Is Travel Insurance Worth It for International Trips?

Why Travel Insurance Matters in 2025

Travel is more exciting—and more expensive—than ever before. With average trips costing thousands of dollars per person, many travelers are wondering: is travel insurance really worth it? If you're heading abroad, taking a bucket-list vacation, or booking a multi-stop itinerary, the short answer is yes. Travel insurance isn’t just a safety net for worst-case scenarios—it’s financial protection that can help you recover nonrefundable costs if life gets in the way of your trip. Whether it’s a last-minute illness, severe weather, or a missed connection, insurance ensures your vacation investment doesn’t vanish.

In 2025, risks like flight cancellations, medical emergencies abroad, and unpredictable weather are more common than you might expect. Many travelers mistakenly assume their existing health insurance or airline will cover major mishaps, but most policies come with exclusions—especially overseas. Travel insurance fills those gaps, offering support and reimbursements when things don’t go as planned. It’s not just for the anxious or risk-averse—it’s for the well-prepared.

What Does Travel Insurance Cover and Not Cover?

Trip Cancellation and Trip Interruption Coverage

Trip cancellation insurance reimburses you for prepaid, nonrefundable expenses if you need to cancel your trip for a covered reason. This can include unexpected illness or injury, the death of a family member, jury duty, natural disasters, or your travel provider going out of business. Trip interruption coverage applies if you’ve already started your trip and need to return home early. These protections can recover thousands of dollars in forfeited hotel stays, flights, tours, and cruise fares.

Get Covered with Faye’s Trip Protection — A person-first insurance provider with flexible coverage for cancellations and delays.

Medical Expenses and Emergency Evacuation

Most U.S. health plans do not cover international medical care. Travel medical insurance ensures you’re covered if you get sick or injured during your trip. Emergency medical evacuation—especially from remote locations—can cost between $20,000 and $200,000. This benefit arranges and pays for airlifts, hospital transfers, and repatriation when needed. Without this coverage, even a minor emergency abroad could become a financial disaster.

Explore Faye’s Medical Coverage Options — Access global telemedicine and 24/7 care wherever you are.

Baggage Loss, Delay, and Theft Protection

If your baggage is delayed, travel insurance can reimburse you for necessities like toiletries and clothes. If your items are stolen or permanently lost, baggage loss protection helps recover the value—though some policies exclude cash and high-end items like jewelry. Always check your coverage limits. In some cases, homeowners or renters insurance may also offer supplemental protection for lost or stolen belongings while traveling.

Delay & Missed Connection Benefits

When flights are delayed due to weather or maintenance issues, travel delay insurance covers meals, lodging, and local transport. Most policies have a minimum delay window (usually 3–12 hours) and a daily payout cap. Missed connection insurance helps you rejoin your trip and covers costs if you’re stranded mid-itinerary. This is especially useful for complex international routes or cruises where one missed leg could derail your entire plan.

What Travel Insurance Doesn’t Cover

Most policies won’t reimburse you for cancellations due to fear of travel, changes of heart, or known events like COVID-19 outbreaks or named hurricanes. Dangerous activities such as skydiving or mountain climbing are often excluded unless you purchase an adventure sports rider. Pregnancies, mental health issues, and some pre-existing conditions may also be excluded—unless your plan specifically offers a waiver.

When Should I Buy Travel Insurance?

Timing is everything when it comes to travel insurance. To get the full range of benefits—including coverage for pre-existing conditions, CFAR (Cancel For Any Reason), and bankruptcy protection—you should buy your plan within 14 to 21 days of your initial trip booking. Buying late might exclude key protections or disqualify you from valuable add-ons.

Get a Quote Now Before the Clock Runs Out — Faye makes it easy to buy travel insurance early, so you’re covered from the start.

Best Travel Insurance for Trip Cancellations and Delays

If you're most concerned about losing money on prepaid hotels, flights, and tours, trip cancellation and interruption insurance is essential. Good plans cover a variety of events—from illness to job loss to natural disasters. Some even reimburse up to 150% of your trip if you're forced to end your journey early. Be sure to save receipts and documentation for reimbursement, and understand whether your provider pays upfront or reimburses you later.

Protect Your Trip with Faye’s Smart Coverage — Real-time alerts and fast reimbursements mean less stress if your plans change.

“Cancel For Any Reason” Travel Insurance

“Cancel For Any Reason” (CFAR) is an optional upgrade that lets you cancel your trip for any reason—not just those listed in standard policies. You’ll typically be reimbursed for 50–75% of your prepaid costs. CFAR must be purchased within 14–21 days of booking, and cancellations must be made at least 48 hours before departure. It’s more expensive but offers ultimate flexibility and peace of mind.

Quote a CFAR Policy with Faye Today — Cancel for any reason and get reimbursed, no questions asked.

Top Travel Insurance Companies for 2025

There are many travel insurance providers, but not all offer the same benefits, user experience, or transparency. Here are some top-rated options for 2025:

Allianz Travel Insurance

Trusted and widely available, with solid medical and cancellation benefits.

Travel Guard by AIG

Customizable coverage options and good emergency evacuation policies.

American Express Travel Insurance

Great for cardholders and includes medical and dental protections.

Faye: A Person-First, Tech-Savvy Choice

Faye is revolutionizing the travel insurance experience with real-time flight alerts, app-based claims, 24/7 support, and quick reimbursements. It also offers some of the highest delay benefit limits in the industry—up to $300/day and $4,500 per trip.

Why I Recommend Faye to My Clients — Simple, generous, and built for real travelers like you.

How Much Does Travel Insurance Cost?

Travel insurance typically costs between 4% and 10% of your total trip cost. So, for a $5,000 vacation, you might spend between $200–$500 depending on your age, destination, and selected coverages. Add-ons like CFAR or adventure sports protection increase the premium. Older travelers and those booking luxury or long-haul trips can expect to pay more. Regardless of cost, the value of recovering thousands in lost expenses far outweighs the initial investment.

Get a Personalized Quote from Faye — Just enter your trip details and get instant pricing.

Is Travel Insurance Worth It for You?

Only you can decide whether travel insurance is right for your trip—but if you're traveling internationally, booking expensive prepaid plans, or dealing with health uncertainties, it’s a smart move. Ask yourself: Can I afford to lose this money? What happens if I get sick abroad? How much peace of mind is worth to me?

Here’s when travel insurance is especially worth it:

• You’ve spent a lot on non-refundable costs

• You’re traveling to a country with limited medical care

• You have a complex itinerary or multiple destinations

• You have a pre-existing health condition

• You’re planning adventure or high-risk activities

Protect Your Peace of Mind with Faye — Get covered today and travel with confidence.