Travel insurance can prevent costly surprises, but many popular activities aren’t covered. What you might still pay for

You’re soaring through the treetops on a zipline, the wind whipping past your face, when a sudden jolt sends you spinning, and straight into a thrill ride your travel insurance might not cover.

Buying travel insurance is more popular than ever, with Americans spending $5.56 billion on coverage in 2024, according to the U.S. Travel Insurance Association (1).

Must Read

Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP

For many travelers, it provides peace of mind knowing they’re protected from huge, unexpected bills if things don’t go as planned.

But not every policy covers what you might expect. Some travelers are caught off guard when their claims are denied, leaving them responsible for expenses they thought were covered.

Here's what you need to know about travel insurance, common coverage gaps and how to ensure your trip is protected.

What does travel insurance cover?

According to the National Association of Insurance Commissioners, travel insurance usually costs between 5% to 10% of your total trip price. It’s available for both domestic and international vacations (2).

Common coverage includes:

Trip cancellation, delay, or interruption: Covers costs if you get sick or your flight is delayed and you need to stay overnight.
Baggage loss or delay: Covers stolen, lost, or damaged personal items.
Travel medical insurance: Pays for medical care your primary insurance doesn't cover while you’re outside your provider network.
Medical evacuation insurance: Covers the cost of transporting you to a licensed medical facility if a serious health issue arises abroad.
Cancel for any reason coverage: Offers a partial refund if you need to cancel for reasons not included in standard trip cancellation policies.

Travel insurance can be well worth it. Medical evacuation alone can cost tens or even hundreds of thousands of dollars, and losing the value of your trip can be devastating. Paying 5% to 10% of your trip’s cost is a small price compared to losing 100% or paying $25,000 or more for an air ambulance (3).