Most travellers buy travel insurance the same way they accept cookie consent notices — quickly, without reading, just to get the thing done. Then something goes wrong in Lisbon or Chiang Mai, and they discover the policy they paid for covers almost nothing that happened to them.
The single biggest misunderstanding is what ‘medical coverage’ actually means. Most standard policies cover emergency treatment, but not everything qualifies as an emergency in the insurer’s definition. A serious infection that requires hospitalisation: usually covered. A pre-existing condition that flares up — even a minor, well-managed one like controlled asthma or a past knee injury — often isn’t, unless you specifically declared it and paid extra. Insurers aren’t vague about this by accident.
‘Cancel for Any Reason’ Is Not the Default
Standard trip cancellation cover applies to a narrow list of events: sudden illness, a death in the family, a natural disaster affecting your destination. Changing your mind, a work conflict, a relationship falling apart — none of that. ‘Cancel for any reason’ (CFAR) is a genuine add-on that costs more and typically reimburses only 50–75% of your prepaid costs, not the full amount. If flexibility matters to you, check whether CFAR is even available on the policy you’re looking at before you buy.
Adventure Activities Need Explicit Cover
This one catches people out constantly. Skiing, motorcycling, scuba diving, even hiking above a certain altitude — many standard policies exclude these entirely or cap payouts sharply. If your trip involves anything more physical than walking city streets, look for a policy that lists those activities by name. ‘Adventure sports’ as a category is vague enough that insurers interpret it however suits them.
The Excess Will Surprise You
A €2,000 medical bill sounds well-covered by a policy with €500,000 in medical cover. But if the policy has a €200 or €300 excess per claim, you’re paying that first. Small claims — a doctor’s visit, prescription medication, replacing a stolen phone — often don’t exceed the excess at all, which means you’re effectively uninsured for them.
The more useful habit is reading the policy exclusions page first, not the headline coverage amounts. Insurers are legally required to list what they won’t pay for, and that document tells you more than the marketing copy ever will.
Whether a more expensive, comprehensive policy is always worth it depends on where you’re going and what you’re doing — but that’s a calculation you can only make honestly if you know what the cheap one actually excludes.