Five Key Reasons Why Travel Insurance Is More than Just a Smart Idea—It’s Essential.

Whether you're traveling across the country or across the world, travel insurance offers essential protection against the unknown. It’s not just for worst-case scenarios—it’s a smart, affordable safeguard for your health, your investment, and your peace of mind.

1. Most of Us Can’t Afford to Lose Our Vacation Investment

Imagine this: You’ve booked a $10,000 luxury Mediterranean cruise to celebrate your 25th wedding anniversary. The day before you set sail, a close family member suffers a serious injury and is hospitalized. While the cruise line is sympathetic, their cancellation policy states there are no refunds within 14 days of departure.

Without travel insurance, you could lose the entire cost of your trip. With a policy that includes trip cancellation coverage, you may be reimbursed for nonrefundable, prepaid travel expenses if you cancel for a covered reason. These can include illness or injury of you, a traveling companion, or a family member; a death in the family; or even a natural disaster affecting your destination.

2. Medical Emergencies Overseas Can Be Incredibly Expensive

Medical care abroad often comes with high out-of-pocket costs—and U.S. health insurance, including Medicare, typically does not provide coverage outside the country. Picture being seriously injured in a car accident in a remote area and requiring emergency treatment and evacuation. In many places, hospitals will require immediate payment before providing care, and emergency medical transport can cost upwards of $200,000.

Travel insurance with emergency medical and medical evacuation benefits can help cover these expenses, ensuring you get the treatment you need without draining your savings.

3. You Don’t Want Minor Mishaps to Ruin Your Trip

Even small inconveniences—like delayed flights or lost baggage—can turn a dream vacation into a frustrating experience. Travel insurance can soften the impact of these common issues.

Many policies include travel delay benefits, which reimburse additional lodging or transportation costs when your trip is delayed for a covered reason. Baggage delay coverage can help you replace essential items if your luggage goes missing for 24 hours or more. These benefits can help you stay focused on enjoying your trip, even when things don’t go exactly as planned.

4. The U.S. State Department Recommends It

While U.S. embassies can offer assistance during emergencies—such as helping replace a lost passport or connecting you with medical services—they cannot pay your bills or arrange emergency transportation. For that reason, the U.S. Department of State strongly advises travelers to carry comprehensive travel insurance, including emergency medical and evacuation coverage.

5. Travel Insurance Can Be Surprisingly Affordable

Cost is often the reason travelers skip insurance—but many are surprised to learn that comprehensive travel insurance can be relatively inexpensive. For a fraction of your total trip cost, you can protect yourself from major financial losses and gain valuable peace of mind.

So next time you book your big getaway, do yourself–and your pocketbook–a favor and opt for the travel insurance.

By James Cobler, Owner, Vacations Are the Best