As much as I’d like to think that I’m an airline and hotel expert, the topic of travel insurance is something that I’ve historically not paid much attention to. A while back, I posed the question on the blog of whether frequent travelers should buy travel insurance, and a lot of people were shocked that I’ve never purchased a travel insurance policy.
Based on that feedback, I decided to do a bit of a deep dive into travel insurance, and I’d like to share my findings here. Have I been stupid all along, and is there merit to getting a travel insurance policy?
It’s a fascinating industry, and while researching, what I found interesting is how much variability there is between policies. As you’d expect, the best travel insurance depends on your travel needs. Are you traveling once a year with a family, or constantly? Are you paying cash for your airline tickets, or redeeming points? Do your vacations consist of sitting on the beach or cliff diving?
My take on travel insurance, and why I’m covering it now
Historically I’ve not really paid much attention to travel insurance, and perhaps that’s naive of me. Why have I been rather skeptical of the concept?
- I book a lot of flights and hotels using points, and in those situations, having insurance can seem complicated, given that you’re technically not paying cash
- I generally operate under the assumption that if an expense is something that I could cover without it having a huge financial impact on me, then I’m better off not insuring it, since obviously the insurance company has to “win” in the long run
- Some credit cards that I have offer some level of protection for things that can go wrong, and in some ways, those seem to overlap with travel insurance
- Quite honestly, I’ve just found the plans to be downright confusing, and didn’t even know where to start, given all the options
That being said, there’s no denying that there’s value in travel insurance as well. What if you plan a once-in-a-lifetime vacation that’s a huge expense, and then you or a family member get sick? What if travel disruptions cause you to miss a cruise? As I’ve researched this more, I’ve also realized there’s potentially value to these policies even for those who usually redeem points for a substantial part of their travels.
I’d also argue that travel insurance is more worth considering than ever before, given the sheer volume of travel disruptions we’ve seen in recent times.
Before I continue, let me make an important point – you’ll want to buy your travel insurance plan as close to making your first trip payment as possible – that single decision unlocks pre-existing condition waivers and CFAR (Cancel For Any Reason) eligibility that you can’t get back later.
Travel insurance basics: what to know before you shop for policies
Before we talk about what differentiates travel insurance policies, let’s talk about what they should all have in common. Virtually every comprehensive plan includes these features, and you shouldn’t let anyone sell them to you as standout differentiators:
- Trip cancellation: 100% of non-refundable costs for named covered reasons (illness, death, severe weather, etc.)
- Trip interruption: 150% of trip cost — this is consistent across the entire market; it’s table stakes, not a selling point
- 24/7 assistance: this is standard across all reputable providers, and is not a differentiator
- Pre-existing condition waiver: this is available on most plans, but must be purchased within 10–21 days of your first trip deposit, depending on the provider
- Baggage loss/delay: this is standard, though limits vary
Best travel insurance options
Of course it’s hard to label any one travel insurance provider as the “best,” because there are so many factors to consider. It all depends on the type of policy you’re looking for, and the cost will vary with each trip.
So while I can’t make a list of the absolute best travel insurance companies, I do want to look a little at who benefits from each provider, and why, since there are pros and cons to various providers. The information is all accurate to the best of my knowledge, though it’s possible I got some details wrong during my research.
John Hancock travel insurance
For points-and-miles travelers protecting award bookings
This is the most OMAAT-specific pick I could make. When you cancel an award trip for a covered reason, most travel insurance policies cover your non-refundable cash expenses. This doesn’t account for the redeposit fee airlines may charge to put your miles back in your account (though these aren’t as common as in the past). John Hancock covers up to $200 in those fees under what they call “Frequent Traveler Loyalty” coverage, across the three tiers they offer (Bronze, Silver, Gold).
It’s the only provider with this benefit explicitly named and documented across every plan. However, this isn’t exclusive to JH, as Allianz offers a similar service, though it’s capped at $75.
