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When Should I Buy Travel Insurance?

Travel insurance is one of the expenses to consider when you plan to travel. For some, it’s essential. For others, it’s an optional expense they rarely consider. But how important is it to buy travel insurance? Here we consider when you should or shouldn’t buy travel insurance for your next trip.

Small Trips

It may be unnecessary to pay for travel insurance when you’re going on a small and simple trip. Small trips are usually where the investment spend is low. The airline ticket may be quite affordable. The items you’ll be carrying are minimal or low-cost. There’s no expensive equipment to safeguard. And there’s not much cash on hand during travel.

Domestic Trips

You can probably forego travel insurance, especially for domestic trips. Travel across your home country usually runs cheap and you often travel light.


Travel insurance is highly recommended for cruises. These are high investment trips. You can explore where you can get more coverage at a less expensive price. You can check out companies like Travel Insured, AIG, and others.

Some cruise companies offer their own vacation protection package. At times, they offer a discounted price together with your cruise package.

Credit Card Funded Travel

A lot of credit card companies provide travel insurance as a perk when you buy your flight and accommodation using their credit cards. The coverage can actually be good. There are credit card-funded bookings that reimburse you for canceled trips. Baggage protection is also a feature. Check your credit card benefits and consider using it for your trip and hotel booking, so you don’t have to buy separate travel insurance.

Medical Concerns

Consider buying travel insurance for medical coverage. Some trips carry added medical risks. Besides that, you may have medical conditions that can pose problems when you travel. Consider this especially when you’re traveling internationally and you are not aware of the state of medical facilities and costs abroad. But first, check your medical insurance coverage (if you already have one) whether it provides coverage for international trips.

General, Regular Flights

Not all flights need travel insurance for trip cancellation protection. Quite often, you don’t need one. Your basic rights as a passenger ensure that you will get the next available seat on the next flight. Basic passenger rights also include the provision of accommodation if your next flight is rescheduled by the airline on a later date. Significant delays may also entitle you to some compensation as a passenger.

Additionally, a lot of airlines offer some form of protection depending on the ticket price you’re holding, so check whether a few bucks more can qualify you for more coverage. This way, you won’t have to buy separate travel insurance – read more from Travel Freak here.

Travel insurance is not an absolute need for every trip. Weigh the cost of the investment against the cost of insurance and the benefits it provides. If there’s little value for money, then skip it. Always check existing insurance coverage you already have. Check your credit card company for the benefits they provide when you use their product for your trips. If you currently have medical insurance, know what the benefits are for local and international travel. This way, you don’t have to spend double on the coverage you already have.

Image by Annie Spratt

Post Author: Lillia Hall

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Welcome to Foreigner’s Finances, your guide for new money decisions at home and traveling abroad!

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April 2024