An honest guide to travel insurance — what it covers, what it doesn't and why it matters.
Travel insurance is the part of travel planning that most people skip, resent paying for and then desperately wish they had when something goes wrong. Something going wrong on a trip is not an edge case — it's a near-certainty over a lifetime of travel. The question is whether you're covered when it does.
A comprehensive travel insurance policy typically covers: medical expenses abroad (including emergency repatriation home); trip cancellation and curtailment; lost, stolen or damaged luggage; travel delays; personal liability; and legal expenses. The medical coverage is by far the most important — healthcare costs in the US, for example, can reach hundreds of thousands of dollars for serious incidents.
The exclusions matter as much as the coverage. Most standard policies exclude: pre-existing medical conditions (unless declared and covered); incidents occurring under the influence of alcohol; high-risk activities (skiing, diving, trekking above certain altitudes) unless specifically included; and cancellation for any reason other than a specified covered event. Read the policy document — not just the summary.
If you take nothing else from this guide, take this: never travel to the United States, Canada, Australia or any country without a national health system covering tourists without comprehensive medical insurance. A single helicopter evacuation from a ski resort in the US can cost $50,000. A week in a US hospital can cost $200,000. The premium for comprehensive medical cover is typically $50–150 for a two-week trip. The maths is obvious.
Compare policies on: the medical coverage limit (we recommend a minimum of $5 million), the cancellation cover limit, the excess/deductible, and the specific exclusions. Cheaper policies almost always have higher excesses, lower limits and more exclusions. Annual multi-trip policies are cost-effective for those who travel more than twice a year.
Some premium credit cards include travel insurance but the coverage is frequently limited — particularly for medical expenses. Check the specific coverage limits and exclusions carefully before relying on card insurance as your primary cover.
Immediately after booking your trip — not at the airport on departure day. Booking immediately after purchasing your travel means cancellation cover applies from the moment you have costs at risk, not just during travel.
The EHIC/GHIC (European/Global Health Insurance Card) provides access to state healthcare in covered countries — it does not cover emergency repatriation, trip cancellation, lost luggage or medical treatment in private hospitals. It is a useful supplement to, not a replacement for, proper travel insurance.