Who this is for: Any OMAAT reader who regularly books award travel and wants redeposit fees covered when a cancellation is forced by a covered reason. This is worth considering as a baseline policy for high-value point redemptions specifically.
Worth knowing: The $200 redeposit benefit is notable but modest — it covers fees, not the value of the points themselves. The Bronze plan caps trip cost at $10,000, while Gold covers up to $100,000 per person. John Hancock is single-trip only and does not offer an annual plan.
Get a quote from John Hancock →
Allianz travel insurance
For maximum CFAR flexibility and families with children
On CFAR: Allianz’s “Cancel Anytime” upgrade reimburses 80% of non-refundable costs — above the industry standard of 50–75%. It also allows cancellation as late as the day of departure. Most providers with a CFAR equivalent require cancellation at least 48 hours in advance. The combination of the highest reimbursement rate and the latest cancellation window makes this the most flexible CFAR product in the market.
On families: Children 17 and under travel free on OneTrip Prime and Premier plans, when accompanying a parent or grandparent. For a family of four, you’re buying two adult policies and getting two children covered at no additional cost. This is a genuine structural savings, not a marketing claim.
Who this is for: Travelers who want maximum cancellation flexibility, families with kids under 18, and points redeemers who want to protect a non-refundable outlay (capped at $75).
Worth knowing: Cancel Anytime can only be purchased as an upgrade to OneTrip Prime or OneTrip Premier. When you get a quote and select one of those two plans, you’ll be offered the Cancel Anytime upgrade if it’s available in your state.
The 80% is still not 100%, and you absorb 20% of non-refundable costs if you cancel. Allianz excludes extreme sports entirely with no riders available for coverage.
Berkshire Hathaway travel protection
For travelers who want concierge perks at every tier
“White glove” in travel insurance usually means a dedicated case manager or physician consultations at the premium tier. BHTP’s version is more democratic, offering concierge services. This includes restaurant reservations, golf tee times, event ticketing, interpreter assistance, and lost eyeglass replacement, which are included with all plan tiers at no extra cost. Most providers lock concierge access behind premium plans.
Now, I imagine many people already have some sort of concierge perk through a premium credit card, and I can’t speak as to how the quality of the services compares.
BHTP also carries the highest possible AM Best financial strength rating (A++). Their AirCare plan monitors flights and automatically processes reimbursements for eligible disruptions without requiring the traveler to file a claim, one of the few products in the market with this feature.
Who this is for: Travelers who value claims speed and financial stability over maximum coverage limits, and anyone flying frequently who wants automatic disruption reimbursement via AirCare.
Worth knowing: Base plan medical limits are lower than some competitors, and medical coverage is not BHTP’s strength. If your primary concern is international health coverage, consider LuxuryCare or look at Seven Corners. CFAR (at 50%) is only available on the LuxuryCare plan.
Compare quots from Berkshire Hathaway with SquareMouth →
World Nomads travel insurance
For active travelers whose itinerary goes beyond the resort
For adventure coverage, World Nomads operates in a different category. Over 250 activities are covered by default on every plan, including skiing, scuba diving to 165 feet, whitewater rafting, bungee jumping, and heli-skiing on the Explorer tier, all without purchasing a separate rider. The next closest competitor either charges for an adventure add-on or covers a fraction of the activity list.
You can also buy a World Nomads policy after you’ve already departed, a capability essentially no other major provider offers. Note that this is not an extension of your already purchased policy, but instead, it’s a new policy that’s added on to your current trip that you have already departed on. Keep that in mind, as your base rate may not carry over.
Who this is for: Skiers, divers, surfers, climbers, hikers, and anyone whose trip involves activities a standard policy would exclude. Digital nomads who want flexibility, and travelers who make last-minute itinerary decisions may also want to consider World Nomads.
Worth knowing: World Nomads generally does not offer a pre-existing condition waiver, which is a significant gap for older travelers or those with existing conditions. Trip cancellation on the Standard plan is capped at $2,500, which is very low for high-value redemptions. Claims are processed by Trip Mate, a third-party administrator with a mixed track record. Make sure you document everything before filing. The BBB has given World Nomads an F rating. However, it reflects non-accreditation and low complaint volume and does not seem like a systemic complaint pattern.
