Travel Insurance: What You Need & How to Choose

What Travel Insurance Actually Covers#

Most policies bundle these four categories, though the limits and terms vary enormously between providers and plans.

Medical coverage is the big one. A broken leg in Thailand runs $5,000 - 15,000. A hospital stay in the US can hit six figures before you finish your first cup of hospital coffee. Medical evacuation - being flown from a remote area to a proper hospital, or repatriated to your home country - can cost $50,000 - $100,000+. A helicopter off a mountain in Nepal, a medevac flight out of rural sub-Saharan Africa, a pressurized air ambulance across the Pacific - these are real scenarios that happen to real travelers every week.

Trip cancellation covers non-refundable bookings when you have to cancel for covered reasons: illness, injury, family emergency, natural disaster, airline bankruptcy. Read the fine print - “I changed my mind” is never a covered reason.

Baggage coverage reimburses you for lost, stolen, or damaged luggage and its contents. Limits are typically $1,000 - 3,000 total, with per-item caps of $200 - 500. Don’t expect to recover the full value of your camera gear.

Personal liability covers you if you accidentally injure someone or damage property. Less relevant for most travelers, but it matters if you’re renting a car, cycling in a city, or doing anything where you could cause an accident.

What It Doesn't Cover#

This is where policies earn their reputation for fine print. Common exclusions that catch travelers off guard:

• Pre-existing medical conditions - unless you declared them at purchase and paid for the add-on. “Pre-existing” usually means anything you received treatment for in the 6 - 24 months before the policy start date.
• Adventure activities - base policies typically exclude skydiving, scuba diving below 30m, rock climbing, bungee jumping, and similar activities. You can usually add adventure sports coverage for an extra premium.
• Alcohol-related incidents - if the insurance company determines you were significantly intoxicated when the incident occurred, they may deny the claim. The threshold varies, but this exclusion is real and enforced.
• Motorcycle and scooter accidents - this is the single most common reason for denied claims in Southeast Asia. If you don’t have a valid motorcycle license from your home country, most policies won’t cover you. Period.
• Belongings left unattended - your bag was stolen from the beach while you were swimming? Not covered. Theft from an unlocked room? Not covered.
• War zones, civil unrest, and sanctioned countries - if your government says “do not travel” and you go anyway, don’t expect coverage.
• Traveling against medical advice - if your doctor says don’t fly and you do, the insurer won’t pay for the consequences.

Read the Product Disclosure Statement (PDS) before you buy. It’s tedious. It’s worth it.

How Much It Costs#

The price depends on your age, destination, trip length, coverage level, and which activities you want covered. A 25-year-old heading to Thailand for a month will pay a fraction of what a 60-year-old on a year-long trip with adventure sports coverage pays.

For perspective: a comprehensive annual policy for a healthy 30-year-old traveler costs roughly the same as two or three decent restaurant meals. Against a potential $100,000 medevac bill, this is not where you cut corners.

Where to compare: InsureMyTrip and Squaremouth let you compare policies side by side. Filter by coverage level, read the reviews, and check the exclusions. The cheapest policy isn’t always the worst, and the most expensive isn’t always the best.

Best Providers for Independent Travelers#

No single provider is perfect for everyone, but these are the ones that consistently work well for independent and long-term travelers:

• World Nomads - the classic backpacker choice. Good coverage for adventure activities, easy to purchase and extend while already traveling, and claims processing is reasonably straightforward. Not the cheapest, but reliable.
• SafetyWing - a subscription model designed for digital nomads. Pay monthly, cancel anytime. Covers you worldwide (with some US coverage limitations). The cheapest option for long-term travelers by a significant margin. The trade-off: lower coverage limits than traditional policies.
• True Traveller - UK-based, excellent value, particularly good for long trips. Strong adventure sports coverage. Claims handling gets consistently positive reviews.
• Allianz Travel Insurance - a solid mainstream option available worldwide. Good for shorter trips and families. The online claims process is well-designed.
• IMG Global - specializes in long-term international coverage. If you’re abroad for 6+ months, their plans are worth comparing.

Compare policies side-by-side at InsureMyTrip or Squaremouth.

A note on credit card travel insurance: Some premium credit cards (Chase Sapphire Reserve, Amex Platinum) include travel insurance. This coverage is real but limited - typically shorter trip durations, lower medical limits, and no adventure sports. It’s a useful supplement, not a replacement for dedicated travel insurance on a longer trip.

How to Make a Claim#

The difference between a successful claim and a denied one almost always comes down to documentation. Insurance companies aren’t trying to screw you, but they need evidence.

For medical claims: 1. Keep every receipt, every invoice, every prescription. 2. Get itemized bills - not just a total, but a breakdown of charges. 3. If possible, have the treating doctor write a brief report describing the injury/illness and treatment. 4. Contact your insurer as soon as possible, ideally before or during treatment. Many policies have a 24-hour helpline that can direct you to approved hospitals and guarantee payment directly.

For theft claims: 1. File a police report within 24 hours. This is non-negotiable - no police report, no claim. 2. Photograph the police report. 3. List every stolen item with approximate values and purchase dates. 4. If you have receipts for stolen items, that strengthens the claim enormously.

For trip cancellation: 1. Keep proof of the cancellation reason (doctor’s letter, death certificate, airline notice). 2. Keep evidence of non-refundable costs (booking confirmations, payment receipts). 3. Show that you attempted to recover costs from the provider first.

General rules: - File the claim within the policy’s time limit (usually 30 - 90 days from the incident). - Be honest. Inflated claims get investigated and denied. - Keep copies of everything you submit.

The Motorcycle Question#

This deserves its own section because it’s the single biggest gap between what travelers do and what their insurance covers.

The reality: millions of travelers rent scooters and motorbikes across Southeast Asia every year. Most of them don’t have a motorcycle license. Most of them don’t crash. But those who do face the full cost of treatment out of pocket - and motorcycle injuries tend to be serious. Road rash, broken bones, and head injuries are common.

What you can do:

1. Get a motorcycle endorsement before you leave. In most US states, this requires a written test and a riding skills test. Many states offer weekend courses through the Motorcycle Safety Foundation. Cost: $200 - 350. Time: one weekend.
2. Get an International Driving Permit (IDP) with a motorcycle endorsement. An IDP is a translation of your home license, available at AAA offices for $20. It’s required in many countries and strengthens your position with insurers - but only if your underlying license includes motorcycles.
3. Check your specific policy. Some providers (World Nomads, for example) cover motorcycle use up to certain engine sizes (usually 125cc) without a license. Others require a license for any motorized two-wheeler. Read your PDS.
4. Consider a local license. In Thailand, you can get a temporary motorcycle license at the Department of Land Transport in about half a day for 205 baht. Not all insurers accept this, but it’s better than nothing.

Next Steps#