The case for travel insurance is simple: it protects money you have already spent and cannot easily recover. In policy terms, those are prepaid, nonrefundable costs, meaning money spent on flights and lodging that you cannot get back if a trip falls apart. Whether buying a policy makes financial sense depends on how large that exposure is and how far from home you are traveling.
A comprehensive travel insurance policy typically costs roughly 4% to 10% of total prepaid, nonrefundable trip costs, according to InsureMyTrip, a travel insurance comparison site. On a $5,000 trip, that works out to roughly $250 to $500. The more expensive and medically uncertain the trip, the stronger the case for coverage.
What you may already have
Before buying a standalone policy, check what protection already exists. Health insurance often covers emergency care within the United States and, for some employer-sponsored plans, limited international treatment. Blue Cross and Blue Shield's Federal Employee Program says members can submit claims for medical services received overseas. Original Medicare, by contrast, offers very limited coverage outside the country, though some Medigap policies include foreign travel emergency care.
Credit cards are another common source of overlap. Many travel credit cards include trip cancellation, trip interruption, baggage delay, and lost luggage benefits. Chase Sapphire Reserve offers cardholders limited emergency medical and evacuation coverage, though even that card may exclude preexisting conditions. Credit card coverage is often secondary, meaning it steps in only after the airline or another insurer has paid first.
Homeowners and renters insurance may cover stolen or damaged belongings while you travel, but those policies will not help with cancellations or medical expenses.
What a standalone policy actually costs, and when to buy it
A medical-only travel insurance plan is cheaper than a comprehensive policy because it does not reimburse the full trip cost. That option works when flights and hotels are refundable but your health plan has no international reach. An emergency medical evacuation alone can run $100,000 or more, according to the U.S. Centers for Disease Control and Prevention.
Cancel-for-any-reason coverage, or CFAR, is a premium add-on that lets travelers cancel for reasons not listed in a standard policy. Squaremouth, a travel insurance comparison site, estimates CFAR adds about $55 a day to a policy's cost. It typically reimburses only 50% to 75% of trip costs and usually requires cancellation at least 48 to 72 hours before departure.
Timing matters. CFAR and preexisting condition waivers are generally available only if you buy within 14 to 21 days of your first trip payment. Once a hurricane is named or a doctor advises against travel, it is usually too late to add coverage for that specific event.