Is travel insurance worth it for holiday travel in 2026?

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By

Angelica Leicht

Senior Editor, Managing Your Money

Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.

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November 6, 2026 / 8:35 AM EST / CBS News

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Holiday travel tends to involve a lot of financial commitments, many of which are made well before the trip begins. Flights may be booked months ahead, hotels can require hefty deposits at the time of booking and families traveling together can end up putting thousands of dollars toward a single trip during the holiday season. And once those travel reservations are made, changing plans isn't always cheap.

There are also plenty of ways for those plans to unravel. A canceled flight could leave you scrambling for another way to reach your destination, an illness could force you to cancel the trip entirely or a delayed connection could mean paying unexpectedly for a hotel and meals. When several travelers are involved, the potential costs that come with changing your travel plans can add up quickly.

That's where travel insurance enters the equation. This type of policy adds another expense to an already costly trip, though, and the protection it provides can vary significantly depending on the policy and circumstances. So before paying for coverage for holiday travel in 2026, it helps to understand what you're actually protecting against — and what you're paying for.

Compare your top travel insurance policy options online today.

Is travel insurance worth it for holiday travel in 2026?

There's no universal answer to whether travel insurance is worth buying for a holiday trip. The value of a policy depends largely on the cost and complexity of the trip, the financial risks involved and how much protection you already have. These factors can help determine whether paying for additional coverage makes sense. Here's what to consider during the decision-making process:

Consider how much money you could lose

One of the biggest factors to weigh is how much of the trip is prepaid and nonrefundable. If you're taking a relatively inexpensive domestic trip and can cancel the hotel without penalty, for example, there may be relatively little money at risk.

The calculation can look different for a $6,000 family vacation with nonrefundable airfare, prepaid accommodations and other bookings, however. If an unexpected illness or another covered event forces you to cancel, the financial loss could be substantial.

That's important because standard trip cancellation coverage generally reimburses prepaid, nonrefundable expenses only when the cancellation stems from a covered reason listed in the policy. Simply deciding not to travel typically won't qualify. Travelers who want broader flexibility may need "cancel for any reason" coverage, which generally costs more and typically reimburses only a portion of eligible expenses.

Compare options for protecting your holiday travel plans now.

Think about how complicated your itinerary is

The more moving parts your trip has, the more opportunities there may be for something to go wrong. A nonstop flight to visit family may present fewer financial risks than an international itinerary involving connecting flights, multiple hotels, a cruise or prepaid tours.

Holiday travel can also leave less room to recover from disruptions. If a flight is canceled and the next available seat isn't until two days later, for example, that delay could affect hotel reservations, rental cars and other prepaid plans.

Travel insurance with trip delay or interruption benefits may help cover certain additional expenses in those situations, provided the disruption meets the policy's requirements. But policies often have minimum delay periods, reimbursement limits and specific covered reasons, so it's important to review those details before buying.

Determine whether you need medical coverage

Medical coverage may be another reason to consider travel insurance, particularly for international trips. Your existing health insurance may provide limited coverage abroad — or none at all — and Medicare generally provides limited coverage outside the U.S.

Travel medical insurance can help pay for eligible emergency treatment, while emergency evacuation coverage can help with potentially substantial transportation costs if you need to be moved to an appropriate medical facility.

For a domestic trip, however, existing health insurance may already provide much of the medical protection you need. That can make this portion of a travel insurance policy less valuable, depending on your coverage and destination.

Check the protection you already have

Before buying a standalone travel insurance policy, take inventory of the benefits already available to you. Some travel credit cards include protections such as trip cancellation and interruption insurance, baggage coverage, rental car protection or reimbursement for certain travel delays.

Airlines and hotels may also offer flexible cancellation or rebooking options, particularly if you've purchased refundable reservations. In those cases, buying a comprehensive policy could mean paying for some coverage you already have.

That doesn't necessarily make travel insurance unnecessary. Credit card benefits can have narrower coverage, lower limits or different eligibility requirements than a standalone policy. Comparing the protections side by side can help identify any meaningful gaps.

Read the exclusions before deciding

Travel insurance isn't designed to reimburse every expense caused by every travel problem. Policies typically contain exclusions, coverage limits and documentation requirements that can determine whether a claim is paid.

For example, a policy may cover certain weather-related cancellations or delays but not reimburse you simply because you're worried that bad weather could disrupt the trip. Known or foreseeable events may also be excluded, and coverage for pre-existing medical conditions may require meeting specific eligibility requirements.

So, don't base the decision solely on the policy's price or headline benefits. Review the covered reasons, exclusions, reimbursement limits and claim requirements. A cheaper policy that doesn't cover the risks you're most concerned about may offer less value than it initially appears to.

The bottom line

Whether travel insurance is worth the added cost for holiday travel in 2026 depends on what's at stake. Travelers with expensive, nonrefundable reservations, complicated itineraries or international medical coverage needs may have more financial exposure to protect. Those taking inexpensive, flexible trips — particularly when existing credit card or health insurance benefits provide adequate protection — may have less need for a separate policy.

Either way, the decision is best made by looking at the potential loss rather than the trip price alone. Determine what would happen financially if you had to cancel, experienced a lengthy delay or faced an emergency away from home, then compare that risk with the cost and limitations of the coverage available.

Edited by Matt Richardson