Travel insurance and what it actually covers

Travel insurance is bought quickly and read rarely, which is why so many claims are declined for reasons that were stated in the policy.

What a policy typically contains

Emergency medical cover, which is the most important component.

Treatment abroad can be extremely expensive, particularly in the United States, and medical evacuation from a remote location can cost a very large sum.

Repatriation, covering the cost of returning home for treatment or, in the worst case, returning remains.

Cancellation and curtailment, covering prepaid costs if the trip cannot be taken or must be ended early for a covered reason.

Baggage and personal possessions, generally with per-item limits that are lower than people assume.

Travel delay and missed departure, with defined thresholds.

Personal liability, covering damage or injury you cause.

Where claims fail

The exclusions that catch people.

Pre-existing medical conditions, which must generally be declared and which may be excluded or require an additional premium.

Failing to declare a condition can invalidate the entire medical section, not merely claims relating to it.

The definition of a pre-existing condition is broad in most policies and includes conditions under investigation and those for which medication is taken.

Alcohol and drugs. Most policies exclude claims arising when the insured was under the influence, and this is applied to accidents as well as to illness.

This is a common reason for declined claims among younger travellers.

Activities. Standard policies commonly exclude a long list — diving beyond a certain depth or without certification, motorcycling, climbing, skiing off piste, bungee jumping, and others.

Riding a scooter without a valid licence for that vehicle class is a specific and very common exclusion.

Unattended possessions, which invalidates most baggage theft claims where the item was left on a beach, in a vehicle or on a chair.

Failure to report theft to police within a stated period and obtain a report.

Travel against official advice, where a government advisory recommends against travel to the area.

Undeclared destinations, where the policy covers a region and the trip includes somewhere else.

The cover levels that matter

What to check rather than the headline price.

The medical limit, which should be substantial — several million is standard on reputable policies and is not excessive given evacuation costs.

Whether repatriation and evacuation are included and at what limit.

The excess, which is deducted from every claim and which varies enormously.

Per-item and total limits on baggage, and whether valuables require separate declaration.

Whether cancellation cover matches the actual prepaid cost of the trip.

And the definition of covered reasons for cancellation, which is generally a specific list rather than any reason.

Annual versus single trip

Annual multi-trip policies are generally better value for anyone taking more than two trips a year.

They typically limit the length of any single trip, commonly to around a month, which catches people planning a longer journey.

Worth checking the maximum trip duration before assuming coverage.

Credit card and other included cover

Many people have cover they are unaware of.

Several credit cards and packaged bank accounts include travel insurance, generally conditional on paying for the trip with the card.

These vary enormously in quality and frequently have low medical limits, age restrictions and narrow definitions.

Worth reading rather than assuming it is adequate, and worth checking whether it covers everyone travelling.

Making a claim

Practical points that determine outcomes.

Contact the insurer's emergency line before incurring major medical costs where possible, since many policies require pre-authorisation for treatment above a threshold.

Keep every receipt, in original form.

Obtain a police report for any theft, within the time limit specified.

Obtain written confirmation from airlines for delays and cancellations.

Keep medical records and reports from any treatment.

And submit within the deadline, which is generally measured in weeks after return.

General information about travel, not insurance or financial advice. Policy terms vary substantially — read your own policy and consult the insurer about your circumstances.