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Texas Department of Insurance
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August 19, 2021

Could a travel insurance policy pay off on your next trip?

Air travel is hitting pandemic highs—a record 2.2 million people went through airport checkpoints during the first Sunday in August, according to the U.S. Transportation Security Administration.

Still, there’s a lot of uncertainty to travel these days. So for our new video, we talked to the U.S. Travel Insurance Association about protecting your travel plans.

You can buy travel insurance that covers things you already paid for, such as flights, cruise tickets, or hotel deposits. You can also buy a “cancel for any reason” policy, which pays back about 50 to 70% of the cost of your trip if you if you cancel for any reason—or even no reason.

How do you know if you need travel insurance? Well, think about what you’d have to pay if you had to cut your trip short. Could you afford another ticket? What if you had to book an extra night in a hotel? Or if you had to be evacuated for medical reasons? If you can’t cover those costs, consider buying travel insurance.

Travel insurance typically costs between 5 and 10% of the cost of your trip. Adding “cancel for any reason” coverage will cost 40 to 70% more. And while most policies don’t cover the COVID pandemic itself, they may cover things like a quarantine, sickness, job loss, bad weather, or a government-mandated airport shutdown.

Read our tips: Travel insurance: What does it cover and when do you need it?