Travel Insurance: When It Is Worth It

What travel insurance covers, from medical emergencies abroad to cancelled trips, and how to judge whether a policy is worth buying.

Travel insurance protects against financial losses that can happen during a trip. For some journeys it is essential; for others it may be unnecessary.

What it can cover

Medical emergencies abroad: treatment and hospital stays, which can be extremely expensive in some countries, such as the United States.
Medical evacuation: transport home or to a suitable hospital.
Trip cancellation or interruption: refunds if you must cancel or cut short a trip for covered reasons, such as illness.
Lost or delayed baggage.
Flight delays.
Loss of passport.

When it matters most

Travel insurance is most valuable when potential losses are large:

International travel, especially to countries with high medical costs. Some countries, including those in the Schengen area of Europe, require travel medical insurance for visa applicants.
Expensive, non-refundable trips.
Older travellers or those with health conditions, who face higher risks.

For short domestic trips with refundable bookings, the benefit may be small.

Reading the policy

Key things to check:

Coverage limits: is the medical cover high enough for your destination?
Exclusions: many policies exclude pre-existing conditions unless declared, risky activities, or travel to places with official warnings.
Deductibles.
Claims process: documents required and how to contact the insurer in an emergency.

A broken leg abroad

A traveller breaks a leg while on holiday in the United States. Emergency treatment and surgery could cost tens of thousands of dollars. With travel insurance, the insurer pays the hospital and arranges a flight home. Without it, the traveller could face a bill larger than a year's income. The premium, a small fraction of the trip cost, protected against a devastating loss.

Accessibility

Travellers with disabilities should check whether policies cover assistive equipment, such as wheelchairs or braille devices, and whether pre-existing conditions related to a disability are covered.

Assuming credit cards or existing policies cover everything

Some credit cards and health policies include travel cover, but limits and conditions vary widely. Checking what you already have prevents both gaps and paying twice for the same cover.

Key takeaways

Travel insurance covers medical emergencies, cancellations, baggage and delays.
It matters most for international trips, expensive non-refundable bookings and higher-risk travellers.
Checking limits, exclusions and claims processes is essential.
Travellers should check whether existing cards or policies already provide cover.