The value of travel insurance.
One unexpected medical bill abroad can cost more than your entire trip. Travel insurance protects everything you’ve worked for.
Cherie, our VP, is our travel extraordinaire. She recently returned from vacation and it got us thinking. We spend months planning trips, hundreds (or thousands) of dollars booking flights and hotels, and countless hours dreaming about the destination. One thing most travelers overlook until it’s too late? Travel insurance.
The good news is that protecting your trip is far more affordable than most people expect. And the peace of mind it buys? Absolutely priceless.
What does travel insurance actually cover?
Travel insurance isn’t one-size-fits-all. Most comprehensive plans bundle together several types of protection that kick in when your trip doesn’t go as planned.
Emergency Medical: Covers emergency treatment, hospital stays, and doctor visits if you get sick or injured away from home.
Medical Evacuation: Pays for emergency transport to the nearest adequate medical facility, which can cost $50,000+ out of pocket.
Trip Cancellation: Reimburses non-refundable trip costs if you cancel for a covered reason; illness, injury, job loss, and more.
Trip Interruption: Covers costs if your trip is cut short mid-travel, including last-minute flights home and unused lodging.
Lost or Delayed Baggage: Reimburses you for lost, stolen, or delayed luggage so you’re not stuck without your belongings.
Travel Delay: Pays for meals and accommodations if a flight delay leaves you stranded overnight.
The numbers behind why it matters
Travel disruptions are no longer rare. Delays, cancellations, and medical emergencies are happening more than ever, and the financial impact is real.
- 40% of all paid claims are trip cancellation or disruption
- $5,511 average trip cancellation payout, some exceed $50,000
- 107% rise in lost and delayed baggage claims (2024–2025)
- 27% of 2026 claims are emergency medical, avg. $1,816 each
Keep in mind that your regular health insurance, including Medicare, typically provides little to no coverage outside the United States. If you’re traveling internationally, travel medical coverage isn’t optional; it’s essential.
How much does it actually cost?
Here’s the part that surprises most people. Travel insurance is genuinely affordable, especially compared to what you’re protecting.
Think of it this way: Insuring a $5,000 trip costs around $204 on average, that’s about 4% of your trip cost. You’d likely spend more than that on airport food.
Trip Cost: $1,000 / Est. Insurance Cost: ~$40–$60 / Daily Cost (7-day trip): ~$6–$9/day
If you travel more than once a year, an annual multi-trip plan can be even more economical, often under $1 per day for medical-only coverage, according to data from Squaremouth.
Smart tips before you buy
✓ Buy early. Many benefits (like pre-existing condition waivers) require purchase within 10–21 days of your initial trip deposit.
✓ Check what your credit card covers first. Some premium cards include basic trip cancellation or delay coverage.
✓ If traveling internationally, prioritize medical and evacuation limits, not just the premium price.
✓ Consider “Cancel for Any Reason” (CFAR) coverage if your plans are uncertain, adds roughly 40–50% to the premium but gives maximum flexibility.
✓ Frequent travelers should price out annual plans, which are typically more cost-effective than buying per trip.
✓ Work with an independent broker who can compare multiple carriers, not just one company’s products.
The bottom line
Travel is one of life’s greatest joys, and one of its bigger financial commitments. Whether you’re heading to the Gulf Coast for a long weekend or boarding a flight to Europe, the cost to protect that investment is minimal compared to what you stand to lose without it.
At Torgersen Consulting, we help individuals and families find the right coverage for every stage of life, including the parts that happen outside the office. If you have questions about travel insurance or want a free consultation, our team is here to help.