Most travelers either buy too much insurance. Paying for a luxury policy on a $400 weekend trip, or none at all, then discover their credit card "coverage" excludes everything that actually went wrong. Travel insurance is one of the few products where the fine print genuinely matters, and where five minutes of reading can save you $50,000.

The four types of coverage every policy combines

1. Medical and evacuation

The most important coverage by far. Pays for hospital bills abroad and, critically, emergency evacuation (the helicopter, the air ambulance, the medical-escort flight home). A single evacuation from a remote area can run $50,000–250,000. This is the cost you genuinely cannot self-insure against.

2. Trip cancellation and interruption

Reimburses pre-paid, non-refundable trip costs if you have to cancel for a covered reason (illness, death in family, jury duty, etc.) or cut a trip short. Usually capped at the trip cost you declare.

3. Baggage and personal effects

Covers lost, stolen, or delayed luggage. Usually has per-item limits ($250–500) and excludes electronics or jewelry above a cap. Often duplicates what your credit card and airline already cover.

4. Travel delay

Pays a daily allowance for hotels and meals if your flight is delayed beyond a threshold (usually 6–12 hours). Modest, but useful.

What is almost never covered

Read this list twice. It's where most claims get denied.

  • Pre-existing conditions, unless you bought a waiver within 14–21 days of your first trip deposit
  • Adventure sports: scuba below 30m, motorbiking without an appropriate license, skiing off-piste, climbing above 4,500m. You need a specialty rider.
  • Alcohol or drug-related incidents: including a single drink before that scooter accident
  • Cancellation because you "changed your mind": only "Cancel For Any Reason" (CFAR) upgrades cover this, and they reimburse only 50–75%
  • Pandemics and known events: most policies now exclude any named outbreak or travel advisory in effect when you booked
  • Acts of war and civil unrest, with narrow exceptions
  • Unattended belongings: leave your phone on the cafe table, claim denied

Credit card coverage: what's real and what's marketing

Premium travel cards (Chase Sapphire Reserve, Amex Platinum, Capital One Venture X) include real coverage, but it's narrower than people think.

  • Usually included: trip cancellation up to ~$10K, trip delay, lost baggage, primary rental car coverage
  • Usually missing or weak: medical (capped at $2,500–25K, nowhere near enough), evacuation (often $0), pre-existing condition waivers
  • Critical gotcha: coverage usually applies only if you paid the full trip cost on that card. Booked with points? Often no coverage.

Use credit card coverage for the cancellation and delay pieces. Buy a separate medical/evacuation policy for the catastrophic risks.

How much coverage do you actually need?

Medical

Minimum $100,000. We recommend $250,000+ for trips outside Europe. The US is the most expensive medical market in the world; if you're traveling to the US, $500K is sensible.

Evacuation

Minimum $250,000. $500K–$1M is standard on good policies and the marginal cost is tiny.

Trip cancellation

Cover only your non-refundable costs. Flights, tours, hotel deposits. Don't insure the full sticker price of a trip where the hotel is refundable up to 24 hours out.

The four kinds of policies to consider

Per-trip travel insurance

One-off cover for a single trip. Best for: traditional vacationers taking 1–3 trips a year. Brands: World Nomads, Travel Guard, Allianz, Seven Corners. Cost: usually 4–8% of trip cost.

Annual multi-trip

One premium, unlimited trips up to a per-trip day cap (often 30 or 45 days). Best for: anyone taking 3+ trips per year. Cost: typically $200–500/year for solid coverage.

Nomad insurance

Designed for long-term travelers who don't have a "home base" insurance policy. SafetyWing Nomad Insurance, Genki, and IMG Global Medical are the dominant players. Cost: $45–180/month depending on age and coverage region.

Expat / international health insurance

Full medical coverage for people who actually live abroad. Different product category. Covers routine care, dental, maternity, etc. Cima Global, Cigna Global, Allianz Care. Cost: $150–600/month.

The buying checklist

Before you pay, confirm in writing:

  • Medical limit, evacuation limit, and deductible
  • Whether your destination is in the covered region
  • Whether your specific activities (motorbike, dive, ski) are covered without a rider
  • Pre-existing condition waiver window
  • Claims process: do they pay providers directly or do you pay and get reimbursed?
  • 24/7 emergency assistance phone number. Save it to your phone before you leave

The bottom line

For 95% of travelers, the right setup is: a premium travel credit card for cancellation and delay, plus a dedicated travel medical policy with at least $250K medical and $500K evacuation. That combo costs less than $100 for a typical 2-week international trip and covers the failures that actually bankrupt people.