Compare quotes from World Nomads with TravelInsurance.com →
Seven Corners travel insurance
For frequent travelers who want one policy to cover the year
An important framing note on annual plans: Annual travel insurance covers unlimited trips within a 12-month period under a single policy. The math typically favors buyers taking three or more international trips per year. The structural tradeoff vs. single-trip policies: coverage limits per trip are generally lower, and CFAR is generally not available on annual plans since it’s a structural impossibility given that the policy covers an undefined number of future trips. If CFAR matters to you for a specific high-value trip, buy a single-trip policy for that one.
Why Seven Corners for annual: This is one of the most reviewed annual plans by real users, with overwhelmingly positive feedback. The Trip Protection Annual Multi-Trip covers unlimited trips (up to 40 days each), both domestic and international, with cumulative trip cancellation caps from $2,500 to $30,000 — a wide adjustable range for an annual plans. Pre-existing conditions are covered after the policy has been in effect for 60 days. Their separate Travel Medical Annual Multi-Trip offers up to $1M medical with primary coverage for purely medical-focused annual coverage.
Who this is for: The OMAAT reader who is on a plane constantly might find value in this type of policy, especially those taking multiple international trips per year. Annual plans free up mental space for anyone that wants peace of mind but doesn’t want to think about insurance before every trip.
Worth knowing: Annual plans carry lower per-trip limits than single-trip policies. Protect your most expensive single redemption with a dedicated policy. Seven Corners’ claims reviews are mixed: straightforward claims tend to resolve quickly (one Squaremouth reviewer had a claim paid in 3 days), while complex documentation-heavy claims draw criticism.
Compare quotes from Seven Corners with SquareMouth →
Faye travel insurance
For travelers who want a modern claims experience
Faye is what travel insurance looks like when built from scratch in 2022, rather than adapted from a decades-old paper process. The app tracks flights in real time, proactively alerts you when a delay makes you eligible to file a claim, lets you submit in minutes with photo uploads, and deposits reimbursements directly to a “Faye Wallet” digital card, which is usable via Apple Pay or Google Pay even mid-trip.
Faye’s 48-hour claim processing target is the most specific public commitment in the industry. Most providers disclose no timeline at all.
Who this is for: Travelers who manage everything from their phone.
Worth knowing: The 48-hour target applies when complete documentation is submitted upfront. Complex multi-receipt claims have taken 2+ months per documented Trustpilot reviews. Faye offers only single-trip policies. Note that a single trip can be covered up to 180 days, so while it’s a different use case, that might be useful for some OMAAT readers. However, it’s not a fit for a frequent traveler who wants an annual plan. For what it’s worth, their Zenner Inc. parent is not accredited by the BBB.
Benefits I found useful when comparing travel insurance
Once you know what every comprehensive plan includes by default, the more useful exercise is understanding what to actually benchmark as you compare policies. This is where the meaningful differences between plans tend to show up.
You’ll want to start with cost. Comprehensive plans generally run between 4% and 10% of your total non-refundable trip cost, so if you’re quoted significantly more than that, you’re likely overpaying, while if you’re quoted significantly less, it’s worth checking what’s missing from the policy. Price alone isn’t a great indicator of value in this space, but it’s a useful sanity check.
Medical coverage is the next thing to look at, and it varies more than you might expect. Most plans offer somewhere between $50K and $500K in coverage. For international travel, I’d aim for at least $100K, and for remote destinations or longer trips, you’ll probably want to go higher than that. There’s a widespread misconception that medical and medical evacuation coverage is expensive. It genuinely isn’t. Medical evacuation coverage can run as low as around $30 for a 10-day international trip.
Medical evacuation is where the real risk lives, and it’s the benefit most people underestimate. Coverage typically ranges from $250K to $1M or more on premium plans, and that range exists for a reason. An aerial evacuation from a remote location can easily exceed $100K, and that’s a cost you really don’t want to be on the hook for yourself.
