Travel insurance: what it covers and how to choose

A standard policy bundles several types of cover. Medical expenses pay for hospital treatment, doctor visits, prescriptions and sometimes dental emergencies. Emergency evacuation pays for transport to the nearest adequate hospital, and in the worst case, repatriation home. Trip cancellation or interruption refunds non-refundable costs if you cannot travel or have to come home early for a covered reason, such as illness, injury or a family emergency. Baggage and personal effects cover lost, stolen or damaged luggage and belongings. Personal liability covers damage you cause to others or their property.

Some policies add extras: travel delay, missed connection, hijack cover, or cover for your home while you are away. These are useful but rarely the reason to buy a policy. Read the policy document, not the marketing page, to see what is actually included.

Every policy has exclusions. The most common are pre-existing medical conditions, unless you declare them and pay extra or get a waiver. Adventure sports — skiing, scuba diving, trekking above a certain altitude, bungee jumping — are often excluded unless you add a sports rider. Alcohol-related incidents are frequently not covered, and riding a motorbike without a valid licence, or without the right licence for the bike, often voids cover.

Other common exclusions: travelling against government advice, acts of war, terrorism in some cases, and incidents in countries with a travel advisory against non-essential travel. Read the exclusions list carefully. If you plan to do anything adventurous, tell the insurer and add the cover you need.

Some policies also have an excess, the amount you pay before the insurer pays out. A high excess lowers the premium but means you pay more if you claim. Check the excess for each type of cover.

Start with the medical and evacuation limits. There is no universal figure: match the limit to your destination, activities and personal health, and check what the policy schedule actually covers. Then check the pre-existing condition rules: some policies cover them automatically, others require a declaration, and some exclude them entirely. If you have a condition, get a policy that covers it, even if it costs more.

Next, list the activities you plan to do — skiing, diving, trekking, surfing — and check whether they are covered. If not, add a sports rider. Then compare prices from two or three insurers, but do not choose on price alone. A cheap policy with a low medical limit and no evacuation cover is not a bargain.

Finally, read the policy document. Check the excess, the exclusions, the claims process and the 24-hour emergency phone number. Save the number and the policy number on your phone before you leave.

Premiums vary widely by age, trip length, destination, activities and the level of cover you choose. Get quotes from at least two insurers and compare the cover, not just the price. Annual multi-trip policies can be cheaper than buying per trip if you travel more than two or three times a year, but check the terms.

Buying online is usually quick; the exact time depends on the insurer and how many health questions you need to answer. You will need your passport details, trip dates and destination, and answers to a few health questions. Some policies cover you from the moment you buy, so do not wait. Claims are usually filed online or by phone after you return; settlement times vary by insurer and claim.

Some credit cards include travel insurance if you pay for the trip with the card. This cover is often limited — it may not include medical or evacuation, and it may have low limits and strict conditions. Check the card's policy document before relying on it. It can be a useful top-up, but rarely a replacement for a proper policy.

If you are travelling for more than a few months, look for a long-stay or backpacker policy. These often have higher medical limits and cover more activities. If you are travelling to a country with a visa requirement for insurance, such as the Schengen Area for certain short-stay visa applicants, make sure the policy meets the minimum cover and is valid for the whole stay. Confirm the requirement with the relevant consulate.

Some employers offer travel insurance as a benefit. Check whether it covers personal travel, your destination and the activities you plan. If not, buy your own.

The questions below cover the most common concerns. For anything else, read the policy document or ask the insurer directly.