Travel Insurance Demystified: What You Need (and What You Don’t)
Travel insurance can feel like an unnecessary expense... until you actually need it. Here's how to ensure good coverage without overpaying for costly add-ons you likely won't use.
If you’ve ever found yourself staring at 15 pages of a travel insurance policy, wondering if you need all those add-ons or are just paying for unnecessary fluff, you’re not alone. Travel insurance can feel like a confusing maze of fine print and technical jargon.
Fear not—I promise we can simplify this and make it make sense (and hopefully save you some money, too).
Travel insurance is how you protect yourself from the what-ifs that can turn an amazing trip into a financial nightmare. Some coverage is essential, some is situational, and some you can probably skip.
What You Absolutely Need
Let’s start with the must-haves—the types of coverage that can save you from massive out-of-pocket expenses and major headaches. These are the ones you don’t want to skip.
Emergency Medical Coverage
This is the big one; the non-negotiable. If you buy nothing else, get emergency medical coverage. It covers unexpected illnesses or injuries while traveling.
I’ve met plenty of people (typically younger, but also some senior citizens) who roll the dice and travel without coverage. It’s a gamble, folks. We’ve all seen those pleading GoFundMes.
No one plans to end up in a hospital in a foreign country, but if it happens, you don’t want to foot that bill alone. I’ve had it happen a few times. Trust me, a simple hospital visit in the U.S. or Switzerland could cost more than your entire trip.
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Trip Cancellation & Interruption Insurance
Life happens—flights get canceled, family emergencies arise, and plans change. This coverage reimburses you for non-refundable trip costs if you need to cancel or cut your trip short for a covered reason (like illness, severe weather, or job loss).
A quick breakdown:
Trip cancellation kicks in before you leave and refunds prepaid costs if you have to cancel.
Trip interruption helps if you’re already traveling and need to return home early.
Trip delay coverage helps with extra expenses (hotels, meals, etc.) if your trip is delayed (think: airline issues, weather, or missed connections).
Now, it doesn’t cover everything so make sure you understand the conditions.
Pro Tip: If you're using points or miles for flights, some travel insurance policies won’t cover the full cost. Always double-check!
Baggage & Electronics Coverage
Lost, stolen, or damaged luggage? It happens more than airlines like to admit. Standard baggage coverage helps with essentials if your bags are delayed or permanently lost.
But if you’re like me—traveling with a laptop, microphone, camera, and external hard drives—you need a policy that specifically covers electronics. Many travel insurance plans have a low per-item limit, so if your $2,000 laptop gets stolen, you may only get $300.
Look for a policy with high-value item coverage or consider adding a rider for expensive gear.
Repatriation Insurance: The Coverage No One Wants to Think About
This is the kind of coverage no one likes to talk about, but it’s one of the most important. If you were to pass away while traveling, repatriation insurance ensures that your remains can be transported back home without placing a devastating financial burden on your loved ones. Without coverage, the cost of repatriation can range from $5,000 to $20,000+, depending on the country and necessary arrangements.
We’ve all seen the heartbreaking GoFundMe pages where families are scrambling to raise money to bring a loved one home. It’s an unimaginable situation, and while travel insurance can’t prevent tragedy, it can prevent financial devastation from compounding grief.
Repatriation insurance typically covers:
✔ Transportation of remains to your home country
✔ Necessary paperwork and permits for international transport
✔ Cremation or burial costs abroad (if preferred)
✔ Escort expenses if a family member needs to travel to handle arrangements
This coverage is often bundled with emergency medical evacuation under “Medical Transport” insurance. Check your policy details and don’t assume it’s included—some basic plans exclude repatriation.
It’s one of those things you hope you never need, but if the worst happens, it’s the best gift you can leave your loved ones.
What You Might Want
Now that we’ve covered the essentials, let’s talk about the nice-to-haves—coverage that isn’t crucial for everyone but might be worth considering depending on your travel style and personal circumstances.
Accidental Death & Dismemberment (AD&D)
No one likes to think about this either, but AD&D insurance provides financial support in case of accidental death or serious injury (like losing a limb). If you already have life insurance, this might be redundant, but it can provide peace of mind.
Flight Accident Insurance
This provides extra coverage if you're worried about air travel accidents. If you’re a frequent flyer, it might be worth considering, but for most people, it’s not a must-have.
