Travel insurance is one of those categories where the cheap option is almost never a good option. The purpose of insurance is to cover costs you cannot afford to absorb yourself; cheap travel insurance often excludes the scenarios where the financial exposure is genuinely significant.
The Case for Travel Insurance
Medical emergency in the United States. Appendicitis requiring emergency surgery without insurance can mean a hospital bill of 35,000 to 80,000 dollars or more. This bill is legally enforceable and will pursue you home. With adequate insurance, your excess and any gap above the insured limit is your exposure.
Medical evacuation. A serious fall on a remote trekking trail could mean emergency helicopter evacuation and repatriation costing 20,000 to 80,000 dollars without insurance. Many basic policies don’t cover this unless medical evacuation is explicitly included.
Trip cancellation. Without insurance, a cancelled trip means losing all non-refundable costs. With cover, you recover those costs up to the policy limit, subject to evidencing the covered reason.
Baggage loss. Airlines’ mandatory liability is capped well below the value of a lost bag containing camera equipment or a laptop. Adequate baggage cover makes up the difference, subject to per-item limits.
What a Comprehensive Policy Must Include
Medical treatment and hospitalisation. The core element. Many cheap policies have high headline limits but sublimits that dramatically reduce effective cover in specific scenarios.
Medical evacuation and repatriation. A separate element from medical treatment cover; policies that cover one don’t necessarily cover the other. Always confirm this is explicitly included.
Trip cancellation and curtailment. Covered reasons vary significantly between policies; read the specific list carefully.
Baggage and personal effects. The single-item limit matters as much as the total limit; a policy with a high total but a low per-item cap doesn’t meaningfully cover a lost laptop or camera.
Travel delay and disruption. Key variables are the qualifying delay period and the daily or total maximum claim.
Personal liability. Covers you if you accidentally cause damage or injury to a third party.
What Good Insurance Does Not Automatically Cover
Pre-existing medical conditions. Most policies exclude claims arising from pre-existing conditions unless declared and any additional premium paid. This exclusion often extends to any claim where the condition was a contributing factor, even indirectly.
Adventure and high-risk activities. Skiing, trekking above certain altitudes, scuba diving, and similar activities are commonly excluded from standard policies. Adding activity cover is usually possible at additional cost.
Travel against government advice. Most policies are invalidated if you travel against a “do not travel” advisory. Check the current FCDO (UK) or State Department (US) advisory before purchasing and before travelling.
Unattended belongings. Theft of items left unattended is commonly excluded, and the definition can be broader than common sense suggests.
Alcohol and drug-related incidents. Claims where intoxication was a contributing factor are commonly excluded.
Annual vs Single-Trip Policies
For travellers who travel more than once or twice a year, an annual multi-trip policy typically offers better value than single-trip insurance purchased separately for each trip, subject to a maximum duration per trip. The main limitation is that pre-existing condition declarations apply to all trips rather than being assessed per trip.
How to Compare Policies Effectively
Read the policy wording, not just the product summary; the wording is the legally binding document. Check the excess, the single-item baggage limits, the covered cancellation reasons, and the activity exclusions relevant to your trip.
See the best travel insurance guide for our specific recommendations.
Buy It Early
The most important principle in travel insurance is to buy it immediately when you make your first non-refundable booking, not as an afterthought the week before travel. Trip cancellation cover runs from the date you purchase the policy; buying it late means no protection during the period between your first booking and your purchase date, which is often when cancellation is most likely to be needed.