Travel insurance coverage

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  Essentials

• “Must have” coverage — Every traveler needs travel medical insurance. Most travelers may also need medical evacuation insurance.
• “Nice to have” coverage — Depending upon your situation, it may also be beneficial to have insurance for your property (baggage & personal effects), pre-trip cancellation insurance and/or trip interruption insurance.
• “Extra” coverage — Most independent travelers have little need for trip delay insurance, baggage delay insurance, rental car insurance, personal liability insurance, accidental death & dismemberment insurance, natural disaster or political evacuation insurance or identity theft insurance.
• Your needs are your needs — Your specific travel situation will shape your insurance needs: your destinations, your activities, your age and health, the value of the stuff you take and the value of any pre-paid trip expenses. Maybe you’re trying to save, so minimal coverage is all you want, or perhaps you’re a nervous traveler who can afford to cover more.

the Big Picture

Note: views expressed on this page are our own opinions and your needs may differ. How to Travel is not responsible for your travel insurance decisions.

If you believe marketing material, it’s prudent to cover yourself generously for all kinds of risks. But the common sales pitches for travel insurance are targeted at short-term vacationers and business travelers. Products tailored for them are not a good fit for independent travelers.

The options can be bewildering and you might be tempted to cover any possible problem you could encounter.  Insurance companies and brokers sure hope you do. But you should go back to our previous page and think about risks, probabilities and how much financial pain could result. It’s likely you can manage hassles and small losses out of pocket. What you must insure for are those events that can really hurt financially.

And don’t forget: most travelers have a great time and never make a claim on their insurance. Your bet against your insurer is one you’ll be happy to lose. And you probably will. Yet, you can never discount the consequences of bad luck. Cover yourself. Enjoy your trip!

The list below is in approximate order of importance for independent travelers.

• “Must have” coverage — You need to pay close attention to the coverage definitions, limits, terms & conditions of “must have” insurance to ensure that you are adequately covered. If you get that wrong, you could suffer catastrophic financial losses just from the slightest misfortune. We have links to separate pages to help you better understand the details.
• “Nice to have” coverage — These types of coverage aren’t essential, either because the risk is low or the potential financial loss is not catastrophic. But, should you suffer a harmful event of this type, it’s wonderful to have cover.
• “Extra” coverage — You might need one or more of these only under special circumstances.

Because travel insurance is usually a bundle of various types of coverage, you may end up with some coverage that you don’t really need. That’s okay as long as the cost of the package is still competitive. But when evaluating a policy, you should know where to place your priorities: “must have” coverage, followed by “nice to have” cover. “Extras” only count if your travel situation demands it.

Since How to Travel is not an insurance broker working with you individually to assess your needs, we can’t tell you what combination of coverage you need (let alone how much). The categories and ranking of importance reflect our opinion of what most independent travelers need. Your travel situation and insurance requirements may differ.

“Must have” coverage

In our opinion, ALL independent travelers need adequate medical insurance. 

Any traveler who is planning to be — or could be — far from a high-quality medical facility should also have medical evacuation insurance.

If you require either of these services and are not covered, you could be financial ruined. Or dead.

Travel medical insurance

• The risk — You get seriously ill or injured, requiring costly hospitalization and treatment.
• Potential financial loss —  Unknown. Low to catastrophic.
• Coverage — Since medical costs can be huge, it’s important to know what is covered and what is not, as well as the maximum amounts for each cover.
  • Hospitalization.
  • Doctor’s consultation (including specialists).
  • Prescribed medicines.
  • Dental treatment as a result of accident (not check-ups or normal dental treatment).
  • Fees charged by physiotherapists, osteopaths and other therapists (check type covered).
  • Counseling following a mugging or assault.
  • Emergency cash allowance while hospitalized.
  • NOT COVERED: pre-existing medical conditions, the consequences of those conditions or injury due to high risk activities. You can often get a policy rider at extra cost to cover these exclusions.
  • NOT COVERED: pregnancy, self-inflicted injury, injury due to intoxication. There are no riders to cover these conditions.

