Choosing travel insurance

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  Essentials

• Do you already have some coverage? — Check what coverage you may already have from home, such as health, home owners or renters, life, vehicle and credit card insurance. Estimate what is still required.
• Know how travel insurance is sold — You can’t really pick and chose off a menu, since most travel insurances is bundled. Understand the ways that different combinations of coverage are packaged by insurance companies.
• Shop! — Look to find the best fit for the best price. Be aware the most travel insurance marketing is for pre-paid, short-term travel (tourists and business travelers), not for independent travelers.
• Read carefully — You have to read every word of a policy you are thinking of buying. The devil is in the detail.  
• Buy — Buy the best policy at the right time. Most have to be purchased after your major pre-paid expenses, but before departure.

On this page, we sort through the issues and offer opinions for independent travelers. It’s up to you to sort out what is best for you. How to Travel is not responsible for your travel insurance decisions.

By now you’ve listed the types of travel insurance coverage you want and maybe how much. We apologize, because now we must reveal that you can’t pick travel insurance coverage a-la-carte, as if off a restaurant menu. It would be great if we could, but travel insurance isn’t sold that way. While you can get some types of coverage in standalone policies, travel coverage is sold in bundles of various types of coverage, maybe including some types you haven’t prioritized on your list.

The list is still useful though, because now you know what you need… and what you don’t. You can look at an insurance package or plan and quickly see if the fit is good. Focus on your core coverage, normally including medical and (probably) emergency medical evacuation. The other cover will be secondary, although you may have included some on your list.

Once you have selected at least one decent policy, you still have some steps to verify that all the “fine print” is acceptable. Reading that stuff is a pain, but you’ve got to do it or you won’t fully understand what you’re buying. The “devil is in the detail” was probably coined about insurance policies.

You can also get an online quote and go on to purchase a policy online.

Coverage you may already have

Many travelers are surprised to find out that they don’t have to buy all the coverage they need. There are other sources of cover, although none will meet all your travel needs. You will still need to supplement any existing coverage, but could buy a simpler and cheaper policy.

• Home health insurance — Your health insurance from home may provide at least partial cover for a limited time, although you will have to combine it with travel medical insurance for complete cover. The variations between public and private health cover are so varied that you’ll have to check the provisions of your home plan. Many plans aren’t valid for foreign medical treatment at all. Others have low coverage limits and/or a short period of coverage.  
• Life insurance or AD&D — If you already have life insurance or Accidental Death and Dismemberment (AD&D), you may also be covered while abroad. These policies are not enough on their own for your travel cover needs.
• Homeowner’s or renter’s insurance — Individual items listed in your homeowner’s or renter’s (tenant’s) insurance may be covered against loss, theft or damage during your travels. This could be an economical way to cover your valuables, negating the need for baggage & personal effects coverage. Read your policy carefully to see whether coverage is extended and under what conditions.
• Credit cards — Premium credit cards (the ones with an annual fee) often supply limited insurance, but only for goods and services purchased with the card. Coverage is very limited, in both duration and maximum amount of claims. We’ll say it again… read the fine print!
  • Services — The best insurance offered by credit cards is for air tickets and expensive pre-paid experiences. If something goes wrong and you can’t receive the service, it’s covered. Annual limits may apply.
  • Goods — Coverage for goods, like your spanking new laptop, is time limited (90 days is typical), while medical coverage (rarely offered) is completely insufficient for a serious incident.
• Compensation from airlines — Airlines are legally bound to cover some losses you incur if the fault is theirs. The legal obligation differs by jurisdiction, so coverage varies widely. A airline operating out of a European airport may have to compensate you, where an airline operating out of a poor country would not. Levels of compensation are rarely generous. The best you can do is be patient about travel delays and not check any luggage. Or insure for those events.

Primary vs secondary cover

Most types of travel insurance are secondary cover, so any coverage you may have from other (primary) sources has to pay first. The travel insurer will then pay what’s left, up to the coverage limit for the specific type of cover.

