Top 5 Mistakes People Make When Buying Travel Insurance

Travel insurance is one of those things many people overlook or rush through — until something goes wrong. Whether you’re jetting off on a weekend getaway or embarking on a month-long international adventure, buying the right travel insurance is critical. But if you’re not careful, you could end up with a plan that doesn’t cover what you need — or worse, one that denies your claim when you need it most.

In this guide, we’ll explore the top 5 mistakes people make when buying travel insurance and how you can avoid them to protect your money, health, and peace of mind while traveling.

✅ Why Travel Insurance Matters

Before we dive into the mistakes, let’s be clear: travel insurance is not just for worst-case scenarios. It protects you from common issues like:

• Trip cancellations or interruptions
• Lost or delayed baggage
• Medical emergencies abroad
• Travel delays or missed connections
• Natural disasters or political unrest
• Evacuation and repatriation

When chosen carefully, a travel insurance policy can mean the difference between a manageable inconvenience and a financial nightmare.

⚠️ Mistake #1: Buying the Cheapest Policy Without Reading the Fine Print

💬 “It was the cheapest option on the comparison site.”

We get it — everyone wants to save money. But the cheapest travel insurance plan is often also the most limited in coverage. Travelers who buy solely based on price may end up with:

• Low coverage limits for medical expenses or cancellations
• No coverage for high-risk activities like skiing or scuba diving
• High deductibles
• No coverage for pre-existing conditions

🔍 What to Do Instead:

• Focus on value, not just price. Look for a plan that balances affordability with the right protections for your trip.
• Read the policy details carefully. Know the limits, exclusions, and requirements before you buy.
• Use trusted comparison sites like Squaremouth, InsureMyTrip, or TravelInsurance.com, but go beyond the summary — check the full policy wording.

⚠️ Mistake #2: Waiting Too Long to Purchase Coverage

💬 “I’ll buy it right before the trip — just in case.”

This is one of the most costly mistakes. Many important benefits — such as Cancel for Any Reason (CFAR) or coverage for pre-existing conditions — are only available if you buy your policy within 14 to 21 days of your initial trip deposit.

Delaying your purchase can mean:

• Losing eligibility for pre-existing condition waivers
• Missing out on CFAR coverage
• Being unprotected if something unexpected happens before your departure

🔍 What to Do Instead:

• Buy travel insurance as soon as you make your first trip payment, like a flight or hotel booking.
• This ensures you get full access to time-sensitive benefits and are covered for cancellations that happen before the trip even begins.

⚠️ Mistake #3: Not Insuring the Full Cost of the Trip

💬 “I only insured the flight, not the tours or accommodations.”

Some travelers try to cut costs by under-reporting their trip cost, assuming they’ll only need coverage for big-ticket items. However, many insurers require you to insure 100% of your non-refundable expenses ito

• Qualify for pre-existing condition waivers
• Activate CFAR coverage
• Get full reimbursement for cancellations or interruptions

If you only insure part of your trip, your insurer could reduce or deny your claim entirely.

🔍 What to Do Instead:

• Tally all non-refundable, prepaid expenses, including flights, hotels, tours, cruises, and event tickets.
• Ensure the full amount to ensure you don’t void key benefits.
• If your trip cost changes (e.g., you add a tour), you can usually update your policy amount later.

⚠️ Mistake #4: Assuming You’re Covered for Medical Emergencies Abroad

💬 “I have health insurance — I don’t need more.”

This is a dangerous assumption. Most domestic health insurance plans, including Medicare in the U.S., do not cover medical costs outside your home country, or only offer limited coverage.

Without travel medical insurance, you could be on the hook for:

• Emergency room visits
• Surgery
• Hospital stays
• Medical evacuation (which can cost $50,000+)
• Medications and post-treatment care

Even if your credit card offers travel perks, these often exclude or limit medical coverage.

🔍 What to Do Instead:

• Make sure your policy includes emergency medical and evacuation coverage, especially for international trips.
• Look for at least:
  • $100,000 in emergency medical coverage
  • $250,000+ in evacuation coverage (more if you’re remote or on a cruise)
• If you’re traveling with a chronic condition, ensure your pre-existing condition is covered.

⚠️ Mistake #5: Overlooking Exclusions and Claim Requirements

💬 “I didn’t know that wasn’t covered.”

Many travel insurance claims are denied not because people lied, but because they didn’t understand what was (or wasn’t) covered.

Common exclusions include:

• Traveling against medical advice
• High-risk activities like skydiving, parasailing, or off-trail hiking
• Alcohol- or drug-related incidents
• Civil unrest or traveling to a country with government travel warnings
• Undiagnosed symptoms before purchase

Also, insurers often have specific documentation requirements to process claims:

• Doctor’s notes
• Police reports
• Airline delay notices
• Itemized receipts

Missing any of these can cause delays or denials.

🔍 What to Do Instead:

• Read the list of exclusions carefully before purchasing.
• Contact the insurer if you’re unsure about a destination, activity, or condition.
• Save every receipt and document anything unusual during your trip.
• File your claim promptly (most plans require submission within 20–90 days).

🏆 Bonus Tips: How to Buy Travel Insurance Like a Pro

✅ Use comparison tools — but don’t stop at the summary
✅ Double-check if your credit card already provides some coverage
✅ Opt for “Cancel for Any Reason” if flexibility is important
✅ Ask about COVID-19 coverage (still relevant in many destinations)
✅ Store a digital and printed copy of your policy while traveling
✅ Call your insurer’s 24/7 support if issues arise mid-trip

📦 Recommended Travel Insurance Providers (2025)

Provider	Best For	Key Features
World Nomads	Adventurers	Covers 150+ sports + flexible policies
Allianz Travel	General travelers	Annual plans, strong support
Travelex Insurance	Families	Kids covered free + strong trip protection
IMG	Medical coverage	Great for long-term and remote trips
Seven Corners	Budget + flexibility	Customizable coverage
Tin Leg	Low-cost trips	Excellent value for the money

🧭 Final Thoughts

Travel insurance is your safety net when the unexpected happens. But buying the wrong policy — or failing to understand how it works — can leave you unprotected when it matters most.

By avoiding these top five mistakes, you’ll be smarter, safer, and more confident on your next journey. The key is to buy early, read carefully, and cover what truly matters for your unique trip.

🌍 Travel with peace of mind. Protect your plans, your health, and your wallet — the right way.