Do I need to purchase travel insurance from Costco?

Welcome to Ask Clark, a column designed to answer your financial questions, by money expert Clark Howard.

Do I need to purchase travel insurance through Costco?

Shawn from Georgia asks: “I read your article on travel insurance and I have a question: we are buying a cruise through Costco Travel.

“They have travel insurance on their website, but you suggest going to a third party to get insurance. Is Costco a trusted provider of travel insurance, or should I go to this third party? ”

Clark’s take on whether to buy travel insurance through Costco

Clark says: “The cost of travel insurance with Costco, from what I’ve seen, is another benefit for Costco members. “

“Insurance is significantly cheaper buying from than through the third-party travel insurance websites that I normally recommend,” Clark said.

Clark generally recommends for travel insurance because the site allows you to compare multiple policies. But because Costco Travel saves members 10% on their entire trip, he thinks its travel insurance options are worth checking out.

Costco travel insurance is actually administered by Cover-More, a partner site that writes policies underwritten by Zurich American Insurance Co.

What does Costco travel insurance cover?

To see what Costco travel insurance covers a typical international trip, I entered information about a seven day stay in Puerto Rico from Atlanta. Here’s what the International Travel Protection Plan covered:

Costco International Travel Protection Plan
Screenshot via

The cost of this travel insurance policy was $ 71.80 in December 2021.

For an additional $ 28.78, you can get these two add-ons:

  • Cancellation coverage for any reason: You can cancel at least three days before the scheduled departure date and recover up to 50% of the cost of the insured trip (maximum cost of the trip $ 10,000).
  • Rental car damage upgrade: It covers up to $ 50,000 per plan for damage caused by collision, vandalism, windstorms, hail, fire or flooding of a rental car.

With the addition of the two upgrades, the travel insurance policy amounted to $ 100.58.

How to get the best price on travel insurance

Clark says the best way to get cheap travel insurance is to shop around.

I would compare the premiums and coverage you can get through that link on Costco Travel versus what you would see with a major issuer on InsureMyTrip, ”he says.

“You can also compare the same issuer on a third-party site to the one they’re selling the policy for on Costco,” he adds.

Here’s what you need to know about Costco Travel.

To hear Clark’s full take on this issue, listen to the segment:

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