Travel Insurance Explained for Beginners: What You Actually Need

Travel insurance is misunderstood in two directions: people either skip it entirely to save money, or buy it without reading the policy and then discover their claim isn't covered. Both are avoidable mistakes. This guide explains what travel insurance actually does, how to choose the right policy, and how to make claims when you need to.

I've filed three travel insurance claims over my career: a cancelled flight in Europe, emergency dental treatment in Thailand, and a stolen camera in Morocco. All three paid out. The total premiums I'd paid across those years were a fraction of the claims received.

The primary reason to buy travel insurance is medical. Your domestic health insurance almost certainly doesn't cover you internationally (verify this with your insurer — many US plans have zero international coverage). A single night in a foreign hospital can cost $1,000–5,000. Emergency medical evacuation — being airlifted to appropriate care — costs $15,000–200,000+ depending on your location and condition. This is not a theoretical risk: medical emergencies happen to otherwise healthy travelers every day.

Medical coverage

Covers emergency medical treatment abroad — hospitalisation, surgery, doctor visits, prescription medications. Look for minimum $100,000 medical coverage; $500,000 for destinations with high healthcare costs (USA, Switzerland, Japan, Australia). Pre-existing conditions are a critical variable — some policies cover them if disclosed at booking, others exclude them entirely. Read this section carefully.

Medical evacuation and repatriation

Covers transport to appropriate medical facilities (not necessarily home) and, in case of death, repatriation of remains. Look for $500,000+ coverage minimum. Budget policies often have low evacuation limits that look adequate until you need a helicopter from a remote location.

Trip cancellation and interruption

Reimburses non-refundable trip costs if you cancel or cut short your trip due to covered reasons: illness, family death, natural disaster, airline bankruptcy, government travel advisories. "Cancel For Any Reason" (CFAR) add-ons cover cancellation for literally any reason — typically reimbursing 75% of costs. Worth considering for expensive or complex itineraries.

Baggage and personal effects

Covers lost, stolen, or damaged luggage. Read the per-item limits carefully — most policies cap electronics at $200–500, well below the replacement cost of a laptop or camera. Claims require documentation: police reports for theft, receipts for high-value items. Take photos of packed electronics before major trips.

Flight delay and cancellation

Covers additional accommodation and food costs when flights are significantly delayed. Check the trigger (typically 6+ hours). For EU flights, EU Regulation 261/2004 mandates airline compensation in many cancellation scenarios — pursue the airline first before filing an insurance claim.

What most policies don't cover

• Pre-existing conditions (unless explicitly covered and disclosed)
• Extreme sports without an adventure add-on
• Incidents while intoxicated or under drug influence
• Travel to countries under "Do Not Travel" advisories
• Pandemics (varies by policy — check COVID-19 coverage specifically)
• Electronic items above per-item limits
• Unattended baggage

Step 1: Know what you need to cover

A 7-day city break in Europe has different coverage needs from a 6-week adventure in Southeast Asia. Define: trip cost (determines cancellation coverage needed), destination healthcare costs, activities planned, and trip length. Annual multi-trip policies can be cost-effective if you travel 3+ times per year.

Step 2: Use comparison sites

InsureMyTrip (US), Squaremouth (US), and CompareTheMarket (UK) allow side-by-side policy comparison. Read the actual policy documents for top candidates — specifically the exclusions sections. The exclusions are where most claim rejections originate.

Step 3: Check existing coverage

Many premium travel credit cards include meaningful travel benefits: Chase Sapphire Reserve includes primary rental car insurance, trip cancellation up to $10,000, and trip delay coverage. Amex Platinum includes trip cancellation and interruption. Check your card's benefits guide — you may already have some coverage that reduces what you need to buy.

• Document everything: Medical bills, police reports for theft, airline delay confirmation letters, receipts for additional expenses. Claims without documentation are routinely denied.
• Contact your insurer before major non-emergency treatment: Many policies require pre-authorisation. Emergency treatment doesn't require prior approval.
• File promptly: Most policies have claim deadlines of 30–90 days from incident. Don't wait until you return home and forget.
• Be accurate: Inaccurate or misleading information on a claim voids your coverage. Describe incidents exactly as they occurred.
• Keep the emergency number offline: Save it to your phone contacts before departure — this is the number you need when your phone is on airplane mode and your bag has just been stolen.