• Costly claims — The big one is medical claims. If you have any cover from home, your home insurer has to pay first. Only after that, will your travel insurance kick in. The problem is the time it takes for your home insurer. You could be left holding the bag for major medical expenses for weeks or longer while your two insurers sort things out.
• Common (less costly) claims — Suppose an airline loses your luggage and its contents worth $1500, but compensated you just $500. Your insurance company could cover the remaining $1000. Note that the claim process with the primary insurer (the airline in our example) has to be complete before your travel insurance company will deal with your claim for the balance.

There are several types of primary coverage in travel insurance, including AD&D and rental car cover. Check the policy to be sure.

How international travel insurance is sold

Travel insurance is big business. While it’s quite competitive, insurance companies tweak their offered policies so that it’s not easy to compare them feature-for-feature. Company A will have higher medical coverage, but Company B will offer higher medical evacuation coverage. Company C has lower limits on both, but allows you to increase your coverage to compete with A on medical and B on medical evacuation. But the increases make C’s policy substantially more costly than A or B.

You have to know what you need before you shop and try to find the best fit.

Bundles of coverage

Insurance companies have bundled packages of coverage to suit a range of traveler needs.

• Vacation & business package — Most insurance you see marketed as “travel insurance” is of this type because that’s what short-term vacationers and business travelers require. The vast majority of travel insurance policies sold are of this type. But these packages are misaligned with the needs of most independent travelers. They include medical and sometimes medical evacuation, but they also offer coverage for pre-trip cancellation, baggage loss, trip delay and baggage delay. Independent travelers have less use for these types of coverage. Furthermore, the maximum duration of a trip, ranging from 30 days to 6 months, is shorter than many independent travelers need. Still, if your trip is short and you have pre-paid expenses or checked luggage, this type of package may be a good fit.
• Travel package (long-term travel) — These packages are similar to the Vacation & business packages, but good for up to a year. A sub-set, commonly called “backpackers insurance,” exchanges lower coverage levels for a lower premium.
• Medical plan — Here, the emphasis is on medical coverage, often coupled with medical evacuation. Many packages include other types of coverage. For many independent travelers, this mix is pretty good.
• Medical evacuation plan — Medical evacuation can be had as a standalone policy, or mixed with medical and other cover.
• Accident — This is an AD&D (accidental death and dismemberment) policy. Even though some have other cover attached, they are not good enough to work on their own for independent travelers. Lack of medical and medical evacuation are critical.
• Flight — This is a narrow policy that features a big pay-out if you are injured or killed during boarding, flying or disembarking a commercial aircraft. If you want coverage for this unlikely risk, you could go for the smaller pay-out in AD&D cover that’s attached to a Travel package or Medical plan.

In our opinion, independent travelers should focus on the second, third and fourth types of policy: Travel packages, Medical plans or Medical evacuation plans. The table showing what coverage is offered by which type of package is approximate only. There are so many variations in policies that you have to check each one for coverage types and limits.

Duration & number of trips

Travel insurance is sold in three different plan durations:

• Single trip — Covers a single trip up from 30 days to 6 months in duration. This could work if you’re sure your trip will be completed in less than 6 months or if coverage can be extended while you’re on the road.
• Multi-trip — Purchase a duration of 3, 6 or 12 months, during which you can make as many trips as you want. These are best for business travelers who make numerous short trips, but are not suited for independent travelers because the maximum duration of the trip is short, often less than 30 days.
• Long-term — There are three types for trips longer than 6 months. Some go as long as two years and some allow renewals to extend your travel time.
  • Travel packages can be good for up to 12 months, but some of them are renewable while you travel. If you’re planning a trip that could run over a year, take a look at a package with the renewal feature.
  • Backpacker or “gap” insurance is a sub-set of Travel packages, but tailored for healthy, younger travelers on a budget. There may be fewer types of coverage and lower coverage limits, but they’re usually generous about including high-risk activities. The maximum age allowable varies widely, with some limited to under 50s and very few over 60.
  • Expatriate worker plans can sometimes work for independent travelers. They are intended for those taking up residence in a foreign country for one year or longer. Coverage is heavily weighted to medical and emergency evacuation, rather than those covers that address the travel from A to B. Yet they often include other types of coverage. You need to establish a foreign address, but once you have the policy, you can move around.

