Is Travel Insurance Worth It? (Honest guide in 2026)

What is travel insurance and is it worth it?

Travel insurance in simple terms is something that you buy before a trip and is helpful to you to cover financial losses in case something goes wrong with the trip.

In the case of something going wrong during your trip, since you already have a prepaid travel insurance, you can claim for expenses and then recover most of the money.

Yes, there are conditions attached to getting a travel insurance approved and you should always read the fine print before buying any kind of travel insurance.

Do I need Travel Insurance?

This is a question many people have on their minds. I have had nothing happen to me when I am travelling over the past so many years. What is going to happen now?

Actually, this question is on the minds of people who are from the Western world. For people like me who are from India, we really don’t have an option other than to mandatorily take travel insurance. When we apply for some visas, many countries have a mandatory requirement of taking travel insurance by default.

So the next question you would ask me is “If it was not a mandatory requirement, would you travel without travel insurance”? No, I won’t. I am always insured when I am travelling outside India. It doesn’t matter if I am going for months or if I am going for a few days.

Why do I feel that travel insurance is crucial?

I am pretty sure that you have your own reasons for not buying travel insurance. But I do have some very valid reasons for buying travel insurance. Also, after years of travelling, I know one thing for sure. Travelling is not all roses and I have been put in multiple precarious situations in the past. So what are some of the top reasons why I travel with insurance?

• I was robbed in Spain. I was fully insured at the time. However, all I lost was 60 pounds and my dignity. So I thought it was unnecessary to go and claim my insurance for such a small amount. But what if my passport or mobile were stolen? Robbery is quite common in Europe and it is always best to be insured.
• Everyone who knows me knows this. I am the clumsiest person you would ever meet. I have this habit of falling in multiple countries around the world. I almost fell off a cliff when I went paragliding in Bir, Himachal. I have also fallen in the USA, Croatia, Portugal etc. Thankfully till now, other than a few scrapes and bruises, I have been quite lucky. But I have many friends who have had medical emergencies while they were traveling around the world. You never know what would happen. I could have had a fracture or a sprain and without insurance, I would have ended up losing thousands of dollars in medical bills. Also, this could happen to me anytime in the future as well.
• My sister and family were in Sri Lanka in November. On the day they were supposed to leave, a cyclone ravaged through the country and their flights got cancelled. Even though they were not physically harmed, they had to extend their stay in Sri Lanka by two days. Which meant that they had to incur a lot of additional costs at the last minute in terms of accommodation in Sri Lanka and food since flight charges were covered by the airline. Since she had insurance, she got back and claimed it and they received a set amount per person.
• When I travelled to Jordan, my luggage came two days late. When we were living in Mexico and my husband first travelled to Mexico, his luggage came almost a week late. And we ended up claiming travel insurance both times since we were already insured. Even though it involved a bit of a hassle, it still helped us recover the costs of what we spent for the first few days without luggage.

These are just few examples. But there are so many cases when travel insurance can actually be a blessing in disguise.

What is covered under travel insurance?

This is a commonly asked question and this criteria should be kept in mind while purchasing travel insurance.

These are some of the common things that are usually covered by travel insurance:

• Medical emergencies – Anything can happen during a trip and most travel insurances cover this.
• Death of the insured / close family – Death of the insured is always covered and this include repatriation costs in case they need to be bought back to the home country and other costs associated with the same.
• Medical evacuation – In case you need to be repatriated in the case of a medical emergency and is not available in the country you are visiting
• Trip cancellation – If your trip is cancelled by an airline or other circumstances, then most likely your travel insurance will cover it. In case of personal trip cancellation other than loss of family or medical emergency, it may not be covered.
• Trip delays – Yes, this also may be covered by your travel insurance in case it is included
• Baggage delays / loss – If this is included in the case of your travel insurance, then this also can be claimed.
• Damage or loss of documents – The number of people who lose their passports are staggering and hence most travel insurances cover this as well. Also, funds to get back to your home country in case something like this happens.

