Travel insurance is one of those purchases most travelers make either reflexively or not at all. The reflexive buyers often over-insure with expensive "all risk" policies that include categories they'll never claim against. The non-buyers are usually fine until they aren't — at which point a single medical evacuation or cancelled trip can cost more than years of premium payments. This guide is about buying what you actually need, understanding what it covers, and not paying for the rest.
Medical evacuation and emergency treatment abroad is the coverage that matters most and the one most travelers underestimate. A medical evacuation flight from Southeast Asia to a home country costs $50,000–$100,000. Emergency hospitalisation in the US for an uninsured foreigner can reach six figures. Most standard health insurance plans either don't cover treatment abroad or cover it with significant limitations.
For a two-week trip to Europe or Southeast Asia, medical coverage with a $500,000 limit typically adds $30–$60 to a policy. That's the number to look for — not the headline premium, but the medical limit. Some budget policies limit medical to $50,000 or $100,000, which is insufficient for a serious incident in the US or if evacuation is required.
Trip cancellation coverage pays out if you cancel for a covered reason before departure — usually illness, injury, death of a family member, or specific named events. It's most valuable when you have large, non-refundable, pre-paid costs: a $2,000 non-refundable tour package or a $600 non-refundable business-class flight. If you're buying fully-refundable accommodation and flexible economy tickets, cancellation coverage may not be worth the premium.
"Cancel for any reason" (CFAR) coverage costs significantly more (usually 30–50% extra on top of a standard comprehensive policy) and typically only reimburses 50–75% of non-refundable costs, not 100%. It's worth buying specifically if you're uncertain about traveling and have significant non-refundable bookings — not as general peace of mind.
Most travel insurance baggage policies are more limited than they appear. They usually reimburse the depreciated value of items, not replacement cost. A four-year-old laptop might be worth $200 on a depreciated basis even if replacing it costs $800. There's typically a per-item limit (often $300–$500) that makes claiming on expensive electronics unlikely to recover full value. Many travel credit cards already include baggage delay coverage and some theft protection.
If your primary concern is electronics, a standalone electronics insurance policy or checking whether your existing homeowner's/renter's insurance covers items abroad is often better value than the baggage section of a travel policy.
If you take three or more international trips per year, an annual multi-trip policy is almost always cheaper than buying per-trip coverage. Annual policies typically set a maximum number of days per single trip (commonly 30 or 45 days) — check that this covers your longest planned trip. Annual premiums range from $180–$350 for comprehensive coverage for a single traveler, compared to $80–$160 per trip for per-trip policies.
For most travelers, the right policy is a mid-range comprehensive plan with medical coverage of at least $500,000, trip cancellation, and standard baggage coverage — from a provider like World Nomads, SafetyWing, Allianz, or AIG Travel Guard. SafetyWing (subscription-based) is particularly well-suited to long-term travelers and nomads. World Nomads specifically covers adventure sports and is worth the slightly higher premium if your travel involves hiking, diving, or similar activities.
What to skip: the premium "all risk" tiers unless you have specific coverage needs, standalone baggage insurance unless you're carrying high-value equipment, and any add-on that duplicates coverage you already have from a travel credit card.