Is Travel Insurance Worth It? Squaremouth Explains

The cost of travel continues to rise, with Squaremouth finding that the average trip costs $7,030 in 2025, roughly 25% higher than just five years ago. As the price of airfare, hotels, and other travel-related costs surge worldwide, the idea of spending additional money on travel insurance can seem like an unnecessary expense. 

However, one of the best times to purchase travel insurance is when trip costs are high. Comprehensive travel insurance is a type of coverage that’s designed to protect travelers from financial loss if their plans are cancelled or interrupted, providing reimbursement for expenses like flights, accommodations, tours, and other prepaid costs. 

Follow along as we share how much travel insurance costs, what it covers, and the various scenarios in which it’s a smart investment. 

How Much Does Travel Insurance Cost?

To determine if travel insurance is a worthy expense for your trip, it’s important to know how much it costs. 

Internal sales data from Squaremouth reveals that the average cost of travel insurance is roughly $21 per day. The average premium in 2025 for Squaremouth visitors is $311, with an average trip length of 15 days.  

Travel insurance providers will factor in your age, trip length, trip cost, and coverage needs when determining premiums. Visit our “How Much Does Travel Insurance Cost in 2025?” article for a full pricing breakdown. 

What Does Travel Insurance Cover?

Travel insurance is designed to financially protect you when your trip takes a sudden turn for the worse. When you’re away from home, especially overseas, even the smallest inconvenience can result in costly out-of-pocket expenses. 

Below is a list of popular benefits commonly included in comprehensive travel insurance plans:  

Medical Emergencies

U.S. health insurance is rarely accepted abroad. According to the U.S. Department of State, specialized medical care can cost tens of thousands of dollars overseas. 

Travel medical insurance can cover the cost of hospital stays, ambulance rides, doctor visits, and other unexpected medical expenses incurred during your trip.

Medical Evacuations

If you’re visiting a remote destination or require urgent treatment, you may need to be airlifted or medically transported to the nearest adequate medical facility. The CDC reports that medical evacuations can sometimes cost more than $100,000. 

Most travel insurance policies will cover the cost of emergency evacuation services, as well as repatriation expenses in the event you need to be transported back home for further care. Exclusions can vary by plan.

Trip Cancellations & Trip Interruptions

Travelers today are spending more on their trips than ever before. If your trip is unexpectedly cancelled or cut short, you potentially lose out on all of your prepaid, non-refundable trip costs like airline tickets, cruise bookings, and hotel reservations. 

Comprehensive travel insurance plans include trip cancellation coverage, which can reimburse up to 100% of your travel expenses in the event you’re forced to cancel or interrupt a covered trip due to an injury, illness, death of a family member, natural disaster, or other covered reason.

Trip Delays

According to the FAA, more than 20% of all flights are either delayed or cancelled. Significant changes to your flight schedule, even if just for a few hours, can result in you incurring additional expenses like meals at the airport or overnight accommodations as you wait for your new departure time. 

Travel Delay is a common travel insurance benefit that reimburses customers for unexpected expenses if they are significantly delayed by an airline, cruise line, train, or other common carrier. Most policies also include financial coverage for travelers who miss a connecting flight and need to book new travel arrangements. 

Baggage Loss

Airlines misplacing your luggage is not only frustrating, but it can potentially be costly. Losing your luggage, whether abroad or domestically, can force you to spend part of your trip shopping for replacement clothes, toiletries, and other necessities. 

Travel insurance often includes coverage for lost, stolen, or damaged belongings during your trip. Some adventure travel insurance plans also include coverage for sports equipment you choose to travel with. 

Is Travel Insurance Worth It?

Travel insurance is worth the extra cost of the policy for domestic and international travelers who want to protect themselves from the unexpected and have peace of mind heading into a trip. Travel plans can change, and purchasing a policy can provide you with essential financial protection if your trip is disrupted. 

The cost of travel insurance is small in comparison to the potential costs of expeirencing a medical emergency, evacuation, or trip cancellation. Other unforeseen events, such as delays and baggage loss, can also result in financial loss that often exceeds the price of a travel insurance plan. 

While travel insurance is not for everyone, it’s worth considering if you have specific concerns about an upcoming trip. 

Reasons Why You May Not Need Travel Insurance

Travel insurance is not necessarily recommended for all travelers. There are a variety of scenarios in which a traveler likely won’t need to purchase travel protection before they depart for their vacation. Examples of travelers that likely don’t need insurance include:

• Travelers with existing protection through their travel credit cards, airline, or through other means
• Travelers who don’t have any prepaid, non-refundable trip expenses
• Travelers with few trip expenses, or taking relatively inexpensive trips
• Travelers with existing medical coverage that covers them for their trips

If your budget allows, Squaremouth strongly recommends that all travelers consider purchasing some form of travel protection before they depart for their trips.

Enhancing Your Coverage with Add-Ons

For additional travel protection, many travel insurance policies allow you to enhance your coverage through optional add-ons and policy upgrades.

Common examples of add-ons include Cancel for Any Reason, commonly referred to as CFAR coverage, and Rental Car Damage protection.

For a small fee, you can improve your travel insurance coverage so you’re better protected against unexpected trip disruptions.

Is Travel Insurance Right for You?

Whether you should buy travel insurance coverage depends on your unique circumstances. While travel insurance has undeniable disadvantages, it has merits, particularly for international trips, cruises, or expensive vacations. The main thing is to evaluate your needs, understand the policy, and weigh the potential risks against the costs.

If you’re considering travel insurance, keep these tips in mind:

• Shop around and compare policies to find the plan that best covers your needs
• Read the fine print to ensure it covers what matters most to you
• Assess whether existing coverage from credit cards or other sources meets your needs
• Reference our ‘Best Travel Insurance Companies” list to see today’s best providers