What is travel insurance?
Travel insurance is a policy that protects you against unexpected problems before and during your trip. It can pay you back for costs you cannot recover yourself, such as non-refundable flights or hotel bookings, and it can help cover medical bills, lost baggage, and travel delays.
Many people only think about flights, hotels, and activities when they plan a trip. But travel insurance is the safety net that helps when things go wrong. It is not just for big, once-in-a-lifetime holidays. Even a short weekend break can be affected by illness, delays, or lost bags.
At its core, travel insurance gives you peace of mind. You pay a small amount upfront so you do not risk losing a much larger amount later.
Why travel insurance matters
Picture this: you have booked your dream holiday, saved for months, and planned every detail. Just a few days before you leave, you get sick, and your doctor tells you not to travel. Without travel insurance, you could lose money on flights, hotels, and tours that you cannot cancel.
Or imagine that you are overseas, you slip and break a bone, and you need emergency treatment. In some countries, medical care can cost thousands of dollars per day. Your normal health insurance may not cover treatment abroad. Travel insurance can help pay for hospital care, medicine, and even an emergency flight home if needed.
Travel insurance also matters when airlines lose your bags, when your flight is badly delayed, or when a natural disaster or political event disrupts your plans. In these stressful moments, it is a relief to know you have a policy and a support number to call.
What travel insurance usually covers
Every policy is different, but most travel insurance plans include several key types of protection. Always read the wording, but here are the main areas you will see.
Trip cancellation and interruption
If you need to cancel your trip before you leave, or cut it short after it starts, travel insurance may pay you back for non-refundable costs. Covered reasons can include:
- Serious illness or injury (you or a covered family member)
- Death in the family
- Some natural disasters or major events at your destination
- Certain airline or tour operator issues
For example, if you paid for flights and a prepaid hotel and then fall ill and cannot travel, you can usually claim for the money you cannot get back from airlines or hotels.
Emergency medical expenses
This is one of the most important parts of any travel insurance policy. It can include:
- Doctor visits and hospital stays
- Surgery and emergency treatment
- Prescription medicines
- Some follow-up care related to the emergency
Without this coverage, you may face very high medical bills abroad. Always check the medical coverage limit and whether your destination has high healthcare costs.
Medical evacuation
If you are in a remote area or a place without suitable hospitals, medical evacuation coverage pays for transport to the nearest appropriate facility, or sometimes back to your home country. These flights or special ambulance services can cost tens of thousands of dollars, so this part of travel insurance is extremely valuable.
Baggage and personal belongings
Baggage coverage helps if your luggage is lost, stolen, or damaged. It can also help if your bags are delayed for many hours and you need to buy clothes and basic items while you wait.
Typical coverage includes:
- Lost or stolen bags
- Damaged luggage or items
- Delayed baggage (after a set number of hours)
There are usually limits per item and for special things like cameras or laptops, so check the details if you travel with expensive gear.
Travel delays
If your flight is delayed for a certain number of hours (for example, 6–12 hours), travel insurance may refund extra costs like:
- Hotel stays
- Meals
- Transport to and from the airport
This can be especially useful during busy travel times or when bad weather causes widespread disruption.
Optional or extra coverages
Some policies let you add extra protection, such as:
- Rental car damage cover. If your travel insurance does not cover the excess on your car rental, then look at rental cover. We use this nearly every time we rent a car and covers the full excess of any car rental. The premiums are about half of what a car rental company charge to remove the excess on your rental.
- Adventure or winter sports cover (skiing, scuba diving, etc.)
- “Cancel for any reason” upgrades (where allowed)
- Accidental death and dismemberment
- Identity theft support
If you plan high-risk activities or long, complicated trips, consider these optional add-ons.
How to choose the right travel insurance plan
Choosing travel insurance does not have to be hard. Focus on a few key questions.
1. What are the main risks for this trip?
Think about:
- Are you going to a remote area or a country with high medical costs?
- Are you planning risky activities like skiing, diving, or hiking at high altitude?
- Is your trip expensive and mostly refundable?
The more risk you see, the more complete your coverage should be.
2. How long is your trip?
Short weekend trips might only need basic coverage. Long, multi-country journeys often need higher medical and cancellation limits. Some companies also offer annual multi-trip policies that cover many trips within one year, which can save money for frequent travelers.
3. Where are you going?
Your destination can affect both price and coverage. Some countries require proof of travel insurance for entry. Others have very high healthcare costs, meaning you may want higher medical coverage limits. Government travel sites like UK Foreign Travel Advice often give useful safety and health information for each country.
4. How much did your trip cost?
Add up non-refundable costs such as flights, prepaid hotels, and tours. Your trip cancellation limit should at least match that amount. There is little point in insuring for much more than you actually spent.
5. Do you have any pre-existing medical conditions?
If you have a health condition, read the policy rules carefully. Many travel insurance plans exclude pre-existing conditions unless you meet certain rules or buy a waiver. Be honest when you apply. Hiding information can lead to denied claims later.
6. How good is the customer support?
In an emergency, fast help matters. Look for:
- 24/7 emergency assistance numbers
- Clear instructions on what to do and whom call
- Good reviews from other ttravellers
Independent travel sites such as SmarterTravel’s travel insurance guides can help you compare different providers and see real user experiences.
Extra tips to save money and avoid problems
Check what you already have
Some credit cards include limited travel insurance when you pay for your trip with the card. Your health insurance at home may also cover a small part of overseas care. Read these benefits carefully so you know where they start and end. You might still need a separate policy for full protection.
Compare several policies, not just the cheapest
Price matters, but coverage matters more. A very cheap policy with low limits or many exclusions might not help much when you need it. Compare coverage levels, exclusions, and claim processes, not just cost.
Read the exclusions and conditions
Every travel insurance policy has exclusions, such as:
- Changing your mind about travelling
- Ignoring official travel warnings
- Drinking too much alcohol or using illegal drugs
- Some adventure activities, if not specifically covered
Knowing these rules before you buy helps you avoid surprises later.
Keep your documents handy
Once you buy travel insurance, save a digital and printed copy of:
- Your policy number
- Emergency phone numbers
- Basic coverage summary
Share this with a trusted friend or family member at home. In an emergency, they can help make calls or speak to the insurer if you cannot.
Watch Our Video On Essential Travel Insurance Guide