CFAR, or Cancel For Any Reason, is an optional add-on that’s worth understanding even if you don’t end up buying it. The industry standard reimburses 50% to 75% of your non-refundable costs, and that’s the ceiling, not a starting point. It’s never 100%, no matter what the marketing implies. CFAR also has to be purchased within a short window after your first deposit (typically 10 to 21 days), and it adds roughly 40% to 60% to the base premium, so it’s a meaningful cost decision rather than a small upgrade.
Adventure sports coverage is the last thing I’d flag, and it’s the easiest to overlook. These activities are generally not covered by default, so if you ski, scuba dive, surf, hike above certain altitudes, or participate in any non-standard physical activity, the safe assumption is that you’re not covered unless the policy explicitly says otherwise. Read the actual exclusion list rather than the marketing copy, since that’s where the real answers are.
What about credit card travel insurance?
For those trying to figure out how travel insurance stacks up against the coverage you may already have on your credit cards, it’s worth understanding both what your cards typically include and where that coverage tends to fall short.
Premium travel cards like the Chase Sapphire Reserve® include some level of trip protection, which is genuinely useful. That said, medical coverage on these cards is typically somewhere in the $0 to $10K range, which is really inadequate for an international emergency. If something serious happens overseas, that gap is where you’d feel it most.
There’s also a subtle but important distinction worth knowing: what credit cards offer is technically trip protection. Travel insurance you purchase has a policy number and a name insured on the documents. Credit card benefits don’t.
Most of the time, this is a distinction without a difference. If you have a covered claim, you file it and get reimbursed either way. But it matters in specific situations where a third party (a tour operator, a cruise line, a visa application, a foreign clinic) requires documented proof of insurance. If you’re traveling somewhere or doing something where proof of coverage might actually be requested, a standalone policy is the only thing that will satisfy that requirement.
The way I’d frame it is that credit card coverage is a floor rather than a ceiling. A standalone travel insurance policy fills the gaps that matter most, particularly around medical coverage, evacuation, and CFAR. Rather than treating the two as alternatives, it’s often worth stacking them strategically, so your card handles the smaller stuff while a dedicated policy covers the scenarios that could actually be financially devastating.
When it comes to the mechanics of buying a policy, a few things are worth keeping in mind. You’ll want to buy immediately after your first trip payment rather than waiting weeks, since timing is what unlocks the most valuable benefits. You should also insure 100% of your non-refundable trip costs, since partially insuring a trip can actually void your claims down the line.
It’s also important to know whether your policy is “primary” (meaning it pays first) or “secondary” (meaning it pays after other insurance), because this matters quite a bit for medical claims abroad. Primary coverage is generally faster and less complicated when you actually need to use it.
Finally, I’d use a comparison platform like Squaremouth or TravelInsurance.com to run quotes side by side. Prices are regulated by law, so you won’t pay more than you would buying direct, and the ability to compare plans in one place makes it much easier to figure out what you’re actually getting for your money.
What actually drives the cost of a travel insurance policy
If you’ve ever run a few quotes back to back, one of the first things you’ll notice is that prices are all over the place. You might have the same policy, same coverage, and same dates, yet one person pays $90 and another pays $300.
I initially assumed this was just the usual insurance company black magic, but it turns out there’s actually a pretty logical set of factors driving the number. And I think it’s worth understanding them, if only so you can tell whether a quote is reasonable or whether something weird is going on. What actually moves the price of a travel insurance plan?
Age of the travelers. This is far and away the biggest driver, and honestly, it’s not even close. A policy for a 30-year-old and a policy for a 70-year-old on the exact same trip can easily differ by a factor of three or more, because age correlates directly with the likelihood of a medical claim. I don’t love this reality, but it is what it is. If you’re traveling with parents or grandparents, just know that their portion of the quote is going to be the part that makes your eyes widen.
