverage or looking for a lower premium, consider one of our alternatives below.

When to consider alternatives:

• If your trip includes high-risk activities (like adventure sports), Costco’s standard coverage may not be sufficient.
• If you want customizable coverage or higher Cancel For Any Reason (CFAR) protection, other providers may offer more flexibility.
• If you’re looking for a lower premium, you may find comparable plans from competitors at a better price.

Alternatives to Costco Travel Insurance

Tin Leg Gold

One of the best-selling plans on Squaremouth, Tin Leg Gold is a well-rounded travel insurance plan with much higher emergency medical coverage than Costco and a very good customer service track record.

IMG iTravelInsured Choice

IMG iTravelInsured Choice is a good choice if you want many of the same coverages for a potentially much lower premium.

Seven Corners Travel Insurance

If you’re an elderly traveler, you should look into Seven Corners, since it offers policies for people up to 100 years old.

Frequently Asked Questions: Costco Travel Insurance

Who Actually Provides Costco Travel Insurance?

Costco’s Cover-More travel insurance is underwritten by Zurich American Insurance Company. Any claims and customer service inquiries will be handled by Zurich.

Is Costco’s Medical Coverage Primary or Secondary?

Costco provides primary travel health insurance coverage, including primary medical emergency medical insurance and primary trip cancellation insurance. This means that Zurich will reimburse you for any qualifying claims without requiring you to file with other insurance policies first.

Can I Buy Travel Insurance from Costco if I Didn’t Book Through Costco?

Yes, you can purchase a policy from Zurich without booking travel through Costco. To do so, you can call Zurich directly at 1-844-246-8470 or you can book through Zurich’s Costco portal. Note, you’ll have to pay a slightly higher price (around 6.5% of your trip cost versus 5% for a Costco Vacation package) if you choose this option.

Does Costco’s Travel Insurance Cover Pre-existing Conditions?

Yes, Costco’s travel insurance will cover pre-existing conditions for individuals who are medically fit for travel, if you purchase a policy within 21 days of your initial trip payment.

Should I Rely on Credit Card Travel Insurance Instead?

No, we do not recommend relying on credit card travel insurance in place of a comprehensive travel insurance policy. Credit card travel insurance can be very limited depending on the card, and may not cover medical evacuations or medical emergencies at all.