Where to buy travel insurance

There’s are a lot of insurance companies and intermediaries trying to sell you travel insurance. Before your analyze the merits of a policy, you can narrow the field by knowing where to look… and where not to look.

Where not to buy

These vendors are all intermediaries who sell policies offered by the same insurance companies that you could buy from directly or through a specialist online broker. Most policies are vacation or business packages that are not the best match for long term independent travelers. Commission structures may vary, but you will rarely get as good a price as you would buying direct from the insurance company.

• Travel agents or tour companies — They generally have few options, usually just variants on the Vacation & Business package. They also tend to have higher prices than alternatives and depend on travelers making a hasty, uninformed purchase at the same time as buying a ticket or tour. Lastly, should anything go wrong with the agent or tour company before they forward your payment the insurance underwriter, you may not be covered.
• Regular insurance agents — Travel insurance is usually a sideshow and many agents offer only a limited menu of Vacation & Business packages unsuitable for DIY travelers.
• Airlines and travel booking sites — As with travel agents and tour companies, the coverage on offer is not likely matched to your needs as an independent traveler and the price might not be very good either. By injecting the option in the booking process, they are hoping for a spontaneous decision to buy.

Best places to buy travel insurance

Get closer to the source for more options and a better price.

• Directly from a commercial insurer — Most of them now sell policies over the internet. One huge advantage is that you can take your time to examine the full text of policies on offer. You can usually get a quote, either instantly from the website or via email. If you can’t answer your questions from the FAQs, you will have to contact them to get answers. Don’t do that over live chat or telephone, since you’ll need any important information in writing. Use email.
• From your existing insurer — Perhaps your existing health, life or property insurer has policies that can provide sufficient cover for your travel. If so, it might be both convenient and attractively priced for an existing client. But still exercise caution about the quality of the policy and compare the price to alternatives.
• Through a specialist broker — This is not a general insurance agent, but one specializing in travel insurance. If the agent represents many insurance companies, he or she should be able to find a policy that fits closely with your needs. It’s not likely to be the cheapest option, because brokers encourage clients to minimize all risks. Besides, a more expensive package will earn the broker a larger commission.

How good is the insurance company?

How do you know whether the company is a good one before you buy a policy and have to rely upon them?

• Rating sites — Often, results are shown as a table and that’s it. You’re left to wonder how much effort was put into the rating. A rating site should reveal it’s methodology and the insurance companies should score along a range — there should be good ones and not-so-good ones. Reasons why Company A is rated better than Company B should be explained.
• Product review blogs — Beware blog “reviews” that are really sales pitches and not true reviews. These blogs parrot an insurance company’s marketing material and don’t offer any critical “Cons” to balance their enthusiasm. The blog owner makes commissions on sales referred from the blog, so of course the policy and the company are wonderful. Full disclosure: this site earns commissions on some products and services, too.
• User experiences — Travel forums and some rating sites (like TrustPilot.com) have user reviews of insurance companies. Keep in mind that you’ll hear more complaints than praise, because that’s just how people are. Even the best insurance companies take plenty of online criticism from dissatisfied clients. You have to read the complaints just like you reviews of accommodation, seeing whether the complaining client has a reasonable case and isn’t just venting. On some forums, the insurer will reply: an attempt to soothe the unhappy client and limit reputation damage. Note how the insurer explains their side of the issue or offers to look into the situation. At least a reply sets them apart from insurers who don’t bother.
• Does the insurance company have a legal presence in your home country? — Some insurers offering coverage to residents of many countries may not have a legal presence in your country. If you have a dispute with them, you cannot appeal through your domestic insurance regulator or ombudsman. If it goes as far as legal action, there may not be a legal entity to sue in your country. For this reason, it’s best if the company has a legal presence in your country.

