How To Pick A Good Travel Insurance Plan

Travel insurance is usually the last thing on an adventurer’s mind when planning a trip. More often, we’re getting excited about all the incredible destinations we’re about to explore and the fun things we’ll do. After all, planning a trip and looking forward to it is half the fun.

But one aspect of trip planning is decidedly less fun than the rest: researching travel insurance. 

Yet this oft-neglected step is perhaps the most essential part of your trip planning process. 

I’ve relied on my travel insurance in several countries around the world, from medical emergencies like when I popped an eardrum in Thailand to mishaps like when I broke my camera in Italy and theft like when my luggage got stolen in South Africa.

I never travel without travel insurance, and I recommend that every other traveller does the same. Broken bones can cost thousands of dollars. Emergency evacuations can cost hundreds of thousands (that’s not an exaggeration either). I know it’s not fun to think about, but I’ve learned from experience that it’s always better to be safe than sorry.

While picking the right insurance policy can seem daunting (many companies out there), it doesn’t have to be. 

In this post, I’ll break down everything you need to know about picking a good travel insurance plan so you can save money and travel confidently, knowing that you’re covered should something happen during your trip.

 

 

 

 

Step 1. Understand What Travel Insurance Is (And Why You Need It)

Travel insurance provides support, compensation, and medical care when things go wrong on the road. A good policy reimburses you for everything from lost luggage to injuries, trip interruptions, and cancellations. 

In a nutshell, travel insurance is an all-purpose emergency safety net. It ensures you don’t lose much money for expensive medical bills or replace your possessions if they get lost/stolen/damaged. 

I like to think of it this way: I wouldn’t drive a car without car insurance or own a home without home insurance. Why travel the world without travel insurance?

You might think, “Well, medical expenses are cheaper in other parts of the world, so I can just pay for it out of pocket.”

Not exactly.

Broken bones in much of the world can cost thousands to fix. Suppose you’re seriously ill and must go home for specialty care; medical transport costs add up quickly no matter where you are. In that case, these expenses can cost hundreds of thousands of dollars (emergency evacuations can cost as much as $200,000-300,000 USD!).

It’s precisely for this reason that I never leave home without travel insurance.

That said, every single travel insurance policy is different. So, before you head out, it’s essential to understand what to look for in a policy and what you can expect to be covered by your plan.

A Note About Credit Card Insurance: Some travel credit cards, such as the Chase Sapphire Reserve, cover (some) medical emergencies, but these cards also come with a high annual fee that prices out many travellers. Additionally, cards are notoriously stingy about paying out medical claims, and premium cards are only available to travellers from the US.

In short, while credit card travel insurance is a nice perk, I don’t rely on it for my primary coverage. You shouldn’t either.

 

Step 2. Understand What Travel Insurance Typically Covers 

No matter what company or policy you choose (I recommend some of my favourites below), you’ll want to ensure it covers a few different areas. 

First, look at the medical expense coverage limit. Medical coverage is one of the primary reasons for getting travel insurance, so you don’t want to skimp on this one. A good company provides at least USD 100,000 in coverage, though more expensive policies cover you for higher amounts (some offer up to USD 2,000,000, though that’s overkill unless you’re on a super luxe trip!). 

Second, in addition to hospital costs, ensure your travel insurance policy covers emergency evacuation (usually to the nearest acceptable medical facility). If you get into an accident while riding a moped around remote rural roads in Thailand, your policy should transport you to the nearest hospital so you can be looked after. 

However, it’s important to note that standard emergency evacuation coverage only gets you to the nearest acceptable facility. Moving from there will only be covered if your travel insurance deems your current facility inadequate for your needed care. 

For example, if you break your leg abroad, most insurance policies will pay your hospital bills. However, they won’t pay for you to get home since it’s not a life-threatening injury requiring advanced care.

If you’d prefer not to stay in a foreign hospital for treatment and recovery, you should investigate a medical transport membership program like Medjet. They ensure that should you be hospitalized abroad, you’ll be able to be repatriated — something many travel insurance policies can’t guarantee. (You can read more about their policies in this Medjet review.)

All in all, a good travel insurance plan should include and cover the following:

• Medical emergencies
• 24-hour emergency services and assistance 
• Natural disasters and extreme civil unrest
• Emergency medical evacuation
• Trip cancellation & delay
• Lost, damaged, or stolen goods 
• Compensation for death or dismemberment 
• Repatriation of your body should the worst happen 
• Car rental collision coverage (if you plan on renting one) 

For all the above areas, different companies have different monetary limits and scope of coverage. Overall, the more expensive a policy, the more comprehensive the range is about balancing your comfort level with what you’re willing to pay. Plans generally cost anywhere from $40-500 USD per month, depending on where you’re going, what’s included, and whether or not there is a deductible.

 

 

 

 

Step 3. Understand What Travel Insurance Does NOT Cover 

While it’s essential to understand what your plan covers, you must also understand what it doesn’t cover. Whenever I get emails from disgruntled readers upset about their insurance claim being rejected, the reason usually turns out to be that they only looked at what was covered and didn’t carefully consider what wasn’t covered. 

Travel insurance is meant to cover unintended emergencies and accidents that happen on the road. That means it typically does not cover anything that could have been preventable, such as if you get drunk and break your arm attempting to do a handstand on the hostel bar. 

Travel insurance also doesn’t cover routine checkups or pre-existing conditions. If you’re an expat or digital nomad and want a global health plan that covers non-emergency care, you need a completely different plan from regular traveller insurance. 

