Travel Insurance Explained: What You Actually Need (and What to Skip)

Most travelers either skip travel insurance entirely ("it'll be fine") or buy whatever their airline or booking platform upsells ("I'll take the full protection package"). Both approaches waste money. Here's how to think about it properly.

The Two Non-Negotiable Coverages

1. Emergency Medical Coverage

This is the only cover that is genuinely non-negotiable. A medical evacuation from Southeast Asia, a broken leg requiring surgery in the US, a cardiac event in Japan — these can cost €50,000–€500,000 without insurance. No travel should happen without emergency medical coverage.

What to look for:

• Minimum €1 million medical coverage (€5 million for USA/Canada)
• Emergency medical evacuation included
• Repatriation of remains (morbid but important)
• 24-hour emergency assistance line
• Pre-existing conditions: check carefully — most policies exclude them unless declared

2. Trip Cancellation / Interruption

Covers the cost of your trip if you have to cancel or cut short for covered reasons: illness, death of a family member, natural disaster, airline insolvency. Important if you've pre-paid significant non-refundable costs (flights, hotels, tours).

Note: Many premium credit cards include some trip cancellation cover when you book flights with them. Check your card benefits before paying for separate cover.

Coverages You Often Don't Need

Baggage Loss

Standard baggage cover pays out so little (€200–€500 for delayed bags) and comes with so many exclusions that it's rarely worth paying extra for. Most credit cards include basic baggage cover. And airlines are legally required under Montreal Convention to compensate for genuinely lost luggage.

Flight Delay Compensation

In Europe (EU261 regulation), airlines already owe you compensation for significant delays. In the UK, similar protections exist. Third-party delay insurance largely duplicates existing legal rights.

"Cancel for Any Reason" (CFAR)

Typically costs 40–60% more than standard policies and only reimburses 75% of trip costs. Mathematically, it rarely pays off unless you have a genuine high probability of cancelling. Standard cancellation cover for "covered reasons" (illness, etc.) is sufficient for most travelers.

Special Situations That Change the Calculation

Travel to the USA or Canada

Medical care in North America is extraordinarily expensive. A single night in a US hospital can cost €10,000–€20,000. €5 million medical coverage minimum. This is not optional.

Extreme Sports or Adventure Activities

Standard policies exclude many adventure activities: skiing off-piste, scuba diving, motorcycling, paragliding. If your trip involves any of these, pay the premium for an activity-specific policy or add-on. A helicopter rescue from a ski slope can cost €15,000+.

Pre-Existing Medical Conditions

Must be declared at the point of purchase. Non-declared conditions are not covered. If you have a significant condition, specialist insurers (Battleface, True Traveller, Staysure) offer tailored policies that mainstream insurers won't.

How to Buy: Platforms and Pricing

Compare through aggregators (InsureMyTrip, Compare the Market in UK) rather than buying directly from airlines or booking platforms — the latter is typically 30–50% more expensive for equivalent coverage.

For frequent travelers: annual multi-trip policies are almost always cheaper than per-trip policies if you travel 3+ times per year. A typical European annual policy costs €60–€120 and covers unlimited trips.

The One Absolute Rule

Read the policy document before you need it. The exclusions section is where insurance companies protect themselves. Know what isn't covered before you're standing in a foreign emergency room trying to figure it out under stress.