Travel insurance is easy to skip. It feels like paying for something you hope never to use. But the situations it covers, a medical emergency abroad or a trip canceled at the last minute, are exactly the ones that can cost far more than the trip itself. Here’s what a typical policy covers, what it usually doesn’t, and how to decide what you need.
What travel insurance usually covers
Policies vary a lot, but most combine some of these:
- Emergency medical care abroad: hospital treatment, doctors and medicine if you fall ill or are injured while traveling. For most people, this is the most important part.
- Medical evacuation and repatriation: getting you to a suitable hospital or home if you need it. This can be extremely expensive without cover.
- Trip cancellation and curtailment: reimbursing prepaid, non-refundable costs if you have to cancel or cut short your trip for a covered reason, such as illness.
- Baggage and belongings: lost, stolen or damaged items, usually up to a limit per item.
- Travel delay: some costs if you’re stuck because of a long delay.
- Personal liability: if you accidentally injure someone or damage their property.
What it usually doesn’t cover
- Pre-existing medical conditions, unless you declare them and the insurer accepts them. Not declaring a condition can mean a claim is refused.
- Risky activities such as some adventure sports, unless you buy extra cover. Check the list of included activities.
- Incidents involving alcohol or drugs, in many policies.
- Known events: a storm, strike or disruption that was already public when you bought the policy.
- Changing your mind: ordinary cancellation cover pays only for listed reasons. “Cancel for any reason” cover exists in some markets but costs more and reimburses only part of your costs.
- Unattended belongings: items left alone in public, and often valuables in checked bags.
When it matters most
Medical costs abroad can be huge
Your health cover at home may not work abroad. For example, US Medicare generally doesn’t cover care outside the United States, and many private health plans offer limited or no cover abroad. Treatment in some countries, especially the US, can be very expensive for visitors. If you’re traveling from India or elsewhere to a country with high medical costs, this is the main reason to buy a policy.
If you’re from Europe, the EHIC or UK GHIC card can give access to state healthcare in some countries, but it’s not a substitute for travel insurance: it doesn’t cover private treatment, repatriation or cancellations.
Some visas require it
If you need a Schengen visa to visit Europe, you must show travel medical insurance that meets set conditions, including a minimum amount of cover. Check the requirements on the official visa site for the country you’re applying to.
Expensive, non-refundable trips
If you’ve paid a lot upfront, cancellation cover protects that money. Buy the policy soon after booking so it applies to anything that happens before departure.
You may already have some cover
Some credit cards include travel insurance when you pay for the trip with the card, and some bank accounts and employers offer it too. It’s often narrower than a standalone policy, with lower limits or fewer situations covered. Find the policy document and check what it actually includes before relying on it.
How to compare policies
- Medical limit: high enough for the most expensive country you’ll visit.
- Excess or deductible: how much you pay yourself on each claim.
- Cancellation limit: at least the value of your non-refundable bookings.
- Activities: everything you plan to do is listed.
- Conditions: you’ve declared your health conditions and they’re accepted.
- Trip length and area: the policy covers every country and every day of your trip.
- Emergency line: a 24-hour assistance number you can call from abroad.
If you need to claim
Call the insurer’s emergency line before arranging major treatment if you can. Keep every receipt, medical report and police report for theft, and report problems within the insurer’s time limits. Claims succeed far more often when the paperwork is complete.
So, do you need it?
If you’d struggle to pay a large medical bill abroad, or you’d lose a lot of money if you had to cancel, the answer is almost certainly yes. Choose cover based on where you’re going, what you’ve paid and what you’ll be doing, and read the policy before you travel, not after something goes wrong.
This guide is general information, not financial or insurance advice. Policy terms differ between insurers and countries, so always read the full policy wording.