On top of the above, some travel insurances also cover things like below. You may just need to pay extra for it:

• Adventure activities: Unless you pay extra for your travel insurance, the chances are low that your Skydiving escapade is covered by your travel insurance. In case you are an adventure traveller, you may need to buy this in addition.
• Theft of home: When you are travelling and your house is robbed, then some travel insurances will cover some of the losses if it is covered in the policy.
• Car rental: If an accident happens to your car rental, it may or may not be covered by your travel insurance.

What you need to know before buying travel insurance?

Most of the claims get rejected because you forgot to read the fine print and you did not check if it was included in your travel insurance or not.

In most cases, it is a hassle to get your travel insurance reimbursed and hence most people will shy away from following up on their claims.

But some common things to be aware of while buying travel insurances:

• Pre existing conditions: Most travel insurances will not cover pre existing conditions. Like for e.g, my father is a cancer survivor and 70+ and hence I cannot buy travel insurances from most providers since they do not cover pre existing conditions like cancer, diabetes etc. So I always buy from a provider that covers this and his premium is usually way higher than most people.
• Adventure tourism: This will require additional premium if you intend to do life threatening activities.
• Dental work: Most travel insurances will not cover dental work since they consider it as a cosmetic surgery.
• Recently on our trip to Nepal, our return trip was cancelled by the airline. So I had to rebook another flight at a higher price. When I tried to claim, I was told that trip cancellation was only covered in the case of medical emergencies and I had not read the fine print while buying the travel insurance. I got the 1st return ticket fully refunded but had to pay the second more expensive return ticket from my own pocket. I had bought it from another provider this time and I have vowed not to buy from them in the future.
• Trip cancellation due to refusal of visas: Please check if this is covered by your travel insurance. This is one of the reasons I book refundable stuff in case of visa refusals.
• Trip cancellation due to personal emergencies: Again, not all will be covered by insurance. I repeat again: please read the fine print.

What is the cost of a travel insurance?

It depends on a few factors but it can range from as less as 10$ to a couple of hundred dollars.

The things that change the cost of a travel insurance are:

• Duration of your trip. Few days will always costs less than few months on the road
• Your age: Higher premium for older customers
• The country or region you are travelling to
• What is actually covered. Some activities will have higher premiums than others. For e.g adventure travel
• Pre existing conditions

Now another question that often crops up here is that I won’t end up using it in most cases. Then why do I need to buy travel insurance?

Look as someone who has been travelling solo for years and have used travel insurance maybe handful of times in the past 15+ years, I still recommend getting them.

It really doesn’t cost much compared to the peace of mind you get knowing that it will cover all emergency needs in case the need arises. And travel is never rosy and things can always go wrong.

And like I mentioned before, if you are an Indian applying for a Schengen visa, then it is always mandatory for you to have a travel insurance even before applying for a visa.

What to keep in mind before buying the right plan?

These are the things to keep in mind while selecting the right plan for your travels:

• Compare between all the providers in the market and do a full research.
• Check what is included and what is excluded in your plan
• Don’t only factor in cost while buying the right travel insurance plan. Sometimes cheap may not always be better.
• Check if they have a 24*7 support in case you need to claim.
• Also check the claim approval ratio for the insurance provider.
• Most travel insurances will not cover short domestic trips.
• Also check the coverage limit of the plan you are selecting.
• If you need a nomad visa, then look globally.

Conclusion: Is travel insurance worth the cost?

In conclusion, travel insurance is one of those small decisions that can make a huge difference when things don’t go as planned.

While it may seem like an added expense at first, the financial protection and peace of mind it offers often outweigh the cost, especially for international trips.

From unexpected medical emergencies to flight cancellations or lost baggage, travel insurance acts as a safety net that allows you to focus on enjoying your journey rather than worrying about risks.

That said, it’s important to choose the right plan, understand what’s covered, and assess your own travel needs before purchasing.

Ultimately, travel insurance isn’t just about spending extra. It is about traveling confidently, knowing you’re prepared for the unexpected wherever your adventures take you.