A nasty illness or severe injury is the “perfect storm” of travel risks. It can happen to anyone and treatment can be hugely expensive — tens of thousands, even hundreds of thousands of dollars or pounds. In some countries, your passport could be confiscated until the bill is paid. There are many woeful stories of uninsured or under-insured travelers who were financially ruined by medical bills. 

It is highly unlikely that any health insurance you already have will cover you adequately when you’re abroad. Supplementary travel medical insurance is almost always required.

Pre-existing medical conditions & “high risk” activities

All medical insurance policies have “exclusions” down in the fine print. The two main ones are:

High risk activities (“adventure sports”)

The policy will not cover your medical bills if you injure yourself doing a “high risk” activity such as scuba, mountaineering, paragliding and (sometimes) even bicycling.

Just because an activity isn’t named, doesn’t mean it’s covered. In fact, the opposite is true. There are too many potential high risk activities to list. If you know what you want to do and it’s not listed, contact the insurer you are considering and ask for clarification in writing. (If it’s just over the phone and you end up making a claim, you have no proof that you’re covered.)

The usual way to ensure coverage is to buy a rider to the policy, which will extend coverage to listed activities. The rider will not cover you for activities not included in the list. Some activities are so risky that they are never covered. Examples include base jumping, cave diving, running with the bulls and expeditions to the remote tundra.

Pre-existing medical conditions

These are chronic medical conditions that you already have before you apply for insurance. Any medical incident that arises because of that condition will not be covered. For example, if you have high blood pressure (hypertension), then have a heart attack while traveling, the insurer may not cover the cost of treatment on the grounds that it was a consequence of your high blood pressure.

Pre-existing conditions that are stable for a specific period of time prior to departure may be okay for inclusion.

With many policies, you can buy a rider to cover the pre-existing condition.

One additional annoyance for long-term travelers: if you develop or are diagnosed with a condition during your travel, then seek to extend your medical insurance beyond the initial policy, the insurer will regard your new condition as pre-existing.

Cover for repatriation of children

• The risk — You are hospitalized and there’s no-one to care for a child or children traveling with you.
• Potential financial loss — Unknown, but can be estimated. Moderate to high.
• Coverage — Secondary coverage. Applies if you are hospitalized for 7 days or more due to a covered illness or injury. Cost of returning your child / children (up to 18 – 23 years and included in your policy) will be returned home or to a person / place named by you. A chaperone may be provided for very young children. Payment does not include meals and lodging and is net of any available return tickets.

This cover is strongly recommended if you are a single adult traveling with a dependent child / children. If there are two adults, there is much less risk that both adults could be hospitalized at the same time. If  your child is older and mature, it may be possible for him or her to stay by your side until you are discharged. If you’re traveling in a difficult location that may not be possible, so the coverage would help.

Cover for emergency bedside reunion

• The risk — You are hospitalized with no support apart from hospital personnel.
• Potential financial loss — If you need someone by your side, then you or they bear the cost of flights, accommodation and meals. Otherwise, you’re on your own.
• Coverage — Cost of transport for someone to join you. Some policies include other expenses, such as lodging. The reason for hospitalization must be one covered by the policy and some policies stipulate that a doctor must recommend the reunion or your condition must be life-threatening.

For independent travelers, this coverage isn’t essential, especially if you’re traveling with a companion who can stay with you. But if your companion is also hospitalized or if you’re on your own, it’s good to have the backup given the physical stress.

What medical insurance do you need?

What’s covered? What’s excluded? What do you already have? How to buy? How to claim?

find out!

Medical evacuation insurance

Not necessary for all travelers, but mandatory for many.

