Costco Travel Insurance Review
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Costco Wholesale
Pros
- Costco members receive discounted pricing.
- Coverage options for domestic or international travel, as well as cruises or for rental cars only.
- Higher coverage limits than credit card travel benefits.
Cons
- Only one level of coverage is available, and customization is limited.
- Annual or multi-trip plans are not available.
Costco Wholesale
Pros
- Costco members receive discounted pricing.
- Coverage options for domestic or international travel, as well as cruises or for rental cars only.
- Higher coverage limits than credit card travel benefits.
Cons
- Only one level of coverage is available, and customization is limited.
- Annual or multi-trip plans are not available.
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.
» Learn more: What to know before buying travel insurance
What does Costco travel insurance cover?
Members tend to love Costco and often look to see if it offers products and services before looking elsewhere.
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.
International vacation packages
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.
Domestic vacation packages
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.
Cruises
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.
Rental cars
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.
Howver, many travel credit cards include similar coverage and benefits — so you might already have travel insurance on a card in your wallet.
You should consider skipping Costco Travel Insurance coverage if you have a credit card that includes complimentary rental car protection, such as the Chase Sapphire Preferred® Card.
This card includes primary coverage for physical damage to or theft of a covered rental vehicle.
» Learn more: How rental car insurance works on your credit card
Upgrade options
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.
Comparison of Costco travel insurance plans
This chart highlights the coverage limits and benefits you’ll receive from the different Costco travel insurance plans.
Domestic | International | Cruise | Rental Car | |
|---|---|---|---|---|
Trip cancellation | Up to 100% of trip cost (max of $100,000). | Up to 100% of trip cost (max of $100,000). | Up to 100% of trip cost (max of $100,000). | N/A. |
Trip interruption | Up to 150% of trip cost (max of $150,000). | Up to 150% of trip cost (max of $150,000). | Up to 150% of trip cost (max of $150,000). | Up to 100% of trip cost (max of $100). |
Return air only benefit | $1,000. | $1,000. | $1,000. | N/A. |
Travel companion hospitalization | $250 per day. | $250 per day. | $250 per day. | N/A. |
Travel delay | $2,000 ($200 per day). | $2,000 ($200 per day). | $2,000 ($200 per day). | N/A. |
Lost baggage | $1,000 ($500 per item). | $3,000 ($500 per item). | $3,000 ($500 per item). | N/A. |
Baggage delay | $200. | $200. | $200. | N/A. |
Cancel For Any Reason | Up to 50% of trip cost (max of $10,000). | Up to 50% of trip cost (max of $10,000). | Up to 50% of trip cost (max of $10,000). | N/A. |
Missed connections for air and cruises only benefit | $1,000. | $1,500. | $1,500. | N/A. |
Rental car damage | $50,000. | $50,000. | $50,000. | $50,000. |
Emergency evacuation and repatriation | $500,000. | $1,000,000. | $1,000,000. | N/A. |
Emergency medical expense | $100,000. | $200,000. | $200,000. | N/A. |
Hospital admission guarantee | N/A. | $15,000. | $15,000. | N/A. |
Emergency dental expense | $1,000. | $1,000. | $1,000. | N/A. |
Common carrier accidental death | $50,000. | $50,000. | $50,000. | N/A. |
Accidental dismemberment | $50,000. | $50,000. | $50,000. | N/A. |
How much does Costco travel insurance cost?
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.
Policy type | Destination | Length of trip | Trip cost | Premium |
|---|---|---|---|---|
International | Spain. | 10 days. | $6,000. | $300. |
International | Spain. | 30 days. | $20,000. | $1,000. |
Domestic | U.S. | 7 days. | $6,000. | $270. |
Domestic | U.S. | 20 days. | $20,000. | $900. |
Cruise | U.S | 7 days. | $10,000. | $500. |
Rental car | U.S. | 7 days. | N/A. | $44. |
Rental car | U.S. | 30 days. | N/A. | $170.50. |
* 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.
» Learn more: The best travel credit cards right now
Which Costco travel insurance plan is best for me?
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.
What isn’t covered by Costco travel insurance?
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.
Pre-existing 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.
Is Costco travel insurance worth it?
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.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are some of the best travel credit cards of 2024:
Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card
No annual fee: Wells Fargo Autograph℠ Card
Flat-rate travel rewards: Capital One Venture Rewards Credit Card
Bonus travel rewards and high-end perks: Chase Sapphire Reserve®
Luxury perks: The Platinum Card® from American Express
Business travelers: Ink Business Preferred® Credit Card
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