Generally, travel insurance won’t cover you for any of the following: 

• Alcohol- or drug-related incidents
• Carelessness in handling your possessions and baggage (that includes if your bags get stolen if you leave them unattended)
• General recklessness (as you can imagine, this one is hugely subjective)
• Pre-existing conditions or general check-ups
• Lost or stolen cash
• If civil unrest makes your destination unsafe, but your government hasn’t called for an evacuation.

Some of the more comprehensive policies will cover some of these; however, your standard budget insurance won’t. 

Once you understand what travel insurance typically does and doesn’t cover, look into the finer details and read the fine print. After all, the devil is in the details, so never buy a plan without reading the full policy.

 

 

Step 4. Make Sure Your Travel Insurance Covers Covid-19 

One of those details in the fine print that we all used to skip over but now must (unfortunately) consider is pandemic coverage.

Now that COVID-19 has been a part of our lives, most travel insurance companies have adapted their policies to include some coverage for COVID-19. However, the type of coverage offered can vary wildly depending on the company and policy. 

This coverage may include testing costs, trip cancellation or delay, hospitalization costs, and/or transportation home. Some policies also cover expenses if you need to extend your trip to quarantine abroad. 

Since the global situation is constantly shifting, policies can change anytime. Ensure that you’ve familiarized yourself with the most updated coverage for COVID-19 when choosing a travel insurance plan. Never make assumptions! 

Again, this is why it’s always best to check the fine print before purchasing a policy. Being confident in your plan will also make the claims process that much easier should you find yourself having to make a claim.  

 

 

 

Step 5. Review the Claims Process 

While it may involve a lot of paperwork and documentation, it’s generally relatively easy to file insurance claims. Most companies offer the ability to do so online. And though it might seem like overkill to review the claims process before even purchasing a plan, you’ll want to know ahead of time if the process is straightforward. If it’s difficult even to figure out what’s required when you’re not in an emergency, then that’s probably not a plan you want to go with. 

In less severe situations, you generally need to pay for the costs upfront, collect receipts, and then claim reimbursement from the company afterwards. That’s why it’s so important to keep all documentation, file any necessary police reports, and save all receipts. Companies don’t reimburse you based on your word. Keep documentation!

You (or someone else) would contact your travel insurance company’s emergency assistance team for significant emergencies. Every insurance company has a 24-hour emergency contact number. I always suggest travellers save this number on their phones to be safe (have your family and travel partners keep it, too). 

Once you contact the team, they help make arrangements and approve costs.

To help you with this, you should always do the following:

1. Take photos of all your gear and items before your trip. If your bag goes missing, you have photo evidence of what is inside. Email these photos to yourself so you can access them even if you don’t have your phone or computer.
2. If you’re bringing electronics (phone, laptop, etc.), email yourself the purchase receipts for those items so you can submit them for reimbursement should your gear be lost, stolen, or damaged.
3. Take photos of any documentation (police reports, hospital bills, etc.) and email them to yourself. Again, that way, you’ll have digital copies available if you need to make a claim.

 

 

Step 6. Compare Recommended Companies 

There are tons of travel insurance companies — it’s a billion-dollar industry. Here are the companies I use and recommend to help you separate the wheat from the chaff. Each offers something different, so one might be better for you than another, depending on your needs.

SafetyWing – Safety Wing is my go-to suggestion for budget travellers. They offer convenient and affordable plans tailored to budget travellers, especially long-term and digital nomad plans. They have some of the cheapest monthly plans (as little as USD 42 per month), excellent customer service, and an easy-to-use online claims process. 

You can read more about their pros and cons in this SafetyWing review.

World Nomads – World Nomads is another excellent insurance company I have used for many years. It’s ideal for backpackers and mid-range travellers who want delay and cancellation coverage, some coverage for gear, and/or higher-risk adventure activities. While it’s almost triple the price of SafetyWing, you get much more coverage; it’s a more comprehensive choice for travellers who want additional peace of mind and have the budget to pay for it.

Medjet – Medjet is a membership program that does one thing, and one thing well – bringing you home. Most travel insurance policies will only get you home if they deem it medically necessary, such as if the hospital can’t treat the issue you’re dealing with. Medjet brings you home no matter what. They’re super affordable, too, with annual memberships costing just USD 295.

Insured Nomads – Insured Nomads offers travel insurance comparable to World Nomads; however, where they stand out is with their coverage for digital nomads. They offer plans similar to health insurance back home so that you are covered for both emergency and non-emergency situations. While their goals aren’t cheap, the expanded coverage is worth the price if you’re a remote worker or digital nomad.

 

 

Step 7. Book Your Policy ASAP

The best time to book your policy is when you start paying for your trip. Flights, excursions, accommodation — once you start paying for those, you should buy your insurance plan. That way, should something happen before you depart, your cancellation insurance will kick in, and you won’t lose the money you’ve already paid.

 

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It’s true that for most trips, you won’t need to use travel insurance. You’ll buy it, save the details in your inbox, and never look at it again.

But you’re OK until you aren’t, and when things aren’t okay, you’ll be glad you bought travel insurance. While most people consider it just medical coverage, it’s more than that. It’s “something bad happened to me” coverage that will be much cheaper than paying for an emergency.

Having been mugged, injured, and had my things lost and stolen, I know first-hand how difficult (and frustrating) it is dealing with unfortunate events abroad.

That’s why I never leave home without travel insurance. And I recommend that you don’t either. 
Matt Kepnes runs the award-winning travel site nomadicmatt.com, which helps people travel the world on a budget. He’s the author of the NYT best-seller How to Travel the World on $50 a Day and the travel memoir Ten Years a Nomad. His writings and advice have been featured in The New York Times, CNN, The Guardian, Afar, Budget Travel, BBC, Time, and countless other publications. You can follow him on Instagram at @nomadicmatt.