• The risk — You get seriously ill or injured far from a high quality medical facility and have have to be safely and swiftly transported. You may also need to be transported home, perhaps with medical facilities and personnel. Worse, you die and your body needs to be repatriated.
• Potential financial loss — Unknown. High to catastrophic.
• Coverage — During this crisis, your insurance company should:
  • Assess your situation promptly.
  • Contact the nearest appropriate medical facility.
  • Book air transportation (with medical personal and equipment, if necessary).
  • Obtain visas and flight clearances.
  • Mobilize ambulance service (as required).
  • Make arrangements for your transport home.
  • Repatriate your body.
  • (Premium policies) Bring someone from home to be with you.(Premium policies)
  • Arrange the return home of children you can’t care for while hospitalized.
  • Pay for all of the above.

Medical evacuation insurance is more useful for independent travelers than for vacationers or business travelers. Why? Because a DIY traveler is more likely to get out of the cities or resort areas and far from high grade medical facilities. Independent travelers are more open to fresh opportunities, some of which may bear more risk than lounging around the beach or going to tourist sites.

If you will travel more than a short ambulance ride from a high quality medical facility, you may not receive timely and adequate medical attention unless you can be moved quickly and safely to a good hospital. That goes double if you will be doing “high risk” activities like mountaineering, white water rafting or even hiking.

Evacuation due to natural disasters or political conflict is separate coverage (below).

Do you need medical evacuation insurance?

What’s covered? When would you need it? How much? How to buy? How to claim?

get answers

“Nice to have” coverage

In our opinion, these types of coverage are not essential. But they’re commonly included in bundled travel insurance packages and that’s a good thing.

The reasons they’re less important than “must have” coverage:

• Limited risk — If you’re not traveling with expensive gear, aren’t checking your main bag with airlines and take reasonable security precautions, your chances of incurring painful losses are much reduced.
• Limited losses — All the potential losses are a known value and won’t impoverish you if you’re not covered.
• Pre-paid expenses — You have to buy these types of coverage after you have booked and paid for your trip, but before you leave. The insurer covers a declared amount of pre-paid expenses. But most independent travelers don’t pre-pay much, possibly apart from the initial flight (although a costly ticket may be worth covering).

Baggage & personal effects insurance

• The risk — Your main bag and everything in it gets lost or stolen. A valuable item, such as a phone, camera or laptop gets lost or stolen.
• Potential financial loss — Known. Low to moderate.
• Coverage — This covers all your stuff, not including passport, credit cards or cash. Some policies exclude many more items and conditions of loss. It’s common not to include items stolen from a vehicle, but there’s also policy language about your personal negligence that can be very broadly interpreted to deny your claim. Read the policy carefully. 

If you’re traveling with carry-on luggage only, the risk of your bag getting lost by an airline is next to zero. But all your stuff will be vulnerable at one point or another, whether in your room on on your person.

Many travelers don’t insure personal effects and assume the risk themselves. If you get ripped-off — bad luck! — you’ll have to replace the missing item at your own expense. Yet some travelers worry, especially if they’re carrying expensive items like computers or cameras. If you can’t enjoy yourself because you’re constantly nervous about losing your stuff, then go ahead and insure.

Cover for lost passport or credit cards

Separate from baggage insurance, but often bundled with it.

• The risk — Your passport and/or credit cards are lost or stolen.
• Potential financial loss — Low.
• Coverage — Reimbursement of unauthorized charges, fees to replace lost cards or passports (limited to $50), emergency cash advances (reimbursable) or management of transfers (from family or friends).

Well-prepared independent travelers don’t need this cover, but it’s often included with essential coverage. 

If you lose your passport, the fee is less of a problem than the hassle. You’re stuck in the country until you can get a new one (or an emergency travel document). 

If you lose a credit card, you should have a back up card, debit cards and emergency cash. If you somehow lose all of them, then emergency cash will be very helpful. Cover for unauthorized use of a stolen card isn’t necessary if you notify the credit card company in good time. Having money wired from home won’t be necessary if you still have a debit card. If that’s missing, too, then your contacts at home can still wire money without the help of your insurer. 

Do you need to insure your stuff?

