Is Travel Insurance a Waste of Money? Let’s Break It Down
Travel insurance is one of those things most of us know we should think about, but often skip at checkout. It feels confusing, expensive, and unlikely that you’ll actually need it. In this episode, I sit down with Lisa Jarvis, travel insurance and passenger rights expert, to break down what travel insurance really covers, the biggest misconceptions around it, and how it can actually save you money when things don’t go as planned.
iTunes | Spotify | YouTube | Audible
Why Even Consider Travel Insurance?
Lisa Jarvis didn’t always swear by travel insurance. In fact, her passion for it comes from learning the hard way.
On her family’s first big international trip, her young daughter broke her arm just days into the vacation. Despite calling their U.S. health insurance provider beforehand and being told they were “covered,” the reality was very different.
The result?
A hospital bill they had to pay on the spot
Zero coverage from their U.S. insurance
A very stressful situation in a foreign country
The biggest takeaway: Most U.S. health insurance plans do not cover international medical expenses the way we assume they do.
Travel insurance isn’t about expecting something bad to happen. It's about being protected if it does.
The Biggest Misconceptions About Travel Insurance
Let’s clear a few things up:
“It’s way too expensive.”
In reality, travel insurance usually costs 5–10% of your total trip cost. With the right strategy, it can be much less.“They’ll just deny my claim.”
Claims are often denied when travelers buy the wrong policy or don’t understand what they’re purchasing.“I’m probably not going to need it.”
True. Most of the time you won’t. But when you do need it, it can save you thousands (or even hundreds of thousands) of dollars.
What Travel Insurance Can Actually Cover
Not all policies are created equal, which is why Lisa strongly recommends choosing coverage based on your specific trip.
Some key inclusions to look for:
Medical coverage (especially internationally)
Emergency medical evacuation
Trip cancellation or interruption
Trip delay coverage (hotel, food, transportation)
Natural disaster evacuation (available with select providers)
Extreme sports add-ons (often surprisingly affordable)
Example: Lisa added an extreme sports rider for paragliding on a Switzerland trip. It only cost $16.
Domestic Trips: Is Insurance Still Worth It?
Lisa used to recommend insurance only for international travel, but not anymore.
With increasing flight delays, cancellations, and unpredictable travel disruptions, trip delay coverage alone can make a big difference.
Many policies offer:
Coverage after a 3–6 hour delay
Around $200 per person per day for food and hotels
For families traveling together, that adds up quickly and turns a stressful delay into a manageable (or even comfortable) experience.
The Truth About “Protect My Trip” Boxes
We’ve all seen those checkout boxes that ask if you want to “protect your trip” when booking flights or hotels. Here’s what you should know:
Airline policies usually only cover the flight
Medical coverage is typically not included
Delay coverage often requires very long delays (sometimes overnight)
You often can’t review the policy details before buying
Lisa’s verdict? Click “no”. It’s not as great as it seems.
What About Credit Card Travel Insurance?
Travel credit cards can offer useful protections, but they’re limited.
What they’re great for:
Rental car insurance
Some trip cancellation benefits
Where they fall short:
Medical coverage (often capped around $2,500)
Emergency evacuation
Pro tip: Lisa combines credit card benefits with a custom travel insurance policy, sometimes paying as little as $78 for a family of five on a two-week international trip.
Annual Travel Insurance Plans: Too Good to Be True?
Annual plans sound amazing, but they’re best suited for frequent domestic business travelers or people flying weekly or monthly.
They typically:
Offer less comprehensive coverage
Exclude trip cancellation
Require add-ons that increase cost
For most leisure travelers, individual trip policies offer better value.
Why Knowing Your Policy Matters
Travel insurance only works if you know how to use it.
Lisa shared a story of a flight cancellation in Germany where knowing their policy allowed her family to:
Book a luxury airport hotel
Enjoy room service and downtime
Cover expenses confidently and without stress
Meanwhile, other passengers were:
Standing in long lines
Paying out of pocket
Stressed and exhausted
Knowledge = comfort.
How to Save Money on Travel Insurance
One of the most overlooked tips? Only insure what you can’t get back.
When entering trip costs:
Exclude refundable hotels
Exclude food and daily expenses
Exclude flights you’re okay receiving credits for
You’re insuring risk, not your entire vacation budget.
Where to Learn More
If you want personalized help finding the right coverage (without overpaying), Lisa recommends having a conversation first.
You can find her at:
Travel Insurance Plans & Advice
Free travel insurance consultations are available! No pressure. No obligation. Just clarity.
Travel insurance doesn’t have to be complicated or expensive.
With the right information and the right policy, it can be one of the smartest (and most comforting) decisions you make before your next adventure.