Why Travel Insurance Is Worth It: Coverage, Costs & Peace of Mind Explained

It’s a dilemma many travelers have faced before booking their big flight: whether or not to get travel insurance or flight insurance. Many don’t want to pay extra money for these policies, even with the peace of mind they bring. 

After all, whether you’re planning a family adventure or a solo vacation, anything can happen. Flight delays, unpredictable global travel environments, and sudden cancellations can hit your pocketbook far harder than an insurance policy. And yet, many people remain unconvinced! 

That’s why anyone asking questions like “How much is travel insurance?” and “What does travel insurance cover?” deserves an intensive, detailed answer. Thankfully, our team at The Parking Spot is here to break down why and when these policies are worth it for your next big trip. 

In this article, you’ll not only learn about the importance of travel insurance and flight insurance but also get a deep look at the various types of travel insurance on the market today.  

Note: This article is meant to provide general information; review policy certificates and speak with insurance providers for specifics. 

What is Travel Insurance? 

Before buying flight insurance for your big trip, it’s important to know exactly what it is and what it covers. Our team at The Parking Spot can easily explain this protection to you to ensure your summer or winter vacation gets the coverage that feels best for you. 

A Simple Definition of This Insurance Type 

According to Investopedia, travel insurance “provides financial protection” that covers “unexpected losses and expenses” during any trip. For example, it may protect against events as diverse as: 

• Losing all your carefully packed bags while overseas
• Damaging rental property or cars
• Misplacing a passport when in another country
• Wiring money directly to you if you need it for any reason
• Handling medical and accidental death coverage
• Paying for canceled, delayed, or interrupted trips

Most policies come in primary or secondary protection. Primary reimburses you directly without working through a second company, while secondary requires filing a claim with another provider. Policy limits vary, including specific maximum payouts (such as $500 per bag). 

How Does It Differ From Credit Card Protections? 

Credit card protections will keep you safe from some dangers while traveling, but they are nowhere near as comprehensive as travel specific insurance policies. For example, travel insurance covers all the following, while credit card companies rarely or never do: 

• Medical coverage
• Emergency evacuation
• Claim support
• Adventure activities

Furthermore, credit cards typically offer far lower max limits (which restricts their value) and much less flexibility. While you don’t have to purchase these protections separately like you do with travel policies, they’re simply not as comprehensive or efficient.  

Examples of Credit Card Protections vs. Standalone Travel Insurance 

Not all “travel coverage” is the same. Credit card travel benefits can be great for short, domestic trips with modest costs, while standalone policies typically add medical coverage, higher limits, riders, and more flexibility. Always review your specific card’s benefits guide and any policy certificate before you buy. 

Coverage Area	Typical Credit Card Benefit	Standalone Travel Insurance	What to Check/Know
Trip Cancellation / Interruption	Often included on mid-to-premium cards; fixed caps per trip/person (e.g., a few thousand dollars) and specific covered reasons	Broad range of covered reasons; higher limits available; customizable per trip	Covered reasons, per-person/per-trip caps, documentation required, exclusions
Trip Delay	Common; daily/per-trip caps (e.g., meals/hotel after X-hour delay)	Available; limits and waiting periods vary	Minimum delay hours, daily caps, eligible expenses, receipts
Baggage Loss / Delay	Often included; lower caps for valuables; delay coverage after a set number of hours	Available; can offer higher caps and clearer processes	Proof requirements, excluded items, timelines for delay/loss
Travel Medical Expenses	Rarely robust; some cards offer little or none	Core benefit; choose limits that fit destination risk	Medical expense limit, deductibles, exclusions (e.g., pre-existing conditions)
Emergency Medical Evacuation / Repatriation	Sometimes included on premium cards with capped limits	Standard on many plans; higher limits available	Evacuation limit (e.g., $100k vs. $500k+), assistance network, approval process
Pre-Existing Condition (PEC) Waiver	Generally not offered	Often available if you buy within 14–21 days of initial trip payment and insure full trip cost	Eligibility window, “stable period” definitions, documentation
Adventure / Sports Coverage	Typically excluded	Optional riders cover higher-risk activities	Which activities are covered, altitude/depth limits, gear coverage
Cancel For Any Reason (CFAR)	Not offered	Optional upgrade; typically reimburses 50–75% if you cancel ≥48 hrs before departure	Purchase window, reimbursement %, cancellation timing rules
24/7 Assistance Services	Often included (concierge/assistance hotline)	Standard; often more comprehensive with medical coordination	Scope of assistance, languages, claim intake support
Primary vs. Secondary Claims	Usually secondary to other insurance	Can be primary (faster reimbursement) depending on plan	Whether benefits are primary, claim sequence requirements
Claim Process & Proof	Benefits guide dictates strict proof (receipts, airline notices)	Policy certificate outlines requirements; generally similar but plan-specific	Filing deadlines, required documents, how to notify the provider

