Is Travel Insurance Worth It for International Trips?

Why Travel Insurance Matters in 2025: Protect Your Investment

Travel is more exciting—and more expensive—than ever before. With average trips costing thousands of dollars per person, many travelers are asking: 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 also financial protection that can help you recover nonrefundable costs if life disrupts your plans. Whether it’s a last-minute illness, severe weather, or a missed connection, insurance ensures your vacation investment doesn’t vanish.

Understanding the Risks in 2025

In 2025, risks like flight cancellations, medical emergencies abroad, and unpredictable weather trends are more common than you might expect. Many travelers mistakenly believe their existing health insurance or airline will cover major mishaps. However, 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 traveler.

What Does Travel Insurance Cover?

Travel insurance provides various coverages that can protect you while traveling. Here’s a breakdown:

1. 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 even 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.

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2. Medical Expenses and Emergency Evacuations

Most U.S. health plans do not cover international medical care. In such cases, travel medical insurance ensures you’re covered if you get sick or injured during your travels. Emergency medical evacuation—especially from remote locations—can cost between $20,000 and $200,000. This benefit will arrange and pay for airlifts, hospital transfers, and repatriation when necessary. Without this coverage, even minor emergencies abroad could lead to significant financial disaster.

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3. Baggage Loss, Delay, and Theft Protection

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

4. 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, typically 3–12 hours, and a daily payout cap. Missed connection insurance assists you in rejoining your trip and covers costs if you’re stranded mid-itinerary. This is particularly beneficial for complex international routes or cruises, where one missed leg could derail your entire journey.

What Travel Insurance Doesn’t Cover

Most travel insurance 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 often have exclusions. Pregnancies, mental health issues, and some pre-existing conditions may also be excluded unless your plan specifically offers a waiver.

When Should You Buy Travel Insurance?

Timing is everything regarding travel insurance. For the best coverage, including pre-existing condition benefits, 'Cancel For Any Reason' (CFAR), and bankruptcy protection, you should buy your plan within 14 to 21 days of your initial trip booking. Late purchases may exclude key protections or disqualify you from valuable add-ons.

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Best Travel Insurance for Trip Cancellations and Delays

If you're primarily worried about losing money on prepaid hotels, flights, and tours, trip cancellation and interruption insurance is essential. A solid plan covers various events—from illness to job loss to natural disasters. Some plans even reimburse up to 150% of your trip costs if you're forced to end your journey early. Remember to save receipts and documentation for claims, and understand whether your provider makes payments upfront or reimburses later.

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Cancel For Any Reason Travel Insurance

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

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Top Travel Insurance Companies for 2025

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

1. Allianz Travel Insurance

Allianz is trusted and widely available, offering solid medical and cancellation benefits.

2. Travel Guard by AIG

Travel Guard provides customizable coverage options and effective emergency evacuation policies.

3. American Express Travel Insurance

This option is great for cardholders and includes both medical and dental protections.

4. Faye: A Person-First, Tech-Savvy Choice

Faye is changing the travel insurance landscape with real-time flight alerts, app-based claims, 24/7 support, and quick reimbursements. It also boasts 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 — A simple, generous option 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. For example, for a $5,000 vacation, you might spend between $200 and $500. Your exact premium depends on factors like age, destination, and selected coverages. Add-ons like CFAR or adventure sports protection will increase the premium. Older travelers and those booking luxury or long-haul trips can expect higher costs. Regardless of the price, the value of recovering thousands in lost expenses far exceeds the initial investment.

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Is Travel Insurance Worth It for You?

Only you can determine whether travel insurance is the right choice for your trip. However, if you're traveling internationally, booking expensive prepaid plans, or facing health uncertainties, it’s a wise decision. Consider these questions:

• Can I afford to lose the money invested in my trip?

• What happens if I get sick abroad?

• How much peace of mind is worth to me?

  
  

Here’s when travel insurance is particularly essential:

• You’ve invested significantly in non-refundable costs.

• You plan to visit a country with limited medical care.

• You have a complex itinerary or several destinations.

• You have a pre-existing health condition.

• You’re planning for adventure or high-risk activities.

  
  

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