Do You Need Travel Insurance in 2025? What It Really Covers
What Does Travel Insurance Cover?
Travel insurance in 2025 goes far beyond lost luggage. Today’s policies offer wide-ranging protection against unexpected travel disruptions, medical emergencies, and trip cancellations. Here are the key benefits typically included:
- Trip Cancellation/Interruption: Reimbursement for non-refundable expenses if your plans are interrupted by illness, weather, or emergencies.
- Medical Expenses: Coverage for accidents or illnesses abroad — often up to $500,000 or more.
- Emergency Evacuation: Pays for transportation to the nearest medical facility or return home if needed.
- Baggage Loss/Delay: Compensation for lost or delayed baggage and personal items.
- 24/7 Assistance: Many insurers offer concierge or emergency support while traveling.
Optional add-ons may include rental car protection, “Cancel for Any Reason” (CFAR) coverage, and adventure sports riders.
COVID-19 and Cancellation Coverage in 2025
COVID-19 is still a factor in global travel, and many travelers want reassurance that they’re covered. Most modern policies now include:
- Cancellations due to COVID-19 illness or quarantine
- Medical coverage if you contract COVID-19 abroad
- Trip interruption coverage for delayed test results or border closures
However, not all policies offer coverage if you simply choose not to travel due to COVID concerns. For that, you’ll need a CFAR policy, which typically reimburses 50%–75% of trip costs and must be purchased within 14–21 days of booking your trip.
Top Travel Insurance Providers & Pricing (2025)
These are the most trusted travel insurers this year, known for value, customer service, and coverage flexibility:
| Provider | Notable Features | Avg. Cost (7-day trip) |
|---|---|---|
| SafetyWing | Great for nomads & long trips, COVID-19 included | $40–$60 |
| Allianz Travel | Annual and single-trip plans, reliable global network | $60–$100 |
| Travel Guard (AIG) | CFAR available, strong cancellation support | $70–$110 |
| World Nomads | Adventure sports coverage included | $65–$95 |
| AXA Assistance USA | Affordable family-friendly plans | $50–$80 |
*Prices vary based on traveler age, destination, and trip cost.
Credit Card Travel Coverage vs. Stand-Alone Policies
Many credit cards offer built-in travel protections — but how do they compare to stand-alone policies?
| Feature | Credit Card Coverage | Stand-Alone Policy |
|---|---|---|
| Trip Cancellation | Limited ($1,500–$10,000) | Full trip cost |
| Medical Coverage | Rare or minimal | Up to $500,000+ |
| Evacuation | Usually not included | Often included |
| Custom Add-Ons | No | Yes |
| Cost | Free with card | Premium varies |
Bottom line: Credit card coverage is useful for minor issues, but it’s no substitute for full medical or evacuation protection — especially for international travel or expensive trips.
When Travel Insurance Is Worth Buying
Travel insurance isn’t necessary for every trip, but here are situations where it’s absolutely worth considering:
- International travel, especially to countries with expensive healthcare
- Trips costing more than $1,000 per traveler
- Travel during hurricane season or winter
- You have non-refundable flights, cruises, or prepaid lodging
- You or a loved one have health concerns that might impact travel
For domestic or low-cost trips, a credit card’s coverage may suffice. For anything more significant — especially international — it’s smart to get a stand-alone policy.
Get a Quote from These Trusted Providers
- Explore Plans at SafetyWing (Affiliate)
- Get a Quote from Allianz (Affiliate)
- Compare Options at Travel Guard (Affiliate)
- Adventure Coverage from World Nomads (Affiliate)
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