Travel Insurance 101: What It Actually Covers and When You Need It

Travel insurance is one of those things people either swear by or skip completely — until something goes wrong. Whether it’s a cancelled flight, lost luggage, or a sudden illness abroad, insurance can turn a nightmare into a small inconvenience. Here’s a simple guide to what it really covers, when it’s worth buying, and how to choose the right plan.

1. What Travel Insurance Actually Covers

Most standard travel insurance policies include five main areas of protection:

• Trip cancellation or interruption: Reimburses you if you have to cancel or cut your trip short due to illness, family emergencies, or unforeseen events.

• Medical expenses abroad: Covers hospital visits, medications, and emergencies outside your home country — where your regular health insurance may not apply.

• Emergency evacuation: Pays for transport to the nearest hospital or even back home if medically necessary.

• Lost, stolen, or delayed baggage: Reimburses you for missing luggage or essentials while you wait for bags to arrive.

• Flight delays or cancellations: Helps cover costs like hotels, meals, or rebooking fees if your flight is disrupted.

Pro tip: Always read the fine print — “medical coverage” in one plan may include doctor visits, while another may only cover hospital stays.

2. When Travel Insurance Is Worth It

Not every trip needs a full policy, but it’s smart to have for:

• International travel (especially outside your health insurance network)

• Expensive or non-refundable trips

• Adventure activities like skiing, diving, or hiking

• Destinations with unpredictable weather or political instability

If you can’t easily afford to replace what you’ve booked — get coverage.

3. What Travel Insurance Doesn’t Cover

There are some common exclusions that catch travelers off guard:

• Pre-existing medical conditions (unless you buy a waiver)

• Missed flights due to oversleeping or traffic

• Alcohol- or drug-related incidents

• Extreme sports not listed in the policy

• Non-refundable deposits from unlicensed tour operators

Tip: Always check the list of excluded activities and read what counts as a “covered reason” for trip cancellation.

4. How to Choose the Right Plan

When comparing providers, look for:

• Medical coverage limit: Aim for at least $100,000 USD for international travel.

• Evacuation coverage: Should cover $250,000+ if visiting remote areas.

• 24/7 assistance: A must-have for emergencies abroad.

• Coverage add-ons: Like adventure sports, rental cars, or electronics.