What if I'm traveling internationally?

International trips have higher stakes, but the same rules apply. If you're spending $3,000+ and can't afford to lose it, insurance makes sense. For budget international trips under $1,000, often better to self-insure.

Should I buy from the airline or a third party?

Neither, if you're following this guide about when NOT to buy. But if you do need coverage, third-party policies are usually more comprehensive than airline-offered insurance.

What about 'cancel for any reason' coverage?

This premium upgrade typically costs 40-60% more and only reimburses 75% of costs. It's expensive peace of mind that's rarely worth the cost unless you're extremely risk-averse.

Does travel insurance cover COVID cancellations?

Standard policies usually don't cover pandemic-related cancellations unless you test positive yourself. Many policies now exclude COVID entirely, making the coverage less valuable than pre-2020.

When Not to Buy Trip Cancellation Insurance

Skip trip cancellation insurance if your trip costs less than $500, you're traveling domestically with flexible bookings, or you already have coverage through your credit card or existing policies. The premium often costs 4-10% of your trip value, so it only makes sense for expensive, non-refundable trips.

Calculate your actual risk exposure. Add up all non-refundable costs: flights, hotels, tours, and other prepaid expenses. If this total is under $500, the insurance premium (typically $20-50) often isn't worth it compared to just absorbing a potential loss.
Check your credit card benefits first. Premium travel credit cards often include trip cancellation coverage if you book with that card. Check your card's benefits guide or call the number on the back. Cards like Chase Sapphire Reserve and Capital One Venture X include this coverage.
Review existing insurance policies. Your homeowner's or renter's insurance might cover trip cancellation for certain reasons like your home being burglarized before departure. Some employer benefits also include travel coverage.
Assess your booking flexibility. If you can book refundable flights (even if more expensive) and hotels with free cancellation, you're creating your own insurance. This works especially well for domestic trips where rebooking is easier.
Evaluate your personal risk factors. If you're young, healthy, have job security, and no elderly relatives, your cancellation risk is lower. Insurance makes more sense for people with chronic health conditions, elderly parents, or uncertain work situations.

What if I'm traveling internationally?: International trips have higher stakes, but the same rules apply. If you're spending $3,000+ and can't afford to lose it, insurance makes sense. For budget international trips under $1,000, often better to self-insure.
Should I buy from the airline or a third party?: Neither, if you're following this guide about when NOT to buy. But if you do need coverage, third-party policies are usually more comprehensive than airline-offered insurance.
What about 'cancel for any reason' coverage?: This premium upgrade typically costs 40-60% more and only reimburses 75% of costs. It's expensive peace of mind that's rarely worth the cost unless you're extremely risk-averse.
Does travel insurance cover COVID cancellations?: Standard policies usually don't cover pandemic-related cancellations unless you test positive yourself. Many policies now exclude COVID entirely, making the coverage less valuable than pre-2020.