Planning

Travel Insurance 101 — What You Actually Need

A no-nonsense guide to travel insurance — what's worth paying for, what's a waste, and how to choose the right policy for your trip.

2 min read

Why You Need Travel Insurance

Travel insurance isn't glamorous, but it's essential. A medical emergency abroad without insurance can drain your savings. Trip cancellations, lost luggage, and flight delays can turn a dream vacation into a financial headache.

What to Look For

Medical Coverage

This is the most important component. Look for policies with at least $100,000 in medical coverage for international trips. Some destinations (like the US) may require $250,000+ for adequate protection.

Trip Cancellation

Covers non-refundable trip costs if you need to cancel for covered reasons (illness, family emergency, natural disaster). "Cancel for any reason" (CFAR) policies cost more but offer maximum flexibility.

Emergency Evacuation

Covers the cost of emergency medical transport, including air ambulance services. This can easily exceed $100,000 in remote areas.

Baggage Protection

Covers lost, stolen, or damaged luggage and personal items. Note that most policies have per-item limits and overall caps.

What It Doesn't Cover

  • Pre-existing medical conditions (unless you buy a waiver)
  • Extreme sports or activities (unless you add a rider)
  • Pandemics (some policies now exclude these)
  • War zones or countries under travel advisories
  • Losses due to intoxication

How to Choose a Policy

  1. Assess your trip value: Higher-cost trips need more comprehensive coverage
  2. Check your existing coverage: Your health insurance or credit card may already provide some travel benefits
  3. Compare policies: Use comparison sites to evaluate coverage levels and prices
  4. Read the fine print: Understand exclusions, claim procedures, and coverage limits
  5. Buy early: Purchase within 14 days of your first trip payment for best options

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Frequently Asked Questions

Is travel insurance worth it?
For international trips, yes. Medical costs abroad can be astronomical without coverage. A single hospital visit in the US can cost tens of thousands of dollars for uninsured foreign visitors.
What does travel insurance typically cover?
Most policies cover trip cancellation, medical emergencies, emergency evacuation, lost luggage, and travel delays. Read the fine print for specific exclusions.
When should I buy travel insurance?
Buy it as soon as you book your trip. Many policies offer 'cancel for any reason' coverage only if purchased within 14-21 days of your first trip deposit.

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