Travel Insurance Explained: What You Actually Need

Travel insurance is one of those purchases people either skip entirely or buy in a panic at checkout. A little understanding helps you buy the right amount of cover without overpaying.

The cover that actually matters

The most important component is emergency medical and evacuation. A serious accident abroad can cost tens of thousands, and medical evacuation home can cost far more. Make sure the medical limit is high — this is the part you genuinely cannot self-insure.

Trip cancellation and interruption

This reimburses prepaid, non-refundable costs if you have to cancel or cut a trip short for a covered reason, such as illness or a family emergency. It's most valuable on expensive, prepaid trips like cruises or package tours.

Baggage and delay cover

Useful but rarely the deciding factor. Check whether your home contents insurance or credit card already covers your belongings before paying extra here.

Read the exclusions

Adventure activities (diving, skiing, motorbiking) are often excluded unless you add cover. Pre-existing medical conditions usually need to be declared. And almost every policy excludes claims involving alcohol or drugs.

Annual vs single-trip

If you take more than two or three trips a year, an annual multi-trip policy is usually cheaper than buying single-trip cover each time. For one big trip, single-trip cover tailored to your dates is simplest.