Travel insurance explained: what it covers, what it doesn't and how to choose

November 8, 2026 · 5 min read

Travel insurance is one of those purchases that feels like wasted money right up until the day it is not. A cancelled flight, a hospital visit abroad, a bag that never arrives: any one of them can cost more than the whole holiday. And yet most people buy a policy in a rush, tick the box and never read what it says.

You do not need to become an expert. You need to understand the main kinds of cover, the common exclusions, and the few questions that tell you whether a policy fits your trip.

This is general information, not advice on a particular policy. Terms differ between insurers and countries, so read the policy documents yourself.

What travel insurance usually covers

Most policies are built from the same parts. Not every policy includes all of them, and limits vary:

Medical costs abroad. Treatment, hospital stays and sometimes getting you home. For many travellers this is the most important part, because healthcare abroad can be very expensive and your home health cover may not apply.
Cancellation or cutting short. Money back for prepaid costs if you cannot travel or have to come home early for a reason the policy lists, such as serious illness.
Delays and missed connections. A payment or help with costs if a delay passes a set number of hours.
Baggage and belongings. Loss, theft or damage to bags and items, usually with limits per item.
Personal liability. Cover if you accidentally injure someone or damage property.
Emergency assistance. A phone line that can arrange care and transport.

Some policies add extras such as rental car excess, gadget cover or cover for adventure activities. Those are worth a look only if they match what you will do.

What it usually does not cover

The exclusions matter more than the headlines. Common ones include:

Pre-existing medical conditions, unless you declare them and the insurer agrees to cover them.
Changing your mind. Standard policies do not pay if you simply decide not to go.
Risky activities. Skiing, diving, climbing and motorbikes are often excluded or need an add-on.
Alcohol and drugs. Claims may be refused if intoxication contributed.
Unattended belongings. A bag left on a beach chair or in a car is often not covered.
Cash and valuables above small limits.
Travel to places your government advises against. Cover can be void.
Events that were known before you bought. Something already happening when you buy is rarely covered.

Read the exclusions list before the benefits list. It is the part that decides what happens when you claim.

Questions to ask before you buy

Compare policies using the same short set of questions:

Where am I going, and for how long? Policies are priced by region and duration, and some cover only certain destinations.
What is the medical limit? Is it enough for the places you will visit? Costs vary widely by country.
What happens to pre-existing conditions? Declare them. A policy that does not cover them can leave you exposed.
What activities am I doing? Check that skiing, hiking at altitude, scuba diving or similar are included.
What is the excess? That is the amount you pay first on any claim.
How does the cancellation cover work? Which reasons count, and how much is covered?
How do I claim? Is there a 24-hour line, and what proof will they want?

Single trip or annual

If you travel once or twice a year, an annual policy covering multiple trips can be simpler and cheaper than buying each time. It usually has a cap on the length of each trip and may exclude some activities. If you take only one trip, a single-trip policy is often enough. Check which fits your plan rather than assuming.

Cover you may already have

Before you buy, check what you already have:

A bank account or credit card may include some travel cover, usually with conditions: you may need to have paid for the trip with that card, and the limits are often modest.
Home or contents insurance sometimes covers belongings away from home.
Employer or health schemes may offer some medical cover.

These can overlap or leave gaps. Never assume; look at the actual terms, and decide whether you need a separate policy for medical cover, in particular.

For groups

On a group trip it is tempting to leave insurance to each person, and that is usually the right approach. Everybody's health, belongings and activities are different, and a claim is personal. But do agree that everyone has some, and share the policy number and emergency line with the group. If someone needs a doctor at midnight, nobody wants to be hunting for it.

If the plan includes something specific, like a ski week, make sure everyone's policy covers it. Plan a ski trip goes through the extra things to check.

Keep it where you can find it

Insurance is no use if you cannot reach it when you need it. Before you leave:

Save the policy number and the emergency phone number on your phone and somewhere else, such as a printout or a message to a family member.
Keep a copy of your policy documents offline.
Put the details with the rest of your trip documents; the travel documents checklist is a good place to start.

If something goes wrong

If you need to claim, a few habits help:

Call the emergency line first for anything medical. Some insurers must approve treatment or hospital stays.
Keep everything. Receipts, medical reports, written confirmation from an airline of a delay, a police report for theft.
Report quickly. Theft often needs a police report within a short time.
Do not throw anything away until the claim is settled.

Before you go

Insurance is cheap compared with what it protects against. Decide what you are most worried about, such as medical costs, a cancelled trip or lost bags, and pick the policy that covers that properly. Then read it once, properly, before you pack.