Is It Worth It To Add Costco Travel Insurance When Booking? Here's What Redditors Think

Ah, the age-old question: to travel insurance or not to travel insurance. When booking a trip, especially one with a large group, you're probably trying to save money wherever you can. This usually means that travel insurance is the first thing to go. Who needs travel insurance anyway? Well, it turns out maybe you do.

Costco Travel is a great way for members to book an international vacation on a budget. While some users complain of the clunky website design, the affordable price is undeniable. While Redditor u/nick_popilopicus was pleasantly surprised by the trip's low price, they didn't think the travel insurance was worth it. "Travel insurance for our trip was a little over $650!" they wrote. "I thought the price was absurd. I used a travel card to book the trip that automatically includes travel insurance, so I declined Costco's coverage." This is a common reaction for many travelers. Seeing the hundreds you could save while opting out of travel insurance is tempting, but it may end up costing you more in the long run. Travel insurance is meant to protect travelers' money from common vacation snafus like delayed flights, unexpected sicknesses, and lost luggage. But how do you decide if it's actually worth it to invest in travel insurance?

Costco Travel Insurance can protect travelers from losing money on things they could never plan for, such as missed connection flights, medical emergencies, and baggage loss. This is especially helpful for expensive, international trips, as some people could lose thousands of dollars without travel insurance if they end up getting sick or needing to cancel a trip at the last minute. 

One user under the aforementioned Reddit post noted that the hefty price may be worth it, writing, "We did purchase insurance, which was expensive, but after having to cancel all pre-paid travel in 2020, I'll never not buy it for big trips."

Another Reddit user noted that while the price seems large, it's to be expected for a good policy and is relatively low when compared to competitors. u/trilliumsummer wrote, "Travel insurance is based on the coverage, cost of the trip, and age of those covered. The rule of thumb is 5-8%. The last time I bought Costco's, which was a while ago, it was top-of-the-line coverage and cheaper than alternatives, unless you get a lot less coverage."

Costco Travel Insurance is funded through the Zurich Insurance Group and can be purchased when booking a trip through Costco Travel. You can add insurance after booking the trip, but the trip has to be booked through Costco. Costco only has a few plans and only one option for international travel, which could be seen as a drawback for folks looking for a more flexible plan. However, Costco's International Travel Protection Plan covers 100% of non-refundable trip costs, $200,000 in medical expenses, $3,000 in lost baggage, and several other benefits. Customers can also pay more to receive the Cancel For Any Reason coverage, which can cover up to 50% of their travel expenses if they cancel for a non-emergency reason.

According to MarketWatch Guides, the average price for a Costco insurance plan is $219. However, the cost varies depending on the number of people you are covering, the destination, and the duration of the trip. Be sure to do your own research and compare other plans to decide if booking with Costco Travel is the right choice for your next vacation.