Watch CBS News

Travel insurance can potentially save you thousands of dollars — here's how

Tropical Beach During Sunset at Koh Chang island in Thailand, Asia
Travel insurance will reimburse you up to 100% for any travel-related expenses covered by your plan. Jackyenjoyphotography / Getty Images

Planning a big trip can be stressful. Plus, it's expensive. Between purchasing plane tickets, booking hotel rooms and scheduling excursions and other transportation — the costs of a vacation can quickly add up. And that doesn't even include souvenirs and food.

In order to fully enjoy your vacation, you may want to buy travel insurance. Travel insurance will reimburse you up to 100% for any travel-related expenses covered by your plan. Most travelers choose a comprehensive policy that covers a variety of situations, from trip cancellation or delays to a medical emergency and beyond. It gives you peace of mind and protects your wallet at the same time.

Let the online travel insurance marketplace SquareMouth do the heavy lifting for you. Just insert your trip and traveler information to view dozens of travel insurance policies available now.

How travel insurance can potentially save you money

The exact amount of money you can potentially save with travel insurance varies, depending on how expensive your trip is and the type of unforeseen events or medical emergencies you may face. Nearly 90% of all insured travel in 2022 was related to international trips, SquareMouth recently said in its latest travel trends report. This year, SquareMouth expects travelers to spend even more — at least 25% more on travel-related expenses, to be exact.

The top reasons people buy travel insurance are Trip cancellation and medical emergencies.

Trip cancellation

The more money you spend on a trip, the more money you could potentially lose.

"Trip Cancellation is a major concern for most travelers. This benefit provides protection for the financial investment travelers make in their trips, offering coverage for all prepaid and non-refundable trip expenses. This can include any travel-related expenses, such as airline tickets, hotel accommodations, excursions, tours, and cruises," SquareMouth explains.

Find a travel insurance policy with trip cancellation coverage today. Start your search now!

Emergency medical and medical evacuation coverage

If you're traveling overseas, then your health insurance coverage likely won't kick in. So, in the event of a medical emergency, you could be left paying hefty hospital bills out of pocket. 

"The medical benefits of travel insurance are perhaps the most worth it due to the high financial ramifications that can come with a medical claim while traveling," SquareMouth says.

Squaremouth suggests getting a policy with $50,000 in emergency medical coverage and $100,000 in medical evacuation coverage for international trips. 

"If you get sick or injured overseas, in the best policies they'll pay to get you stabilized over there. They will consult with your own doctor who knows your medical history, and then, if needed, they will fly you back on a medically equipped jet to the doctor and medical facility of your choice," CBS News senior travel adviser Peter Greenberg previously explained on "CBS Mornings", recommending that travelers purchase medical evacuation and repatriation insurance.

How to get an affordable travel insurance policy

When it comes to travel insurance, the intention is to protect yourself from losing a significant sum of money. Ultimately, saving is key. And you'll want to find the most affordable option that can give you all of the protection and comfort you need.

A comprehensive travel insurance policy can cost anywhere between 5% and 10% of your total trip expenses, according to SquareMouth, though it can be even less depending on your needs.

Fortunately, there are a few travel insurance tips that can save you money on a plan. Here are two things you should do:

  • Shop around: Compare options from multiple insurance providers. With SquareMouth, you can view options from dozens of insurers. Sort the options from least to most expensive and go from there. Click on "full policy" to compare what each plan has to offer. Go with the cheapest plan that has all of your coverage requirements. You can compare quotes from up to 100 policies from 22 different providers on SquareMouth.
  • Review your plan: One of the biggest mistakes travel insurance holders make is overinsuring their trips. Don't make the same error. If you're looking at a price of more than 10% of your total trip costs, it's likely too much. Review your policy and determine if there are any areas you can trim. For example, do you really need any add-ons like medical evacuation coverage, an annual policy or cancel for any reason? Cancel for Any Reason, in particular, can raise your premium by up to 50%, SquareMouth says.

The bottom line

If you're planning a trip in the near future (especially if you're heading out of town for spring break) or you've already booked one, it's not too late to add on travel insurance, which can potentially help you save thousands of dollars and a headache in the future.

"Trip insurance is designed to cover the most common concerns that may impact a trip, including cancellations, medical emergencies, travel delays, and lost luggage. Common covered scenarios include an illness or injury preventing a traveler from departing, severe weather impacting their plans, or a medical emergency during their vacation, among others," Squaremouth explains on its site.

Just make sure to save any relevant receipts or paperwork that you may need to send to your travel insurance provider when you file a claim for reimbursement. The more details you can provide, the better. Get a travel insurance policy today!

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.