Shop for the best policy

Select at least one policy from a reputable company that seems to fit the needs you have already defined for yourself. It’s a good idea to compare policies offered by different companies. A strength in one could highlight a weakness in another. Some companies will appear much more flexible, while others will seem to use too much weasel lawyer language.

An insurance policy is a legal contract, so you need a copy of the full policy. A policy summary from the marketing materials is not enough.

This is when you have to read every word of any policy you are considering for purchase. Your protection while you travel and your ability to claim successfully depend upon it.

Your insurance company is not the friendly protector presented in their advertising. From a legal point of view, you are adversaries: they are on the other side of the “risks” and “odds” you estimated earlier. You can be certain that every clause and comma has been carefully lawyered to limit the amount they will pay… if they agree to pay your claim at all. They will cite any clause and use any omission or mistake on your part to deny or reduce your claim. They’re not being dishonest or mean-spirited — well, they can be vile when they use an immaterial error on your part to deny a substantial claim. You must understand that they’re running a business that depends upon narrow legal interpretations that they have contrived in the policy language.

For you, this means that, as you read the policy, you have to think like a lawyer too. The “devil is in the detail,” so proceed to purchase only when you’re sure you understand that the policy covers your needs without too many limitations. If something is unclear, ask them in writing (phone won’t do, chat is okay only if you can print it).   

Are you eligible for coverage?

The first thing to check on any policy is if you’re even eligible for coverage. There are several conditions that may make you ineligible.

• Residency — You need a home address and be in your home country at the start of the policy period. Some policies apply only to residents of certain countries. Others apply only to residents of some states or provinces within a country.
• Age — Premiums start to go up as you get older. Worse, many policies have a maximum age, beyond which coverage is not offered. Check the policy: the cut-off age is usually around 70, 65 or even 60, but some “backpacker” polices cut-off much younger than that. 
• Pre-existing medical conditions — Many pre-existing medical conditions are excluded from coverage in travel insurance policies. Less severe conditions that have been treated and are stable can be added back with an extra-cost rider to the policy. Beyond that, there may be no possibility of coverage for severe conditions — the insurer is not prepared to accept the risk at any price. If you still want that insurance policy, any treatment related to your condition will not be covered.

What’s covered and what isn’t?

If you’ve already created a list of the coverage you need, compare it against what the policy offers. Remember that travel insurance is based, in part, on the known value of your luggage and its contents, plus any flights, accommodations and activities that you’ve prepaid. You then need to declare the insured value of these things. Most policies cannot be changed once they have started.