Delay Return Coverage
If your return trip gets delayed for a covered reason (like a medical emergency or severe weather), this coverage helps with accommodations, meals, and rebooking fees. It’s especially useful for those with tight itineraries or complex connections.
What You Probably Don’t Need
Finally, there are the extras—policies that might sound useful but are often unnecessary, especially if you’re already covered elsewhere. Here’s what you can likely skip.
Rental Car Insurance
If your auto insurance or credit card already covers rental cars abroad, you can skip this. Just double-check the fine print to make sure your destination is covered (some exclude places like Ireland or Italy).
Cancel for Any Reason (CFAR) Insurance
Sounds great in theory—you can cancel for literally any reason—but it’s expensive and typically reimburses only 50–75% of your trip cost. Unless you have a very unpredictable schedule, regular trip cancellation coverage should be enough.
Adventure Sports Coverage
Unless you’re planning to skydive, scuba dive, or go heli-skiing, your standard medical insurance should cover most activities. But if extreme sports are on your itinerary, check the policy details—some standard plans exclude high-risk activities.
Special Considerations When Choosing Travel Insurance
Not all travel insurance policies are created equal, and your specific needs will depend on where you’re going, how often you travel, and any personal factors that could impact coverage. Here are a few key considerations to keep in mind when selecting the right policy:
Regional Considerations
Travel insurance becomes even more critical in certain regions:
High-Risk Destinations: If you’re visiting a country with political instability, conflict, or high crime rates (e.g., Afghanistan, Iraq, Syria), you’ll need a specialized policy that includes emergency evacuation.
Countries That Require Insurance: Some countries mandate a certain level of travel insurance for entry, including Cuba, Ecuador (for Galápagos travel), Egypt, Iran, Jordan, Qatar, Russia, and Turkey. Always check the latest requirements before you go.
Pre-existing Conditions
Many standard policies exclude coverage for pre-existing medical conditions unless you purchase a waiver or a specialized plan. If you have any ongoing health concerns (e.g., diabetes, heart conditions), make sure your policy covers medical expenses related to those conditions.
Medical Evacuation Coverage
This is particularly important if you’re traveling to remote areas where hospitals are scarce. A medical evacuation can cost tens of thousands of dollars if you need to be transported to a major city or even flown back home. Look for a policy that includes this coverage if you're heading off the beaten path.
Multi-Trip Insurance
If you’re a frequent traveler, a multi-trip or annual travel insurance plan could save you time and money compared to buying separate policies for each trip. These plans typically cover multiple trips within a 12-month period, making them ideal for digital nomads, business travelers, or retirees who take multiple vacations a year.
Pandemic & COVID-19 Coverage
Since the pandemic, many travel insurance policies now include coverage for COVID-19-related expenses. Check if your plan covers:
Medical treatment if you contract COVID-19 while traveling
Trip cancellations due to a positive COVID-19 test
Quarantine-related expenses (hotels, meals, rebooking fees)
Age Considerations
Travel insurance premiums tend to increase with age due to higher health risks. If you're over 65, look for policies tailored for senior travelers that include comprehensive medical coverage and emergency assistance.
Family or Group Coverage
If you’re traveling as a family or with a group, some insurers offer bundled policies that provide better value than buying individual plans. These often include coverage for children at a reduced rate or even for free.
Cruise-Specific Insurance
Cruises have unique risks—missed departures, shipboard medical emergencies, or itinerary changes due to weather. Standard travel insurance may not cover all cruise-related issues, so consider a cruise-specific policy that includes coverage for:
Medical evacuations from the ship
Missed port departures
Trip interruptions due to itinerary changes
Travel Supplier Bankruptcy
If you’re booking with smaller or less established travel companies, consider a policy that covers supplier bankruptcy. This ensures you won’t lose your money if your airline, cruise line, or tour operator suddenly goes out of business.
24/7 Emergency Assistance Services
A good travel insurance policy includes 24/7 global assistance services—this can be a lifesaver in an emergency. These services help with:
Finding the nearest hospital
Coordinating emergency medical evacuations
Assisting with lost passports, stolen credit cards, or legal trouble
Having access to round-the-clock help can make all the difference in a crisis, especially when navigating a foreign healthcare system.
Taking these factors into account will help you choose a policy that truly fits your travel style and needs. The key is to strike the right balance, so you can get the coverage you need without overpaying for extras you’ll never use.
