Quick Answer

Budget around 4 to 10 percent of your prepaid, non-refundable trip cost for a comprehensive policy — roughly 6 percent on average, so about $307 for a typical 15-day trip. A medical-only plan is far cheaper at around $5 a day (about $35 a week). Age, destination, trip length and adventure-sport add-ons all move the price.

Read the full guide: Do You Need Travel Insurance? A 2026 Decision Guide

Do you actually need travel insurance?

For emergency medical cover, yes — that’s the part that protects you from real financial ruin. A hospital stay or air ambulance abroad can run into tens of thousands of dollars, and most home health plans either don’t apply overseas or only reimburse after you’ve paid up front. Trip cancellation and baggage cover are optional extras; emergency medical is the non-negotiable core. That same logic applies to rental cars abroad — check what insurance you need for a rental car in Iceland before you drive off, since a basic policy often excludes exactly the damage you’re most likely to cause.

What does travel insurance actually cover?

A comprehensive policy typically covers emergency medical treatment and hospitalization, emergency evacuation and repatriation, trip cancellation and interruption, travel delay, and lost or delayed baggage. Emergency evacuation alone can cost $25,000 to $250,000 internationally, which is why medical and evacuation limits matter far more than the baggage line. Pair that with a card that skips foreign transaction fees and you’ve covered the two biggest hidden costs of a trip abroad — our answers guide has more of these quick money questions.