Unsafe destinations? Risky travel style? Expensive stuff? How to buy? How to claim? 

figure it out

Pre-trip cancellation insurance

• The risk — You’ve pre-paid for flights (or other transport), accommodations and/or activities. But, for reasons beyond your control, you have to cancel the trip.
• Potential financial loss — Known. Low to moderate.
• Coverage — Up to 100% of pre-paid non-refundable purchases. But note that reasons for cancellation are strictly limited and do not include your own decision not to go or political upheaval at your destination.

This cover is not that useful for most independent travelers because we usually don’t have any pre-paid services, except for the first flight.

That said, the risk is not zero. Suppose you suddenly come down with appendicitis, are called for jury duty or get tripped up by some other sudden problem. If that super-discount first flight is a big bite of your travel budget and is both non-changeable and non-refundable, then pre-trip cancellation coverage could well be worth it.

Other situations where it could be useful are when you have a round-the-world air ticket or an expensive experience that you’ve booked and paid for. 

Add on: cancel for any reason

• The risk — You are forced to cancel for a reason not included in standard trip cancellation insurance. That could even include your own decision not to go.
• Potential financial loss — Known. Should be low.
• Coverage — Reimburse 50% – 100% of your pre-paid non-reimbursable expenses.

This is not a type of cover that independent travelers usually need, because we have limited pre-paid expenses. If you realize there’s a risk not covered by travel cancellation insurance, you should limit your pre-paid expenses or not make them at all. But people have complicated lives and your situation may warrant coverage.

Trip interruption insurance

• The risk — You’re already on your trip and still have pre-paid expenses, but, for reasons beyond your control, you have to go home.
• Potential financial loss — Known. Low to moderate.
• Coverage —The main reasons to return home are your own repatriation due to illness or injury or returning to deal with the serious illness, injury or death of a close family member (as defined in the policy) or traveling companion. Other reasons for return are limited: check the policy. A policy will reimburse you up to 150% of the unused portion of pre-paid expenses (net of any refunds) and the cost of your trip home (net of any return ticket you can use or get refunded).

Trip interruption insurance is usually sold in Travel Packages bundled with trip cancellation coverage. (Trip cancellation cover applies only before you leave on your trip, while trip interruption cover applies from the day you start.)

Trip interruption cover isn’t needed by most independent travelers because once you have started your trip you probably don’t have any pre-paid expenses. If you do, this cover might be worth it. Many independent travelers don’t have a return air ticket, so the coverage for a return flight would also be useful.

You can’t decide to get this coverage because Old Aunt Irma has stage 3 cancer and may die while you’re on a year-long trip. Insurers won’t cover pre-existing conditions of relatives either. But if you have a lot of qualified relatives and if some of them are getting old, the odds of using the coverage go up. Combined with coverage for resumption of your trip, you would have the option to continue your travels once the family crisis has abated.

Cover to resume your trip

• The risk — You’ve had to return home, but now the crisis or recovery has passed, you want to resume your trip, but you don’t have the funds to get back out there.
• Potential financial loss — Known. Low to moderate.
• Coverage — Economy class fare back to where you would be if your trip had not been interrupted and the original duration of your insurance will remain. If you were repatriated for an illness, the condition will be deemed an excluded pre-existing medical condition for the rest of your trip. 

This is a good option, especially for independent travelers on a limited budget. The financial hit may otherwise cancel the trip entirely.

 

Do you need trip interruption coverage?

When is it worth it? What reasons are accepted? How to buy? How to claim?

get more info

“Extra” coverage

In our opinion, these types of coverage are less important for independent travelers. Unless your situation is exceptional, you probably don’t need them.

• Specialized cover — If you aren’t checking any luggage, you don’t need baggage delay cover. If you aren’t going to rent a car, you don’t need rental car cover. If you’re going only to Europe, you don’t need natural disaster & political instability evacuation cover. Etcetera.
• Better bought elsewhere — If you’re truly concerned about accidental death & dismemberment, travel insurance payouts are small, relative to the severity of the loss. Perhaps you should get a standalone policy that pays out serious money. If you need rental car insurance, you can probably get a standalone policy that offers better coverage for the money.

