When planning a getaway, travel insurance is often overlooked until something goes wrong. From last-minute cancellations to medical emergencies, a good policy can save you thousands. But where you purchase that coverage can make a big difference. Should you rely on a membership club such as AAA or Costco, or work with a licensed insurance agent? Here’s how the two options compare and how to decide which is right for you.
Buying Through a Membership Club
Membership-based organizations like AAA, AARP, or Costco typically partner with one or two insurance companies to provide pre-arranged plans. These policies are marketed as a perk for members and often come with discounted rates or bundled travel benefits.
Advantages
- Lower Group Pricing: Because these plans are negotiated for large groups, members often pay less up front.
- Simple and Convenient: Coverage can usually be added when booking your trip, making the process quick and easy.
- Trusted Brand Name: Many travelers feel comfortable purchasing insurance from a familiar organization.
Drawbacks
- Limited Choices: You’re restricted to the insurers selected by the club, leaving little room for comparison.
- Generic Plans: The coverage is designed to suit the majority, which means fewer opportunities to tailor the policy to your specific needs.
- Basic Benefits: Many of these group policies offer lower medical coverage limits and rarely include options like Cancel for Any Reason (CFAR).
Best For
This approach suits travelers with straightforward plans—such as a short domestic vacation—who want affordable, no-fuss protection. It’s also appealing for those who prefer to handle travel arrangements and insurance through a single source.
Not Ideal For
If you’re planning a cruise, an extended international trip, or have unique health or cancellation concerns, you may find these plans too limited.
Buying Through a Licensed Insurance Agent
Licensed travel insurance agents work with multiple carriers, allowing you to compare different policies side by side. This means you can adjust coverage based on your itinerary, health requirements, and budget.
Advantages
- Wide Selection: Agents can access dozens of insurers to find the policy that best matches your trip.
- Tailored Coverage: From higher medical limits to CFAR options and adventure sports coverage, you can customize protection to fit your needs.
- Professional Guidance: Agents can explain the fine print, help with waivers, and advise you on claims procedures.
Drawbacks
- A Little More Effort: You’ll likely need to answer questions about your trip and preferences to get a proper recommendation.
- Potentially Higher Premiums: While you control what you buy, more comprehensive plans can cost more than a standard club policy.
- No Member Discounts: Unlike membership clubs, agents don’t typically offer travel-related perks beyond the policy itself.
Best For
This option works well for travelers heading overseas, those with pre-existing medical conditions, or anyone booking expensive, nonrefundable trips who wants stronger and more flexible protection.
Not Ideal For
Short domestic getaways or trips already covered by credit card benefits may not require the extra effort or expense of a tailored policy.
Side-by-Side Snapshot
| Feature | Membership Club | Licensed Agent |
|---|---|---|
| Number of Carriers | 1–2 | Dozens |
| Customization | Limited | Extensive |
| CFAR Availability | Rare | Common |
| Medical Coverage | Basic | Wide range of options |
| Types of Trips | Primarily leisure | Leisure, business, adventure, or mission |
| Premiums | Often lower | Varies with coverage level |
| Buying Process | Quick and bundled | Requires consultation |
Final Takeaway
For simple, low-cost trips—especially within the country—a membership club plan may be all you need. But for complex travel plans, international destinations, or high-value bookings, a licensed insurance agent can provide the flexibility and depth of coverage that membership clubs can’t match. Choosing the right source for your travel insurance ultimately depends on how much protection and customization you want for your journey.
