Nobody plans to break a leg on holiday, lose their luggage or cancel a trip because of illness. But when things go wrong abroad, costs can be enormous. Emergency medical treatment and repatriation in some countries can run into tens of thousands. Travel insurance protects you from these financial shocks. This guide explains what it covers, what it doesn't and how to choose the right policy.
This article is general information, not financial or legal advice. Policies differ widely, so always read the policy wording and check with the insurer if you're unsure.
What Is Travel Insurance?
Travel insurance is a policy that covers financial losses and emergencies related to travel. You pay a premium, and if a covered event happens, the insurer reimburses costs or pays for services up to the policy limits.
What Does Travel Insurance Typically Cover?
Emergency Medical Expenses
This is the most important part of any policy. It covers treatment for illness or injury abroad, hospital stays and medicines. Health systems in some countries are very expensive for visitors.
Medical Evacuation and Repatriation
Covers the cost of transporting you to a suitable hospital or back home if medically necessary. This can be extremely expensive without insurance.
Trip Cancellation
Reimburses prepaid, non-refundable costs if you have to cancel for a covered reason, such as serious illness, injury, a family emergency or certain other events listed in the policy.
Trip Interruption or Curtailment
Covers costs if you need to cut your trip short for a covered reason.
Travel Delays and Missed Connections
Pays for meals, accommodation or rebooking costs if you're delayed for a covered reason beyond a certain number of hours.
Lost, Stolen or Delayed Baggage
Reimburses essentials if your bags are delayed, and pays for lost or stolen belongings up to set limits.
Personal Liability
Covers legal costs if you accidentally injure someone or damage property.
Types of Travel Insurance Policies
- Single-trip – covers one trip. Good for occasional travellers.
- Annual multi-trip – covers multiple trips within a year, often cost-effective if you travel two or more times a year.
- Backpacker or long-stay – for extended travel of several months.
- Specialist cover – for winter sports, adventure activities, cruises, business travel or older travellers.
Common Exclusions
Read the fine print. Many policies exclude or limit cover for:
- pre-existing medical conditions unless declared and accepted,
- risky activities like skiing, scuba diving or motorbike riding unless you add cover,
- incidents involving alcohol or drugs,
- unattended belongings left in public or in cars,
- travel to places your government advises against,
- known events, such as a storm already named before you bought the policy,
- changing your mind about travelling,
- expensive items above single-item limits.
How to Choose Travel Insurance
1. Check Medical Cover Limits
Choose generous emergency medical and repatriation cover, especially for destinations with high healthcare costs.
2. Match Cancellation Cover to Trip Cost
Your cancellation cover should be at least the total of your prepaid, non-refundable trip costs.
3. Declare Pre-Existing Conditions
Always declare medical conditions honestly. Failing to do so can invalidate your entire policy.
4. Add Activity Cover
If you plan to ski, dive, hike at altitude or ride a scooter, make sure these activities are included.
5. Look at the Excess
The excess (or deductible) is what you pay towards each claim. A lower premium often means a higher excess.
6. Check Gadget and Valuables Limits
If you're taking expensive cameras, laptops or jewellery, check single-item limits or consider separate gadget cover.
7. Read Reviews
Look for insurers with good reviews for claims handling and customer service, not just low prices.
8. Compare Policies
Use comparison websites, but read policy documents before buying. Cheaper policies may have lower limits and more exclusions.
When to Buy Travel Insurance
Buy travel insurance as soon as you book your trip. That way, you're covered if something happens before departure that forces you to cancel.
Do You Already Have Some Cover?
Check whether you have cover through:
- a premium bank account or credit card,
- your employer (for business travel),
- home insurance (for belongings),
- reciprocal health agreements between some countries (these usually don't cover everything, such as repatriation).
Often, existing cover has gaps, so a dedicated policy is still wise.
How to Make a Claim
- Contact the insurer's emergency helpline immediately for medical emergencies.
- Keep all receipts for expenses.
- Get documentation – police reports for theft (usually within 24 hours), airline reports for lost baggage, medical reports for treatment.
- Submit your claim promptly with all documents.
- Keep copies of everything.
Travel Insurance Tips
- Save your policy number and emergency number in your phone and on paper.
- Share policy details with a family member at home.
- Take photos of valuable items and receipts before you travel.
- Understand what counts as a covered reason for cancellation.
- Check whether you need to pay upfront and claim later, or whether the insurer pays directly.
Is Travel Insurance Worth It?
For most trips abroad, yes. The cost is usually small compared with potential medical bills, cancellation losses or lost luggage. It's especially important for international travel, expensive trips, adventure activities and solo travel.
Final Thoughts
Travel insurance is one of the most important parts of trip planning. Choose strong medical and repatriation cover, match cancellation cover to your trip costs, declare medical conditions, add cover for activities and read exclusions carefully. Buy it as soon as you book, and travel with peace of mind. For more planning tips, see our guide on how to plan a trip.
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