Does It Pay to Buy Travel Insurance for Your Summer Trip?

Is Travel Insurance Worth It This Summer?

With summer 2025 quickly approaching, many people are finalizing vacation plans—and figuring out how to spend wisely while doing it. One common question that comes up: Is travel insurance worth the added cost?

Depending on where you’re headed, how long you’ll be gone, and how much you’ve prepaid, the answer isn’t always black and white. Travel is already a major expense for many households—and adding insurance on top can push you beyond your budget. So how do you decide?

Let’s take a closer look at when travel insurance might be a smart investment—and when it might not be necessary.

Travel Insurance Is on the Rise
According to Allied Market Research, the global travel insurance market is projected to reach over $119 billion by 2030, up from just $12.38 billion in 2020.¹ A growing number of older adults are traveling internationally, and rising trip costs and post-pandemic uncertainty continue to drive demand.
At the same time, the World Tourism Organization (UNWTO) reported a continued rise in global travel since 2021.² As demand grows, so does the importance of understanding what kind of coverage might make sense for you.

When Travel Insurance Might Be Worth It
Consider a policy if you’re:

Taking an expensive or international trip with non-refundable costs like flights, hotels, or tours
Traveling during peak seasons or to areas prone to weather disruptions
Dealing with a pre-existing condition or possible medical needs abroad
Booking through travel providers with strict or limited refund policies

While some credit cards offer trip protection, those benefits often have caps or exclusions. Travel insurance can offer more flexible cancellation options and broader coverage for unexpected events—like work disruptions, family illness, or lost luggage. And if you're trying out new activities—hiking, boating, or even just exploring a foreign city—medical coverage could save you from thousands in unexpected bills, especially if you're far from home.

When You May Not Need It
For short domestic trips, travel insurance may not be worth the extra cost.
If your:

Airline and hotel offer reasonable cancellation policies
Total trip cost is relatively low
Credit card already offers travel protection
You’re not traveling far from home or engaging in higher-risk activities

…then it might make sense to skip it.

Also, check your current coverage. Many travelers don’t realize their auto insurance, health insurance, or credit cards may already cover part of what travel insurance would provide. Doubling up may not add much value.

Timing Matters
If you do decide to purchase a policy, it’s typically best to do it within 10 to 15 days of booking your trip. Waiting longer could mean a higher premium or reduced coverage, especially if your trip includes pre-existing conditions or specialized travel activities.

Take a Step Back Before You Commit
Before you buy a policy, ask yourself:

What’s the real financial risk if my plans change?
Would I lose more money than the policy costs?
What protections do I already have?

For some travelers, the peace of mind alone is worth it. For others, especially on shorter or more flexible trips, the cost may outweigh the benefit.

Bottom Line
Travel insurance can be a great tool—but only when it’s the right fit. The key is to match the policy to your actual risk and your travel priorities. Don’t pay for protection you don’t need, but don’t skip coverage that could save you from costly disruptions either.

Whether you're planning a bucket-list trip or just a quick getaway, be intentional about where your money goes this summer. And if you're unsure whether travel insurance is right for your plans, I’m happy to help you think it through.

Sources

¹ Allied Market Research
² World Tourism Organization

This content is developed from sources believed to be providing accurate information and is provided by Twenty Over Ten. It is not intended to be used to avoid any federal tax penalties. Please consult legal or tax professionals for specific guidance related to your situation. This material is for general informational purposes only and should not be considered a recommendation or a solicitation to buy or sell any security.