Is Travel Insurance Tax Deductible?

Whether you’re in the midst of travel planning during tax season or not, it’s always a good idea to think about how you can save when it comes time to file. For that reason, many travelers ask, “Is travel insurance tax deductible?” The answer is both “yes” and “no.” To help make it clear, we explain what you can deduct below so you have the information you need when planning a vacation.

But First, Plan Your Trip

Before you buy a comprehensive travel insurance policy, though, make sure you book your trip. (And why wouldn’t you? Travel planning on your lunch break is one of the great past times of the working professional!). All kidding aside, though, planning a vacation and making the initial deposits before you invest in a policy could be a money saver. For example, some plans may offer waivers for pre-existing medical conditions if you buy a policy shortly after your first payments. Meanwhile, other policies may only offer trip cancellation for any reason if you purchase them in a specific time frame (e.g. within the first 24 hours after your first trip deposit).

Long story short: If you’re asking, “Is travel insurance tax deductible?” right now, you may be interested in saving money at every step of your travel planning. If so, booking a trip before investing in coverage could both open cost savings during planning and financially protect you if obstacles arise on your trip.

Now That You’re Ready for Travel Insurance, Is It Deductible?

With that out of the way, let’s get down to business: Is travel insurance tax deductible? Like we said, the answer is a little “yes” and a little “no.” Yes, you can deduct travel insurance from your taxes, but only if it’s travel medical insurance. This type of travel insurance qualifies as a medical expense and can be included with other medical expenses in your filing to see if you exceed the threshold necessary to itemize deductions on your tax return.

As for other types of travel coverage, including trip cancellation or coverage for lost or damaged luggage, they’re not considered medical expenses, so they can’t be deducted from your taxes.

There Are So Many Reasons to Insure Your Trip

With that information in mind, a new question you might find yourself asking is, “If I don’t want travel medical insurance, and other types of insurance aren’t tax deductible, should I bother getting coverage?”

If so, the answer to this question is “Yes, there are so many reasons to buy travel insurance.”

First, looking for cost savings via tax deductions could mean you’re interested in finding savings and financial protection in other areas of your life. Travel insurance may be able to offer that protection by reimbursing you if obstacles like flight cancellations, lost or damaged luggage, needs emergency evacuation-and yes, medical assistance-arise.

However, among all the reasons to buy travel insurance, one of the best to remember is that it may be able to grant you some peace of mind. Planning a vacation can be stressful on its own; you shouldn’t have to think about what could go wrong while enjoying your trip. Knowing you’re covered by something like a comprehensive travel insurance policy may be able to help you achieve that when that first vacation day comes.

Find Your Coverage with InsureMyTrip.com

Whether you’re looking for tax deductible travel medical insurance, a comprehensive travel insurance policy, or only one specific type of coverage, the best way to begin your search is by comparing options on InsureMyTrip.com.

As the world’s first travel insurance comparison website, we give you the ability to search and compare plan options from top providers. Our website is also an excellent resource of unbiased travel insurance information, and our dedicated Customer Care team includes licensed professionals who are available to answer your questions about specific policies, inform you of all the reasons to buy travel insurance, and more.

To being looking for the best travel insurance for your needs, start a quote. Then, enjoy your trip.