Is Travel Insurance Worth It?
How to decide on insurance, and what the law says about carrying cash.
Ask Mister Travel a QuestionTwo money questions come up constantly: is travel insurance worth it, and how much cash can you carry on a plane? Here is how to decide on insurance, and what the law says about cash.
On this page:
Is travel insurance worth it?
Short answer: Usually yes for expensive non-refundable trips and for travel abroad, where your health plan may not pay. Less so for cheap, refundable trips.
Travel insurance is worth it when the money you could lose, or the medical bills you could face, would really hurt. It is often not worth it for an inexpensive, refundable domestic trip.
Ask yourself three questions:
- How much is prepaid and non-refundable? Trip-cancellation cover reimburses those costs if you have to cancel for a covered reason, such as illness, a family emergency or a hurricane.
- Does my health insurance work where I am going? Many U.S. health plans pay little or nothing abroad, and Medicare generally does not cover care outside the U.S. Travel medical cover, and especially medical evacuation, matters most on international trips and cruises.
- What do I already have? Some credit cards include trip-delay, cancellation or baggage cover when you pay for the trip with them. Read the terms before buying a duplicate.
Timing matters. Benefits such as cover for pre-existing medical conditions, or “cancel for any reason” upgrades, are often available only if you buy soon after your first trip payment. And read what is excluded: a policy pays for the reasons it lists, not for every change of plan.
Our sister site Cruise & Travel Insurance explains what each kind of cover does and when to buy it.
How much cash can I carry on a plane?
Short answer: There is no legal limit, but more than $10,000 must be reported to CBP when entering or leaving the U.S. On domestic flights, large sums may draw questions.
There is no legal limit on how much cash you can carry, but there are reporting rules and practical risks.
International travel: if you carry more than $10,000 in total — U.S. or foreign currency, traveler’s checks, money orders and similar monetary instruments combined — into or out of the United States, you must report it to U.S. Customs and Border Protection on FinCEN Form 105. Carrying the money is legal; failing to report it can lead to the whole amount being seized. See CBP guidance on carrying money. Many other countries have their own declaration thresholds, so check your destination too. Domestic flights: there is no reporting requirement, and TSA screens for security threats rather than money. Officers may still notice large amounts of cash, and law enforcement can ask about it, so keep documentation if you are carrying a large sum for a legitimate reason. How much cash should you take? Usually far less than people think. Cards are accepted almost everywhere; a debit card for ATM withdrawals, a credit card without foreign transaction fees and a modest amount of local currency for taxis, tips and small shops cover most trips. Tell your bank you are traveling, keep a backup card in a different place, and use ATMs inside banks.Money Habits That Save Trouble
- Pay for trips with a card that offers purchase protection or travel cover, and keep the confirmation emails.
- Carry two cards from different banks and keep them in different places.
- Use a credit card with no foreign transaction fees abroad, and choose to pay in the local currency when a card terminal asks.
- Write down your card issuers’ international phone numbers in case a card is lost.
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