 

Types of Travel Insurance 

Whether you’re traveling with your whole family, flying as a single parent with kids, or simply taking a romantic vacation with your partner, travel insurance and flight insurance can keep you safe. Before you invest in flight insurance, it’s important to know what’s available. Here are four common insurance types to improve your travel savings: 

• Trip Cancellation/Interruption: We see it happen all the time: canceled or interrupted trips due to overbooking. After investing thousands in your vacation, it’s always heartbreaking when this happens. However, travel policies will cover your losses.
• Medical Coverage Abroad: When you get sick on a trip (especially in another country), your standard health insurance typically won’t work. However, travel medical coverage will pay for your treatment for accidents, injuries, and illnesses.
• Lost/Delayed Baggage: If your bags get stolen, end up missing, or simply take a long time to arrive, baggage travel insurance can cover any expenses related to losing and replacing your missing luggage.
• Emergency Evacuation: Whether you’re on vacation or a business trip, things can go suddenly, unexpectedly, and dangerously wrong. Thankfully, emergency evacuation flight insurance coverage can get you to a medical facility quickly and safely.

This protection typically comes in comprehensive or single-coverage packages. Comprehensive options will cover two or more of these issues (while costing more money), while single-coverage normally handles just one travel danger. 

Do You Really Need Travel Insurance? 

We know you might be dubious about flight insurance. Let us be frank with you on this expense: not every trip will need it. However, there are many situations where it’s vital and can reduce your anxiety while traveling, including: 

• International travel (due to varying legal standards and regulations)
• Cruises (when you’re far from home and in international waters)
• Non-refundable tickets (insurance will pay to replace them)

That said, even when you know the answer to the question “What does travel insurance cover?” (answered in more depth below), you might not need travel insurance when taking: 

• Short domestic flights (or a day or two trip)
• Refundable bookings (especially when the policy is very fair)
• Trips covered by your existing credit card protection

How Much Does Travel Insurance Cost? 

When researching the question “How much is travel insurance?” we discovered that it can cost between 4%-10% of your total trip cost and it can greatly vary based on the type of coverage you’re looking for. Policy costs will vary, so make sure you consider these factors before planning your parking experience with The Parking Spot: 

• Traveler age (as protections may need to vary based on health conditions)
• Destination (based on the various rules, laws, and regulations in each country)
• Trip length (longer vacations will typically need costlier policies)
• Coverage type (i.e., comprehensive or single-coverage protection)

What Does Travel Insurance Cover (and Not Cover)? 

Before buying any trip protection or travel insurance policy, it’s important to know what is and what is not covered. We did the hard research for you and can provide the insightful support you need to pick the best overall coverage for your needs. 

What Travel Insurance Will Protect You From On Your Trip 

When planning your New York City adventure, a trip to Denver or Boulder, or even a lakeside retreat somewhere nice, trip insurance will cover a variety of unique factors. In our research, The Parking Spot found that most protection will help pay for: 

• Unexpected cancellations (including flight problems and even hotel booking issues)
• Delays in your travel that might cost you money waiting around (such as grounded flights)
• Dangerous medical conditions, accidents, or even loss of life

What Your Flight Insurance Won’t Cover 

No matter how hard you try to stay healthy on a trip (such as eating properly or even exercising regularly), unforeseen events can happen. Unfortunately, not all will be covered by your insurance policy. Just a few things to consider before buying one include: 

• Pre-existing conditions (i.e., known heart dangers that are exacerbated by heavy travel)
• Risky activities (i.e., skydiving or anything else that includes excessively high risk)
• “Change of mind” (i.e., you change your mind and cancel an event: you won’t get covered)

One of the biggest tips we can provide to you is: read the fine print on all your travel or flight insurance policies. Often, providers place very important details about exclusions here. Skimming over or even skipping these points will cause unnecessary travel risk. 

