How Do You Choose Travel Insurance?

Travel insurance policies vary enormously. The right policy for you depends on your trip cost, destination, activities planned, and risk tolerance. Here is a practical framework for choosing.

Coverage minimums

For any international trip, look for at least:

• Medical coverage: USD 100,000 minimum, USD 250,000+ for remote destinations.
• Medical evacuation: USD 250,000 minimum. Evacuations from remote locations can exceed USD 100,000 alone.
• Trip cancellation: at least equal to your total prepaid trip costs.
• Trip interruption: typically 100-150% of trip cost.
• Baggage loss/delay: USD 1,000-2,500.
• 24/7 emergency assistance hotline: essential, not optional.

Read the exclusions

Most policies exclude:

• Pre-existing medical conditions (unless you buy waiver coverage within 14-21 days of trip deposit).
• Adventure activities like skydiving, scuba diving below certain depths, motorcycling, or skiing off-piste. If you plan adventure activities, get an adventure-rated policy.
• Alcohol-related incidents.
• Travel to certain countries (state department warnings, war zones).
• Pregnancy-related issues unless specifically covered.

Cancel For Any Reason (CFAR)

Standard policies only cover cancellation for specific covered reasons (illness, family emergency, employer requirement). CFAR upgrades cost about 40% more but reimburse 50-75% of trip costs for cancellations outside the standard list.

Worth it for: expensive trips booked far in advance, complex multi-stop itineraries, trips during uncertain global conditions.

Single-trip vs annual policies

Single-trip: best for one or two trips per year. Pay only for the specific trip.

Annual multi-trip: cost-effective if you take 3+ international trips per year. Covers any trip up to a per-trip duration limit (typically 30-90 days).

Where to buy

Compare on aggregator sites: InsureMyTrip, Squaremouth, Travel Insurance Review. These let you compare 10-20 policies side by side on the same coverage parameters.

Direct from major insurers: Allianz, World Nomads (good for adventure travelers), Travelex, Tin Leg, IMG. Sometimes slightly cheaper than aggregator commission rates.

Credit card travel insurance

Premium travel cards include some coverage. Verify carefully what is included: most credit card travel insurance has weaker medical coverage than dedicated policies but solid trip cancellation and baggage protection.

If you have a premium card with strong protections, you might only need to buy supplemental medical coverage rather than a full policy.

When to buy

Within 14-21 days of your initial trip deposit. This window is when most insurers offer pre-existing condition waivers and CFAR options. Waiting later restricts your choices.

Read the policy

Actually read the policy document, not just the marketing summary. Pay attention to claim filing requirements, documentation needed, time limits for reporting incidents. Knowing the process before you need it saves frustration during an actual emergency.