Travel insurance can provide valuable protection when you’re on vacation. If something goes wrong, like a canceled flight or medical emergency, insurance helps cover your costs. But is Costco’s travel insurance worth buying?
Costco offers travel insurance policies throughCover-More, a division of Zurich Insurance Group. Policies are available for international trips, cruises, domestic U.S. vacations and rental cars.
Here’s what to know about Costco travel insurance and whether it’s worth it for your next vacation.
What Does Costco Travel Insurance Cover?
Costco offers a few different travel insurance options based on your trip type:
International travel: Covers vacations outside the U.S. Offers the highest coverage limits.
Cruise vacations: Protects the entire cruise vacation, not just time on the ship.
Domestic U.S. trips: For vacations within the United States. Lower coverage limits than international policies.
Rental cars: Primary insurance for rental vehicles to replace expensive rental company options.
The main coverages are similar across plans and include:
Trip cancellation: Up to 100% of trip costs if you have to cancel for a covered reason.
Trip interruption: Up to 150% of trip cost to get home if you have to cut your trip short.
Travel delay: Reimburses expenses like hotels and meals if your travel is delayed.
Baggage: Covers lost, damaged and stolen luggage. International and cruise plans offer higher limits.
Medical: Emergency medical and dental care if you’re injured or get sick on your trip.
Evacuation: Transportation to get you to adequate medical facilities in a medical emergency.
Some benefits are upgraded for international and cruise vacations like missed connections coverage. Rental car protection has more limited benefits focused just on the vehicle itself.
You can also add on cancel for any reason coverage and increased rental car damage coverage for extra fees.
How Much Does Costco Travel Insurance Cost?
Costco travel insurance rates are based on:
Trip cost: The dollar amount of your prepaid, nonrefundable trip.
Trip length: Longer trips may have higher premiums.
Destination: International trips often cost more than domestic.
Upgrade options: Cancel for any reason or rental car damage upgrades raise the price.
Here are some examples of Costco travel insurance cost:
- 7-day domestic trip costing $6,000: $270
- 10-day Spain trip costing $6,000: $300
- 30-day rental car: $170
In most cases, expect to pay about 4% to 10% of your total nonrefundable trip cost. Upgrading your policy raises the percentage.
Costco’s website makes it easy to get quotes. Just enter your trip details to see exact pricing. Members can buy policies online without contacting an agent.
Pros of Costco Travel Insurance
High coverage limits: Maximum coverages go up to $200,000 for medical care and $1 million for emergency evacuation.
Cancel for any reason upgrade: Unique upgrade reimburses 50% of trip costs if you cancel more than 48 hours before departure.
Easy online purchase: Quote and buy policies completely online without phone calls.
Good value: Competitive pricing compared to plans from other insurance providers.
Strong backing: Zurich Insurance Group backing provides security and stellar financial ratings.
Cons of Costco Travel Insurance
Pre-existing condition exclusion: Typical for travel insurance, but still problematic for travelers with health issues.
High-risk activities excluded: No coverage for things like scuba diving, mountain climbing or amateur racing.
Weather exclusions: Natural disasters like hurricanes often have special exclusions.
Rental car restrictions: Daily limits and excluded car models apply to rental coverage.
Limited plan options: Only one set of benefits and coverage amounts for each trip type.
What Credit CardsCover
Before buying a Costco policy, check what your credit card covers. Many travel credit cards include some protections:
- Trip cancellation/interruption insurance
- Baggage delay or loss coverage
- Rental car damage coverage
- Travel accident insurance
But credit card protections typically have lower limits, like $1,000 or $2,000. Costco travel insurance offers more robust coverage.
For a big trip or cruise, Costco insurance works well in addition to credit cards. Use the card’s coverage first, then Costco for anything else.
What’s Not Covered by Costco Travel Insurance
Like most insurance policies, Costco travel insurance excludes some things:
Pre-existing medical conditions: Unless you qualify for a waiver when you buy coverage shortly after your first trip payment.
High-risk activities: No coverage for things like extreme sports, racing or stunt flying.
Intentional acts: Injuries or illnesses caused by things like drug use or self-harm.
Natural disasters: Hurricanes, earthquakes and other major weather or events known when you purchase coverage.
Refundable reservations: Anything you can cancel for a full cash refund.
War: Injury or loss due to declared or undeclared war or civil unrest.
Pay attention to exclusions when choosing a travel insurance policy and reading the full terms.
Is Costco Travel Insurance Worth It?
Costco travel insurance can be worth it for the right kind of traveler and trip.
Good for big, expensive vacations: Policies with high coverage limits protect costly trips. Good for cruises, exotic locations or extended travel.
Nice upgrade over credit cards: More robust benefits than even the best travel credit cards. The cancel for any reason upgrade is hard to find.
Peace of mind for worriers: Comprehensive coverage lets anxious travelers relax. Insurance can seem worth it for the trip protection.
Not worth it for everyday trips: Lower cost domestic travel may not need big coverage limits or extra insurance cost. Credit cards work fine.
Is Costco Travel Insurance Right for You?
Think about your upcoming trip and how you handle travel risks. Ask yourself:
How expensive is this vacation? Higher cost trips get more value from insurance.
How worried will I be about potential issues? More nervous travelers appreciate the peace of mind.
Does my credit card already cover some risks like baggage or rental cars? If so, a big policy may not be necessary.
Are we doing risky activities excluded by insurance? Consider passing if you’ll have coverage gaps.
For many frequent travelers going on higher cost trips, Costco insurance can definitely be worth considering. It provides solid protection that goes beyond most credit card coverage. Just be sure to understand what is and isn’t covered before making your purchase.
The Bottom Line
Costco travel insurance provides good value at reasonable prices for members. For international vacations, cruises, and other big trips, it’s worth considering to supplement credit card protections. Make sure to evaluate your trip, risk factors, and existing coverage when deciding if you should buy a policy.
For the right person and the right vacation, Costco insurance can give useful trip coverage and peace of mind. Just know what you’re buying and make sure it fits your needs.
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