Common Carriers & Where to Buy Travel Insurance 

Buying the best flight or travel insurance not only requires knowing what’s available but also identifying the best carriers for your needs! We did the tough research for you to find flight insurance providers you can trust, such as: 

• Airlines and online travel agencies, such as Expedia and Priceline, often offer specialized travel protection, including comprehensive insurance policies that directly cover your trip without a secondary party (like an insurance provider)
• Third-party insurers, like Allianz, Travel Guard, and Travelex, that typically provide more comprehensive plans than travel agencies, though they are usually a little more expensive due to their secondary nature (i.e., you have to make a claim through them, not your agent)
• Credit card perks from companies like Amex and Chase Sapphire that often offer travel protections that, while beneficial, do fall a little short of typical travel insurance (though The Parking Spot does recommend these options for shorter-term trips)

Try to book your flight insurance well in advance (weeks, if possible) to get the best results. After all, just like pre-booking your airport parking from The Parking Spot at one of our 70+ locations, planning ahead can reduce your anxiety and make your whole trip smoother. 

Pitfalls and What to Watch Out For 

Whether you’re traveling to gorgeous outdoor parks, booking your honeymoon, or planning movie tourism, you must pay close attention to your policy. Many travelers fall into these problematic pitfalls and lose money, including: 

• Limited coverage from airline upsells (remember, only buy an airline policy if you have no other choice, as they’ll often cost far too much for fairly limited protection)
• High-pressure upselling at checkout (flight insurance agents are always going to try for the upsell, so stand your ground and get only what you need)
• Policy exclusions that leave travelers unprotected (read the fine print very carefully to ensure that your protection doesn’t limit you, as we see this happen a lot at The Parking Spot)

Should You Buy Travel Insurance at the Airport? 

Planning your trip requires a lot of advance preparation. However, travel insurance might slip your mind until you’re at the airport! If it does, you’re not alone, as many people have found themselves scrambling to buy flight insurance just before their trip. Unfortunately, this is rarely a good idea. 

Airport Travel Policies Aren’t as Good and Likely More Expensive 

Airports that sell travel insurance will almost always charge more (due to the convenience), sometimes as much as 5%-10% higher than pre-purchased policies! Furthermore, coverage is usually far more limited (i.e., there are rarely comprehensive options) and has strict maximum limitations or exclusions. In other words, only buy flight insurance at an airport when necessary. 

Plan Your Trip Insurance Ahead of Time 

Even if you’re only planning a quick weekend getaway with your kids, you should buy travel insurance ahead of time. Even a day or two is better than buying at the airport. It’s a lot like pre-booking your parking with our team at The Parking Spot. It’s simply less expensive and stressful, and will ensure a better overall experience for you and your family. 

FAQ: Travel Insurance Basics 

Is travel insurance mandatory for international trips? 

Typically, flight insurance is not mandatory on international trips, though this varies based on the country. Some nations (such as Turkey, Russia, Cuba, the 29 Schengen Countries, Georgia, Israel, and even the United States for some travelers) require travel protection for anyone entering the country. 

Does health insurance cover me abroad? 

While international health protection will vary based on the provider and your policy, most insurance coverage will not help you during a trip. That’s why travel insurance is such a smart investment for most travelers, especially those leaving for extended periods. 

Can I buy travel insurance after booking my trip? 

Most providers will let you buy a travel policy after booking your trip. That said, most do prefer a little warning (1-2 weeks minimum) before you buy protection. In fact, some might even give you discounts of 5%-10% on their policies when you book far in advance. 

Do credit cards provide enough protection? 

Short trips (between 1 and 5 days) typically get more than enough coverage from credit cards. However, it typically won’t be enough for more extensive (weeks or even months) or dangerous travel. If you’re uncertain, talk with your insurance provider to learn more. 

What’s the difference between travel insurance and trip protection? 

Flight insurance usually covers far more issues than trip protection. These problems include trip cancellations, medical expenses, and even evacuation risks. General protections are less expensive, though, and may be a better choice for shorter, less intensive travel situations. 

Choose Wisely When Picking Your Travel Insurance 

Now that you know the types of travel insurance, you can answer the questions “How much is travel insurance?” and “What does travel insurance cover?” and easily find a policy that feels right for your needs. It’s all about balancing your risk with your peace of mind. 

For instance, let’s say you’re planning on hitting up Europe in the winter or even going from country to country by train. Being so far from home can be nerve-wracking, but the best travel insurance and flight insurance policies mitigate your risk by covering your trip comprehensively. 

Taking the time to truly plan your trip, invest in protection, and invest in safe parking will reduce your anxiety and make your trip even better. 

Thankfully, our team can help you find amazing parking deals and savings through Spot Club membership and offer tips on things like travel tipping and parking etiquette. Don’t hesitate to reach out to our help team to learn more!