The travel insurance industry wants you to believe every trip needs a $150 policy. Your credit card company wants you to believe their coverage is enough. Neither is fully honest.
Here's when travel insurance is essential, when it's a waste, and what to actually buy.
When You Absolutely Need Travel Insurance
1. Trips Over $5,000 (Flights + Hotels)
If your non-refundable trip costs exceed $5,000, trip cancellation insurance makes mathematical sense. A family of 4 flying to Europe with hotel bookings could lose $8,000+ to a medical emergency, natural disaster, or airline bankruptcy. A $200–400 policy protecting that investment is rational.
2. Countries Without Affordable Healthcare
The United States is the most dangerous country to get injured in — as a tourist. A broken arm in the US costs $2,500–7,500 without insurance. An ambulance ride is $400–1,200. An ER visit for food poisoning is $1,500–3,000.
If you're visiting the US from abroad, medical travel insurance is essential.
Other expensive healthcare countries: Canada, Switzerland, Australia, Japan (for foreigners without resident status).
3. Adventure Activities
Standard travel insurance excludes: scuba diving below 30m, motorcycle riding without a license, bungee jumping, skydiving, and most extreme sports. If you're planning these activities, you need a policy that specifically covers them. World Nomads is the go-to for adventure travel.
4. Long Trips (30+ days)
The longer you travel, the higher the probability of something going wrong. For trips over a month, a comprehensive policy ($40–80/month) is smart math.
When Travel Insurance Is Probably a Waste
1. Weekend Domestic Trips
A 3-day trip to another city within your country? Your health insurance works domestically, your flights were probably $200, and the hotel is refundable. Skip the insurance.
2. Short International Trips to Safe Destinations
A week in Western Europe, Japan, or South Korea? These countries have excellent healthcare that's affordable even for tourists. A doctor visit in Spain costs $50–80 out of pocket. A hospital stay in Japan averages $100–300/day. If you have $1,000 in savings for emergencies, you can self-insure.
3. Trips Where Your Credit Card Covers It
Many premium credit cards include travel insurance. Check your card benefits before buying a separate policy.
What Your Credit Card Probably Covers
| Coverage | Chase Sapphire | Amex Platinum | Capital One Venture X |
|---|---|---|---|
| Trip Cancellation | Up to $10K | Up to $10K | Up to $2K |
| Trip Delay | $500/12hrs | $500/6hrs | $300/6hrs |
| Lost Baggage | $3,000 | $3,000 | $3,000 |
| Emergency Medical | None | None | None |
| Car Rental CDW | Yes | Yes | Yes |
The critical gap: most credit cards don't cover emergency medical expenses abroad. This is the one thing worth buying separately if you're going to a country with expensive healthcare.
What to Actually Buy
For most travelers: A medical-only travel insurance policy costs $25–50 for a 2-week trip and covers emergency medical evacuation + hospital stays up to $100K–250K. This fills the gap your credit card doesn't cover.
Best providers (2026):
- Safety Wing — $45/month, best for long-term travelers and nomads
- World Nomads — $60–120 per trip, best for adventure activities
- Allianz — $30–80 per trip, best for families and straightforward trips
- GeoBlue — $50–100 per trip, best US-based coverage for Americans abroad
Skip: Airport insurance kiosks (overpriced by 300%), airline upsells, hotel booking add-ons.
The Decision Framework
Ask yourself 3 questions:
- Is my non-refundable trip cost over $3,000? → Buy trip cancellation
- Am I going somewhere with expensive healthcare? → Buy medical coverage
- Am I doing adventure activities? → Buy adventure-specific coverage
If the answer to all 3 is no, your credit card benefits plus $1,000 in savings is enough.
Browse Local Friends on Roavi — they can tell you which hospital to go to if something goes wrong, which matters more than any insurance card.