Is Costco Travel Insurance Worth It? A Comprehensive Review

Traveling can be exciting, but things don’t always go as planned. Flight delays, lost luggage, and unexpected medical emergencies can ruin a vacation. That’s why travel insurance is so valuable – it protects your trip investment if something goes wrong. But is Costco’s travel insurance worth buying? I reviewed the details so you can decide if it’s right for your next adventure.

Overview of Costco Travel Insurance

Costco partners with Cover-More, a division of Zurich Insurance, to offer travel insurance to its members The plans are reasonably priced and tailored to different types of vacations.

Here are the key details:

• Specific plans for international, domestic cruise and rental car coverage. This simplifies choosing a policy.

• One coverage level per plan type. No need to pick from good, better, best options.

• Upgrades available for cancel for any reason and rental car damage.

• Only covers trips booked through Costco. You must purchase travel through them to buy insurance.

• Prices based on trip cost and length. More expensive and longer trips cost more to insure.

While Costco keeps it simple, that means you can’t customize coverage. And you can only insure Costco vacations.

What Does Costco Travel Insurance Cover?

Costco offers plans to protect different types of vacations. Here are the key benefits included:

International Travel

• Trip cancellation up to $100,000
• Trip interruption up to $150,000
• Baggage loss up to $3,000
• Travel medical up to $200,000

Domestic Travel

• Trip cancellation up to $100,000
• Trip interruption up to $150,000
• Baggage loss up to $1,000
• Travel medical up to $100,000

Cruise Vacations

• Trip cancellation up to $100,000
• Trip interruption up to $150,000
• Baggage loss up to $3,000
• Travel medical up to $200,000

Rental Cars

• Damage to rental car up to $50,000
• Trip interruption up to $100

One notable exclusion is pre-existing medical conditions. They are generally not covered, which is important for travelers with health issues.

For a full overview of what’s included and excluded, check Costco’s policy documents.

How Much Does Costco Travel Insurance Cost?

Costco insurance rates vary based on trip details like:

• Destination
• Trip length
• Trip cost per person

On a $6,000, 10-day trip to Spain, prices start around $300. For a $20,000, 30-day Spain vacation, expect closer to $1,000. Domestic trips cost about 10% less than comparable international ones.

Upgrades like rental car damage coverage and “cancel for any reason” raise rates more.

Costco’s website offers real-time quotes. Just enter your trip details to see pricing. Members get discounts too.

Which Plan Is Right for You?

With one coverage level per plan, choosing is straightforward:

International: Broad protection for overseas trips. Highest limits of any option.

Domestic: All-inclusive coverage for U.S. vacations. Lower trip cost limits than international.

Cruise: Protects pre- and post-cruise time in addition to onboard. Similar to international.

Rental Car: Damages and liability for rental vehicles. Much lower cost than other plans.

Compare each policy’s details to your trip and preferences. For complex or customized coverage, a dedicated travel insurer may be better.

Is Costco Travel Insurance Worth It?

Here are the key pros and cons to weigh:

Pros

• Included coverage aligns with common trip risks
• Higher limits than many credit card policies
• Reasonable pricing, especially for Costco shoppers

Cons

• Pre-existing conditions have limitations
• Only one coverage level to choose from per plan
• Can only insure Costco vacation packages

For Costco members booking travel through their site, the convenience and pricing make their insurance worthwhile. It’s a good baseline level of protection.

However, travelers with pre-existing conditions or who want customized coverage may prefer insurers like Allianz, Travelex, or WorldNomads.

The bottom line? Costco travel insurance delivers simplicity and value if you book through Costco. For maximum flexibility, choose a dedicated travel insurer.

Frequently Asked Questions

Still have questions? Here are answers to some common queries:

Does Costco offer travel insurance?

Yes, Costco partners with Cover-More and Zurich Insurance to offer trip protection policies to members.

Can anyone buy Costco insurance?

You must be a Costco member to purchase their travel insurance. It’s not available to non-members.

Can I buy Costco insurance for trips not booked through Costco?

Unfortunately, no. Their plans only cover vacations purchased on Costco’s travel site.

What pre-existing conditions are excluded?

Most pre-existing medical conditions are limited or excluded. Review policy documents for details. Waivers may be available.

Can I get a quote and buy online?

Yes, you can price policies on Costco’s website and complete the purchase online as well. No agent required.

The Bottom Line

Costco Travel Insurance simplifies trip coverage with one plan level per vacation type. For members booking through Costco, it provides solid protection at reasonable rates. Just be aware of pre-existing condition limitations and the inability to insure non-Costco trips. For maximum flexibility, a dedicated insurer may be better. But for peace of mind on Costco packages, their travel insurance is worth considering.