Total trip cost. Trip cancellation and interruption coverage pay out based on your non-refundable spend, so naturally, the more expensive the trip, the more expensive the policy. A $3,000 long weekend and a $30,000 anniversary trip are not going to price anywhere near each other, even if literally every other variable is identical. This one is pretty intuitive once you think about it.
State of issue. Okay, this one genuinely surprised me when I first learned about it. Travel insurance is regulated at the state level in the United States, which is why you’ll constantly see fine print along the lines of “not available in New York” or “not available in Washington.” Some states cap certain benefits, some prohibit specific products outright (CFAR is a common casualty), and some just require different underwriting. The upshot is that the exact same provider can offer materially different products depending on where you live, and the price can swing accordingly. If you’ve ever compared notes with a friend in another state and wondered why your quotes looked so different, this is probably why.
Trip length and destination. Longer trip, more premium — no surprise there. But destination matters more than a lot of people realize, and it’s not just about how “risky” a place feels. It comes down to what it would actually cost to treat you or evacuate you from wherever you are. A two-week trip to Paris and a two-week trip to a remote corner of Indonesia are not going to price the same, because one of those places has a hospital down the street and the other might require a helicopter.
Coverage limits and add-ons. The more coverage you want, the more you pay, which is obvious, but worth spelling out because it’s where you actually have some control over the final number. Bumping up medical limits, adding evacuation coverage, tacking on CFAR, buying an adventure sports rider, adding a pre-existing condition waiver, etc., all add up. This is exactly why the 4–10% range I mentioned earlier is as wide as it is. A bare-bones policy lands near the bottom, and a fully loaded one with every bell and whistle lands near the top.
The frustrating thing is that most of these factors aren’t something you can really negotiate. Your age is your age, your state is your state, and your trip costs what it costs. But the ones you can control (coverage limits and add-ons) are where you should focus your attention when you’re deciding what’s actually worth paying for. At least now, when a quote comes back higher than you expected, you’ll have some idea of which lever is responsible.
What to watch out for when comparing travel insurance plans
As you research travel insurance, there are a few patterns worth understanding, since they can make the difference between a smooth claim and a frustrating one.
First, there’s what I’d call the underwriter vs. administrator gap. The company that sold you the policy is often not the company that processes your claim, so you’ll want to confirm both before buying. This matters because disputes almost always happen at the administrator level, not the underwriter level, and that’s the variable that actually affects your experience if something goes wrong.
Then there’s the documentation trap. Most claim denials stem from missing documentation rather than actual coverage gaps, which is a frustrating reality but an important one to internalize. The moment anything goes wrong on your trip, you’ll want to document everything, take photos, get written confirmation from airlines or hotels, and keep every single receipt. Do this before you file a claim, not after, since trying to reconstruct the paper trail later is where most people run into trouble.
CFAR timing is also unforgiving. The window to add Cancel For Any Reason coverage is typically 10 to 21 days from your first trip deposit, so if you wait until two months before departure, that eligibility is gone for good. As a result, you’ll want to buy it when you book, not when you start worrying about whether you’ll actually go.
Adventure sports exclusions are another area where the details really matter, because they’re surprisingly granular. “Skiing” might be covered, while “off-piste skiing” isn’t. “Scuba” might be covered to 30 feet, but not cave diving. “Hiking” might be covered, but “mountaineering above 4,500 meters” might not be. The takeaway here is to read the specific activity exclusion list in the actual policy document, not the summary page, and certainly not the marketing copy.
It’s also worth understanding that annual plans come with meaningful coverage tradeoffs. Per-trip limits on annual policies are materially lower than single-trip policies, so an annual plan is the right tool for frequent low-to-medium-cost trips, while a single-trip policy is the right tool for a once-in-a-lifetime redemption. The two aren’t really interchangeable.