Tips for Comparing Travel Insurance Policies
1. Start with the Essentials
✅ Emergency Medical Coverage – Does it cover hospital visits, doctor’s fees, and prescriptions abroad?
✅ Medical Evacuation & Repatriation – Will they transport you to a hospital or back home if needed?
✅ Trip Cancellation & Interruption – Are covered reasons clear, and do they include illness, natural disasters, or job loss?
✅ Baggage & Electronics Coverage – Does it cover lost, stolen, or delayed baggage? What’s the per-item limit?
2. Check the Policy Limits & Exclusions
💰 Coverage Amounts – Look at the max payout for medical expenses, trip cancellation, and baggage loss.
📝 Pre-Existing Condition Clauses – Does the policy cover pre-existing conditions, and do you need a waiver?
🚫 Excluded Activities – If you’re doing adventure sports (scuba diving, skiing, etc.), make sure they’re covered.
🔄 Refund Policy – Can you cancel and get a refund if you change your mind within a certain period?
3. Look for Country-Specific Requirements
🌍 Destination-Specific Coverage – Some countries require proof of insurance for entry (e.g., Cuba, Qatar, Schengen Visa).
🏥 Healthcare Costs at Your Destination – If you’re visiting a country with high medical costs (e.g., the U.S., Switzerland), make sure the coverage amount is high enough.
✈️ Split Your Policy by Destination – Medical coverage in the U.S. is far more expensive than in many other countries. If you're only in the U.S. for a short leg of your trip (e.g., 7 days out of 45), consider booking a separate policy for that portion. That way, your premium isn’t inflated for the entire trip.
4. Compare Pricing & Deductibles
💳 Premium Costs vs. Deductibles – A lower premium may mean a higher out-of-pocket cost when you file a claim.
🎯 Multi-Trip vs. Single-Trip Plans – If you travel frequently, an annual plan might be cheaper than buying separate policies.
5. Check the Claims Process & Support
📞 24/7 Emergency Assistance – Can you reach them easily while traveling?
💻 Claim Filing Process – Is it online, easy, and quick? Some companies require extensive paperwork.
⏳ Claim Turnaround Time – How long does it take for reimbursement?
6. Read Reviews & Compare Providers
⭐ Customer Reviews – Are other travelers satisfied with claim payouts and customer service?
🔎 Company Reputation – Is the insurer well-established and financially stable?
🏆 Comparison Tools – Use sites like Squaremouth, InsureMyTrip, or TravelInsurance.com to compare multiple policies side by side.
7. Consider Add-Ons (Only If You Need Them)
🚗 Rental Car Insurance – Do you need extra coverage, or does your credit card already provide it?
❌ Cancel for Any Reason (CFAR) Coverage – Worth it if you want maximum flexibility, but it's pricey and only reimburses 50–75%.
🛳 Cruise-Specific Insurance – Covers missed ports, shipboard medical issues, and itinerary changes.
Paperwork Makes the Payout: Get What You Need to File a Claim
When it comes to filing a travel insurance claim, documentation is everything. Insurance companies won’t just take your word for it—they need proof. If you get robbed, file a police report immediately, even if the local authorities seem indifferent or the paperwork feels like a hassle. Without it, your claim might be denied.
If you receive medical treatment, request copies of every test, diagnosis, receipt, and even your intake forms before you leave the hospital or clinic. Some facilities make it difficult to access records later, especially once you're back home.
Contact your insurance provider as soon as possible to ask what specific documents they require for your claim. They may need receipts, medical reports, police reports, or even written statements from witnesses.
To keep everything safe and organized, I carry a waterproof document sleeve in my carry-on, just in case. It doesn’t take up much room, and even a large Ziploc freezer bag will do the trick. The more thorough your documentation, the smoother (and faster) your claim process will be.
Don’t leave this to chance—get it all in writing and keep digital backups (even if that’s just a quick pic on your phone)!
Final Thoughts
Travel insurance isn’t a one-size-fits-all deal. Think about:
✔ Where you’re going
✔ What activities you’ll be doing
✔ How much you can afford to lose if things go wrong
The best travel insurance is the one that actually covers what you need—without overpaying for things you don’t. Always read the fine print, and don’t be afraid to ask questions before buying.
What’s your experience with travel insurance? Have you ever had to use it? Full subscribers can drop a comment below!
Miranda
P.S. Want to know who I use? I wrote about the insurance I’ve been using for several years here.
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