Travel insurance explained

By the Viamo editorial team · Editor Terje Moy · Last updated July 2026 · 5 min read

Travel insurance is one of those purchases that feels unnecessary right up until you need it — and then feels entirely necessary for the rest of your life. A good policy covers the costs that could otherwise ruin your trip or leave you with a very large bill: medical emergencies, cancellations, lost bags, and things going wrong in ways you did not anticipate. Here is what travel insurance actually covers, where the gaps tend to be and how to choose a policy that works for you.

Why travel insurance matters

The core reason most people buy travel insurance is medical cover. Healthcare costs vary enormously across the world. In much of Europe, state healthcare is accessible and treatment costs for visitors are manageable. In the United States, a few days in hospital can cost tens of thousands of pounds, euros or dollars — and without insurance, that bill falls on you. Emergency medical evacuation — being flown home if you are seriously ill or injured and cannot travel commercially — costs even more and is not covered by credit cards or airline tickets.

Even within Europe, circumstances change. A health card (EHIC or GHIC for British travellers, or similar national equivalents) covers medically necessary state treatment — but not private hospital costs, not medical repatriation, and not most dental or optical emergencies. Travel insurance fills those gaps.

What a standard policy covers

Policies vary between providers and price points, but most standard travel insurance policies cover some combination of the following:

Medical and emergency cover

• Emergency medical treatment, including hospitalisation.
• Medical evacuation and repatriation home if medically necessary.
• 24-hour emergency helpline — usually the most important practical benefit in a crisis, because the insurer can coordinate with local hospitals and arrange payments directly.

Cancellation and curtailment

• If you need to cancel your trip before departure due to illness, bereavement or other covered reasons, cancellation cover reimburses non-refundable costs.
• Curtailment covers cutting a trip short for similar reasons, reimbursing unused portions of your holiday.

Baggage and personal belongings

• Compensation for lost, stolen or damaged luggage and personal items.
• Usually subject to single-item limits and an overall cap — high-value items (cameras, laptops, jewellery) often need to be listed separately.

Travel delay and missed departure

• Compensation if your flight is delayed beyond a threshold (often 12 or 24 hours) due to covered reasons.
• Cover for missed connections caused by delays, within limits.

Personal liability

• Cover if you accidentally injure someone or damage property while abroad and face a claim against you.

What travel insurance typically does not cover

Understanding the exclusions is as important as understanding the cover:

• Pre-existing medical conditions — most standard policies exclude conditions you had before buying the policy, unless you declare them and pay an additional premium. Always disclose existing conditions; an undisclosed condition can void your entire policy.
• Travelling against medical advice — if a doctor has told you not to travel and you go anyway, any resulting claim is typically excluded.
• Adventure sports and activities — skiing, mountaineering, bungee jumping, motorbiking and many other activities are excluded from standard policies. Specialist activity extensions are available.
• Alcohol and reckless behaviour — claims arising from accidents when intoxicated are routinely excluded.
• Unattended belongings — bags stolen while left unattended in a public place are often not covered.
• Terrorism and civil unrest — cover varies significantly by policy and destination; check the small print if travelling anywhere with elevated risk.
• FCDO/government travel warnings — if your government has advised against all (or all but essential) travel to a destination and you travel anyway, cover is typically void.

Types of policy

The main choices are:

• Single-trip policy: Covers one specific trip. Good for occasional travellers or a once-in-a-while big journey.
• Annual multi-trip policy: Covers unlimited trips within a year, up to a maximum number of days per trip (often 30, 45 or 60 days). Cost-effective if you travel more than two or three times a year.
• Backpacker or long-stay policy: Covers single extended trips of several months. Standard annual policies usually cap individual trips well below a gap-year length.
• Specialist policies: For cruises, winter sports, business travel or high-risk destinations.

Cover levels and what you get for more money

Budget policies tend to have lower coverage limits, higher excesses (the amount you pay before insurance kicks in) and fewer covered reasons for cancellation. Mid-range and premium policies offer higher medical limits, lower excesses, cancellation for more reasons including work reasons, and often cover for gadgets and higher-value items. The medical limit is the most important figure — for travel outside Europe, you want at least £2 million or equivalent in medical cover.

Health cards alongside insurance

British travellers in EU countries can use the GHIC (Global Health Insurance Card) for access to state medical treatment. European residents generally have equivalent national health entitlements through EU coordination rules. These cards are a useful complement to insurance — not a replacement for it. Viamo's EHIC and GHIC guide explains exactly what health cards cover and where they fall short.

When to buy

Buy travel insurance as soon as you book your trip, not just before you leave. The reason: cancellation cover starts from the purchase date. If something goes wrong between booking and departure — illness, bereavement, redundancy — you can only claim on a policy that was already in place. Buying it the night before your flight means you have medical cover but no cancellation cover for the weeks before departure.

Frequently asked questions

Is travel insurance compulsory?

Travel insurance is not a legal requirement for entering most countries. However, a few destinations (including some with visa requirements) ask for proof of adequate medical insurance as a visa condition. Even where it is not required, travelling without cover — particularly outside Europe — carries significant financial risk in the event of a medical emergency.

Will my credit card travel insurance be enough?

Some premium credit cards include travel insurance as a benefit, but the terms vary widely. Check the policy carefully: coverage limits, exclusions, whether it activates automatically or requires payment with that card, and whether pre-existing conditions are covered. Many card-linked policies have lower limits and more exclusions than standalone policies.

Does travel insurance cover COVID-19 or future pandemics?

Cover for pandemic-related issues varies by policy and insurer. Most policies now include some COVID-19 cover — such as medical treatment if you test positive abroad — but cancellation due to pandemic restrictions or government guidance is more variable. Check the specific policy wording.

What should I do if I need to make a claim?

Call your insurer's emergency number as soon as possible in a medical emergency — do not wait until you return home. Keep all receipts, medical reports, police reports (for theft) and any other documentation. Most insurers require claims to be submitted within a specific time after returning home.