Costco Travel Insurance Review

When something goes wrong on your trip, having travel insurance protects you personally and covers eligible travel expenses.

Many travelers rely on credit card travel protections, but those benefits generally have lower limits and only cover reservations made with that card.

If you’re considering buying Costco travel insurance, here’s what you need to know, including what it covers, how much it costs and which plan is right for you.

When planning a trip, members might ask, “Does Costco sell travel insurance?” so they can protect their vacation. Costco offers several different types of travel insurance coverage based on the type of trip you are taking.

Insurance policies are offered by Cover-More Inc., a company of Zurich. To simplify coverage and premiums, Costco only offers one insurance option for each type of vacation.

For vacation packages outside of the U.S., Costco members can choose an international travel policy. These policies generally offer the highest coverage limits and are designed for trips to all eligible countries around the world.

Travelers staying within the U.S. can get a travel insurance policy from Costco to cover their trip. Coverage limits are substantial enough to cover most domestic travel needs.

Whether your cruise is within the U.S. or visiting destinations abroad, cruise travel insurance protects you and your finances. A cruise insurance policy from Costco Travel covers all of your trip, not just the actual cruise.

Instead of buying expensive travel insurance from a rental car company, Costco trip insurance offers coverage to protect your rental car. It covers damage to the rental vehicle and post-departure trip interruption benefits. Rental car protection covers up to the actual cash value of the car. Additionally, it covers rental charges imposed while the car is being repaired.

This coverage is primary, which means that your personal auto insurance is not involved if there are any claims. However, it does not cover injuries or damage to other property.

Many travel credit cards include similar coverage and benefits. You should consider skipping this coverage if your credit card includes complimentary rental car protection.

When buying your policy, there are two upgrade options to increase your benefits.

• Cancel For Any Reason: When you cancel at least three days before departure, you’ll receive up to 50% of your insured trip cost (maximum trip cost of $10,000).

• Rental Car Damage Upgrade: Protect your rental car against collision damage, vandalism, windstorm, hail, fire or flood. Coverage is up to $50,000.

This chart highlights the coverage limits and benefits you’ll receive from the different Costco travel insurance plans.

The price for travel insurance policies varies based on your destination, trip length, where you live and how much you spend per person. To lower your insurance premium, only include the prepaid, nonrefundable portion of your trip.

In this chart, you’ll find sample quotes for different types of trips. The scenarios vary by destination, length of trip and cost to highlight how premiums can change.

* Quoted rates as of July 2023.

When pricing out vacation package travel insurance, the primary factor in determining the premium is the covered amount. In these scenarios, a domestic trip offered a 10% discount compared to an international trip with the same trip cost. The length of the trip did not affect premiums, except when buying rental car coverage.

• Costco members receive exclusive discounted pricing.

• Easily obtain a quote and buy your policy online.

• Higher coverage limits than credit card travel benefits.

• Policies are issued by another company, not Costco.

• Does not offer multiple levels of coverage.

• Cannot customize protections to suit your needs.

• Travel policies cover single trips; annual plans are not available.

Since Costco travel insurance doesn’t offer different levels of coverage, the best policy for you depends on what type of vacation you’re planning. Travel insurance from Costco has one level of benefits and coverage limits for all members.

Travel insurance offers numerous protections that cover you, your travel companions and your nonrefundable, prepaid reservations. Before buying your policy, it’s important to understand what isn’t covered.

• Preexisting conditions. Injuries and illnesses that travelers already had before buying their policies are generally excluded from travel insurance. You may be eligible for a waiver of this exclusion, depending on your policy and travel details, as long as you buy coverage within 21 days of your initial trip payment.

• Refundable reservations. Reservations that you can cancel and get a refund for are not covered. Simply contact the airline, hotel or other travel provider and cancel directly with them.

• High-risk activities. Activities that take an unreasonable amount of risk of injury or death, like bungee jumping or parachuting, are excluded.

• Intentional acts. Injuries, illness or losses resulting from self-inflicted actions, like drug use, intoxication or self-harm, are not covered.

• Specifically designated events. Natural disasters, war, epidemics and similar events are excluded.

While many travelers rely on their credit card travel insurance benefits, buying a separate travel insurance policy can be worth it.

Costco travel insurance offers higher coverage limits than what’s available through your credit card. The policies are reasonably priced, and you can easily get a free quote online in minutes.

If you’re ready to purchase, you can buy your policy online without speaking to an agent.