The decision to insure or not depends on six variables. Walk through them and the answer becomes clear.
The six variables
1. Trip value
- Under $2,000: typically self-insure
- $2,000-$5,000: optional, premium credit card insurance often sufficient
- $5,000-$15,000: insure
- $15,000+: insure including CFAR
2. Refundability
- Fully refundable: minimal coverage needed
- Partially refundable: coverage for the gap
- Non-refundable: full coverage
3. Destination
- Domestic US: medical may not be needed (you have US health insurance)
- International: medical critical
- Remote/exotic: medical evacuation important
- Adventure travel: specialised coverage
4. Age
- Under 50: standard rates
- 50-65: rates increase, pre-existing condition more important
- 65+: rates higher, exclusions more common
5. Health
- Healthy with no pre-existing: standard
- Pre-existing condition: must declare or claim may fail
- Serious condition: specialist insurance
6. Travel companions
- Solo: standard
- Couple: standard
- Family with children: family policy
- Group: separate policies typically
Decision matrix
Always insure
- $5,000+ non-refundable
- International medical needed
- Adventure travel
- Pre-existing condition (with proper declaration)
Often insure
- $2,000-$5,000 non-refundable
- Group trips
- Trips with children
Sometimes insure
- Fully-refundable trips with significant prepaid components
- Domestic trips with concerns about specific risks
Probably skip
- Sub-$2,000 fully-refundable trips
- Domestic trips with no medical concerns
CFAR (Cancel For Any Reason)
CFAR is the premium add-on. Reimburses 50-75% of trip cost for any reason. Costs 40-50% more than standard.
When CFAR makes sense
- Trip uncertain due to work, family, or health
- Very expensive trip with non-refundable components
- Group trip where cancellation by one affects others
- Honeymoon or special occasion travel
When CFAR doesn't
- Trip is largely refundable
- Standard reasons cover your concerns
- Trip is short enough that the premium isn't worth it
Buying timing
When to buy
Within 14 days of initial deposit for "look-back" benefits (pre-existing condition coverage waiver). Buy as soon as you have the deposit confirmed.
Don't buy after
The trip starts. Coverage typically can't be added after departure.
Premium credit card coverage
Cards that include trip insurance:
- Chase Sapphire Reserve: $10K trip cancellation, primary auto
- Amex Platinum: trip insurance via The Platinum Card
- Capital One Venture X: trip insurance included
- US Bank Altitude Reserve: similar coverage
For trips $5K-$15K, premium card coverage is often sufficient. For $15K+, supplement with comprehensive policy.
Five rules
- Insure $5,000+ non-refundable trips always
- International medical is the key — US health doesn't cover
- CFAR for uncertain or expensive trips
- Buy within 14 days of deposit for "look-back"
- Premium card insurance often sufficient for $5-$15K trips
For more, see the insurance pillar.