Many of these less-important covers appear in bundled insurance, so you may get some of them anyway. Maybe you’re paying for cover that you don’t really need, but at least you don’t have to worry over the cover, limits, terms & conditions as much as “must have” and “nice to have” coverage.

Trip delay insurance

• The risk — Your flight gets delayed or cancelled, forcing you to stay at your point of departure until an alternative flight is available
• Potential financial loss — Known. Low.
• Coverage — Travel delay insurance kicks-in after a minimum number of hours delay (5 to 12) and covers local transport, lodging and meal expenses as well as reimbursement of pre-paid, non-refundable expenses for onward transport, accommodation or activities that you lose due to the delay. Maximum coverage runs from $500 – $1500 and many insurers have daily maximums as well. The insurer will specify acceptable reasons for delay, but the delay cannot originate with you. 

This cover is not useful for independent travelers, since it requires all covered flights to be paid for before you leave home. Result: it will apply only to your first flight and connections.

If you have a round-the-world ticket or other pre-paid flights, it might come in useful. Although airline delays happen a lot, if the costs of the layover are on you, at least those costs are modest. 

Missed flight coverage

This is not the same as trip delay insurance. 

• The risk — You miss a flight due to circumstances beyond your control (oversleeping doesn’t count), causing you to miss pre-paid transport or activities after that flight. (Your connecting flight or your trekking group may leave without you.)
• Potential financial loss — Known. Low to moderate.
• Coverage — Secondary cover and not in addition to any travel delay coverage. Reimburses pre-paid expenses that you lose because the flight was missed, net of any refunds. Meals, ground transportation and lodging are also covered until you resume your trip. Coverage ranges from $250 – $2500. 

Airlines are not obliged to compensate you for anything after their flight. Fortunately, independent travelers have more flexibility and fewer pre-paid services, so missed flight coverage is not that useful.

Baggage delay insurance

• The risk — An airline fails to deliver your bag upon arrival. You don’t have toiletries and a change of clothes to hold you over until your bag arrives.
• Potential financial loss — Known. Low.
• Coverage — Secondary cover, after any compensation provided by the airline. Most policies are in the lower end of a $100 – $1000 range and some policies have daily limits. Cover won’t kick in until your bag has been delayed 12 – 24 hours.

As an independent traveler, this won’t happen to you if you travel with carry-on luggage only.

But, if you check your bag and it fails to arrive with you, it’s not so much a financial loss as a hassle. Again, the airlines have minimal obligations and often won’t even consider your situation until your bag has been missing for a full day. In the meantime, they may provide you with a minimal kit of underwear and toiletries or a modest allowance. 

Coverage may be useful if you have an activity planned immediately after arrival that requires clothing in your missing bag (you’re going to the opera), you need equipment that didn’t make it (scuba gear) or you’re heading off on a multi-day experience where your baggage may not catch up with you even after it arrives at your scheduled destination (you’re going on safari).

Rental car insurance

• The risk — You don’t have enough coverage for vehicle damage, vehicle theft, theft of stuff from the vehicle and/or personal liability in the event of an accident with your rental car.
• Potential financial loss — Unknown. Moderate to high.
• Coverage — Loss or damage to the rental vehicle up to the policy maximum. Does not include any contents of the vehicle. Unlike other travel insurance cover, this is primary cover, so other insurance (from your credit card perhaps) applies after the travel policy cover. Rental cost of the vehicle while it is being repaired is also covered, unlike any vehicle insurance you have from home.

While odds of an accident or theft are moderate, you should already have partial or complete coverage from three other sources:

• Vehicle insurance from home — Read your home auto insurance policy to see if it covers you while driving abroad, under what conditions and how much. It won’t cover the rental fee while the car is being repaired. If you have decent coverate, keep the policy while you’re traveling.
• Credit card coverage — You may have some collision coverage by renting the car with a premium credit card. Again, read the card policy… personal liability coverage may be low.
• Rental company coverage — You can buy insurance offered by the car rental company, although it will be very expensive compared to the alternatives.

