Travel Insurance: How to Choose the Right Cover

Buying a policy is the least exciting part of planning a trip, but this travel insurance guide will help you understand exactly what you are paying for and how to avoid being caught out by the fine print.

Do You Need Travel Insurance?

If you are travelling internationally, yes. While some premium credit cards offer built-in travel insurance, this cover is often capped. Credit card policies might reimburse you for a cancelled flight or a delayed suitcase, but they rarely provide the high medical and evacuation limits required if you break a leg in the Swiss Alps or contract dengue fever in Thailand. Rely on credit card cover only for short domestic trips where your standard health insurance already applies.

What a Good Policy Covers

A robust policy protects you before and during your trip. Standard inclusions are:

• Medical and dental emergencies: Hospital stays, doctor visits, and emergency dental pain relief.
• Trip cancellation and interruption: Reimbursement for non-refundable costs if you must cancel due to severe illness, a family death, or natural disasters at your destination.
• Baggage and personal effects: Compensation for lost, stolen, or damaged luggage, plus an allowance for essentials if your bags are delayed in transit.
• Personal liability: Legal cover if you accidentally injure someone or damage their property.

Medical and Evacuation Limits

Medical costs vary wildly depending on the country. A standard hospital bed in the US can cost thousands of dollars a day. Look for a policy with at least $100,000 in emergency medical cover.

Medical evacuation is entirely separate. If you need a helicopter rescue from a hiking trail in Patagonia or an air ambulance flight back to the UK, Australia, or the US, the bill can easily exceed $100,000. Ensure your policy includes at least $250,000 to $500,000 for emergency evacuation and repatriation (which covers the cost of flying you home, or returning your remains in the worst-case scenario).

Adventure Activities and Safaris

Standard travel insurance rarely covers high-risk activities. If you plan to hike, check the altitude limits. Many basic policies cap coverage at 2,000m or 3,000m, which is useless if you are trekking to Everest Base Camp (5,364m) or Mount Kilimanjaro (5,895m).

Similarly, scuba diving is usually only covered up to 18m unless you hold an advanced certification and buy an add-on. If you are going on a walking safari in South Africa or white-water rafting the Zambezi, read the policy wording to ensure those specific activities are listed as covered.

Common Exclusions

Insurers will deny claims if you breach their terms. The most common reasons include:

• Unlicensed driving: Renting a scooter in Bali or Greece without the correct international motorcycle licence.
• Intoxication: Injuries sustained while under the influence of drugs or alcohol.
• Unattended items: Leaving your phone on a café table or your bag on a beach while swimming.
• Undeclared pre-existing conditions: Failing to disclose an ongoing medical issue when purchasing the policy.
• Changing your mind: Standard cancellation cover only applies to specific emergencies, not if you simply decide not to go.

How to Compare Policies

Do not just buy the cheapest option. Read the policy wording document (often called a Product Disclosure Statement). Compare the excess (the deductible you pay out of pocket before the insurer pays out) against the premium.

If you take more than three trips a year, an annual multi-trip policy is usually more cost-effective than buying single-trip cover each time. Check the maximum trip duration limit on annual policies, as they typically cap individual trips at 30 to 90 days.

Making a Claim

To get paid, you need a paper trail. If your belongings are stolen, file a police report within 24 hours. If your flight is delayed, ask the airline for a written statement confirming the reason. Keep all pharmacy receipts, hospital invoices, and medical reports.

For serious medical emergencies or hospital admissions, call your insurer’s 24-hour emergency assistance number immediately. They often need to pre-approve treatments or arrange direct billing with the hospital, saving you from paying massive sums upfront.

Last updated: 06 November 2026