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 Costco.com than through the third-party travel insurance websites that I normally recommend,” Clark said.

Clark generally recommends InsureMyTrip.com 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 Costco.com

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 Travel.com,” he adds.

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

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