Travel Insurance Explained: What You Actually Need (and What You Don’t)

Travel insurance is one of those purchases everyone resents – until they need it. The good news: the right policy is cheap (often 4–6% of the trip cost) and the choices boil down to a few critical clauses.

The four things every policy must cover

1. Emergency medical: minimum US $100,000 internationally; US $500,000+ for the US, Canada, and Switzerland.
2. Medical evacuation: minimum US $250,000. This pays to fly you home (or to a better hospital) if local care is inadequate.
3. Trip cancellation & interruption: at least the value of your non-refundable bookings.
4. Baggage loss & delay: US $1,000–2,000 is enough for most travellers.

Basic vs. comprehensive: what changes

The jump from a basic to a comprehensive plan typically adds: cancel-for-any-reason coverage (40–75% reimbursement), higher medical limits, rental car damage, and pre-existing condition coverage if bought within 14–21 days of your first trip deposit. For trips over US $3,000 or involving multiple international flights, the upgrade is usually worth it.

Fine print that catches travellers out

• Adventure exclusions: diving below 30m, motorbiking without a local license, skiing off-piste, and trekking above 4,500m are commonly excluded.
• Alcohol clauses: claims involving any alcohol consumption are often denied.
• Pre-existing conditions:usually only covered if the policy is bought within the "look-back" window (14–60 days) of your first deposit.
• Documentation: a police report within 24 hours is mandatory for theft claims. No report = no payout.

Add-ons you can usually skip

• Rental car CDW if your premium credit card already provides it (verify in writing).
• Identity theft cover – your bank usually does this for free.
• 24-hour concierge services – nice marketing, rarely useful.

Buy insurance the same week you make your first non-refundable booking. Coverage starts immediately for cancellations and the price doesn't change.