Trip Delays Are Expected to Rise This Summer—Travel Insurance Can Protect Your Vacation Fund

Summer is one of the busiest times for travel, and this year, there may be more travel disruptions than usual. A shortage of air traffic controllers, predicted above-normal hurricane activity in the Atlantic, and problems with aging airport infrastructure, such as radio outages that have caused widespread delays at Newark airport, could all make trip delays even more likely than in years past.

If you’re traveling this summer, taking out travel insurance can be a good investment and give you some financial peace of mind, especially when things are not in your control.

When Should You Get Travel Insurance?

The best time to purchase travel insurance is as soon as you book. But you still have time after you confirm your trip if you want to consider your options. Most insurers require you to purchase policies in advance, but there are a few that let you buy coverage up to the day before you travel with very limited benefits.

Consider purchasing coverage 14 to 21 days in advance for the full benefits for international travel, immediately when you make a non-refundable domestic trip, immediately when you make an adventure trip, and at least 24 hours before you book a last-minute trip.

Domestic vs. International Travel

Travel insurance may not be worth it in certain cases. This may be the case for certain domestic trips, when you’re spending relatively low amounts, and when your travel is refundable. According to Raleigh, North Carolina-based travel agent Shaikh Ahmed, it is a good investment when you have:

• Airbnb or hotel stays that are non-refundable
• Concert or event tickets
• Medical emergencies away from home

It’s even more important when you travel internationally.

“For trips that cost $1,000 and over, travel insurance is a smart way to protect your investment and health,” he said, adding that your regular health insurance won’t necessarily cover you abroad. Medical costs or emergency evacuations, he said, can run you over $10,000.

What Travel Insurance Covers

Trip delays are increasingly common, according to Ahmed. In an email to Investopedia, he attributed this to staffing shortages, weather disruptions, and global travel congestion.

“In 2024, over 20% of U.S. domestic flights were delayed, and international travel has seen similar patterns,” he said.

Travel insurance provides you with protection against unexpected financial losses and events while you’re traveling domestically or internationally and for different scenarios, including:

• Trip cancellations and delays: Taking out a travel insurance policy will protect you from any covered interruptions due to cancellations and delays that may arise from illnesses or other unforeseen circumstances.
• Medical coverage: Most health insurance policies don’t cover medical expenses while you travel abroad (or even out of state). Travel insurance will provide you with this lapse in coverage if you get sick or injured while you’re on vacation.
• Baggage issues: Your travel insurance policy will reimburse you if your baggage or belongings are lost or stolen.
• Additional coverage: Some policies also give you the option to add coverage for rental car problems, accidental death, dismemberment, and emergency assistance.

Travel Insurance Prices

The average cost of travel insurance can run from 4% to 10% of the price of your trip. So if your trip costs you $3,000, expect to spend $120 to $300 on travel insurance. The general rule is that you’ll pay a higher premium if your trip costs more.

But other factors can also influence the cost of your travel insurance, including:

• The length of your trip
• Your age
• Your policy type
• The type of coverage you choose

Travel insurance also comes with different options that many consumers may not be aware of, according to Ahmed. These include single-trip options that cover one defined trip and multi-trip policies, which provide coverage for frequent travelers for a certain period—usually a year.

There is also basic and comprehensive coverage. Basic insurance provides limited coverage, while comprehensive insurance is more expensive with more benefits.

With travel becoming more unpredictable, Ahmed said travelers should consider a policy with a minimum of $50,000 of emergency medical coverage, baggage protection, trip cancellation/interruption, and 24/7 travel assistance.

If you’re traveling internationally, he suggested at least $100,000 of medical coverage and evacuation services, as these costs can add up.

How to Get Travel Insurance

To get travel insurance, determine your needs and what coverage suits you best. Will you need medical coverage? Will you need coverage for trip cancellations or delays? Are you taking checked baggage with you that should be covered? Does your health insurance cover you while you’re away?

Next, compare quotes online with different insurers. You can review your quotes with specialized travel insurers or you can ask any current insurance companies you have an existing relationship with, such as your home, auto, or health insurer.

Here are some other options:

• Check with your credit card company as well, because your card issuer may provide insurance when you book. Be sure to review coverage options.
• Airlines and travel companies may also offer travel insurance when you book. Like your credit card company, find out what type of coverage it is before you book.

You can also get information about travel insurance from travel agents.

Don’t Forget to Read the Fine Print

Every insurance contract comes with information in the fine print, so review it before you sign up. Most of the fine print for travel insurance policies includes the following information:

• Exclusions for pre-existing conditions, high-risk activities while you’re away, war, unlawful events, and named storms
• Deadlines for making a claim
• The documentation you need to provide to the insurer if you need to file a claim

The Bottom Line

Many different factors can impact your trip, from weather to strikes to global unrest, which is why it’s important to consider travel insurance. A policy can be a great financial investment if there are any interruptions or delays. If you have any questions, a travel expert can save time, money, and stress so you can enjoy your trip.