Travel guide
Travel insurance explained (and when to buy)
Travel insurance is one of the most misunderstood line items in any trip budget. The product is genuinely useful, but the language is confusing and the cheap policies leave gaps. Here is what to actually know.
The core coverage areas
Trip cancellation (reimburses pre-paid costs if you cancel for a covered reason), trip interruption (covers costs if you cut a trip short), emergency medical (your U.S. health insurance usually does not cover you abroad), emergency evacuation (the big one — air ambulance can cost $50K–$200K), baggage loss, and travel delay.
Pre-existing condition waivers
Standard policies exclude pre-existing medical conditions. To get coverage, you must buy the policy within 14–21 days of your first trip deposit (window varies by insurer). After that window closes, no waiver — for the rest of the trip's life.
Cancel For Any Reason (CFAR)
CFAR riders let you cancel for any reason and recover 50–75% of pre-paid costs. They cost 40–50% more than base policies and must be purchased within 14–21 days of first deposit. Worth it for high-value trips where flexibility matters more than max payout.
When to skip travel insurance
Short domestic trips with refundable hotels and flights. Trips fully booked on points with no cash exposure. Trips where you are already covered by a premium credit card (Chase Sapphire Reserve, Amex Platinum) — read the fine print first.
When to definitely buy
Any cruise. Any international trip with non-refundable air. Any trip including elderly travelers. Any trip where one health event in the family would force cancellation.
Recommended carriers
Allianz, Travel Guard (AIG), Travelex, IMG. We quote across multiple carriers and provide an apples-to-apples comparison.
Want help applying this to your trip?
Talk to a Zip Trip Travel advisor — quotes are always free.