Travel insurance feels like gambling against yourself—paying money hoping nothing happens. But when things go wrong abroad, the right coverage is the difference between inconvenience and catastrophe.
What Travel Insurance Actually Covers
Medical Coverage
The most important component. Covers:
- Emergency medical treatment
- Hospital stays
- Emergency medical evacuation
- Repatriation (returning home for care)
Why it matters: A medical evacuation alone can cost $50,000-100,000+. An ICU stay in the US without insurance can bankrupt you.
Trip Cancellation/Interruption
Reimburses non-refundable costs when:
- You must cancel before departure
- You must cut a trip short
- Covered reasons: illness, death in family, natural disasters, terrorism, jury duty
Check the fine print: "Cancel for any reason" (CFAR) coverage costs more but offers flexibility.
Baggage Coverage
Covers lost, stolen, or damaged luggage and contents.
Reality check: Payouts often have per-item limits ($250-500) and total caps ($2,000-3,000). Expensive electronics may need separate coverage.
Travel Delays
Covers additional expenses when flights are significantly delayed:
- Hotel accommodations
- Meals
- Transportation
Typical threshold: 6-12 hours delay before coverage kicks in.
Other Coverage
- Rental car damage (check if credit card already covers)
- Adventure sports (often excluded or extra)
- Pre-existing conditions (varies widely)
When You Absolutely Need Insurance
Always
- Expensive, non-refundable trips
- Travel to countries with expensive healthcare (US, Switzerland)
- Adventure activities
- Remote destinations far from medical care
- Long trips (more time = more risk)
Strongly Recommended
- Any international travel
- Trips involving multiple connections
- Travel during weather-sensitive seasons
- Organized tours with cancellation penalties
Maybe Skip
- Short domestic trips
- Trips where all bookings are refundable
- When credit card benefits provide adequate coverage
Understanding Policy Types
Single Trip
Covers one specific trip. Best for occasional travelers.
Cost: $30-150 for standard coverage
Annual/Multi-Trip
Covers unlimited trips within a year. Economical if traveling 3+ times annually.
Cost: $150-500/year
Long-Term/Expat
For extended travel (months to years). Different from standard travel insurance—acts more like international health insurance.
Providers: SafetyWing, World Nomads, IMG Global
Choosing a Provider
For Standard Trips
World Nomads: Popular with backpackers, covers adventure sports.
Allianz: Established, reliable, good customer service.
Travel Guard: Comprehensive options, good reputation.
Generali: European provider with global coverage.
For Digital Nomads/Long-Term
SafetyWing: Designed for nomads, affordable, subscriptions.
World Nomads: Can purchase while traveling.
IMG Global: Comprehensive international coverage.
Integra Global: Higher-end long-term options.
What to Compare
- Maximum medical coverage ($100,000 minimum, $1M+ recommended)
- Evacuation coverage ($250,000+ recommended)
- Pre-existing condition handling
- Adventure activity coverage
- 24/7 assistance availability
- Claims process reputation
- Policy exclusions
Reading the Fine Print
Common Exclusions
- Pre-existing conditions (defined variously)
- Extreme sports (list varies by policy)
- War zones or high-risk destinations
- Alcohol or drug-related incidents
- Failure to follow medical advice
- Mental health (coverage varies)
- Pregnancy after certain weeks
Pre-Existing Conditions
Definitions vary. Some policies:
- Exclude all pre-existing conditions
- Cover if stable for 60-180 days
- Offer waiver if purchased within 14-21 days of first trip payment
Always disclose: Hiding conditions voids coverage.
Adventure Activities
Standard policies often exclude:
- Scuba diving below certain depths
- Skydiving
- Bungee jumping
- Motorcycling (especially without license)
- Mountain climbing above certain altitudes
Solution: Add adventure riders or choose policies that include these activities.
Credit Card Travel Benefits
Before buying insurance, check your cards.
What Premium Cards Often Cover
- Trip cancellation/interruption (sometimes)
- Lost baggage
- Travel delays
- Rental car collision damage
- Emergency evacuation (rare)
Limitations
- Must pay for trip with that card
- Often secondary coverage (pays after other insurance)
- Medical coverage usually limited or absent
- May require enrollment or registration
Best Travel Cards for Benefits
Research current offerings—benefits change frequently. Chase Sapphire Reserve, AmEx Platinum, and Capital One Venture X historically offer strong protection.
Making Claims
During Emergencies
- Contact insurance's 24/7 assistance line immediately
- Follow their instructions before incurring expenses
- Get written documentation of everything
- Save all receipts
Documentation Needed
- Police reports (for theft)
- Medical records and bills
- Receipts for emergency expenses
- Proof of original travel bookings
- Written explanations from airlines/hotels
Tips for Smooth Claims
- Photograph everything (receipts, damaged items, scenes)
- Get doctor/hospital statements in English when possible
- Keep detailed timeline of events
- Submit promptly (policies have time limits)
- Follow up persistently
Digital Nomad Insurance
Long-term travelers need different coverage:
SafetyWing Nomad Insurance
- Monthly subscription (~$45/month)
- Covers medical worldwide
- Home country included (up to 30 days/90 days)
- Affordable but lower coverage limits
World Nomads
- Purchase while already traveling
- Good adventure coverage
- Medical + travel coverage combined
- Renewable from anywhere
International Health Insurance
For true expats/long-term:
- IMG Global
- Cigna Global
- Allianz Worldwide Care
These function like regular health insurance, not trip protection.
Cost Factors
What Increases Price
- Longer trips
- Older travelers
- Higher coverage limits
- Pre-existing condition coverage
- Adventure activities
- "Cancel for any reason" riders
- Expensive destinations
What Decreases Price
- Higher deductibles
- Lower coverage limits
- Group policies
- Annual vs. multiple single policies
Typical Costs
- 1-week trip: $30-80
- 2-week trip: $50-120
- 1-month trip: $80-200
- Annual policy: $150-500
- Digital nomad monthly: $40-100
When NOT to Claim
Small claims may not be worth it:
- Below deductible amounts
- Minor expenses that won't exceed deductible significantly
- Risk of premium increases
- Hassle factor for small amounts
Final Recommendations
For Most Travelers
- Get medical coverage—always
- Get trip cancellation if non-refundable costs are significant
- Check credit card benefits first
- Compare 3-4 providers
- Read exclusions carefully
For Digital Nomads
- SafetyWing for budget-conscious
- World Nomads for adventure activities
- Consider international health insurance for 6+ month stays
For Adventure Travelers
- Verify specific activities are covered
- Get evacuation coverage ($250K+)
- Check altitude/depth limits if relevant
Travel insurance is the one purchase you hope to waste money on. But when a broken leg in the Alps leads to helicopter evacuation and surgery, the $100 policy becomes the best investment you ever made.
Buy it. Document everything. Hope you never need it.
Plan worry-free adventures with TripPlan—we help you prepare for the unexpected while creating your perfect itinerary.
