Medical coverage is the only non-negotiable
The single most important thing your travel insurance must cover is medical evacuation and emergency treatment abroad. A week in a US hospital without insurance can cost $100,000 or more. In many Southeast Asian and Central American countries, hospitals will not treat you without upfront payment or proof of insurance. Get at least $1 million in medical coverage minimum, and $5 million if visiting the United States.
Read the exclusions, not the headline coverage
Most claims disputes come from exclusions that travellers did not read. Common exclusions include: pre-existing medical conditions (unless declared and accepted), adventure sports (skydiving, skiing, scuba diving often need separate riders), alcohol-related incidents, and belongings left unattended. Read the full policy document, not just the summary card.
Trip cancellation coverage has strict rules
Cancellation cover only pays out for specific covered reasons: illness, death of a close relative, natural disaster, or airline bankruptcy. "I changed my mind" is never covered. "Cancel for any reason" (CFAR) policies exist and pay 50 to 75 percent of costs, but cost 40 to 60 percent more. For expensive or complex trips, CFAR is often worth it.
Annual multi-trip policies beat single trip cover
If you travel more than twice a year, an annual multi-trip policy almost always works out cheaper than buying single-trip policies each time. World Nomads, True Traveller, and Allianz all offer competitive annual policies. Check the maximum trip duration per journey (usually 30 to 90 days) to make sure it covers your travel style.
How to make a claim successfully
Get a police report for any theft within 24 hours. See a doctor and get a full written diagnosis for any medical issue. Keep every receipt. Report incidents to your insurer within the time frame specified in the policy (often 24 to 72 hours for emergencies). Take photos of damaged or stolen items. Insurers reject claims that lack documentation.
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