Finally, there’s what I’ll call the Nationwide signal. Nationwide has a 2.75 out of 5 Squaremouth rating, which is the lowest on the platform. Their financial strength is excellent (A+), but claims administration appears to be the issue, and that was enough for me to not give the company a spotlight here. Interestingly, Seven Corners uses Nationwide as an underwriter on some plans, but maintains a 4.52 Squaremouth rating, which reinforces the earlier point, that the administrator is the variable that matters.
Buying travel insurance
Once you’ve figured out what kind of policy makes sense for your travel style, the actual buying process is pretty straightforward, though there are a few things worth keeping in mind to make sure you’re getting the best policy for your needs.
I’d start with a comparison platform like Squaremouth or TravelInsurance.com, since prices are regulated by law and there’s no markup compared to buying direct. You’re not saving money by going straight to the provider, and you lose the ability to easily compare plans side by side. From there, you’ll want to buy within days of your first trip payment, since that’s what unlocks the most valuable add-ons like pre-existing condition waivers and CFAR eligibility.
When you’re selecting coverage amounts, insure 100% of your non-refundable costs. Partially insuring a trip is one of the more common ways people accidentally void their own claims, so it’s not a place to try to save a few dollars.
Before you finalize anything, read the Declarations Page and the full exclusion list, not just the benefit summary. I know that sounds tedious, but the summary page is essentially marketing copy, while the actual policy document is where you’ll find the details that matter if you ever need to file a claim. You’ll also want to know whether your coverage is primary or secondary for medical claims, since that significantly affects how claims get paid when you’re traveling abroad.
Finally, remember that your credit card coverage is a floor rather than a ceiling. Identify the gaps in what your card already offers before deciding what you actually need from a standalone policy, since in many cases you’re really just filling in the areas where your card falls short, particularly around medical coverage and evacuation.
Travel insurance frequently asked questions
The exact details vary by policy, but generally travel insurance includes trip cancellation and trip interruption coverage, baggage loss and delay protection, medical coverage (including for evacuation), and more. There are also plans that have cancel for any reason (CFAR) coverage, which gives policyholders a lot of flexibility.
There’s no one size fits all answer as to whether travel insurance is worth it. It all comes down to how risk averse you are, what you think the odds are that your trip might be impacted by something that would benefit from travel insurance, etc. Travel insurance provides peace of mind for when things go wrong, and it could be especially important for an expensive or special trip that you may be unable to reschedule.
Generally comprehensive travel insurance plans run 4-10% of the total non-refundable trip cost, but it does vary. CFAR coverage typically costs 40-60% on top of that, though exact costs vary based on the inclusions you choose, and are largely dependent on your destination and age. rn
It makes sense to buy travel insurance as soon as you plan your travel, since that will give you the most flexibility and the best rates as your trip gets closer. Booking early also unlocks the most policy options, like pre-existing waivers and CFAR eligibility that you can’t get if you only get a policy later.
You should always read the policy terms for the one you select, since there are things that can trigger exclusions of coverage, based on the type of trip you book. General exclusions include acts of war, known hazards when you booked, or any incidents that happen if you’re engaged in illegal activity or intoxicated.
There’s value in travel insurance even if you have health insurance, since a travel insurance plan covers things that won’t necessarily be covered by health insurance. This is especially true when traveling overseas and if you rely on Medicare. In both instances, U.S. health insurance is rarely usable.
Bottom line
Travel insurance is a huge but complicated industry. It seems that some travelers swear by travel insurance, while others just don’t consider it. I was in that latter camp for a long time, largely based on my lack of understanding about how it all works.
Now that I’ve looked into this a bit more, I find it all to be very interesting. While there are some things that are consistent between policies, it’s also noticeable how much differentiation there is, and how the various policies are aimed at different kinds of travelers.
I’m not saying everyone should always buy travel insurance, but now that I at least have a better understanding of how the industry works, I’m also more likely to actually buy a plan, since I’d know where to start. I know this is a very deep dive, so hopefully some people find it useful. And if you don’t, hopefully you didn’t make it this far down the post. 😉
Where do you stand on travel insurance? If you’ve purchased a policy, what was your experience like?