• What types of coverage are offered in the policy? — The package or plan should always have medical. Most independent travelers also want medical evacuation. Beyond that, it’s up to you to find the best fit of your other needs. Check how the insurer defines its coverage.
• What are the coverage limits and can you adjust them? — Every defined cover has an explicit maximum amount that the insurer could pay out. These limits matter most for medical, medical evacuation and baggage (including per item maximum). Some companies offer two or more levels of policies, where the more costly policies have higher limits. Other insurers will allow you to adjust your coverage limit, with the premium going up for higher coverage limits. 
• Do any of the exclusions apply to you? — The insurer will explicitly list conditions and situations where their insurance does not apply. The list of exclusions can be long. If you find that one or more exclusions make the policy unacceptable, you may be able to buy a rider to the policy to make that exclusion an inclusion. If the insurer is taking on what they perceive to be a high risk, that rider might be costly. If a rider won’t solve the problem, or if it costs too much, you’ll need to find another policy with more inclusive and affordable coverage.
• Can you add riders or add-ons to extend coverage? — If essential cover is missing, maybe it’s available as a rider or add-on to the policy at extra cost. Or maybe you should reject this policy and move on.
• What are the deductibles and can you choose different levels? (“excess” in the UK) — A deductible is the amount that you will pay from the first expenses incurred and your insurer then pays the rest, up to a maximum. For example, if you have a $250 deductible on a $250 loss, your insurer pays nothing. That same $250 deductible on a $2000 loss still sees you responsible for the first $250, while your insurer covers $1750.
  • You will often have a choice of deductible, within a range offered by the insurer. The lower the deductible, the more costly the insurance premium. On the other hand, one way to control cost if you want a higher level of coverage is to accept a higher deductible.
  • It’s often worth accepting a higher deductible if the chances of loss are slight and the deductible wouldn’t be too painful in the event of loss.
• Does the policy require co-insurance? — An alternative to deductibles, co-insurance is where you and your insurer split the cost of a claim on a percentage basis. For example, if you have 20% co-insurance on a $2000 loss, you pay $400 and your insurer pays $1600. Think carefully about how much your percentage could be in money terms.
• What services are offered by the 24/7 worldwide emergency assistance? — You may need to contact the insurer about your coverage in the case of an emergency. For example, you may need approval for a costly medical procedure. The company should list exactly the services it provides. More on this below.
• Can you submit a claim from abroad? — Especially if you’re in the middle of a long trip, you don’t want to wait till you get home before you lodge a claim. Many policies have a time limit (example: 90 days) after the loss for you to file a claim. It’s best if a claim can be made online during your travels.
• Can you make changes to coverage after the policy has started? — Many travel insurance policies are set in stone on your day of departure. But suppose your trip didn’t initially include the United States, but now you want to go there. Some policies don’t include medical coverage for the US. Can you change your coverage (and pay an additional premium) after your policy has started?
• Can you extend the policy duration while traveling? — Suppose your trip is running longer than you expected and your original insurance will expire before you’re done. If you can’t extend the period of coverage, you could find yourself unprotected wherever you are when the policy runs out. Or you could have to cut your trip short and go home before the policy expires.
• Still a question? Ask the insurer — Maybe the policy is perfect, except for one critical problem. There could be a solution not mentioned in the policy itself. Maybe you’ve discovered that your rare pre-existing condition isn’t mentioned in the exclusion list. That doesn’t mean you’re good to go — it could still be excluded. Or maybe you plan to go whitewater rafting on the Zambezi, but there’s no mention about whether or not rafting is considered a “high risk” activity and is therefore excluded from coverage. Ask for a written clarification from the insurer. An over-the-phone assurance won’t do if it comes to a claim. Do not rely on third parties who are selling the policy, including both travel agents and websites not operated by the insurer itself. They are not authorized to speak for the insurer and may not be up to date.

How good is the 24/7 emergency contact?

All companies selling travel insurance have toll-free or collect call telephone numbers. You never know when an emergency will arise, so you must keep those numbers on your phone and in hard copy in your travel wallet at all times. If you have a traveling companion, make sure that he or she knows where to call in the event that you are incapacitated and unable to call yourself. You should be informed about your companion’s insurance contacts, too.

Especially if you’re going to countries or regions off the usual tourist trail, you may wonder whether your insurer can provide services where you are. While you may be able to talk to the emergency contact, actual services are provided by local suppliers: doctors, hospitals, translators, air evacuation services and more. We can’t really know how well our insurer is connected, but big international companies are more likely to have services figured out in Lubumbashi, Shillong or Cochabamba. If you’re traveling well worn routes, especially in rich countries, almost any insurance company will have good support infrastructure.

As with all else in travel insurance, the quality (and cost) of your policy is reflected in what the emergency contact can do for you. While all of them will help with a medical emergency, cheaper policies offer fewer other services.

• Referral to an English-speaking doctor or a good quality hospital.
• Translation services for both medical and other situations.
• Arrange emergency transportation to that facility or medical evacuation.
• Approval of medical procedures.
• Communication with people back home that you have specified as emergency contacts.
• Replace lost prescriptions.
• Arrange return of mortal remains.
• Assistance to replace lost or stolen passports, debit cards and credit cards.
• Cash advances.

Note that these are all emergency services. The insurer is not responsible for your regular travel logistics. There are business and concierge services offered by premium insurance plans, but you’re hardly an independent traveler if you have to rely on them.

