It always happens to someone else. Until it happens to you.
A medical emergency in the US can cost $50,000 for a single hospitalisation. A missed connection chain can leave you stranded and out of pocket for a hotel, meals, and rebooking fees. A stolen passport means police reports, emergency appointments, and days of lost travel. Travel insurance doesn't prevent any of these things — but it ensures they don't financially ruin you.
What Good Travel Insurance Actually Covers
Medical Emergencies
This is the most important coverage, and the reason most people eventually regret not having insurance. Medical costs vary wildly by country: a visit to the emergency room in Thailand or India might cost $50, but the same visit in the USA, Switzerland, or Japan can cost thousands. Look for policies with at least $100,000 in medical coverage for any international trip, and $500,000+ for travel to the USA or Canada.
Emergency Medical Evacuation
Separate from medical treatment costs, evacuation — flying you home on a medical aircraft if you're critically ill — can cost $50,000–$200,000 alone. This is usually covered separately and is non-negotiable for travel to remote areas like the Himalayas, African wilderness, or Central Asia.
Trip Cancellation and Interruption
If you have to cancel your trip because of illness (yours or a family member's), a death in the family, natural disaster, or certain other covered reasons, trip cancellation insurance reimburses pre-paid, non-refundable expenses. Trip interruption coverage applies when you need to cut a trip short and covers the cost of returning home early.
Baggage and Personal Belongings
Lost, delayed, or stolen luggage. Most policies cover $1,000–$2,500 for baggage loss, though expensive electronics and jewellery may have sub-limits. Read the fine print — and always file a report with the airline or local police immediately, as you'll need documentation to claim.
Flight Delays and Missed Connections
If your flight is delayed beyond a certain threshold (usually 6 hours), good policies reimburse accommodation, meals, and transport costs. For missed connections due to airline delays (rather than your own fault), they cover the cost of rebooking.
What Travel Insurance Typically Does NOT Cover
- Pre-existing medical conditions (unless specifically declared and covered)
- Injuries from extreme sports unless you add specific coverage
- Trips to countries under active government travel advisories
- Items left unattended in public places
- Losses due to alcohol or drug influence
- Dental treatment that isn't the result of an accident
"Travel insurance costs roughly 3–5% of your total trip cost. That's a very small premium to cover something that could cost 100 times more if it goes wrong."
How Much Should You Pay?
A reasonable single-trip policy for a 10-day international trip costs approximately:
- $15–$40 for intra-Asia travel (Thailand, Bali, Singapore)
- $40–$80 for Europe
- $80–$200 for USA, Canada, or Australia
Annual multi-trip policies are excellent value if you travel more than twice a year. Compare options from international providers like World Nomads, Allianz Travel, AXA, or your local insurer for adventure activities.
Our Simple Rule
If your trip costs more than your deductible (the amount you pay before insurance kicks in), buy the insurance. If you're going anywhere with expensive healthcare (US, Europe, Japan, Australia), buy the insurance. If you're going trekking, diving, or doing any adventure activity, buy the insurance — and make sure it specifically covers that activity.
The cost of skipping it is almost never worth it.
