Common Mistakes to Avoid When Buying Travel Insurance

1. Waiting Until the Last Minute to Buy Insurance

Many travelers delay buying travel insurance until just before their trip, but this can limit the benefits. Purchasing travel insurance early—ideally when booking your trip—can help you take advantage of trip cancellation coverage. If something unexpected happens between the time you book your trip and your departure (such as illness, injury, or a natural disaster), early coverage can protect your prepaid, non-refundable expenses.

2. Not Checking If Your Existing Insurance Provides Travel Coverage

Before buying a separate travel insurance policy, check if your existing health, auto, or homeowners insurance provides some form of travel coverage. Some credit cards also offer travel insurance benefits when you book using the card. Knowing what coverage you already have can help you avoid buying redundant or unnecessary policies.

3. Overlooking Pre-Existing Medical Conditions

Many travel insurance policies exclude coverage for pre-existing medical conditions. If you have a chronic health issue, check whether your policy covers emergency treatment or allows a pre-existing condition waiver. This waiver is often available if you purchase insurance within a certain time frame (usually 10-21 days after booking your trip). Failing to disclose pre-existing conditions or opting for a policy that doesn’t cover them can result in claim denials.

4. Choosing the Cheapest Policy

Opting for the least expensive policy might save money upfront but could leave you underinsured. Basic policies may not provide comprehensive coverage for emergencies like medical evacuation, trip cancellations, or lost luggage. Before choosing a plan, review the coverage limits and ensure it includes the protections you need, such as emergency medical care, trip interruption, or adventure sports coverage.

5. Assuming Your Destination Is Covered

Not all travel insurance policies cover every destination, especially if you’re visiting high-risk areas. Certain policies exclude coverage for countries with government-issued travel warnings or regions prone to natural disasters or conflict. Always check the policy’s coverage area to ensure your destination is included.

6. Ignoring the Policy’s Medical Coverage Limits

Medical expenses abroad can be high, and your domestic health insurance may not cover you internationally. Some travel insurance policies have low medical coverage limits, which may not be sufficient for emergency care or medical evacuation. Make sure your policy provides adequate coverage—ideally, $100,000 or more for emergency medical expenses and at least $250,000 for medical evacuation.

7. Not Understanding What “Cancel for Any Reason” Covers

“Cancel for Any Reason (CFAR)” coverage is an optional add-on that allows you to cancel your trip for reasons not covered by standard trip cancellation insurance. However, CFAR often has restrictions: it may only reimburse you for 50-75% of your trip cost, and you usually need to cancel within a specific timeframe (often at least 48 hours before departure). Be sure to understand the limitations before relying on CFAR to cancel your trip without penalty.

8. Forgetting to Insure Non-Refundable Trip Costs

Travel insurance is most valuable when it covers non-refundable expenses, such as flights, hotels, and tours. If you’ve pre-paid for a significant portion of your trip and it’s non-refundable, ensure you include the total cost in your policy. If you underestimate your trip cost, the insurance may not fully reimburse you in case of a cancellation or disruption.

9. Overlooking Adventure or High-Risk Activities

If you plan to engage in adventure activities such as scuba diving, skiing, zip-lining, or trekking, many standard travel insurance policies may exclude coverage for injuries related to these activities. To avoid gaps in coverage, consider adding a sports rider or choosing a policy specifically designed for adventure travelers.

10. Not Reading the Fine Print

Travel insurance policies can have complex terms and conditions. Some exclusions may not be immediately obvious, such as coverage limitations for certain types of emergencies, destinations, or medical conditions. Take the time to read the fine print of your policy to understand what is and isn’t covered. Pay particular attention to the sections on cancellations, medical coverage, exclusions, and claims procedures.

11. Ignoring the Claim Procedure

In case of an emergency or a claimable event, you’ll need to follow specific procedures to ensure your claim is processed. Many insurance policies require you to contact the insurer immediately after an incident or emergency, provide receipts or documentation, and sometimes seek pre-approval for medical care. Not following the claims process correctly could result in delays or claim denial.

12. Buying Coverage You Don’t Need

Some travel insurance policies come with add-ons or extra features that you may not require. For instance, if you’re traveling domestically, you might not need emergency evacuation coverage, or if your airline already covers lost luggage, you may not need additional baggage insurance. Carefully review your needs and avoid paying for unnecessary extras.

13. Not Comparing Policies

There are many travel insurance providers with varying levels of coverage and benefits. Failing to compare policies can mean missing out on better options in terms of both cost and coverage. Use comparison tools or consult with a travel insurance broker to ensure you’re getting the most suitable policy at the best price.

14. Assuming All Policies Include Evacuation Coverage

Medical evacuations, especially from remote locations or foreign countries, can be extremely expensive. Some travel insurance policies do not include evacuation coverage or provide very low limits. If you’re traveling to a destination with limited medical facilities or participating in activities that might require evacuation, make sure your policy includes sufficient evacuation coverage.

15. Not Verifying the Insurer’s Reputation

All travel insurers are not created equal. Before purchasing a policy, it’s important to check the company’s reputation and customer service reviews. Some companies may have poor claim processing times, unresponsive customer service, or frequent claim denials. Look for reviews and ratings to ensure you’re purchasing from a reputable provider.