Cheap travel insurance may not be the best value

Of course you should shop for the best combination of value and price. By “value” we mean getting the coverage you need and not paying for coverage you don’t need. Pre-set packages make it difficult to select precisely what you need and leave the rest, but you can often tweak the exclusion riders, coverage limits and deductibles to get close to your requirement.

If your budget for the whole trip is tight, insurance is one expenditure where you might look for savings. But be careful. If you searched for “cheap travel insurance,” note what the insurer is offering… or not offering:

• Low age limit — If you are 50 or older, you may not be eligible for a low-cost “backpacker” or “gap” policy.
• Fewer types of coverage — You must have medical, but another type of coverage on your required coverage list may not be included.
• Lower coverage limits — The maximum amount of coverage could be lower for key types insurance. Can you live with the medical coverage number? Even if you’re going to a country with inexpensive medical care, we think $100,000 or £100,000 is too low. How about the amount for your baggage & personal effects, including the single item limit? Are you okay with $500 on that Apple laptop or DSLR kit?
• Higher deductibles (“excess”) — The trade-off is clear. Accept a higher deductible in exchange for a lower premium. If you’re aggressive about risk, you can request higher deductibles on the coverage types that matter less (those that won’t hurt so much). Sure, if something goes wrong, it’s more costly for you. But you’ll never be stuck with a catastrophic expense on medical or medical evacuation.
• Fewer high-risk activities included — Inexpensive “backpacker” or “gap” policies like to promote a long list of high risk activities included in the basic policy. And some of those policies really are quite generous. But be sure to check. Some insurers have up to three levels of high-risk activities, with riders to move up the scale. That will affect the total price.
• Fewer pre-existing medical conditions — The same principle is at play here. A rider to include your pre-existing condition could come with a hefty cost.

It is possible to get comparatively low cost travel insurance that meets your basic needs only: medical and (probably) medical evacuation coverage. The other risks you then assume yourself. 

Purchase your policy

Almost all travel insurance policies must be bought after you have made your pre-paid expenses (so that values can be attached to the coverage) but before departure. The policy will begin then, whether it’s two days, two weeks or two months before your departure date.

Fill in the application with exact information

One of the most common reasons for claim rejection is that the information in the application form does not match the information in the claim.

Investigations of claims costs money, so it makes business sense for insurance companies to limit their deep investigations by senior adjusters to large claims (mostly medical and emergency evacuation claims). They’re looking for any error or omission on your part to deny or reduce your claim. Be very careful about the information you supply in your application. A slip-up here could ruin you financially if a big claim is denied.

Medical information

Provide complete medical information, even if you have to go back to one or more doctors to get it. Use printed records, not verbal communications from the doctor’s office. Unless you’re absolutely sure, do not trust your memory on your medical history. An “oh, yeah, I missed that” revelation will not get you sympathy. Your claim will be denied. Don’t let this happen to you.

You can be personally stuck with an astronomical medical bill because your insurer rejected your claims due to a failure to disclose a pre-existing condition (as defined by them). They may ask for medical records going back as long as five years, including all medications. Before you supply them with the ammo to screw you, check whether they have the right to be that nosy. Supply only the information you are legally obligated to provide. After all, they’re fishing for a reason to deny your claim. If you’re looking at tens of thousands of dollars — or even six figures — consult a lawyer before you volunteer any information.

Value of goods and services covered

If you’re getting pre-trip cancellation, trip interruption or baggage & personal effects coverage, you need to list items and amounts precisely. Quote amounts directly from the invoices. To the penny.

If you think you can write your air ticket price as $2000, when it’s actually $2004.54, you would be wrong. In the event of trip cancellation, you might claim $2000, but the insurer can cite the actual ticket or invoice and reject your claim because the information you supplied was incorrect.

Was that an iPad Pro in your bag when it was stolen, but your insurance inventory just said, “iPad”? Unless you can show an invoice for the Pro, your insurer can limit your recovery to the cost of an iPad Mini.

Yes, insurers can be that nasty. (In fairness, they have a problem with policy holder fraud.)

As always, if something is not crystal clear in the policy, contact the insurer for written explanation. Do not accept verbal assurances, since they cannot be proven.