Travel Insurance Basics
What travel insurance covers, when to buy it, and how to choose a policy.
January 6, 2025 · 6 min read
What It Is
Travel insurance typically covers medical emergencies abroad, trip cancellation or interruption, and sometimes lost or delayed baggage. Policies vary a lot: some are medical-only, some bundle cancellation and baggage. You buy it for a single trip or as an annual policy if you travel often. It’s not visa or immigration advice—it’s financial protection. If you get sick, miss a flight, or your bag is lost, the right policy can reimburse costs or connect you with help. Reading the small print matters: exclusions (e.g. pre-existing conditions, certain activities) are common.
Why It Matters
Medical care abroad can be very expensive. A broken bone or a serious infection can run into thousands. Without insurance, you pay out of pocket or rely on your home country’s health system—which may not cover you at all when you’re overseas. Cancellation cover can repay non-refundable bookings if you have to cancel for a covered reason (illness, family emergency, etc.). Baggage cover can help if your bag is lost or delayed. For a relatively small premium, you avoid a single event wiping out your savings.
How to Do It
Decide what you need: medical only, or medical plus cancellation and baggage. Compare a few policies and read the key sections—what’s covered, what’s excluded, and the excess (what you pay first). Buy insurance when you book the trip so cancellation cover applies from day one. Declare pre-existing conditions honestly; otherwise claims can be refused. Keep the policy number and emergency number in your phone and share with someone at home. If you need to claim, keep all receipts and get paperwork from doctors or airlines as you go.
Tips & Pitfalls
Common Mistakes
Assuming your health insurance at home covers you abroad—often it doesn’t, or only in limited ways. Skipping insurance because “nothing will happen” and then facing a huge bill. Buying the cheapest policy without checking exclusions. Some cheap policies exclude a lot. And not telling the insurer about pre-existing conditions—if they find out later, they can deny the claim.
Quick Tips
Compare at least two or three policies. Check medical limits and excess. Keep the emergency number and policy details on your phone. If you travel several times a year, an annual policy can be better value than single-trip. And if you’re doing activities like skiing or diving, make sure they’re not excluded—you may need an add-on.
Frequently Asked Questions
As soon as you’ve made non-refundable bookings. That way cancellation cover applies from the start.
Some cards do, but coverage is often limited. Check the terms and top up with a dedicated policy if you need more.
Declare it when you buy. Many insurers offer cover with a higher premium or specific terms. Hiding it can void your policy.
Summary
Travel insurance covers medical emergencies, cancellation, and sometimes baggage. Compare policies, read exclusions, and buy when you book. Keep details handy and declare any pre-existing conditions.