How to Choose the Right Travel Insurance Policy
Travellagio · 5 min read
All travel insurance policies are not created equal. A $30 policy and a $80 policy can look similar on paper but differ dramatically in what they actually pay out. Here’s what to check.
The 5 things that actually matter
1. Medical coverage limit
This is the single most important number. Minimum $100,000 for most trips. $500,000+ for the US, Japan, or Switzerland where healthcare costs are astronomical. A $50,000 limit is dangerously low for serious injuries.
2. Emergency evacuation
Air ambulance from a rural area or a developing country can cost $50,000–200,000. Your policy should cover at least $100,000 for evacuation.
3. Activity coverage
If you’re skiing, diving, riding a motorbike, or doing anything beyond walking and sitting on a beach — check that it’s covered. Most standard policies exclude adventure activities.
4. Cancellation coverage
Check the covered reasons list, not just the limit. “Cancel for any reason” (CFAR) add-ons cost 40–50% more but cover genuinely any reason. Standard policies only cover specific events (illness, death in family, natural disaster).
5. Deductible (excess)
A $0 deductible policy costs more but pays from the first dollar. A $250 deductible policy is cheaper but you eat the first $250 of any claim. For medical claims, $0 deductible is worth the extra premium.
Red flags to avoid
- Medical limit under $50,000
- No emergency evacuation coverage
- “Reasonable and customary” language (lets them decide what’s reasonable to pay)
- 24+ hour delay before coverage kicks in for delays