Personal liability insurance

• The risk — A case is brought against you in a foreign country alleging negligence causing physical injury or property damage to a third party.
• Potential financial loss — Unknown. Can be very high.
• Coverage — Legal costs and legal liability (up to the policy limit) for physical injury or property damage you cause to a third party by your own negligence. DOES NOT include third party liability due to motor vehicle accidents.

For independent travelers, the situations where you could be held negligent are extremely rare. You have almost no property to cause injury or damage, so the instrument of negligence would most likely be you, personally. The most common cause of personally inflicted negligence is probably intoxication. Behave yourself and stay out of trouble!

Another risk of a personal liability case is not covered by insurance: the possibility that you may not be allowed to leave the country until the case is resolved.

Accidental death & dismemberment insurance

• The risk — You die. Or you suffer loss of sight in one or both eyes. Or you lose one or both of hands or feet.
• Potential financial loss — Unknown. Can be very high.
• Coverage —Insurance cover will pay a stated amount for your death or loss of eyesight or limb. The incident that leads to loss must occur during your trip abroad. The actual loss could occur up to 6 – 12 months later than the incident, when you’re back home. The policy will also pay down outstanding credit balances and (sometimes) loans. Repatriation of remains is not included.

This type of cover does not relate closely to your travel needs. If you are unfortunate enough to suffer death or dismemberment, the amount of cover is not going to compensate for the gravity of loss. Nor does it respond to your immediate needs on the road.

Natural disaster or political evacuation insurance

• The risk — You find yourself unable to use conventional transport to leave a place that is no longer safe due to natural disaster, civil disorder or military activity. 
• Potential financial loss — Low, since the alternative is not getting out of the area. The real issue is personal safety.
• Coverage — Your insurance company won’t rescue you themselves, but they’ll compensate a local party who does. Cover includes transportation out of the danger zone, visa application, ground transportation and lodging. Some policies cover your repatriation or return to your point of evacuation after the danger has passed. 

A smart independent traveler will get out of the way of hurricanes, typhoons, floods or forest fires. But there’s nothing you can do about a sudden natural disaster, such as an earthquake, tsunami, flash flood or sudden fast-moving fire. The odds are low, but not out of the question. 

You ought to be aware of political developments in your destination countries. You should avoid cities and countries where the political situation is violent and leave if the storm clouds are gathering. Your insurance won’t cover you if you go to an area under an “avoid all travel” advisory by your government. Sometimes a civil or military clash breaks out without warning. Your insurer will give you up to about five days to get clear of the trouble before suspending your insurance.

In most cases, you should be able to get yourself out of trouble, unless the event is so sudden and so big that transport infrastructure is knocked out and/or civil order crumbles. If that’s the case, rescuers will probably have trouble reaching you in the immediate aftermath. Your best bet then is usually to stay indoors, sit tight and wait for the situation to stabilize.

Identity theft insurance

• The risk — Someone gets your personal details or your passport and other documents, then uses your identity for criminal purposes.
• Potential financial loss — Low if you catch it quickly, but sometimes a lot of damage is done in a short time. The real issue is the hassle to get your identity back.
• Coverage — Assistance to monitor account activity and possible fraudulent use of your identity, notification of credit bureaus, police and other concerned parties, 

If you diligently protect your documents, keep secure copies of them and guard your online security, you should not encounter this risk.

Yet, identity theft is increasing, so the risk is not zero. Travelers are actually more vulnerable to identity theft because thieves know you have identity documents with you. Another incentive to thieves is that travelers often don’t discover identity theft until they return home.

Identity thieves may plunder your bank accounts and credit cards, or they could use your identity to apply for new credit cards, loans and other types of fraud so that they can use your identity for a time before you find out.

If you’re worried, you can periodically check your credit rating. When fraud is reported, your credit rating will plunge. 

It’s a lot of work to restore your identity and good standing. Identity theft insurance, if you have it, will assist with that.

How to buy travel insurance

What packages or plans? Value vs price. How to use insurer websites. Get an online quote.

how to buy